Okla. Stat. tit. 6, § 6-2006

A credit union shall have succession in its corporate name

during its existence and shall have power:

1. To make contracts;

2. To sue and be sued;

3. To adopt and use a common seal and alter the same at

pleasure;

4. To purchase, lease, own, hold, and dispose of any real

estate, buildings, fixtures, equipment, furniture and furnishings

necessary, incidental and convenient to the operation of the credit

union, the aggregate book value of which shall not exceed seven

percent (7%) of the total assets of the credit union, unless

otherwise specifically approved by the State Credit Union Board. A

credit union may lease to any tenants as the credit union deems

appropriate any portion of the facilities or premises of the credit

union which are not utilized in the conduct of the business of the

credit union;

5. To make loans to its members for provident or productive

purposes, the maturities of which shall not exceed fifteen (15)

years, except as otherwise provided herein and except as otherwise

approved by the State Credit Union Board, and extend lines of credit

to its members, to other credit unions and to credit union

organizations and to participate with other credit unions, credit

union organizations or financial organizations in making loans to

credit union members, other credit unions and credit union

organizations in accordance with the following:

a. loans to credit union members shall be made in

conformity with criteria established by the board of

directors of the lending credit union; provided that:

(1) a real estate loan secured by a first mortgage

lien may have a maturity not exceeding thirty

(30) years or any longer term which may be

authorized by the State Credit Union Board,

(2) a loan to finance a manufactured home, which

shall be secured by a first lien on such

manufactured home, or a second mortgage loan

secured by a dwelling, shall have a maturity not

Oklahoma Statutes - Title 6. Banks and Trust Companies Page 246

exceeding fifteen (15) years or any longer term

which may be allowed by the State Credit Union

Board,

(3) a loan secured by the insurance or guarantee of,

or with advance commitment to purchase the loan

by, a state or federal governmental agency may be

made for the maturity and under the terms and

conditions specified in the state or federal law

under which such insurance, guarantee or

commitment is provided,

(4) a loan or aggregate of loans to a director or to

a member of the supervisory committee or the

credit committee or the credit manager of the

lending credit union which exceeds Sixty Thousand

Dollars ($60,000.00) plus the amount of any

pledged shares, shall be approved by the board of

directors of the lending credit union, and

(5) loans to credit union members for which any

director of the lending credit union or any

member of the supervisory committee or credit

committee or the credit manager of the lending

credit union acts as a guarantor or endorser

shall be approved by the board of directors of

the lending credit union when such loan, either

standing alone or when added to any outstanding

loan or loans of the guarantor or endorser,

exceeds Sixty Thousand Dollars ($60,000.00) plus

the amount of any pledged shares,

b. loans to credit union members and other eligible

borrowers shall be made in accordance with and shall

be paid or amortized in accordance with any rules or

regulations as may be prescribed and adopted from time

to time by the State Credit Union Board, after taking

into account the needs or conditions of the borrowers,

the amounts and duration of the loans, the interests

of the members and the credit unions and such other

factors as the State Credit Union Board may deem

relevant,

c. unless approval by the board of directors of the

lending credit union is otherwise expressly required

herein, loans to credit union members and other

eligible borrowers shall be approved by the credit
itions of the borrowers,

the amounts and duration of the loans, the interests

of the members and the credit unions and such other

factors as the State Credit Union Board may deem

relevant,

c. unless approval by the board of directors of the

lending credit union is otherwise expressly required

herein, loans to credit union members and other

eligible borrowers shall be approved by the credit

committee or by a loan officer of the lending credit

union in accordance with criteria established by the

board of directors,

d. no loan or line of credit may be made to or

established for a credit union member if the amount of

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such loan or line of credit, when aggregated with all

other outstanding loans and lines of credit made to or

established for such credit union member, will cause

the credit union member to be indebted to the lending

credit union in an amount exceeding six percent (6%)

of the greater of either (i) the paid-in and

unimpaired capital and surplus of the lending credit

union or (ii) an amount which is six percent (6%) of

the total assets of the lending credit union,

e. a self-replenishing line of credit may be established

by a credit union for any eligible borrower to a

stated maximum amount on terms and conditions which

may differ from the terms and conditions established

for other eligible borrowers,

f. loans to other credit unions shall be approved by the

board of directors of the lending credit union and

shall not exceed twenty-five percent (25%) of the

paid-in and unimpaired capital and surplus of the

lending credit union,

g. loans to credit union organizations shall be approved

by the board of directors of the lending credit union

and shall not exceed one percent (1%) of the paid-in

and unimpaired capital and surplus of the lending

credit union, except as otherwise approved by the

State Credit Union Board. A "credit union

organization" means any organization which is

established primarily to serve the needs of credit

unions and whose business relates to the daily

operations of the credit unions served by such credit

union organization,

h. participation loans with other credit unions, credit

union organizations or other financial organizations

shall be in accordance with written policies adopted

by the board of directors of the lending credit union

and shall be approved by the board of directors of the

lending credit union. However, a credit union which

originates a loan for which participation arrangements

are made in accordance with this subsection shall

retain an interest of at least ten percent (10%) of

the face amount of such loan,

i. a credit union may participate in any guaranteed loan

program of the federal government or of this state

under the terms and conditions specified in the laws

under which such program is provided,

j. a credit union may finance for any person, whether or

not such person is a member of the credit union, the

purchase from the credit union of any real or personal

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property owned and held by the credit union, including

any property obtained by the credit union as a result

of defaults in obligations owed to the credit union,

and

k. a credit union may make loans to its officers and

directors and to members of its supervisory and credit

committees. However, such loans shall not be made on

terms more favorable than those extended to other

members of the credit union. A credit union may

permit officers, directors and members of its

supervisory and credit committees to act as co-makers,

guarantors or endorsers of loans to other credit union

members;

6. To receive from its members, and other credit unions, state

and federal, doing business in the United States, payments on shares

and deposits, and to require such notice for withdrawal of shares

and deposits as the bylaws may provide;
ficers, directors and members of its

supervisory and credit committees to act as co-makers,

guarantors or endorsers of loans to other credit union

members;

6. To receive from its members, and other credit unions, state

and federal, doing business in the United States, payments on shares

and deposits, and to require such notice for withdrawal of shares

and deposits as the bylaws may provide;

7. To amend its bylaws in the manner provided by the bylaws,

but all amendments to the bylaws must be submitted to and approved

by the State Credit Union Board before they become operative;

8. To invest its funds in accordance with the following:

a. investments shall be made in conformity with criteria

established by the board of directors of the credit

union and in accordance with any rules or regulations

as may be prescribed and adopted from time to time by

the State Credit Union Board, and

b. the following investments shall be authorized for

credit unions:

(1) loans to credit union members and other loans

authorized for credit unions under the laws of

this state,

(2) obligations of the United States of America and

obligations fully guaranteed as to principal and

interest by any instrumentality or agency of the

United States of America,

(3) general obligations and revenue obligations of

any state or any political subdivision thereof;

provided the aggregate of such investments shall

not exceed ten percent (10%) of the paid-in and

unimpaired capital and surplus of the credit

union; and provided that such investments shall

be limited to obligations rated among the three

highest rating categories established by one or

more national rating services for governmental

obligations,

(4) obligations issued by banks for cooperatives,

federal land banks, federal intermediate credit

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banks, federal home loan banks, the Federal Home

Loan Bank Board or any corporation designated by

federal law as a wholly owned government

corporation, or obligations, participations or

other instruments of or issued by, or fully

guaranteed as to principal and interest by, the

Federal National Mortgage Association or the

Government National Mortgage Association, or in

mortgages, obligations or other securities which

are or ever have been sold by the Federal Home

Loan Mortgage Corporation pursuant to the Federal

Home Loan Mortgage Corporation Act, or in other

obligations or other instruments or securities of

the Student Loan Marketing Association, or

obligations, participations, securities or other

instruments of or issued by or fully guaranteed

as to principal and interest by any other agency

of the United States of America,

(5) shares of, deposits with or loans to other

federally insured credit unions in a total

amount, in either case, not exceeding twenty-five

percent (25%) of the paid-in and unimpaired

capital and surplus of the investing credit

union,

(6) shares of, or accounts or deposits with any state

or federal banks, mutual savings banks and

savings and loan associations, the accounts of

which are insured by an agency of the federal

government,

(7) shares of, deposits with or loans to any Federal

Reserve Bank or any central liquidity facility

established under state or federal law,

(8) shares of, deposits with or loans to any central

credit union or corporate credit union organized

under state or federal law,

(9) shares of, deposits with or loans to any

organization, corporation or association

providing services associated with the general

purposes of the investing credit union or

engaging in activities incidental to the

operations of any credit union; provided that

such investments in the aggregate may not exceed

one percent (1%) of the unimpaired capital and

surplus of the investing credit union,
shares of, deposits with or loans to any

organization, corporation or association

providing services associated with the general

purposes of the investing credit union or

engaging in activities incidental to the

operations of any credit union; provided that

such investments in the aggregate may not exceed

one percent (1%) of the unimpaired capital and

surplus of the investing credit union,

(10) any obligations or securities authorized for

investment by federal credit unions under the

laws of the United States of America. However,

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such investments shall be in compliance with any

restrictions or limitations pertaining thereto

under the laws of the United States of America or

under the regulations of the National Credit

Union Administration,

(11) money market funds rated among the three highest

rating categories established by one or more

national rating services for corporate or

governmental securities,

(12) shares of mutual funds if the investments and

investment transactions of the fund are

authorized for credit unions under the laws of

this state, or

(13) such other investments or types of investments as

may be authorized from time to time by the State

Credit Union Board; provided that the State

Credit Union Board shall not be permitted under

this specific grant of authority to authorize a

credit union to purchase or own real estate

solely for investment purposes;

9. To make deposits in national banks and in state banks, trust

companies, savings and loan associations, and credit unions

organized under the laws of this state, any other state, or the

United States, operating in accordance with the laws of the State of

Oklahoma, or of the laws of the United States and approved by State

Credit Union Board as depositories;

10. To borrow, from any source, in an aggregate amount not

exceeding fifty percent (50%) of its shares, deposits and undivided

earnings; such borrowed money may be borrowed either by means of

bills payable or through rediscounts of its negotiable instruments,

and credit unions may pledge their assets as collateral securities

therefor;

11. To fine members, in accordance with the bylaws, for failure

to meet their obligations promptly to their credit union;

12. To impress and enforce a lien upon the shares, deposits,

dividends, and interest of any member to the extent of any loan made

to the member or endorsed by the member and any interest or fines

payable by the member;

13. To charge an entrance fee as provided in the bylaws;

14. To hire clerical help;

15. To become the owner and lessor of personal property upon

the specific request of and for the use of a member. A credit union

may only purchase the personal property to be leased after it has

completed a leasing arrangement with a member. Except upon the

written approval of the Commissioner, the term of the lease shall in

no event exceed ten (10) years and all such leases shall provide for

the payment of regularly scheduled periodic payments, the total of

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which shall at least equal the cost to the credit union of the

personal property so leased. The total investment by a credit union

for benefit of any member, combined with all other obligations of

such member to the credit union, shall at no time exceed six percent

(6%) of the greater of either (i) the paid-in and unimpaired capital

and surplus of the credit union or (ii) an amount which is six

percent (6%) of the total assets of the credit union; and

16. To exercise such incidental powers as shall be necessary or

requisite to enable it to carry on effectively the business for

which it is incorporated.