The following words or terms, when used in this chapter, shall have the following meaning, unless the context clearly indicates otherwise:

"Act" means the Oklahoma Credit Union Act (6 O.S., §2001 et seq.).

"Adjustable rate mortgage loan" means a mortgage loan secured by a lien on residential real property which permits the periodic adjustment of the rate of interest on the loan in response to the movement of an index which was agreed upon in advance by the borrower and the credit union.

"Administrative Procedures Act" means the Administrative Procedures Act of Oklahoma (75 O.S., §301, et seq.).

"Board" means the Oklahoma State Credit Union Board.

"Branch" means any place of business owned or leased by the credit union, other than the credit union’s main office location, at which deposits are received, checks paid, and money loaned.

"Capital", as referred to in the Act and in the rules of this chapter shall consist of the shares and deposits plus post-closing undivided earnings held by state-chartered credit unions.

"Certificate of deposit account" means an account represented by a certificate of deposit as defined in this section.

"Certificate of deposit" or "Share certificate" means a written instrument or special account in a given amount for a given period of time that will earn interest or dividends at a particular rate (subject to conditions) if held to maturity and on which a penalty may be assessed for withdrawal of all or any portion of the principal amount prior to maturity, with certain exceptions.  Certificates of deposit and share certificates shall be considered a part of the capital.

"Commissioner" means the Oklahoma Bank Commissioner, who presides as Chairman of the Board.

"Community Credit Union" means a credit union that has as its field of membership one of the following:

(A) a political subdivision;

(B) an Oklahoma Metropolitan Statistical Area; or

(C) such non-standard community as the Board shall approve.

"Credit union" means a credit union organized under the laws of Oklahoma.

"Department" means the Oklahoma State Banking Department.

"Financial institution" shall mean a credit union, trust company, bank, savings bank or savings and loan association.

"Federally insured" shall mean that the institution's deposits are insured by the Federal Deposit Insurance Corporation or National Credit Union Administration, or any successor agency thereof.

"Metropolitan Statistical Area" or "MSA" means an area designated by the Federal Office of Management and Budget which consists of a county or group of adjoining counties that contain at least one urbanized area of 50,000 inhabitants or more.

"Multiple common bond" shall mean a credit union that has as its field of membership select employee groups and/or select associational groups, and which groups have, as to each individual group, a common bond of occupation or association, but, as to all groups, need not have the same common bond of occupation or association as other groups within the credit union.

"NCUA" means the National Credit Union Administration.

"Net earnings" means the balance after deducting from the gross income a credit union actually receives during a dividend period, all expenses paid or payable during such period, dividends on shares, interest on deposits, statutory reserves and any losses sustained therein for which no specific reserve has been set aside, or for those credit unions on an accrual basis, net earnings shall mean the balance after deducting from the gross income a credit union actually receives or accrues during a dividend period, all expenses paid or payable, all interest accrued, dividend on shares, interest on deposits, statutory reserves during such period and any losses sustained therein for which no specific reserve has been set aside.

"Non-standard community" shall mean a well-defined community, neighborhood, or rural district whose residents have common interests or interact. An OMSA, or political subdivision shall not be considered a non-standard community.

"Oklahoma Metropolitan Statistical Area" or "OMSA" means any one of the four areas, located entirely within the state of Oklahoma, designated by the Federal Office of Management and Budget as a Metropolitan Statistical Area, as amended from time to time.

"Political subdivision" means a county, city, town or other municipal corporation, a public authority, and any other publicly owned entity which is an instrumentality of a state of the United States or a municipal corporation.

"Primary member" means an individual who is directly eligible for credit union membership because of the individual’s employment, group association, or community relationship.

"Select associational group" means a group whose members participate in activities developing common loyalties, mutual benefits, and mutual interests. A select associational group shall not include a political subdivision, OMSA, or any association formed only to qualify for membership in a credit union.

"Select employee group" means a group whose members are employed by the same legal entity or such entity’s affiliates. For purposes of this definition, the term "affiliate" shall mean any company that controls, is controlled by, or is under common control with, the legal entity.

"Single common bond" shall mean a credit union that has as its field of membership select employee groups or select associational groups with a single common bond among all groups.

"Surplus" means the credit balance of the undivided earnings account on the given date after all losses have been provided for and net earnings or net losses have been added thereto or deducted therefrom, as the case may be.

"Variable rate loan" means any loan other than an adjustable rate mortgage loan defined in this section which permits adjustment of the interest rate on the loan in response to the movement of an index.

"Variable rate loan" means any loan other than an adjustable rate mortgage loan defined in this section which permits adjustment of the interest rate on the loan in response to the movement of an index.

180:10-1-3. Description of forms and instructions [Back]

(a)   The Department may develop forms for use by credit unions in conducting various activities and requirements and may accept, in lieu of its own forms, forms prescribed by the NCUA relating to the same or similar subject matter.  Included among the forms that the Department may develop are the following:

(1) The form of an application to engage in business as a credit union;

(2) The form of bylaws that may be used by a credit union;

(3) The form of an oath to be administered and signed by all directors of each state credit union on an annual basis;

(4) The form to be used by a group to request affiliation with a credit union;

(5)The form on which a report of condition must be made; and

(6) The form for annual listing of select groups within a credit union field of membership at the end of each fiscal year;

(b) Other forms may be developed and prescribed by the Commissioner or the Board and shall be available at the office of the Board and furnished to any interested party upon request.

180:10-1-4. Change in name [Back]

(a)  A credit union desiring to change its name shall furnish the following to the Commissioner:

(1) a resolution by the board of directors approving the new name, which resolution appears in the minutes of their meeting; and

(2) proposed amended corporate documents evidencing the new name;

(b)  After the credit union has been notified of the Commissioner's approval of its new name, it must file the necessary corporate documents with the Oklahoma Secretary of State and must submit certified copies of such filed documents to the Department and to the National Credit Union Administration.

(c)  It shall be the credit union’s responsibility to review governmental records with respect to the availability for use of the new name as well as whether the new name or mark used in connection with the new name will violate or infringe on some other company's name or mark.  Any approval provided by the Commissioner will not be taken to mean that such new name or mark is available or eligible for use in any community nor will it mean that such new name or mark does not infringe on the rights of any other company.

(d)  In advance of obtaining the Commissioner’s approval of its new name, the credit union may take action necessary to reserve the proposed name at the office of the Oklahoma Secretary of State.

180:10-1-5. Bond requirements; schedule [Back]

(a)     The following schedule shall be deemed as the minimum amount fixed by the Board for the bond provided in Title 6 O.S. Section 2010(B).

(1)   Assets of $0 through $10,000; Minimum coverage equal to amount of assets.

(2)   Assets of $10,001 through $4,000,000; Minimum coverage equal to the lesser of total assets or $250,000.

(3)   Assets of $4,000,001 through $50,000,000; Minimum coverage equal to $100,000 plus $50,000 for each million or fraction thereof over $4,000,000.

(4)   Assets of $50,000,001 through $500,000,000; Minimum coverage equal to $2,550,000 plus $10,000 for each million or fraction thereof over $50,000,000, to a maximum of $5,000,000.

(5)   Assets over $500,000,000; Minimum coverage equal to one percent (1%) of assets, rounded to the nearest one hundred million, to a maximum of $9,000,000.

(b)   No deductible may exceed 10% of the credit union's regular reserve unless the credit union creates a special segregated contingency reserve in the amount of the excess. Valuation allowance accounts (allowance for loan losses) may not be considered part of the reserve when determining the maximum deductible.

180:10-1-6. Approved auditors [Back]

(a) The supervisory committee may employ any licensed public accountant or certified public accountant authorized to practice in Oklahoma.

(b) The supervisory committee may employ any auditor listed in the office of the Commissioner on the official approved list of auditors, which list may be changed from time to time by the Board.

(c) Each auditor, other than licensed public accountants or certified public accountants authorized to practice in Oklahoma, seeking approval, shall make application on a form prescribed by the Commissioner, prior to their approval, and indicate thereon their qualifications. Their approval shall be at the sole discretion of the Board. Upon its own motion, the Board may remove any previously approved auditor.  The Board shall review the list of approved auditors no less than once per calendar year.

180:10-1-7. Bylaw amendments [Back]

(a) Requests for approval of amendments to a credit union's bylaws must be submitted in writing at least two (2) weeks in advance of the Board's regularly scheduled meeting.

(b) The form of the amendment for which approval is requested should be as follows:

(1) For each amendment, the provisions as currently contained in the bylaws should be typed in their present form.

(2) These should then be lightly crossed out and immediately below should be the requested bylaw language change.

(c) The amendment is to be accompanied by a detailed explanation as to reason and effect, and other pertinent data, if requested by the Department.

180:10-1-8. Corporate central credit union organization and operation [Back]

(a) Scope.  This section sets forth provisions relating to the organization and operation of a corporate central credit union in Oklahoma pursuant to the provisions of Title 6 O.S. § 2007. The provisions of this section are intended to implement and carry out the laws of this state for the organization and operation of a corporate central credit union to serve other credit unions wherein such organization and operation may differ from the organization and operation of any other credit union, and shall supersede any conflicting provisions of other rules promulgated by the Board insofar as such other rules may pertain to a corporate central credit union.

(b) Definition.  A corporate central credit union is a central credit union organized under the laws of Oklahoma to which other credit unions organized under the laws of this state and of the United States may belong, whose primary purpose is to serve other credit unions, and to which only a limited number of natural persons and other incorporated and unincorporated organizations may be elected to membership as may be provided in its bylaws.

(c) Organization.  The certificate of incorporation of a corporate central credit union shall contain the words "Corporate Credit Union" in its name and shall be approved by the Board. No credit union other than a corporate central credit union shall use the word "corporate" in its name. The bylaws of a corporate central credit union shall conform to the provisions of this section and shall be approved by the Board.

(d) Powers.  A corporate central credit union shall have all the powers of a credit union under the provisions of Title 6 O.S. § 2006, including but not limited to the following powers as hereinafter specifically limited, all of which are deemed by the Board to be incidental, necessary and requisite for the purpose of primarily serving other credit unions:

(1) To make loans to its corporate members or invest its funds in loans exclusively to its corporate members. No loans shall be made to a natural person member. A corporate central credit union, organized primarily to serve other credit unions, is not subject to any limitation upon the total amount of loans to other credit unions which have been duly elected to membership, except as may be specifically prescribed by rule or regulation of the Board.

(2) To receive from its corporate member payments on shares and deposits and to require such notice for withdrawal of shares and deposits as the bylaws may provide. The bylaws shall limit the payments on shares and deposits of any natural person member to a relatively nominal amount. A corporate central credit union, organized primarily to serve other credit unions, is hereby approved by the Board as a depository for other credit unions and no limitation shall apply to the investment of funds of other credit unions in shares of and deposits to a corporate central credit union, except as may be specifically prescribed by rule or regulation of the Board.

(3) To invest its funds in the shares or deposits of other credit unions in a total amount not exceeding twenty-five percent (25%) of the paid-in or unimpaired capital and surplus of the corporate central credit union, provided that such limitation shall not apply to an investment in the shares or deposits of other credit unions approved by the Board as a depository under Title 6 O.S. §2006(9).

(e) Accounts.  The board of directors of a corporate central credit union, by resolution, may establish accounts with varying dividend rates, periods and maturities, as the board of directors may from time to time determine, subject to the following terms and conditions:

(1) Provision shall first be made for such reserves as may be required by law and by the bylaws of the corporate central credit union.;

(2) Dividends declared and interest paid shall in no event exceed surplus;

(3) Share certificate accounts and certificate of deposit accounts may be evidenced by book entries without the issuance of a written certificate.; and

(4) Penalty provisions required by law for withdrawal of all or any portion of an account without notice or before maturity may be disclosed to corporate members by and through a written statement of policies adopted by the board of directors and delivered to the corporate members.

180:10-1-9. Copies of State Credit Union Board agendas; fee [REVOKED][Back]

180:10-1-10. Members/eligibility [REVOKED][Back]

180:10-1-11. Records and retention [Back]

(a) When any law of the state of Oklahoma or federal law requires the retention of a specific record or a specific class, type or category of records for a certain period of time, a credit union shall retain its records falling within such class, type or category for the time period required by such law.  If no Oklahoma state law or federal law prescribes a retention period for a specific record or a specific class, type or category of records, a credit union must retain such records for the period of time that would be necessary to prosecute or defend an action for which such records would be required in the prosecution or defense of the action.

(b) The Commissioner may issue orders from time to time, with the approval of the Board, that require credit unions to retain certain records or a certain class, type or category of records for a period of time that is longer than may be required under subsection (a) of this section.

(c) Any credit union may dispose of any record which has been retained for the prescribed period and shall, after it has disposed of a record, thereafter be under no duty to produce such record in any action or proceeding.

(d) In lieu of retention of the original records, any credit union may cause any, or all, of its records to be photographed and/or stored by electronic imaging or other reliable process or technology that accurately reproduces or forms a durable medium for reproducing the original records.  Any such photograph, imaged document, or other reproduction shall have the same force and effect as the original thereof and be admitted in evidence equally with the original.

180:10-1-12. Reporting changes in executive officers, directors and committee members [Back]

(a) Every credit union shall report to the Commissioner within 30 days any change for whatever reason in the credit union's executive officers, directors and committee members and as part of such report, shall provide the name, home and business addresses (no P.O. Boxes), current occupation or business and shall indicate whether they have previously or are now serving on the board of or have been employed by a federally insured or state chartered financial institution and if so, shall identify by name and location (city and state) each such institution.

(b) In the event a notice of change is to be submitted to the NCUA pursuant to the requirements of the Federal Credit Union Act, copies of the same shall at the same time as they are provided to the NCUA, be provided to the Commissioner.

(c) Definitions for the following terms as used in this Section are:

(1) "Committee members" shall mean those members of the committees identified in Title 6 O.S. §2010(D)&(E), as members of the credit committee and supervisory committee.

(2) "Executive officers" shall include all board members, the manager of the credit union (whatever his/her title), the secretary, the treasurer, the credit manager, and any other officer in charge of credit union operations.

180:10-1-13. Prohibition against credit unions employing, electing or appointing certain individuals and Credit Union Board's power to enforce [Back]

(a) A person may not serve and a credit union may not employ, appoint or elect a person as an officer, director, or committee member of a credit union if after notice and opportunity for hearing before the Board pursuant to the Oklahoma Administrative Procedures Act, the Board determines that he/she:

(1) Has been convicted of or plead guilty to a felony in any state or of a criminal offense involving dishonesty, a breach of trust, or fraud;

(2) As an officer, director, committee member, or employee of any federally insured or state chartered financial institution, has been suspended, removed from service with a federally insured or state chartered financial institution by a federal or state regulatory body or has resigned from such an institution as a result of regulatory or civil proceedings for his/her removal or suspension from such institution;

(3) Is unfit to serve in such a capacity or unfit to participate in the conduct of the affairs of a credit union, as determined by the Board pursuant to Rule 180:10-5-9;

(4) Has failed to obey an order of the Board or Commissioner without legal justification therefor.

(5) Fails to obtain a surety bond for protection of the credit union against his/her fraud or dishonesty as required by the Act.

 (b) Provided, any person or credit union described in (a) of this Section may obtain an exception to this section from the Board upon a showing of good cause for the grant of such an exception.

180:10-1-14. Assessments [Back]

The Commissioner shall charge and collect an assessment from each state chartered credit union on each One Thousand Dollars ($1,000.00) of assets, or major fraction thereof, at a rate prescribed by the Board. The assessment shall be based on the total assets of the credit union as of December 31 of each calendar year. Payment of the assessment shall be submitted by each credit union along with a form prescribed by the Commissioner no later than the following February 5 of each calendar year.

180:10-1-15. Fees [Back]

(a)  The following applications shall be accompanied by a payment to the Department in an amount as prescribed below:

(1) Applications for merger or acquisition when the surviving credit union will be a state chartered credit union shall be accompanied by a fee of $1,000 and a copy of the merger agreement or agreement of purchase. The Board may waive the fee when the merger is required at the direction of a state or federal regulatory agency.

(2) Applications for merger or acquisition when the surviving credit union will be a federally chartered credit union shall be accompanied by a fee of $800 and a copy of the merger agreement or agreement of purchase. The Board may waive the fee when the merger is required at the direction of a state or federal regulatory agency.

(3) Applications for conversion from a state chartered credit union to a federally chartered credit union or other form of financial institution shall be accompanied by a fee of $800.

(4) Applications for conversion from a federally chartered credit union to a state chartered credit union shall be accompanied by a fee of $1,000. The applicant shall also pay the costs and fees associated with the special exam of the converting credit union.

(5) Applications for amendment to bylaws shall be accompanied by a fee of $400.

(6) Applications to be heard by the Board to add a select associational group or select employee group shall be accompanied by a fee of $400.

(7) Applications for a change to the credit union’s field of membership shall be accompanied by a fee of $800.

(8) Applications for an expansion of the credit union’s investment powers shall be accompanied by a fee of $800.

(9) Applications for an increase in the credit union’s investment percentage in real estate, buildings, fixtures, furniture, and equipment shall be accompanied by a fee of $800.

(10) Applications for expansion of powers other than those listed in paragraphs (8) and (9) of this subsection shall be accompanied by a fee of $800.

(b)  Other application fees may be charged to applicants based on other provisions of this Title or the Act.

180:10-1-16. Suspicious Activity Reports [Back]

Whenever a credit union submits a suspicious activity report to any federal regulatory authority pursuant to the requirements of the federal Bank Secrecy Act, the credit union must immediately submit a copy of the suspicious activity report to the Department.  Provided, if the Department has electronic access to suspicious activity reports after they are submitted to a federal regulatory authority, the credit union need not submit an additional copy to the Department.

180:10-1-17. Credit Union Branches [Back]

(a) No credit union shall be permitted to establish and operate a branch, or relocate a branch, except upon application to, and approval by, the Commissioner.  A credit union’s branch must be located on real property owned or leased by the credit union.

(b) A credit union desiring to establish or relocate a branch shall submit to the Commissioner the original and one copy of an application on a form prescribed by the Commissioner. The application shall be executed by the applicant’s managing officer.  An application fee of $400 must accompany each application.

(c) The Commissioner may request additional information from the applicant and conduct such investigation as is considered appropriate.

(d) If the Commissioner determines that the application should not be approved, the applicant may appeal the Commissioner’s decision to the Board.  In lieu of making the initial decision, the Commissioner shall have the absolute discretion to defer ruling on any application thereby allowing such application to be heard before the Board for approval or disapproval.