SALEM, Ore. – The Oregon Senate on Wednesday passed an update to the Oregon Credit Union Act by a 27-1 vote, making several changes to the state charter.
According to the Northwest CU Association, which represents credit unions in Oregon and Washington, while most changes are viewed as “housekeeping” measures, they will help clarify and streamline some governance processes.
Key features of SB 177 include amending requirements for meetings of board of directors which will permit greater scheduling flexibility. The bill exempts standard mortgage loans to directors or senior managers from the requirement for board approval, while adding additional safeguards regarding loans to directors and senior managers.
SB 177 also increases the limit for loans to and investments in credit union service organizations to 5% of assets from 2% of assets.
As more and more credit unions merge, there has been growing interest in ensuring members have sufficient opportunity to comment on proposed mergers. The legislation clarifies member voting rights for mergers and outlines procedures for members to communicate on a credit union merger.
“We are very pleased to move SB 177 out of the Oregon Senate which such strong bi-partisan support,” said Pam Leavitt, Oregon State Legislative Director for the Northwest Credit Union Association. “We will be working very hard to get this bill scheduled in a House Committee as soon as possible,” she added, noting legislative guidelines mean the bill must be scheduled for a hearing and work session before the end of May.
