Credit Union Board Allows Electronic Records Retention

Article excerpt

Journal Record Staff Reporter

State-chartered credit unions were allowed to maintain electronic records on some items covered in a new record retention rule adopted Tuesday by the Oklahoma State Credit Union Board.

The board adopted four permanent rules at its regular monthly meeting, including one which specified the holding period required for a host of records.

After discussion from industry leaders, the board amended the rule to allow for electronic records for the entire time requirement rather than requiring hard copy for two years on most items.

Credit union representatives said many of the records are created and stored electronically and so hard copies are not routinely made.

"Some of our records are stored on optical disk, such as online credit applications," said Daniel P. Stake, general counsel for Tinker Credit Union. "We only generate a paper copy if someone specifically wants it. To create a paper copy to store for two years only to destroy it after that time doesn't make sense."

Tinker Credit Union, the largest in the state and one of the largest in the country, has moved to convert from a state charter to a national charter. If that action is completed as planned, the new rule would not affect it. Bank Commissioner Mick Thompson was careful to make that point before the board discussed any changes to the proposal.

The Oklahoma Credit Union League Affiliates also urged the board to set up a joint task force to provide definitions for some of the records specified in the new rule. No action was taken on that score, though Paul Foster, legal counsel to the board, said the rule could be amended later to address those issues.

The board also adopted rules governing reporting requirements for changes in executive officers and directors, descriptions of employees or volunteers unfit for credit unions to employ or elect and prohibitions against certain acts affecting safety and soundness. …