Credit Union Board Modernization Act
Officially: “Credit Union Board Modernization Act” Read the full text
What it does
Read it in plain language
1Short title
This section would give the Act the short title "Credit Union Board Modernization Act."
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1. Short title This Act may be cited as the Credit Union Board Modernization Act .
2Frequency of board of directors meetings
This section would change how often a federal credit union's board of directors must meet under section 113 of the Federal Credit Union Act. It would remove the current requirement that the board meet at least once a month. The general board of directors provision would be labeled subsection (a), "In general." A new subsection (b) would set a tiered meeting schedule based on the credit union's age and supervisory ratings. A newly chartered (de novo) federal credit union would have to meet not less often than monthly during each of its first five years of existence. A federal credit union with a composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system) and with a management component rating of 1 or 2 under that composite rating would have to meet not less than six times a year, with at least one meeting in each fiscal quarter. A federal credit union with a composite rating of 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system), or with a management component rating of 3, 4, or 5 under that composite rating, would have to meet not less often than once a month.
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2. Frequency of board of directors meetings Section 113 of the Federal Credit Union Act ( 12 U.S.C. 1761b ) is amended— (1) by striking monthly each place such term appears; (2) in the matter preceding paragraph (1), by striking The board of directors and inserting the following: (a) In general The board of directors ; (3) in subsection (a) (as so designated), by striking shall meet at least once a month and ; and (4) by adding at the end the following: (b) Meetings The board of directors of a Federal credit union shall meet as follows: (1) With respect to a de novo Federal credit union, not less frequently than monthly during each of the first five years of the existence of such Federal credit union. (2) Not less than six times annually, with at least one meeting held during each fiscal quarter, with respect to a Federal credit union— (A) with composite rating of either 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and (B) with a capability of management rating under such composite rating of either 1 or 2. (3) Not less frequently than once a month, with respect to a Federal credit union— (A) with composite rating of either 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or (B) with a capability of management rating under such composite rating of either 3, 4, or 5. .
Where it is
In the House.