Bill Text: OR SB520 | 2013 | Regular Session | Enrolled
Bill Title: Relating to credit unions.
Spectrum: Committee Bill
Status: (Passed) 2013-07-02 - Effective date, January 1, 2014. [SB520 Detail]
Download: Oregon-2013-SB520-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 520
Sponsored by COMMITTEE ON GENERAL GOVERNMENT, CONSUMER AND SMALL
BUSINESS PROTECTION
CHAPTER ................
AN ACT
Relating to credit unions; amending ORS 181.871, 723.122,
723.156, 723.276, 723.296, 723.326, 723.512 and 723.840; and
repealing ORS 723.332.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 723.122 is amended to read:
723.122. (1) A credit union shall obtain and maintain a
fidelity bond or irrevocable letter of credit issued by an
insured institution, as defined in ORS 706.008, that includes
coverage in accordance with rules of the Director of the
Department of Consumer and Business Services, to protect the
credit union against losses caused by occurrences such as fraud,
dishonesty, forgery, embezzlement, misappropriation,
misapplication of duty and all acts of agents, directors,
officers, committee members, employees or attorneys of the credit
union. The minimum amount of the bond or letter of credit is
based on the amount of the credit union's total assets in
accordance with the following table:
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
{ +
Total + }
Assets Minimum Amount
of Bond
or Letter of Credit
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
Enrolled Senate Bill 520 (SB 520-A) Page 1
_______________________________________________________________
$0 to $4,000,000 $250,000 or
coverage equal
to the credit
union's { +
total + }
assets,
whichever is less.
$4,000,001 to $50,000,000$100,000 plus
$50,000 for each
$1,000,000 { +
of total assets + }
or
fraction { -
thereof - }
{ +
of total assets + }
{ +
over $1,000,000 + }
.
$50,000,001 to $500,000,000$2,550,000 plus
$10,000 for each
$1,000,000 { +
of total assets + }
or
fraction { -
thereof - }
{ +
of total assets + }
over { -
$1,000,000 - }
{ +
$50,000,000 + }
,
with a maximum of
$5,000,000.
More than $500,000,0001% of the credit
union's { +
total + }
assets
rounded to the
nearest { -
$1,000,000 - }
{ +
$100,000,000 + }
,
with a maximum
of $9,000,000.
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
Enrolled Senate Bill 520 (SB 520-A) Page 2
(2) A fidelity bond or letter of credit must include a faithful
performance clause to cover the chief financial officer. The
director must approve the fidelity bond or letter of credit and
may require { - such - } additional amounts as the director
considers necessary.
(3) Claims upon a fidelity bond or letter of credit that exceed
one percent of the credit union's reserves and undivided earnings
or that are related to the errors or omissions of an officer,
director or committee member must be reported to the director.
SECTION 2. ORS 723.156 is amended to read:
723.156. { + (1) + } Notwithstanding any other provision of
law, { + in addition to the powers and authorities provided
under the laws of this state, a credit union may exercise any of
the powers that were available to a federal credit union as of
January 1, 2013. At least 45 days before exercising a power under
this subsection, a credit union shall provide to the Director of
the Department of Consumer and Business Services written notice
of the credit union's intent to exercise the power. The notice
must describe the power and specify the statutory or regulatory
authority or other legal basis for the federal credit union power
the credit union intends to exercise.
(2) Notwithstanding any other provision of law, in addition to
the powers and authorities provided under the laws of this
state, + } a credit union may, { - upon prior - } { + after
obtaining + } approval
{ - by - } { + from + } the director { - of the Department
of Consumer and Business Services - } and subject to any
limitations { - prescribed by - } the director { +
prescribes + }, exercise any of the powers conferred { + after
January 1, 2013, + } upon a { - federally chartered - } { +
federal + } credit union
{ - doing - } { + that does + } business in this state { +
and + } that is subject to the regulations of the administrator
of the National Credit Union Administration or the successor or
successors of the administrator, { + or any of the powers
conferred on a credit union that is chartered under the laws of
another state and does business in this state, + } if the
director finds that { - the exercise of - } { +
exercising + } the { - power - } { + powers + }:
{ - (1) - } { + (a) + } Serves the public and members'
convenience and advantage; and
{ - (2) - } { + (b) + } Equalizes and maintains the quality
of competition
{ - between state chartered credit unions and federally
chartered credit unions - } { + among credit unions chartered
under the laws of this state, of another state and under federal
law + }.
SECTION 3. ORS 723.276 is amended to read:
723.276. (1) At the organizational meeting of the board of
directors and within 60 days { - following - } { + after + }
each annual meeting of the members, the directors shall elect an
executive officer,
{ - who may be designated as chairperson - } { + whom the
directors may designate as chairperson + } of the board or
president { - ; - } { + , + } a vice chairperson of the board
or one or more vice presidents { - ; - } { + , + } a treasurer
{ - ; - } and a secretary. The treasurer and the secretary may
be the same individual. The persons { - elected by - } { +
that + } the board of directors { + elects + } are the executive
officers of the corporation.
Enrolled Senate Bill 520 (SB 520-A) Page 3
(2) The terms of the officers are one year, or until the
successors of the officers are chosen and have duly qualified.
(3) The { + bylaws must prescribe the + } duties of the
officers { + . + }
{ - must be prescribed in the bylaws. - }
{ - (4) The board of directors may employ an officer in
charge of operations whose title is president, general manager,
or another title that is designated in the bylaws of the credit
union. The board of directors may instead designate the treasurer
or an assistant treasurer to be in active charge of the affairs
of the credit union. - }
{ - (5) The board of directors may appoint a security
officer. - }
SECTION 4. ORS 723.296 is amended to read:
723.296. (1) The board of directors shall manage the business
and affairs of the credit union. The duties of the board include,
but are not limited to, the duties listed in this section. The
board may not delegate duties listed in subsection (2) of this
section. The board may delegate the duties listed in subsection
(3) of this section to a committee, officer or employee of the
credit union, who shall provide appropriate information to the
board regarding the exercise of the duties.
(2) The board shall:
(a) Establish the requirements for membership in the credit
union, including the par value, if any, of a share;
{ - (b) Declare dividends on shares and share certificates as
provided by the bylaws; - }
{ - (c) - } { + (b) + } Authorize interest refunds, if any,
to members from income earned and received in proportion to the
interest { - paid by them - } { + the members pay + } on
classes of loans and under conditions that the board prescribes;
{ - (d) - } { + (c) + } Authorize the employment of persons
necessary to carry on the business of the credit union and fix
the compensation of the manager or chief executive officer;
{ - (e) - } { + (d) + } Authorize the conveyance of
property;
{ - (f) - } { + (e) + } Suspend members of the credit or
supervisory committee for { - failure - } { + failing + } to
perform { - their - } { + the members' + } duties;
{ - (g) - } { + (f) + } Appoint any special committees the
board considers necessary;
{ - (h) Perform other duties as the members of the credit
union from time to time direct, and perform or authorize any
action not inconsistent with this chapter and not specifically
reserved by the bylaws for the members; - }
{ - (i) - } { + (g) + } Limit the number of shares and the
amount of deposits that { - may be owned by - } a member { +
may own + } and ensure that limitations adopted under this
subsection apply alike to all members; and
{ - (j) - } { + (h) + } Establish policies and controls
regarding the investment of surplus funds.
(3) In addition to the duties listed in subsection (2) of this
section, and subject to subsection (1) of this section, the board
shall:
(a) Act upon applications for membership. If this duty is
delegated, a record of an approval or denial of membership must
be made available to the board. A person { - denied membership
by - } { + to whom + } a committee, officer or employee of the
credit union { + denies membership + } may appeal the denial to
the board.
Enrolled Senate Bill 520 (SB 520-A) Page 4
(b) Purchase a blanket fidelity bond, in accordance with ORS
723.122.
(c) Determine from time to time the interest rate or rates that
shall be charged on loans.
(d) { + Declare dividends on shares and share certificates in
accordance with the provisions of the bylaws and + }determine
the prospective dividend rate to be paid on shares and share
certificates and the interest rate or rates that will be paid on
deposits and deposit certificates.
(e) Designate a depository or depositories for the funds of the
credit union.
(f) Borrow or lend money to carry out the functions of the
credit union.
SECTION 5. ORS 723.326 is amended to read:
723.326. { - (1) The supervisory committee by a unanimous
vote may suspend any member of the credit committee and shall
report such action to the board of directors for appropriate
action. - }
{ - (2) - } { + (1) + } The supervisory committee by a
unanimous vote may suspend any { - officer or - } member of
the board until the next members' meeting. The next members'
meeting must be held not less than 14 nor more than 45 days after
the suspension. At the meeting the members shall decide whether
to remove the suspended officer or board member.
{ - (3) - } { + (2) The board may remove + } any member of
the supervisory committee { - may be removed by the board for
failure - } { + for failing + } to perform duties prescribed in
this chapter or in the credit union's articles of incorporation,
bylaws or policies.
{ - (4) - } { + (3) + } A person may not serve as a
director if the person has defaulted on payment of a voluntary
obligation to the credit union or has otherwise caused the credit
union to incur a financial loss.
SECTION 6. ORS 723.512 is amended to read:
723.512. (1) { - No - } { + A credit union may not make
a + } loan { - shall be made - } to any member in an aggregate
amount { - in excess of $15,000 - } { + that exceeds
$100,000 + }, or 15 percent of the credit union's equity,
whichever is greater. In determining the amount of loans to be
made to a member, loans for which that member is a guarantor or
surety { - shall - } { + must + } be included, as well as
loans to persons who are not individuals if the individual member
is a principal or owner of the person who is not an individual or
the loan is for that member's benefit.
(2) The restrictions in subsection (1) of this section do not
apply to any loan { + that is + } fully guaranteed by shares or
deposits.
SECTION 7. ORS 723.840 is amended to read:
723.840. { + (1) + } A person { - may not be held - } { +
is not + } personally liable for an act or omission { - by - }
the person { + does or fails to do + } in good faith and in
compliance with a statute, rule or order of the Director of the
Department of Consumer and Business Services under this chapter
regardless of whether the statute, rule or order is later
amended, rescinded or determined to be invalid by judicial or
other authority.
{ + (2) A director or officer of a credit union is not
personally liable to the credit union or to members of the credit
union for damages that result from the director's or officer's
exercising judgment or discretion in connection with the
Enrolled Senate Bill 520 (SB 520-A) Page 5
director's or officer's duties or responsibilities or from the
director's or officer's act or omission in rendering service to
the credit union, except to the extent that, in exercising
judgment or discretion or in rendering service to the credit
union, the director or officer fails to act in good faith, with
the care an ordinarily prudent person in a like position would
exercise under similar circumstances and in a manner that the
director or officer reasonably believes is in the best interests
of the credit union. + } { +
(3)(a) A director, in discharging the director's duties, may
rely on information, opinions, reports or statements, including
financial statements and other financial data that any of the
following persons prepare or present:
(A) An officer or employee of the credit union that the
director reasonably believes is competent and reliable with
respect to the matters the officer or employee prepares or
presents;
(B) Legal counsel, public accountants or other persons with
respect to matters that the director reasonably believes are
within the counsel's, accountant's or other person's professional
or expert competence; or
(C) A committee of the board of directors of which the director
is not a member if the director reasonably believes that the
committee merits the director's confidence.
(b) A director does not act in good faith, with due care or in
a manner that the director reasonably believes is in the
interests of the credit union if the director has knowledge
concerning a matter that makes the director's reliance on the
information, opinions, reports, statements or data described in
paragraph (a) of this subsection unwarranted.
(4) This section does not bar a cause of action against the
credit union or change any liability of the credit union that
arises out of an act or omission of a director, officer or other
who is exempt from liability for negligence under this
section. + }
SECTION 8. { + ORS 723.332 is repealed. + }
SECTION 9. ORS 181.871, as amended by section 2, chapter 28,
Oregon Laws 2012, is amended to read:
181.871. (1) ORS 181.870 to 181.887 do not apply to:
(a) A person certified by the Department of Public Safety
Standards and Training as a police officer or a parole and
probation officer.
(b) A law enforcement officer of the United States.
(c) An officer or employee of this state, Oregon Health and
Science University established by ORS 353.020 or the United
States while performing duties of the office or employment.
(d) A person appointed or commissioned by the Governor to
perform law enforcement or security services.
(e) An attorney admitted to practice law in this state while
engaged in the practice of law.
(f) An insurance adjuster licensed in this state while
performing duties authorized by the license.
(g) A person who monitors alarm systems that are not designed
to detect threats to public safety or personal well-being.
(h) A person while protecting the person's property.
(i) A person who repairs and installs intrusion alarms while
repairing or installing intrusion alarms.
(j) A person acting as an investigator as defined in ORS
703.401.
Enrolled Senate Bill 520 (SB 520-A) Page 6
(k) A person performing crowd management or guest services,
including, but not limited to, a person described as a ticket
taker, an usher, a parking attendant or event staff.
(L) A person who has a valid service permit issued by the
Oregon Liquor Control Commission pursuant to ORS 471.360 and who
is an employee of a licensee of the commission when the person is
performing age verification and controlling access to premises of
the licensee, if the person is not:
(A) Armed;
(B) Permitted to initiate confrontational activities, including
physical contact and the confiscation of property; or
(C) Hired with the primary responsibility of taking enforcement
action as described in ORS 181.870 (8)(f).
(m) A person performing security services at a facility
regulated by the United States Nuclear Regulatory Commission if
the facility is operated by the person's employer.
(n) An individual while on active duty as a member of the armed
services or while performing duties as a law enforcement officer.
(o) An employee of a financial institution who has been
designated as a security officer for the financial institution
pursuant to the Bank Protection Act of 1968 (12 U.S.C. 1881 et
seq.) and regulations adopted under the act { - or pursuant to
ORS 723.276 (5) - } .
(p) A person who provides security services as a volunteer or
for de minimis consideration other than money for an event
operated for the benefit of a corporation that is organized not
for profit pursuant to ORS chapter 65 or any predecessor of ORS
chapter 65 or that is exempt from taxation under section 501(a)
of the Internal Revenue Code as an organization described in
section 501(c) of the Internal Revenue Code.
(q) A student enrolled in a community college as defined in ORS
341.005 while engaged in nonconfrontational activities that
contribute to campus safety under the direct or indirect
supervision of a law enforcement professional or private security
professional certified or licensed by the Department of Public
Safety Standards and Training, provided the community college has
conducted a criminal background check on the student.
(2) The exemption provided by subsection (1)(k) of this section
applies only:
(a) To a person who is not:
(A) Armed;
(B) Permitted to initiate confrontational activities, including
physical contact and the confiscation of property; or
(C) Hired with the primary responsibility of taking enforcement
action as described in ORS 181.870 (8)(f);
(b) If there is at least one person on-site who is certified or
licensed under ORS 181.878 for every 10 or fewer uncertified
persons performing the services described in subsection (1)(k) of
this section;
(c) If any enforcement action, as described in ORS 181.870
(8)(f), other than incidental or temporary action, is taken by or
under the supervision of a person certified or licensed under ORS
181.878; and
(d) During the time when a crowd has assembled for the purpose
of attending or taking part in an organized event, including
pre-event assembly, event operation hours and post-event
departure activities.
(3) The exemption provided by subsection (1)(L) of this section
does not apply during an organized event that is on a scale
Enrolled Senate Bill 520 (SB 520-A) Page 7
substantially outside the ordinary course of the licensee's
business.
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Passed by Senate April 15, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House June 12, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 520 (SB 520-A) Page 8
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 520 (SB 520-A) Page 9
