Monday, June 22, 2015

Director Compensation Becomes the Law in Oregon

Oregon has become the latest state to allow credit unions to pay their directors.

On June 16 Governor Kate Brown signed into law a bill (S 582) that will permit state chartered credit unions to provide reasonable compensation to directors and supervisory committee members.

In addition, the bill eliminates the requirement that a person purchase a share as a condition for membership at a state-chartered credit unions. This provision will potentially result in credit unions losing their mutuality. In other words, borrowers and savers are not necessarily the same individuals.

Also, the bill removes the requirement that the state Department of Consumer and Business Services approve new branches and clarifies that foster children are eligible for membership.

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