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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 4049 By: May
AS INTRODUCED
An Act relating to banks and trust companies;
amending 6 O.S. 2021, Section 2001.2 , which relates
to the powers of the State Credit Union B oard;
providing the State Credit Un ion Board with the power
to designate an Oklahoma state-chartered credit union
as a low-income credit union; amending 6 O.S. 2021,
Section 2023, which relates to the exercising powers
of a state-charted credit union; providing state-
chartered credit unions the opt ion to request a low-
income designation; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 6 O.S. 2021, Section 2001.2 , is
amended to read as follows:
Section 2001.2 A. In addition to any other powers conferred by
law, the State Credit Union Board shall have the power to:
1. Regulate its own procedures and practice, except as may be
hereafter provided by law;
2. Define any term not defined in Oklahoma Laws re lating to
credit unions;
3. Adopt and promulgate reasonable and uniform rules and
regulations to:
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a. govern the conduct, operatio n and management of credit
unions,
b. govern the examination, evaluation of assets a nd the
statements and reports of credit un ions, and the form
on which credit unions shall report their assets,
liabilities and reserves, charge off their bad debts
and otherwise keep their records and accounts, and
c. govern the administration of the laws of this state
relating to credit unions.
Such rules or regulations shall serve to foster and maintain an
effective level of credit union services and the security of member
accounts. The provisions of the Administrative Procedures Act of
this state, as now or hereafter amended, are hereby express ly
adopted and incorporated herein as though a part of this provision,
and shall apply to all rules or regulations, procedures and orders
of the Board. Final orders of the Board may be appealed to the
Supreme Court of Oklahoma by any party directly affect ed and showing
aggrievement by the order;
4. Restrict the withdrawal of share or deposit accounts or both
from any credit union a fter having determined that circumstances
make such restriction necessary for the pr oper protection of
shareholders or deposit ors;
5. Issue cease and desist orders after having determined from
competent and substantial evidence that a credit union is enga ged or
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has engaged, or when the Board has reasonable cause to believe the
credit union is about to engage, in an unsafe or uns ound practice,
or is violating or has violated or the Board has reasonable cause to
believe is about to violate, a material provis ion of any law, rule,
regulation or any condition imposed in writing by the Board or any
written agreement made with the Board ;
6. Suspend from office and prohibit from further participation
in any manner in the conduct of the affairs of a credit union an y
director, officer or committee member who has committed any
violation of a law, ru le or regulation or of a cease and desist
order or who has engaged or participated in any unsafe or unsound
practice in connection with the credit union or who has committe d or
engaged in any act, omission or practice which constitutes a breach
of that person's fiduciary duty as such director, off icer or
committee member, when the Board has determined that such action or
actions have resulted or will result in substantial fi nancial loss
or other damage that seriously prejudices the interests of the
members;
7. Affirm, modify, reverse, and stay the enforcement of any
order or ruling of the State Banking Commissioner or Administrator
appointed pursuant to the provisions of sub section B of this section
relating to credit unions, their directors, officers, comm ittee
members or employees;
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8. Subpoena witnesses, compel their attendance, require the
production of evidence, administer oaths and examine any person
under oath in connection with any subject relating to a duty imposed
upon or a power vested in the Boar d;
9. Charge application fees for process ing submissions by a
credit union to the Board, Commissioner or Administrator. The Board
may charge a fee for the items enumerate d herein; provided, the
Board's fee schedule shall not be limited solely to the foll owing
submissions:
a. an application for a merger or acquisition,
b. an application to amend a credit union 's bylaws,
c. an application to be heard by the Board to add a
special employee group, or
d. an application to add a special employee group by
using any simplified expansion process.
The Board may adopt and promulgate, from time to time, a fee
schedule for the processing of submissions by credit unions. Any
payments received pursuant to the provisions of this paragraph shall
be deposited to the revolv ing fund for the State Banking Department
created in Section 211.1 of this title;
10. Charge and collect assessments from each credit union under
its supervision on each O ne Thousand Dollars ($1,000.00) of assets,
or major fraction thereof, at rates estab lished by the Board. The
assessments shall be paid annually to the State Banking Department
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no later than the fifth day of February in each year. All
assessments and all fees shall be deposited in the revolving fund
for the State Banking Department pursu ant to the provisions of
Section 211.1 of this title. Effective January 1, 2007, and each
year thereafter, ten percent (10%) of all assessments collected
pursuant to this paragraph shall be deposited to the General Revenue
Fund of the State Treasury. The State Credit Union Board may charge
and collect assessments on an annual basis and may, in addition to
any annual assessment, charge and collect a special assessment from
each credit union, at rates established by the Board; and
11. Charge and collect fr om each credit union under its
supervision an annual fee of One Thousand Dollars ($1,000.00) which
shall be deposited in the Oklahoma State Banking Department
revolving fund created pursuant to Section 211.1 of this title ; and
12. Designate a federally in sured, Oklahoma state -chartered
credit union as a low-income credit union.
B. The Commissioner may appoint an Administrator who, in
addition to such duties and authority a s are conferred by Section
2001 et seq. of this title, shall have such duties and au thority as
the Commissioner may assign the Administrator. The bond of the
Administrator shall be the same as that set for the State Deputy
Banking Commissioner. In additi on to other powers conferred by
Section 2001 et seq. of this title, the Commissioner shall have the
power to:
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1. Delegate the duties of the Office of the State Banking
Commissioner under Section 2001 et seq. of this title to the
Administrator;
2. Exercise general supervision of credit unions organized
under the laws of this state;
3. Require credit unions to ceas e and desist from engaging in
any act or transaction, or doing any act in furtherance thereof,
which would constitute a violation of the provisi ons of Section 2001
et seq. of this title, or a lawful regulation issued thereunder, or
to cease and desist in e ngaging in any unsafe or unsound credit
union practice;
4. Suspend any officer, director or employee or committee
member who is found, after he aring, to be dishonest, reckless, unfit
to participate in the conduct of the affairs of the credit union, or
to have engaged or participated in any unsafe or unsound practice in
connection with the credit union, or to be practicing a continuing
disregard or violation of laws, rules, regulations or orders which
are likely to cause substant ial loss to the credit union or likely
to seriously weaken the condition of the credit union. However, any
individual so suspended may within ten (10) days file a notice o f
protest for the suspension with the Administrator and as soon as
possible thereafter, but in no event more tha n thirty (30) days, the
Board will review the order of the Commissioner and make such
findings as it deems proper, and pending that, the officer ,
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employee, director or committee member shall not perform any of the
duties of such office; and
5. Charge a fee not to exceed Fifty Dollars ($50.00) per hour
and actual expenses for each examiner for actual time consumed by
the State Banking Department i n making special examinations of a
credit union. A "special examination" shall be any examination
conducted in connection with a charter conversion, or a limited
scope examination conducted at a frequency more often than once each
eighteen (18) months, wh en deemed necessary by the Administrator and
the Commissioner. Payments received pu rsuant to this paragraph
shall be deposited in the revolving fund for the State Banking
Department pursuant to Section 211.1 of this title.
C. Upon failure of a credit uni on to comply with the
Commissioner's order or requirements, the Commissioner shall r eport
such failure to the Bo ard for action with respect to suspension of
such credit union's certificate of authority to transact business.
SECTION 2. AMENDATORY 6 O.S. 2021, Section 2023, is
amended to read as follows:
Section 2023. A credit union chartered under the l aws of the
State of Oklahoma, the member accounts of which are insured under
Title II of the Federal Credit Union Act, may exercise any of the
powers of a federally chartered credit union do ing business in this
state, until otherwise provided by the Legisl ature; and provided
that the State Credit Union Board may by rule prohibit the exercise
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of any such power if the Board finds that the exercise thereof will
not serve the public convenience a nd advantage and will not equalize
and maintain the quality of com petition between state and federal
credit unions. A credit union may request a low -income designation
determination from the Oklahoma State Credit Union Board, and a fter
the National Credit Union Administration confirms the designation,
subject to the guidelines in 12 C.F.R., Section 701.34, such credit
union may engage in any activity in which it could engage, exercise
any power it could exercise, or make a ny loan or investment it could
make, if it were operat ing as a federal credit union with a low-
income designation.
SECTION 3. This act shall become effective November 1, 2024.
59-2-9364 AO 01/02/24