TULSA, Okla. — Oklahoma’s state-chartered credit unions won approval of a major charter modernization measure after Gov. Kevin Stitt signed Senate Bill 1623 into law, according to Oklahoma Central Credit Union.
The legislation, which passed unanimously in both chambers of the Oklahoma Legislature, expands the authority of state-chartered credit unions to invest in credit union service organizations, or CUSOs, and broadens field-of-membership rules, Oklahoma Central Credit Union said.
According to the credit union, SB 1623 raises the allowable investment threshold in CUSOs to 3% of assets, giving institutions greater flexibility to develop financial products and technology-based services. The law also allows credit unions to serve more consumers across a wider range of communities.
‘Significant Step’
Oklahoma Central Credit Union, which said it led the multi-year effort on behalf of the state’s nine state-chartered credit unions, described the legislation as a significant step toward strengthening Oklahoma’s dual chartering system.
“This legislation is a meaningful step forward for Oklahoma’s state-chartered credit unions and the members we are privileged to serve,” Gina Wilson, president and CEO of Oklahoma Central Credit Union, said in a statement.
Wilson said the expanded CUSO investment authority and broader membership rules will help credit unions respond to changing consumer financial needs while increasing investment in local communities.
What Measure Would Do
According to Oklahoma Central Credit Union, supporters of the legislation argued the measure would help state-chartered institutions remain competitive with federally chartered credit unions while reducing incentives for institutions to convert charters.
The law also preserves regulatory oversight through the Oklahoma State Banking Department, the credit union said.
“For generations, credit unions have operated on a simple but powerful principle: people helping people,” Wilson said in the statement. “This law gives our institutions the latitude we need to continue expanding financial access, strengthening member service, and reinvesting in the communities that depend on us.”
Senate Bill 1623 is scheduled to take effect Nov. 1, according to Oklahoma Central Credit Union.
