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1 STATE OF OKLAHOMA
1
2 2nd Session of the 60th Legislature (2026)
2
3 SENATE BILL 1623 By: Daniels
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to credit unions; amending 6 O.S.
7 2021, Sections 2001, 2001.1, 2002, 2004.1, and 2006,
8 which relate to definitions, Oklahoma State Credit
8 Union Board creation, necessity of certificate, out
9 of state credit union, and succession and powers;
9 defining terms; updating statutory language;
10 requiring certain powers to ensure a competitive
10 charter; requiring applicants to obtain and deposit
11 certain insurance; allowing the Oklahoma State Credit
11 Union Board to prohibit certain organization from
12 providing certain insurance; allowing certain
12 organization to obtain judicial review; updating
13 statutory references; requiring Board to determine
13 certain credit union has obtained certain insurance;
14 allowing certain credit union to make loans to its
14 members with certain flexibility; providing credit
15 unions certain power to receive nonmember deposits if
15 designated as certain credit union; increasing
16 certain limit of certain investments; allowing
16 certain credit unions to invest certain shares,
17 stocks, or member units of certain companies under a
17 certain percentage of net worth of certain credit
18 union; requiring certain credit union remain well
18 capitalized in certain instances; requiring certain
19 credit union to operate in a certain manner in
19 certain instances; requiring certain credit union to
20 receive a certain rating in certain instances;
20 allowing certain credit union to obtain certain
21 designation; allowing certain credit union to engage
21 in certain custody services; providing certain
22 requirements for certain credit unions to engage in
22 certain custody services; allowing certain credit
23 union to provide certain custody services in
23 fiduciary and nonfiduciary capacities; providing
24 certain requirements for certain credit union to
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1 provide services in certain capacities; providing
1 credit union certain authority to manage certain
2 virtual currency; requiring credit union to obtain
2 certain authorization from the Banking Department to
3 provide certain custody services; providing certain
3 requirements for the Department to provide certain
4 authorities; allowing the Department to impose
4 certain conditions on certain authority granted;
5 amending 6 O.S. 2021, Sections 2007 and 2010, which
5 relate to membership and board of directors;
6 prohibiting the Oklahoma State Credit Union Board
6 from considering certain overlap when determining
7 certain approval; requiring the Board to permit
7 certain credit union to add certain category of
8 associations; allowing the Board to permit certain
8 preapproved categories of associations; requiring
9 certain records to be filed with the Bank
9 Commissioner within a certain time frame; allowing
10 certain board of directors and members to receive
10 certain compensation; requiring certain compensations
11 to be disclosed annually in certain report; allowing
11 certain credit union to apply for certain
12 authorities; allowing the Board to authorize certain
12 credit union to engage in certain authorities;
13 requiring the Board to consider abilities of certain
13 credit unions; providing for codification; and
14 providing an effective date.
14
15
15
16
16
17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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18 SECTION 1. AMENDATORY 6 O.S. 2021, Section 2001, is
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19 amended to read as follows:
19
20 Section 2001. As used in this chapter Section 2001 et seq. of
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21 this title:
21
22 1. "Credit union" means a cooperative nonprofit society
22
23 incorporated for the purpose of promoting thrift among its members,
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24
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1 and creating a source of credit for them at legitimate rates of
1
2 interest for provident or productive purposes; and
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3 2. "Credit union organization" means any organization that is
3
4 established primarily to serve the needs of credit unions and whose
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5 business relates to the daily operations of the credit unions served
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6 by such credit union organization;
6
7 3. "Custody services" means the role of a credit union in the
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8 safekeeping and custody of various customer assets;
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9 4. "Paid-in and unimpaired capital and surplus" means, the
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10 balance of all paid-in share accounts and other deposits, less any
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11 loss for which no reserve has been established or which has not been
11
12 charged against undivided earnings, plus the credit balance (or, or
12
13 less the debit balance) balance, of undivided earnings, after all
13
14 losses have been provided for and net earnings or net losses have
14
15 been added thereto or deducted therefrom. Reserves shall not be
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16 considered as a part of surplus;
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17 5. "Qualified private organization" means an insurance company
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18 licensed to do business in this state or an approved share insurance
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19 guarantor; and
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20 6. "Virtual currency" means an electronic representation of
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21 value intended to be used as a medium of exchange, unit of account,
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22 or store of value. Virtual currency is intangible, exists only on
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23 the blockchain or distributed ledger associated with a particular
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24 virtual currency, and does not exist in a physical form. The owner
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1 of virtual currency holds cryptographic keys associated with the
1
2 specific unit of virtual currency to access and utilize it.
2
3 SECTION 2. AMENDATORY 6 O.S. 2021, Section 2001.1, is
3
4 amended to read as follows:
4
5 Section 2001.1. A. There is hereby created the Oklahoma State
5
6 Credit Union Board, which shall consist of five (5) members
6
7 appointed by the Governor. The State Bank Commissioner shall be one
7
8 of the members, and he shall preside as Chairman of the State Credit
8
9 Union Board. One of the other four members shall be a member of a
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10 credit union organized under the laws of this state, and each of the
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11 other three members shall be the officer in charge of operations or
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12 a director of a credit union organized under the laws of this state;
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13 provided, however, one of those three may be from a federal credit
13
14 union. Said four members shall be selected by the Governor, with
14
15 advice and consent of the Senate, from a list of not less than five
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16 (5) names for each member to be appointed submitted by the Oklahoma
16
17 Credit Union League. The members appointed by the Governor shall
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18 serve for terms of four (4), three (3), two (2) and one (1) year,
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19 respectively. Upon the expiration of the terms of the four members
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20 previously appointed by the Governor pursuant to the provisions of
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21 this section, their successors shall be appointed for terms of four
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22 (4) years. If a member of the Oklahoma State Credit Union Board
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23 ceases to hold the qualifications required for the appointment of
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24 such member, then the remaining members shall immediately declare
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1 the office of such member vacant and such member shall cease to be a
1
2 member of the Oklahoma State Credit Union Board. Any vacancy in the
2
3 membership of the State Credit Union Board, caused by other than the
3
4 expiration of a term, shall be filled only for the balance of the
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5 term of the member in whose position the vacancy occurs.
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6 Appointment made to fill a vacancy shall be made by the Governor,
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7 with advice and consent of the Senate, from a list of not less than
7
8 five (5) names submitted by the Oklahoma Credit Union League.
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9 Except as otherwise provided in this section, members shall serve
9
10 until their terms expire or until their successors are appointed and
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11 qualified.
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12 B. Each member of the State Credit Union Board shall be
12
13 entitled to be reimbursed for necessary travel expenses pursuant to
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14 the State Travel Reimbursement Act.
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15 C. The State Banking Department shall provide such clerical,
15
16 technical and legal assistance as the State Credit Union Board may
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17 require.
17
18 D. Powers exercised by the Board shall be executed in a manner
18
19 to ensure a competitive state credit union charter.
19
20 SECTION 3. AMENDATORY 6 O.S. 2021, Section 2002, is
20
21 amended to read as follows:
21
22 Section 2002. (A) A. No credit union organized under the laws
22
23 of this state or any other state shall be permitted to engage in
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24
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Req. No. 2450 Page 5
1 business except on certificate issued by the Bank Commissioner upon
1
2 authority of the Oklahoma State Credit Union Board.
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3 (B) B. The request to establish a credit union under the laws
3
4 of this state shall be set forth in application form and filed with
4
5 the Bank Commissioner. The form of such application shall be
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6 prescribed by the State Credit Union Board and furnished by the Bank
6
7 Commissioner and shall contain such information as the State Credit
7
8 Union Board may require. Any seven or more residents of this state
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9 who desire to form a credit union under the laws of this state shall
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10 subscribe before some person, competent to administer oath, an
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11 organization certificate in triplicate, which shall specifically
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12 state the:
12
13 (1) the name
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14 1. Name of the credit union;
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15 (2) the location
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16 2. Location of the proposed credit union and the territory in
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17 which it will operate;
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18 (3) the purpose
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19 3. Purpose for which it is formed;
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20 (4) the term
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21 4. Purpose for which it is to exist, which may be perpetual or
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22 limited in term;
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23 (5) the number
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24
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1 5. Number of its directors or trustees and the names and
1
2 addresses of such of them as shall serve until the election of
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3 directors or trustees; and
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4 (6) the par
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5 6. Par value of the shares, which shall not exceed One Hundred
5
6 Dollars ($100.00) each, and the authorized stock which shall not
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7 exceed the amount which it is contemplated to be provided for in its
7
8 certificate of incorporation.
8
9 (C) C. With the application, applicants shall file a proposed
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10 certificate of incorporation with the Bank Commissioner prepared in
10
11 accordance with the provisions of the Oklahoma General Corporation
11
12 Act.
12
13 (D) In addition said applicants
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14 D. Applicants shall prepare and adopt bylaws consistent with
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15 the provisions of this act and shall certify to the same in
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16 triplicate. The bylaws of the credit union may provide for the
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17 amendment of the certificate of incorporation of the credit union
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18 upon a vote of two-thirds (2/3) of the members of the board of
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19 directors and the approval of the State Credit Union Board.
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20 E. Applicants shall obtain share and deposit account insurance
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21 from the National Credit Union Administration to the extent provided
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22 by federal law, or from a qualified private organization. The Board
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23 may prohibit a qualified private organization from providing
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24 insurance pursuant to this subsection if the Board finds, after
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Req. No. 2450 Page 7
1 notice and hearing, that the organization lacks the resources or
1
2 bylaws to adequately protect accounts of credit unions in this
2
3 state. A qualified private organization that is prohibited by the
3
4 Board from providing insurance may obtain judicial review in
4
5 accordance with Section 318 of Title 75 of the Oklahoma Statutes.
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6 (E) F. The request of a credit union organized under the laws
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7 of a state other than this state to do business in Oklahoma this
7
8 state shall be made in accordance with the provisions of Section 6
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9 2004.1 of this act title.
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10 SECTION 4. AMENDATORY 6 O.S. 2021, Section 2004.1, is
10
11 amended to read as follows:
11
12 Section 2004.1. (A) A. A credit union not organized under the
12
13 laws of this state or of the United States of America may conduct
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14 business as a credit union in this state only with the approval of
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15 the Oklahoma State Credit Union Board and upon receiving a
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16 certificate from the Secretary of State in compliance with Section
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17 1130 of Title 18 of the Oklahoma Statutes, provided credit unions
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18 incorporated under the laws of this state are allowed to conduct
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19 business in another state under conditions similar to these
19
20 provisions. Before granting the approval, the State Credit Union
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21 Board must find shall determine that the out-of-state credit union:
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22 (1) 1. Is a credit union organized under laws similar to the
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23 laws of this state;
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24 (2) 2. Is financially solvent;
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1 (3) 3. Has share and deposit account insurance with the
1
2 National Credit Union Administration to the extent provided by
2
3 federal law;
3
4 (4) 4. Is examined and supervised by a regulatory agency of the
4
5 state in which it is organized;
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6 (5) 5. Needs to conduct business in this state to adequately
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7 serve its members in this state;
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8 6. Has share and deposit account insurance in accordance with
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9 subsection C of this section; and
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10 (6) 7. Does not have a field of membership that will materially
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11 and substantially overlap the field of membership of a credit union
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12 organized under the laws of this state or permitted to conduct
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13 business in this state.
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14 (B) B. No credit union organized under the laws of a state
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15 other than this state may conduct business in this state unless:
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16 (1) 1. Such credit union charges interest in compliance with
16
17 the laws of this state when making loans in this state;
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18 (2) 2. Such credit union complies with the consumer protection
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19 statutes and rules applicable to credit unions incorporated or
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20 organized under the laws of this state; and
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21 (3) 3. Such credit union's most recent report of examination by
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22 its regulatory agency is furnished to the Administrator or such
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23 credit union agrees to submit to an examination by the Bank
23
24 Commissioner or Administrator.
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1 (C) C. To authorize an out-of-state credit union to operate in
1
2 this state, the Board shall determine that such credit union has
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3 obtained share and deposit account insurance from the National
3
4 Credit Union Administration to the extent required by federal law,
4
5 or from a qualified private organization. The Board may prohibit a
5
6 qualified private organization from providing insurance pursuant to
6
7 this subsection if the Board finds, after notice and hearing, that
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8 the organization lacks the resources or bylaws to adequately protect
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9 accounts of credit unions in this state. A qualified private
9
10 organization that is prohibited by the Board may obtain judicial
10
11 review in accordance with Section 318 of Title 75 of the Oklahoma
11
12 Statutes.
12
13 D. The State Credit Union Board may revoke the approval of a
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14 credit union to conduct business in this state if it finds that:
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15 (1) 1. The credit union no longer meets the requirements of
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16 subsection (A) A of this section;
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17 (2) 2. The credit union has violated the laws of this state or
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18 lawful rules or orders issued by the State Credit Union Board or the
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19 Bank Commissioner;
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20 (3) 3. The credit union has engaged in a pattern of unsafe or
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21 unsound credit union practices; or
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22 (4) 4. Continued operation by the credit union is likely to
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23 have a substantially adverse impact on the financial, economic or
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24 other interests of residents of this state.
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1 (D) E. In the event of revocation as provided in subsection (C)
1
2 D of this section, the Secretary of State shall cancel the
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3 certificate of domestication of the credit union.
3
4 SECTION 5. AMENDATORY 6 O.S. 2021, Section 2006, is
4
5 amended to read as follows:
5
6 Section 2006. A credit union shall have succession in its
6
7 corporate name during its existence and shall have power:
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8 1. To make contracts;
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9 2. To sue and be sued;
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10 3. To adopt and use a common seal and alter the same at
10
11 pleasure;
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12 4. To purchase, lease, own, hold, and dispose of any real
12
13 estate, buildings, fixtures, equipment, furniture and furnishings
13
14 necessary, incidental and convenient to the operation of the credit
14
15 union, the aggregate book value of which shall not exceed seven
15
16 percent (7%) of the total assets of the credit union, unless
16
17 otherwise specifically approved by the State Credit Union Board. A
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18 credit union may lease to any tenants as the credit union deems
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19 appropriate any portion of the facilities or premises of the credit
19
20 union which are not utilized in the conduct of the business of the
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21 credit union;
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22 5. To make loans to its members for provident or productive
22
23 purposes with at least as much flexibility as permitted by federally
23
24 chartered credit unions so as to ensure a competitive state charter,
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Req. No. 2450 Page 11
1 the maturities of which shall not exceed fifteen (15) years, except
1
2 as otherwise provided herein and except as otherwise approved by the
2
3 State Credit Union Board or the National Credit Union
3
4 Administration, and extend lines of credit to its members, to other
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5 credit unions and to credit union organizations and to participate
5
6 with other credit unions, credit union organizations or financial
6
7 organizations in making loans to credit union members, other credit
7
8 unions and credit union organizations in accordance with the
8
9 following:
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10 a. loans to credit union members shall be made in
10
11 conformity with criteria established by the board of
11
12 directors of the lending credit union; provided that:
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13 (1) a real estate loan secured by a first mortgage
13
14 lien may have a maturity not exceeding thirty
14
15 (30) years or any longer term which may be
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16 authorized by the State Credit Union Board,
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17 (2) a loan to finance a manufactured home, which
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18 shall be secured by a first lien on such
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19 manufactured home, or a second mortgage loan
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20 secured by a dwelling, shall have a maturity not
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21 exceeding fifteen (15) years or any longer term
21
22 which may be allowed by the State Credit Union
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23 Board,
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24
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1 (3) a loan secured by the insurance or guarantee of,
1
2 or with advance commitment to purchase the loan
2
3 by, a state or federal governmental agency may be
3
4 made for the maturity and under the terms and
4
5 conditions specified in the state or federal law
5
6 under which such insurance, guarantee or
6
7 commitment is provided,
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8 (4) a loan or aggregate of loans to a director or to
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9 a member of the supervisory committee or the
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10 credit committee or the credit manager of the
10
11 lending credit union which exceeds Sixty Thousand
11
12 Dollars ($60,000.00) plus the amount of any
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13 pledged shares, shall be approved by the board of
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14 directors of the lending credit union, and
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15 (5) loans to credit union members for which any
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16 director of the lending credit union or any
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17 member of the supervisory committee or credit
17
18 committee or the credit manager of the lending
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19 credit union acts as a guarantor or endorser
19
20 shall be approved by the board of directors of
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21 the lending credit union when such loan, either
21
22 standing alone or when added to any outstanding
22
23 loan or loans of the guarantor or endorser,
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24
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Req. No. 2450 Page 13
1 exceeds Sixty Thousand Dollars ($60,000.00) plus
1
2 the amount of any pledged shares,
2
3 b. loans to credit union members and other eligible
3
4 borrowers shall be made in accordance with and shall
4
5 be paid or amortized in accordance with any rules or
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6 regulations as may be prescribed and adopted from time
6
7 to time by the State Credit Union Board, after taking
7
8 into account the needs or conditions of the borrowers,
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9 the amounts and duration of the loans, the interests
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10 of the members and the credit unions and such other
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11 factors as the State Credit Union Board may deem
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12 relevant,
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13 c. unless approval by the board of directors of the
13
14 lending credit union is otherwise expressly required
14
15 herein, loans to credit union members and other
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16 eligible borrowers shall be approved by the credit
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17 committee or by a loan officer of the lending credit
17
18 union in accordance with criteria established by the
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19 board of directors,
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20 d. no loan or line of credit may be made to or
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21 established for a credit union member if the amount of
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22 such loan or line of credit, when aggregated with all
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23 other outstanding loans and lines of credit made to or
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24 established for such credit union member, will cause
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Req. No. 2450 Page 14
1 the credit union member to be indebted to the lending
1
2 credit union in an amount exceeding six percent (6%)
2
3 of the greater of either (i) the paid-in and
3
4 unimpaired capital and surplus of the lending credit
4
5 union or (ii) an amount which is six percent (6%) of
5
6 the total assets of the lending credit union,
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7 e. a self-replenishing line of credit may be established
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8 by a credit union for any eligible borrower to a
8
9 stated maximum amount on terms and conditions which
9
10 may differ from the terms and conditions established
10
11 for other eligible borrowers,
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12 f. loans to other credit unions shall be approved by the
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13 board of directors of the lending credit union and
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14 shall not exceed twenty-five percent (25%) of the
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15 paid-in and unimpaired capital and surplus of the
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16 lending credit union,
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17 g. loans to credit union organizations shall be approved
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18 by the board of directors of the lending credit union
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19 and shall not exceed one percent (1%) of the paid-in
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20 and unimpaired capital and surplus of the lending
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21 credit union, except as otherwise approved by the
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22 State Credit Union Board. A "credit union
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23 organization" means any organization which is
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24 established primarily to serve the needs of credit
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Req. No. 2450 Page 15
1 unions and whose business relates to the daily
1
2 operations of the credit unions served by such credit
2
3 union organization,
3
4 h. participation loans with other credit unions, credit
4
5 union organizations or other financial organizations
5
6 shall be in accordance with written policies adopted
6
7 by the board of directors of the lending credit union
7
8 and shall be approved by the board of directors of the
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9 lending credit union. However, a credit union which
9
10 that originates a loan for which participation
10
11 arrangements are made in accordance with this
11
12 subsection shall retain an interest of at least ten
12
13 percent (10%) of the face amount of such loan,
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14 i. a credit union may participate in any guaranteed loan
14
15 program of the federal government or of this state
15
16 under the terms and conditions specified in the laws
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17 under which such program is provided,
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18 j. a credit union may finance for any person, whether or
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19 not such person is a member of the credit union, the
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20 purchase from the credit union of any real or personal
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21 property owned and held by the credit union, including
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22 any property obtained by the credit union as a result
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23 of defaults in obligations owed to the credit union,
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24 and
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Req. No. 2450 Page 16
1 k. a credit union may make loans to its officers and
1
2 directors and to members of its supervisory and credit
2
3 committees. However, such loans shall not be made on
3
4 terms more favorable than those extended to other
4
5 members of the credit union. A credit union may
5
6 permit officers, directors and members of its
6
7 supervisory and credit committees to act as co-makers,
7
8 guarantors or endorsers of loans to other credit union
8
9 members;
9
10 6. To receive from its members, and other credit unions, state
10
11 and federal, doing business in the United States of America,
11
12 payments on shares and deposits, and to require such notice for
12
13 withdrawal of shares and deposits as the bylaws may provide, and to
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14 receive nonmember deposits from any source if designated as a low-
14
15 income credit union;
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16 7. To amend its bylaws in the manner provided by the bylaws,
16
17 but all. All amendments to the bylaws must shall be submitted to
17
18 and approved by the State Credit Union Board before they become
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19 operative;
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20 8. To invest its funds in accordance with the following:
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21 a. investments shall be made in conformity with criteria
21
22 established by the board of directors of the credit
22
23 union and in accordance with any rules or regulations
23
24
24
Req. No. 2450 Page 17
1 as may be prescribed and adopted from time to time by
1
2 the State Credit Union Board, and
2
3 b. the following investments shall be authorized for
3
4 credit unions:
4
5 (1) loans to credit union members and other loans
5
6 authorized for credit unions under the laws of
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7 this state,
7
8 (2) obligations of the United States of America and
8
9 obligations fully guaranteed as to principal and
9
10 interest by any instrumentality or agency of the
10
11 United States of America,
11
12 (3) general obligations and revenue obligations of
12
13 any state or any political subdivision thereof;
13
14 provided the aggregate of such investments shall
14
15 not exceed ten percent (10%) of the paid-in and
15
16 unimpaired capital and surplus of the credit
16
17 union; and provided that such investments shall
17
18 be limited to obligations rated among the three
18
19 highest rating categories established by one or
19
20 more national rating services for governmental
20
21 obligations,
21
22 (4) obligations issued by banks for cooperatives,
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23 federal land banks, federal intermediate credit
23
24 banks, federal home loan banks, the Federal Home
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Req. No. 2450 Page 18
1 Loan Bank Board or any corporation designated by
1
2 federal law as a wholly owned government
2
3 corporation, or obligations, participations or
3
4 other instruments of or issued by, or fully
4
5 guaranteed as to principal and interest by, the
5
6 Federal National Mortgage Association or the
6
7 Government National Mortgage Association, or in
7
8 mortgages, obligations or other securities which
8
9 are or ever have been sold by the Federal Home
9
10 Loan Mortgage Corporation pursuant to the Federal
10
11 Home Loan Mortgage Corporation Act, or in other
11
12 obligations or other instruments or securities of
12
13 the Student Loan Marketing Association, or
13
14 obligations, participations, securities or other
14
15 instruments of or issued by or fully guaranteed
15
16 as to principal and interest by any other agency
16
17 of the United States of America,
17
18 (5) shares of, deposits with or loans to other
18
19 federally insured credit unions in a total
19
20 amount, in either case, not exceeding twenty-five
20
21 percent (25%) of the paid-in and unimpaired
21
22 capital and surplus of the investing credit
22
23 union,
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24
24
Req. No. 2450 Page 19
1 (6) shares of, or accounts or deposits with any state
1
2 or federal banks, mutual savings banks and
2
3 savings and loan associations, the accounts of
3
4 which are insured by an agency of the federal
4
5 government,
5
6 (7) shares of, deposits with or loans to any Federal
6
7 Reserve Bank or any central liquidity facility
7
8 established under state or federal law,
8
9 (8) shares of, deposits with or loans to any central
9
10 credit union or corporate credit union organized
10
11 under state or federal law,
11
12 (9) shares of, deposits with or loans to any
12
13 organization, corporation or association
13
14 providing services associated with the general
14
15 purposes of the investing credit union or
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16 engaging in activities incidental to the
16
17 operations of any credit union; provided that
17
18 such investments in the aggregate may not exceed
18
19 one percent (1%) six percent (6%) of the
19
20 unimpaired capital and surplus of the investing
20
21 credit union,
21
22 (10) any obligations or securities authorized for
22
23 investment by federal credit unions under the
23
24 laws of the United States of America. However,
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Req. No. 2450 Page 20
1 such Such investments shall be in compliance with
1
2 any restrictions or limitations pertaining
2
3 thereto under the laws of the United States of
3
4 America or under the regulations of the National
4
5 Credit Union Administration,
5
6 (11) money market funds rated among the three highest
6
7 rating categories established by one or more
7
8 national rating services for corporate or
8
9 governmental securities,
9
10 (12) shares of mutual funds if the investments and
10
11 investment transactions of the fund are
11
12 authorized for credit unions under the laws of
12
13 this state, or
13
14 (13) such other investments or types of investments as
14
15 may be authorized from time to time by the State
15
16 Credit Union Board; provided that the State
16
17 Credit Union Board shall not be permitted under
17
18 this specific grant of authority to authorize a
18
19 credit union to purchase or own real estate
19
20 solely for investment purposes, or
20
21 (14) shares, stocks, or member units of financial
21
22 technology companies in a total amount not
22
23 exceeding two and one-half percent (2 1/2%) of
23
24
24
Req. No. 2450 Page 21
1 the net worth of the credit union so long as the
1
2 credit union:
2
3 (a) would remain well capitalized pursuant to 12
3
4 C.F.R., Section 702.102 if the credit union
4
5 reduced its net worth by the full investment
5
6 amount at the time the investment is made or
6
7 at any point during the time the investment
7
8 is held by the credit union,
8
9 (b) and the financial technology company are
9
10 operated in a manner that demonstrates to
10
11 the public the separate corporate existence
11
12 of the credit of the credit union and
12
13 financial technology company, and
13
14 (c) has received a composite rating of 1 or 2
14
15 under the CAMELS supervisory rating system;
15
16 9. To make deposits in national banks and in state banks, trust
16
17 companies, savings and loan associations, and credit unions
17
18 organized under the laws of this state, any other state, or the
18
19 United States of America, operating in accordance with the laws of
19
20 the State of Oklahoma this state, or of the laws of the United
20
21 States of America and approved by State Credit Union Board as
21
22 depositories;
22
23 10. To borrow, from any source, in an aggregate amount not
23
24 exceeding fifty percent (50%) of its shares, deposits and undivided
24
Req. No. 2450 Page 22
1 earnings; such borrowed money may be borrowed either by means of
1
2 bills payable or through rediscounts of its negotiable instruments,
2
3 and credit unions may pledge their assets as collateral securities
3
4 therefor;
4
5 11. To fine members, in accordance with the bylaws, for failure
5
6 to meet their obligations promptly to their credit union;
6
7 12. To impress and enforce a lien upon the shares, deposits,
7
8 dividends, and interest of any member to the extent of any loan made
8
9 to the member or endorsed by the member and any interest or fines
9
10 payable by the member;
10
11 13. To charge an entrance fee as provided in the bylaws;
11
12 14. To hire clerical help;
12
13 15. To become the owner and lessor of personal property upon
13
14 the specific request of and for the use of a member. A credit union
14
15 may only purchase the personal property to be leased after it has
15
16 completed a leasing arrangement with a member. Except upon the
16
17 written approval of the Commissioner, the term of the lease shall in
17
18 no event exceed ten (10) years and all such leases shall provide for
18
19 the payment of regularly scheduled periodic payments, the total of
19
20 which shall at least equal the cost to the credit union of the
20
21 personal property so leased. The total investment by a credit union
21
22 for benefit of any member, combined with all other obligations of
22
23 such member to the credit union, shall at no time exceed six percent
23
24 (6%) of the greater of either (i) the paid-in and unimpaired capital
24
Req. No. 2450 Page 23
1 and surplus of the credit union or (ii) an amount which is six
1
2 percent (6%) of the total assets of the credit union; and
2
3 16. To exercise such incidental powers as shall be necessary or
3
4 requisite to enable it to carry on effectively the business for
4
5 which it is incorporated;
5
6 17. To obtain a designation of low-income status as established
6
7 by the National Credit Union Administration; and
7
8 18. To engage in virtual currency custody services pursuant to
8
9 Section 6 of this act.
9
10 SECTION 6. NEW LAW A new section of law to be codified
10
11 in the Oklahoma Statutes as Section 2006.1 of Title 6, unless there
11
12 is created a duplication in numbering, reads as follows:
12
13 A. A credit union may provide its customers with virtual
13
14 currency custody services. If a credit union engages in virtual
14
15 currency custody services, it shall:
15
16 1. Examine the risks of offering such services through a
16
17 methodical self-assessment process prior to offering virtual
17
18 currency custody services;
18
19 2. Ensure adequate protocols are in place to effectively manage
19
20 risks and comply with all state and federal laws;
20
21 3. Implement effective risk management systems and controls to
21
22 measure, monitor, and control relevant risks associated with virtual
22
23 currency custody services;
23
24 4. Obtain adequate insurance coverage; and
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Req. No. 2450 Page 24
1 5. Maintain a service provider oversight program, to the extent
1
2 that the credit union engages with a service provider to provide
2
3 virtual currency custody services, to address risks to service
3
4 provider relationships as a result of engaging in virtual currency
4
5 custody services.
5
6 B. A credit union may provide virtual currency custody services
6
7 in a fiduciary or nonfiduciary capacity. In providing such services
7
8 in a nonfiduciary capacity, the credit union shall act as a bailee,
8
9 taking possession of the customer's virtual currency asset for
9
10 safekeeping while legal title remains with the customer, such that
10
11 the customer retains direct control over the key associated with his
11
12 or her virtual currency. In providing such services in a fiduciary
12
13 capacity, the credit union shall obtain approval from the Banking
13
14 Department pursuant to subsection C of this section. The credit
14
15 union shall receive control of the customer's virtual currency, and
15
16 new private keys shall be created to be held by the credit union.
16
17 If approved by the Department to provide virtual currency custody
17
18 services in a fiduciary capacity, the credit union shall have the
18
19 authority to manage virtual currency assets as it would any other
19
20 type of asset held in such capacity.
20
21 C. No credit union shall provide virtual currency custody
21
22 services in a fiduciary capacity without obtaining authorization
22
23 from the Department. The Department shall grant authority if it
23
24 finds that the credit union has satisfied the following:
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Req. No. 2450 Page 25
1 1. The credit union's capital structure is sufficiently strong
1
2 to support the undertaking to provide virtual currency custody
2
3 services;
3
4 2. The personnel who will direct the virtual currency custody
4
5 services have adequate experience, training, and sufficient
5
6 resources to ensure compliance with state or federal laws and
6
7 regulations and to protect the operations of the credit union; and
7
8 3. Granting such authority to the credit union is in the public
8
9 interest.
9
10 D. The Department may impose conditions on the authority
10
11 granted to any credit union pursuant to subsection C of this section
11
12 and may suspend or revoke such authority if it finds that the credit
12
13 union has failed to comply with federal or state laws or regulations
13
14 applicable to virtual currency custody services or any existing
14
15 conditions imposed by the Department or if the services are
15
16 otherwise being provided in an unsafe or unsound manner.
16
17 SECTION 7. AMENDATORY 6 O.S. 2021, Section 2007, is
17
18 amended to read as follows:
18
19 Section 2007. A. Credit union membership shall consist of the
19
20 incorporators, and such other persons and incorporated and
20
21 unincorporated organizations and their employees, as may be elected
21
22 to membership. Each member shall subscribe to at least one share of
22
23 the credit union's stock and pay the entrance fee. Credit union
23
24 membership shall be limited to groups having a common bond of
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Req. No. 2450 Page 26
1 occupation or association, which shall be limited to one of the
1
2 following categories:
2
3 1. Groups that have the same common bond of occupation or
3
4 association;
4
5 2. Persons or organizations within a well-defined community,
5
6 neighborhood or rural district; or
6
7 3. Groups which have, as to each individual group, a common
7
8 bond of occupation or association, but, as to all such groups, need
8
9 not have the same common bond of occupation or association as other
9
10 groups within the credit union.
10
11 B. The Oklahoma State Credit Union Board shall not consider
11
12 overlap in determining approval of a proposed field of membership
12
13 for a credit union chartered by this state.
13
14 C. The Board shall permit a credit union charted by this state
14
15 to add any category of associations as is preapproved by the
15
16 National Credit Union Administration and may designate other
16
17 preapproved categories of associations or persons eligible for
17
18 membership including, but not limited to, persons with income at or
18
19 below one hundred fifty percent (150%) of the United States
19
20 Department of Health and Human Services Poverty Guidelines.
20
21 D. A central credit union may be organized to which members of
21
22 existing credit unions operating in accordance with the law of the
22
23 State of Oklahoma this state, or of the United States of America,
23
24 may belong, and to which credit unions organized and operating under
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Req. No. 2450 Page 27
1 the State of Oklahoma this state or of the United States of America
1
2 may also belong.
2
3 SECTION 8. AMENDATORY 6 O.S. 2021, Section 2010, is
3
4 amended to read as follows:
4
5 Section 2010. A. 1. The business affairs of a credit union
5
6 shall be managed by a board of not less than seven (7) members,
6
7 elected by the members of the credit union, from their number, at
7
8 their annual meeting, the organizational meeting being the first
8
9 annual meeting, and to hold office for such terms as the bylaws may
9
10 provide.
10
11 2. The bylaws of a credit union shall not prevent or restrict a
11
12 member from serving as a director, unless such member has been, or
12
13 is later, convicted of a crime involving dishonesty or breach of
13
14 trust.
14
15 3. A record of names and addresses of the board of directors
15
16 and the respective committees and officers shall be filed with the
16
17 Bank Commissioner within ten (10) days after their election. No
17
18 member of the board of directors shall, as such, be compensated, but
18
19 the officers elected by the board of directors and the members of
19
20 the credit and supervisory committees may receive such compensation
20
21 for services performed as the board shall, by resolution, authorize.
21
22 4. The board of directors shall meet at least once a month,
22
23 unless permitted by the Bank Commissioner to meet less often, and
23
24 shall have the general direction and control of the affairs of the
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Req. No. 2450 Page 28
1 corporation. The minutes of all such meetings shall be kept. Among
1
2 other things they shall act upon applications for membership.
2
3 5. The board shall also:
3
4 a. declare dividends and determine rates of interest on
4
5 deposits,
5
6 b. fill vacancies in the board and in the credit
6
7 committee until successors elected at the next annual
7
8 meeting have qualified,
8
9 c. authorize investment of credit union funds other than
9
10 loans to members,
10
11 d. determine from time to time the maximum number of
11
12 shares and deposits that will be accepted from a
12
13 member in any calendar month not inconsistent with the
13
14 bylaws, and
14
15 e. subject to limitations of this act, determine the
15
16 interest rates on loans and the maximum amount that
16
17 may be loaned with and without security to any member,
17
18 and determine the rate of interest refund, if any, to
18
19 be made to members.
19
20 A majority of the board may, however, agree to exclude
20
21 loans made at rates of interest lower than the basic rate
21
22 of the credit union and may also exclude loans where
22
23 payments are in arrears from participation in such
23
24
24
Req. No. 2450 Page 29
1 interest rebates. All other loans shall participate at
1
2 the same rate of rebate.
2
3 6. The State Credit Union Board may, by approval of
3
4 implementing amendments to the bylaws of a credit union, authorize
4
5 the delegation of specific powers by the board of directors of the
5
6 credit union to an executive committee of the board of designated
6
7 officers of the credit union. However, the delegation of any power
7
8 by the board of directors, as authorized, shall not relieve the
8
9 board of any existing duty or obligation for the proper exercise of
9
10 the delegated power.
10
11 B. 1. At their first meeting, after the annual meeting of the
11
12 members, the directors shall elect from their number an executive
12
13 officer, who may be designated as chairman of the board or
13
14 president, a vice-chairman of the board or a vice-president, a
14
15 secretary, and a treasurer, who shall be the executive officers of
15
16 the corporation. The secretary and the treasurer may be the same
16
17 person. The duties of the officers shall be determined by the
17
18 bylaws.
18
19 2. The board of directors may employ an officer in charge of
19
20 operations, whose title shall be either president and/or general
20
21 manager or, in lieu thereof, the board of directors may designate
21
22 the treasurer or an assistant treasurer, to act as general manager
22
23 and be in active charge of the affairs of the credit union. Each
23
24 active officer and employee of a credit union shall, before entering
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Req. No. 2450 Page 30
1 upon their duties, make and give a bond to the credit union,
1
2 executed by a surety company, in an amount fixed by the State Credit
2
3 Union Board, for the protection of the credit union against the
3
4 fraud or dishonesty of each active officer or employee of the credit
4
5 union. When the bond has been executed it shall be filed with the
5
6 Bank Commissioner.
6
7 3. The board of directors may appoint a membership officer and
7
8 delegate to the officer the power to approve or disapprove all
8
9 membership applications. The membership officer may not be the
9
10 treasurer or assistant treasurer. Once appointed, the membership
10
11 officer shall submit to the board of directors a list of approved or
11
12 pending applications for membership at each regular meeting of the
12
13 board of directors.
13
14 C. 1. A credit committee of not less than three members shall
14
15 be either elected by the members or appointed by the board of
15
16 directors, from the membership of the credit union, at the annual
16
17 meeting of the members, or at the first meeting of the board of
17
18 directors after the annual meeting of the members, as the bylaws may
18
19 provide. Members of the credit committee shall hold office for such
19
20 terms as specified in the bylaws. In lieu of a credit committee, a
20
21 credit manager may be appointed by the board of directors, if the
21
22 bylaws so provide. The credit manager shall be an officer of the
22
23 credit union.
23
24
24
Req. No. 2450 Page 31
1 2. A credit committee, or if the bylaws so provide, a credit
1
2 manager, shall have the general supervision of all loans to members.
2
3 It shall be the duty of the credit committee, or if applicable, the
3
4 credit manager, to provide for the review of all applications for
4
5 loans, to ascertain whether or not such loan would benefit the
5
6 applicant, and to determine whether or not the security offered, in
6
7 the judgment of the credit committee or the credit manager, is
7
8 sufficient and the terms proper. If the loans of the credit union
8
9 are supervised by a credit committee, the credit committee shall
9
10 meet as often as may be required after due notice has been given to
10
11 each member thereof, but not less than once a month, and shall keep
11
12 a record of all meetings.
12
13 3. The credit committee, or the credit manager, shall make a
13
14 report to the members at the annual meeting.
14
15 4. To facilitate the work of the credit committee or the credit
15
16 manager, the credit committee or the credit manager, whichever is
16
17 applicable, may appoint one or more loan officers and assistants, as
17
18 may be necessary. Loan officers shall act under the direction of
18
19 the credit committee or the credit manager and may approve or
19
20 disapprove loans, but only within written rules and regulations
20
21 established by the credit committee or the credit manager. A record
21
22 of loans approved by each loan officer shall be made available upon
22
23 request to the credit committee or the credit manager.
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24
24
Req. No. 2450 Page 32
1 D. 1. The supervisory committee shall be appointed by the
1
2 board of directors unless otherwise provided in the bylaws. One
2
3 director may be appointed or elected to the supervisory committee,
3
4 but not the treasurer.
4
5 2. The supervisory committee shall make a semiannual
5
6 examination of the affairs of the credit union, including an audit
6
7 of its books; and shall make an annual audit and a report to be
7
8 submitted at the annual meeting of the corporation. However, if the
8
9 supervisory committee, with the approval of the board of directors,
9
10 employs an auditor approved by the State Credit Union Board, a
10
11 licensed public accountant or a certified public accountant to
11
12 perform an annual audit of the affairs and books of the credit
12
13 union, such annual audit by the outside auditor shall constitute
13
14 full compliance with this subsection.
14
15 3. A record of names and addresses of the board of directors
15
16 and the respective committees and officers shall be filed with the
16
17 Commissioner within ten (10) days after their election. The board
17
18 of directors and the members of the credit and supervisory
18
19 committees may receive compensation for services performed as the
19
20 Board shall authorize by resolution. Such compensation shall be
20
21 disclosed annually to the membership as a part of the credit union's
21
22 report.
22
23
23
24
24
Req. No. 2450 Page 33
1 4. The supervisory committee shall make a report of any audit
1
2 it causes to be conducted of the credit union at the annual meeting
2
3 of the credit union.
3
4 4. 5. By a unanimous vote, the supervisory committee may
4
5 suspend any officer of the corporation, including the credit
5
6 manager, or any member of the credit committee or of the board of
6
7 directors until the next members' meeting, which meeting, however,
7
8 shall be held within fourteen (14) days of the suspension and at
8
9 which meeting the suspension shall be acted upon by the members;
9
10 and, by a majority vote, may call a special meeting of the
10
11 shareholders to consider any violation of this law, the charter, or
11
12 of the bylaws, or any practice of the corporation deemed by the
12
13 committee to be unsafe or unauthorized. The board of directors
13
14 shall fill vacancies on the supervisory committee.
14
15 5. 6. The supervisory committee shall in such manner as it
15
16 deems advisable cause the accounts of the members to be verified
16
17 with the records of the treasurer from time to time and not less
17
18 frequently than once every two (2) years.
18
19 6. 7. The supervisory committee shall meet as often as
19
20 necessary to conduct the business of the supervisory committee and
20
21 at such other times as the Commissioner may prescribe. Minutes of
21
22 all such meetings shall be kept.
22
23
23
24
24
Req. No. 2450 Page 34
1 7. 8. No member of the supervisory committee may be excluded
1
2 from attending the meetings of the board of directors of the credit
2
3 union.
3
4 SECTION 9. NEW LAW A new section of law to be codified
4
5 in the Oklahoma Statutes as Section 2023.1 of Title 6, unless there
5
6 is created a duplication in numbering, reads as follows:
6
7 A credit union chartered under state law may apply for authority
7
8 to exercise powers not specifically authorized by this act. The
8
9 Oklahoma State Credit Union Board may authorize a credit union to
9
10 engage in the powers requested if it finds that those powers are
10
11 appropriate and necessary to compete with other providers of
11
12 financial services in this state. The Board shall consider the
12
13 ability of the credit union to exercise the additional powers in a
13
14 safe and sound manner and the powers of competing entities providing
14
15 financial services.
15
16 SECTION 10. This act shall become effective November 1, 2026.
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17
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Req. No. 2450 Page 35Every fact on this page links to its source, starting with the official bill record.