SECTION 180:10-1-8. Corporate central credit union organization and operation

(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.

[Source: Amended at 26 Ok Reg 1413, eff 6-11-09]