Oklahoma § 18-906 - Members - Acceptance of loans

§ 18-906. Members - Acceptance of loans

(1) All financial institutions as defined herein are hereby

authorized to become members of the corporation and to make loans to

the corporation as provided herein.

(2) Any financial institution may request membership in the

coporation by making application to the board of directors on such

form and in such manner as said board of directors may require, and

membership shall become effective upon acceptance of such

application by the board.

(3) Each member of the corporation shall make loans to the

corporation as and when called upon by it to do so on such terms and

other conditions as shall be approved from time to time by the board

of directors, subject to the following conditions:

(a) All loan limits shall be established at the thousanddollar amount nearest to the amount computed in accordance

with the provisions of this section.

(b) No loan to the corporation shall be made if immediately

thereafter the total amount of the obligations of the

corporation would exceed ten times the amount then paid in

an outstanding capital stock, reserves or earned surplus of

the corporation.

(c) The total amount outstanding at any one time on loans

to a development corporation made by any member shall not

exceed: (i) twenty percent (20%) of the total amount then

outstanding on loans to such development corporation by all

members thereof, (ii) the following limit, to be determined

as of the time such member becomes a member, on the basis

of figures contained in the most recent year-end statement

prior to its application for membership; three percent (3%)

of the capital and permanent surplus of banks, trust

companies; three percent (3%) of the total reserve and

surplus accounts of a savings and loan association; one

percent (1%) of the capital and unassigned surplus of stock

insurance companies, except fire insurance companies; one

percent (1%) of the unassigned surplus of mutual insurance

companies, except fire insurance companies; one-tenth of

one percent (1/10 of 1%) of the assets of fire insurance

companies; comparable limits for other financial

Oklahoma Statutes - Title 18. Corporations

institutions as established by the board of directors of

the development corporation. All loan limits shall be

recomputed as of the first day of January of each evennumbered year, but no member's loan limit shall be

increased as the result of such recomputation without the

consent of such member.

(d) Each call made by the corporation shall be prorated

among the members of the corporation in substantially the

same proportion that the adjusted loan limit of each member

bears to the aggregate of the adjusted loan limits of all

members. The adjusted loan limit of a member shall be the

amount of such member's loan limit, reduced by the balance

of outstanding loans made by such member to the corporation

and the investment in capital stock of the corporation held

by such member at the time of such call.

(e) All loans to the corporation by members shall be

evidenced by bonds, debentures, notes, or other evidence of

indebtedness of the corporation, which shall be freely

negotiable at all times, and which shall bear interest at a

rate of not less than one-half of one percent (1/2 of 1%)

in excess of the rate of interest determined by the board

of directors at the date of issuance to be the prime rate

prevailing on unsecured commercial loans.

(f) Membership in the corporation shall be for the duration

of the corporation provided that: (i) upon written notice

given to the corporation one (1) year in advance, a member

may withdraw from membership in the corporation at the

expiration date of such notice, (ii) a member shall not be

obligated to make any loans to the corporation pursuant to

calls made subsequent to the receipt of notice of the

withdrawal of said member.

Laws 1970, c. 187, § 6, emerg. eff. April 13, 1970.