{"data":{"id":"us-ok/okla.-stat.-tit.-6-6-2006","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 6, § 6-2006","heading":"Succession - Powers","body":"A credit union shall have succession in its corporate name\n\nduring its existence and shall have power:\n\n1. To make contracts;\n\n2. To sue and be sued;\n\n3. To adopt and use a common seal and alter the same at\n\npleasure;\n\n4. To purchase, lease, own, hold, and dispose of any real\n\nestate, buildings, fixtures, equipment, furniture and furnishings\n\nnecessary, incidental and convenient to the operation of the credit\n\nunion, the aggregate book value of which shall not exceed seven\n\npercent (7%) of the total assets of the credit union, unless\n\notherwise specifically approved by the State Credit Union Board. A\n\ncredit union may lease to any tenants as the credit union deems\n\nappropriate any portion of the facilities or premises of the credit\n\nunion which are not utilized in the conduct of the business of the\n\ncredit union;\n\n5. To make loans to its members for provident or productive\n\npurposes, the maturities of which shall not exceed fifteen (15)\n\nyears, except as otherwise provided herein and except as otherwise\n\napproved by the State Credit Union Board, and extend lines of credit\n\nto its members, to other credit unions and to credit union\n\norganizations and to participate with other credit unions, credit\n\nunion organizations or financial organizations in making loans to\n\ncredit union members, other credit unions and credit union\n\norganizations in accordance with the following:\n\na. loans to credit union members shall be made in\n\nconformity with criteria established by the board of\n\ndirectors of the lending credit union; provided that:\n\n(1) a real estate loan secured by a first mortgage\n\nlien may have a maturity not exceeding thirty\n\n(30) years or any longer term which may be\n\nauthorized by the State Credit Union Board,\n\n(2) a loan to finance a manufactured home, which\n\nshall be secured by a first lien on such\n\nmanufactured home, or a second mortgage loan\n\nsecured by a dwelling, shall have a maturity not\n\nexceeding fifteen (15) years or any longer term\n\nwhich may be allowed by the State Credit Union\n\nBoard,\n\n(3) a loan secured by the insurance or guarantee of,\n\nor with advance commitment to purchase the loan\n\nby, a state or federal governmental agency may be\n\nmade for the maturity and under the terms and\n\nconditions specified in the state or federal law\n\nunder which such insurance, guarantee or\n\ncommitment is provided,\n\n(4) a loan or aggregate of loans to a director or to\n\na member of the supervisory committee or the\n\ncredit committee or the credit manager of the\n\nlending credit union which exceeds Sixty Thousand\n\nDollars ($60,000.00) plus the amount of any\n\npledged shares, shall be approved by the board of\n\ndirectors of the lending credit union, and\n\n(5) loans to credit union members for which any\n\ndirector of the lending credit union or any\n\nmember of the supervisory committee or credit\n\ncommittee or the credit manager of the lending\n\ncredit union acts as a guarantor or endorser\n\nshall be approved by the board of directors of\n\nthe lending credit union when such loan, either\n\nstanding alone or when added to any outstanding\n\nloan or loans of the guarantor or endorser,\n\nexceeds Sixty Thousand Dollars ($60,000.00) plus\n\nthe amount of any pledged shares,\n\nb. loans to credit union members and other eligible\n\nborrowers shall be made in accordance with and shall\n\nbe paid or amortized in accordance with any rules or\n\nregulations as may be prescribed and adopted from time\n\nto time by the State Credit Union Board, after taking\n\ninto account the needs or conditions of the borrowers,\n\nthe amounts and duration of the loans, the interests\n\nof the members and the credit unions and such other\n\nfactors as the State Credit Union Board may deem\n\nrelevant,\n\nc. unless approval by the board of directors of the\n\nlending credit union is otherwise expressly required\n\nherein, loans to credit union members and other\n\neligible borrowers shall be approved by the credit\nitions of the borrowers,\n\nthe amounts and duration of the loans, the interests\n\nof the members and the credit unions and such other\n\nfactors as the State Credit Union Board may deem\n\nrelevant,\n\nc. unless approval by the board of directors of the\n\nlending credit union is otherwise expressly required\n\nherein, loans to credit union members and other\n\neligible borrowers shall be approved by the credit\n\ncommittee or by a loan officer of the lending credit\n\nunion in accordance with criteria established by the\n\nboard of directors,\n\nd. no loan or line of credit may be made to or\n\nestablished for a credit union member if the amount of\n\nsuch loan or line of credit, when aggregated with all\n\nother outstanding loans and lines of credit made to or\n\nestablished for such credit union member, will cause\n\nthe credit union member to be indebted to the lending\n\ncredit union in an amount exceeding six percent (6%)\n\nof the greater of either (i) the paid-in and\n\nunimpaired capital and surplus of the lending credit\n\nunion or (ii) an amount which is six percent (6%) of\n\nthe total assets of the lending credit union,\n\ne. a self-replenishing line of credit may be established\n\nby a credit union for any eligible borrower to a\n\nstated maximum amount on terms and conditions which\n\nmay differ from the terms and conditions established\n\nfor other eligible borrowers,\n\nf. loans to other credit unions shall be approved by the\n\nboard of directors of the lending credit union and\n\nshall not exceed twenty-five percent (25%) of the\n\npaid-in and unimpaired capital and surplus of the\n\nlending credit union,\n\ng. loans to credit union organizations shall be approved\n\nby the board of directors of the lending credit union\n\nand shall not exceed one percent (1%) of the paid-in\n\nand unimpaired capital and surplus of the lending\n\ncredit union, except as otherwise approved by the\n\nState Credit Union Board. A \"credit union\n\norganization\" means any organization which is\n\nestablished primarily to serve the needs of credit\n\nunions and whose business relates to the daily\n\noperations of the credit unions served by such credit\n\nunion organization,\n\nh. participation loans with other credit unions, credit\n\nunion organizations or other financial organizations\n\nshall be in accordance with written policies adopted\n\nby the board of directors of the lending credit union\n\nand shall be approved by the board of directors of the\n\nlending credit union. However, a credit union which\n\noriginates a loan for which participation arrangements\n\nare made in accordance with this subsection shall\n\nretain an interest of at least ten percent (10%) of\n\nthe face amount of such loan,\n\ni. a credit union may participate in any guaranteed loan\n\nprogram of the federal government or of this state\n\nunder the terms and conditions specified in the laws\n\nunder which such program is provided,\n\nj. a credit union may finance for any person, whether or\n\nnot such person is a member of the credit union, the\n\npurchase from the credit union of any real or personal\n\nproperty owned and held by the credit union, including\n\nany property obtained by the credit union as a result\n\nof defaults in obligations owed to the credit union,\n\nand\n\nk. a credit union may make loans to its officers and\n\ndirectors and to members of its supervisory and credit\n\ncommittees. However, such loans shall not be made on\n\nterms more favorable than those extended to other\n\nmembers of the credit union. A credit union may\n\npermit officers, directors and members of its\n\nsupervisory and credit committees to act as co-makers,\n\nguarantors or endorsers of loans to other credit union\n\nmembers;\n\n6. To receive from its members, and other credit unions, state\n\nand federal, doing business in the United States, payments on shares\n\nand deposits, and to require such notice for withdrawal of shares\n\nand deposits as the bylaws may provide;\nficers, directors and members of its\n\nsupervisory and credit committees to act as co-makers,\n\nguarantors or endorsers of loans to other credit union\n\nmembers;\n\n6. To receive from its members, and other credit unions, state\n\nand federal, doing business in the United States, payments on shares\n\nand deposits, and to require such notice for withdrawal of shares\n\nand deposits as the bylaws may provide;\n\n7. To amend its bylaws in the manner provided by the bylaws,\n\nbut all amendments to the bylaws must be submitted to and approved\n\nby the State Credit Union Board before they become operative;\n\n8. To invest its funds in accordance with the following:\n\na. investments shall be made in conformity with criteria\n\nestablished by the board of directors of the credit\n\nunion and in accordance with any rules or regulations\n\nas may be prescribed and adopted from time to time by\n\nthe State Credit Union Board, and\n\nb. the following investments shall be authorized for\n\ncredit unions:\n\n(1) loans to credit union members and other loans\n\nauthorized for credit unions under the laws of\n\nthis state,\n\n(2) obligations of the United States of America and\n\nobligations fully guaranteed as to principal and\n\ninterest by any instrumentality or agency of the\n\nUnited States of America,\n\n(3) general obligations and revenue obligations of\n\nany state or any political subdivision thereof;\n\nprovided the aggregate of such investments shall\n\nnot exceed ten percent (10%) of the paid-in and\n\nunimpaired capital and surplus of the credit\n\nunion; and provided that such investments shall\n\nbe limited to obligations rated among the three\n\nhighest rating categories established by one or\n\nmore national rating services for governmental\n\nobligations,\n\n(4) obligations issued by banks for cooperatives,\n\nfederal land banks, federal intermediate credit\n\nbanks, federal home loan banks, the Federal Home\n\nLoan Bank Board or any corporation designated by\n\nfederal law as a wholly owned government\n\ncorporation, or obligations, participations or\n\nother instruments of or issued by, or fully\n\nguaranteed as to principal and interest by, the\n\nFederal National Mortgage Association or the\n\nGovernment National Mortgage Association, or in\n\nmortgages, obligations or other securities which\n\nare or ever have been sold by the Federal Home\n\nLoan Mortgage Corporation pursuant to the Federal\n\nHome Loan Mortgage Corporation Act, or in other\n\nobligations or other instruments or securities of\n\nthe Student Loan Marketing Association, or\n\nobligations, participations, securities or other\n\ninstruments of or issued by or fully guaranteed\n\nas to principal and interest by any other agency\n\nof the United States of America,\n\n(5) shares of, deposits with or loans to other\n\nfederally insured credit unions in a total\n\namount, in either case, not exceeding twenty-five\n\npercent (25%) of the paid-in and unimpaired\n\ncapital and surplus of the investing credit\n\nunion,\n\n(6) shares of, or accounts or deposits with any state\n\nor federal banks, mutual savings banks and\n\nsavings and loan associations, the accounts of\n\nwhich are insured by an agency of the federal\n\ngovernment,\n\n(7) shares of, deposits with or loans to any Federal\n\nReserve Bank or any central liquidity facility\n\nestablished under state or federal law,\n\n(8) shares of, deposits with or loans to any central\n\ncredit union or corporate credit union organized\n\nunder state or federal law,\n\n(9) shares of, deposits with or loans to any\n\norganization, corporation or association\n\nproviding services associated with the general\n\npurposes of the investing credit union or\n\nengaging in activities incidental to the\n\noperations of any credit union; provided that\n\nsuch investments in the aggregate may not exceed\n\none percent (1%) of the unimpaired capital and\n\nsurplus of the investing credit union,\nshares of, deposits with or loans to any\n\norganization, corporation or association\n\nproviding services associated with the general\n\npurposes of the investing credit union or\n\nengaging in activities incidental to the\n\noperations of any credit union; provided that\n\nsuch investments in the aggregate may not exceed\n\none percent (1%) of the unimpaired capital and\n\nsurplus of the investing credit union,\n\n(10) any obligations or securities authorized for\n\ninvestment by federal credit unions under the\n\nlaws of the United States of America. However,\n\nsuch investments shall be in compliance with any\n\nrestrictions or limitations pertaining thereto\n\nunder the laws of the United States of America or\n\nunder the regulations of the National Credit\n\nUnion Administration,\n\n(11) money market funds rated among the three highest\n\nrating categories established by one or more\n\nnational rating services for corporate or\n\ngovernmental securities,\n\n(12) shares of mutual funds if the investments and\n\ninvestment transactions of the fund are\n\nauthorized for credit unions under the laws of\n\nthis state, or\n\n(13) such other investments or types of investments as\n\nmay be authorized from time to time by the State\n\nCredit Union Board; provided that the State\n\nCredit Union Board shall not be permitted under\n\nthis specific grant of authority to authorize a\n\ncredit union to purchase or own real estate\n\nsolely for investment purposes;\n\n9. To make deposits in national banks and in state banks, trust\n\ncompanies, savings and loan associations, and credit unions\n\norganized under the laws of this state, any other state, or the\n\nUnited States, operating in accordance with the laws of the State of\n\nOklahoma, or of the laws of the United States and approved by State\n\nCredit Union Board as depositories;\n\n10. To borrow, from any source, in an aggregate amount not\n\nexceeding fifty percent (50%) of its shares, deposits and undivided\n\nearnings; such borrowed money may be borrowed either by means of\n\nbills payable or through rediscounts of its negotiable instruments,\n\nand credit unions may pledge their assets as collateral securities\n\ntherefor;\n\n11. To fine members, in accordance with the bylaws, for failure\n\nto meet their obligations promptly to their credit union;\n\n12. To impress and enforce a lien upon the shares, deposits,\n\ndividends, and interest of any member to the extent of any loan made\n\nto the member or endorsed by the member and any interest or fines\n\npayable by the member;\n\n13. To charge an entrance fee as provided in the bylaws;\n\n14. To hire clerical help;\n\n15. To become the owner and lessor of personal property upon\n\nthe specific request of and for the use of a member. A credit union\n\nmay only purchase the personal property to be leased after it has\n\ncompleted a leasing arrangement with a member. Except upon the\n\nwritten approval of the Commissioner, the term of the lease shall in\n\nno event exceed ten (10) years and all such leases shall provide for\n\nthe payment of regularly scheduled periodic payments, the total of\n\nwhich shall at least equal the cost to the credit union of the\n\npersonal property so leased. The total investment by a credit union\n\nfor benefit of any member, combined with all other obligations of\n\nsuch member to the credit union, shall at no time exceed six percent\n\n(6%) of the greater of either (i) the paid-in and unimpaired capital\n\nand surplus of the credit union or (ii) an amount which is six\n\npercent (6%) of the total assets of the credit union; and\n\n16. To exercise such incidental powers as shall be necessary or\n\nrequisite to enable it to carry on effectively the business for\n\nwhich it is incorporated.","path":["OK Code","Title 6"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os6.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"8b0a4359c590f4aa162319696846cdc0efda892e82a94716ea54a659e677260a","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-6-6-2005","next":"us-ok/okla.-stat.-tit.-6-6-2007"},"notice":"GroundRules: Original legal text. Not legal advice."}