§ 1761b. — Board of directors; meetings; powers and duties; executive committee; membership officers; membership application.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1761b]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1761b. Board of directors; meetings; powers and duties;
executive committee; membership officers; membership application
The board of directors shall meet at least once a month and shall
have the general direction and control of the affairs of the Federal
credit union. Minutes of all meetings shall be kept. Among other things,
the board of directors shall--
(1) act upon applications for membership or appoint membership
officers from among the members of the credit union, other than the
board member paid as an officer, the financial board officer, any
assistant to the paid officer of the board or to the financial
officer, or any loan officer;
(2) provide adequate fidelity coverage for officers and
employees having custody of or handling funds according to
regulations issued by the Board;
(3) fill vacancies on the board of directors until successors
elected at the next annual meeting have qualified;
(4) if the bylaws provide for an elected credit committee, fill
vacancies on the credit committee until successors elected at the
next annual meeting have qualified;
(5) appoint the members of the supervisory committee and, if the
bylaws so provide, appoint the members of the credit committee;
(6) have charge of investments including the right to designate
an investment committee of not less than two to act on its behalf;
(7) determine the maximum number of shares, share certificates,
and share draft accounts, and the classes of shares, share
certificates, and share draft accounts;
(8) subject to any limitations of this subchapter, determine the
interest rates on loans, the security, and the maximum amount which
may be loaned and provided in lines of credit;
(9) authorize interest refunds to members of record at the close
of business on the last day of any dividend period from income
earned and received in proportion to the interest paid by them
during that dividend period;
(10) if the bylaws so provide, appoint one or more loan officers
and delegate to these officers the power to approve or disapprove
loans, lines of credit, or advances from lines of credit;
(11) establish the par value of the share;
(12) subject to the limitations of this subchapter and the
bylaws of the credit union, provide for the hiring and compensation
of officers and employees;
(13) if the bylaws so provide, appoint an executive committee of
not less than three directors to act on its behalf and any other
committees to which it can delegate specific functions;
(14) prescribe conditions and limitations for any committee
which it appoints;
(15) review at each monthly meeting a list of approved or
pending applications for membership received since the previous
monthly meeting together with such other related information as it
or the bylaws require;
(16) provide for the furnishing of the written reasons for any
denial of a membership application to the applicant upon the written
request of the applicant;
(17) in the absence of a credit committee, and upon the written
request of a member, review a loan application denied by a loan
officer;
(18) declare the dividend rate to be paid on shares, share
certificates, and share draft accounts pursuant to the terms and
conditions of section 1763 of this title;
(19) establish and maintain a system of internal controls
consistent with the regulations of the Board;
(20) establish lending policies; and
(21) do all other things that are necessary and proper to carry
out all the purposes and powers of the Federal credit union, subject
to regulations issued by the Board.
(June 26, 1934, ch. 750, title I, Sec. 113, formerly Sec. 14, as added
Pub. L. 86-354, Sec. 1, Sept. 22, 1959, 73 Stat. 632; amended Pub. L.
88-353, Sec. 3, July 2, 1964, 78 Stat. 269; Pub. L. 90-375, Sec. 1(4),
July 5, 1968, 82 Stat. 284; Pub. L. 91-206, Sec. 2(1), Mar. 10, 1970, 84
Stat. 49; renumbered title I, Sec. 113, Pub. L. 91-468, Sec. 1(2), Oct.
19, 1970, 84 Stat. 994; amended Pub. L. 93-383, title VII, Sec. 723,
Aug. 22, 1974, 88 Stat. 719; Pub. L. 95-22, title III, Sec. 309, Apr.
19, 1977, 91 Stat. 53; Pub. L. 95-630, title V, Sec. 502(b), Nov. 10,
1978, 92 Stat. 3681; Pub. L. 97-320, title V, Sec. 522, Oct. 15, 1982,
96 Stat. 1532; Pub. L. 97-457, Sec. 28, Jan. 12, 1983, 96 Stat. 2510;
Pub. L. 100-86, title VII, Secs. 704(b), 705, Aug. 10, 1987, 101 Stat.
652.)
Prior Provisions
Provisions similar to those comprising this section were contained
in section 11(c) of act June 26, 1934, ch. 750, 48 Stat. 1219 (formerly
classified to section 1761(c) of this title), prior to the amendment and
renumbering of act June 26, 1934, by Pub. L. 86-354.
Amendments
1987--Par. (1). Pub. L. 100-86, Sec. 705, substituted ``of the
credit union'' for ``of the board of directors''.
Par. (2). Pub. L. 100-86, Sec. 704(b), amended par. (2) generally.
Prior to amendment, par. (2) read as follows: ``require any officer or
employee having custody of or handling funds to give bond with good and
sufficient surety in an amount and character in compliance with
regulations of the Board, and authorize the payment of the premium or
premiums therefor from the funds of the Federal credit union;''.
1983--Pub. L. 97-457, Sec. 28(1), substituted ``direction'' for
``directions'' after ``shall have the general''.
Par. (2). Pub. L. 97-457, Sec. 28(2), substituted ``union'' for
``unions'' after ``Federal credit''.
Par. (9). Pub. L. 97-457, Sec. 28(3), inserted ``by'' after
``interest paid''.
Par. (15). Pub. L. 97-457, Sec. 28(4), substituted ``meeting'' for
``meetings'' after ``previous monthly''.
1982--Pub. L. 97-320, Sec. 522, substituted provisions relating to
the board of directors, its meetings, powers, and duties, membership
officers and membership applications, for provisions which read as
follows: ``The board of directors shall meet at least once a month and
shall have the general direction and control of the affairs of the
corporation. Minutes of all such meetings shall be kept. Among other
things they shall act upon applications for membership; require any
officer or employee having custody of or handling funds to give bond
with good and sufficient surety in an amount and character to be
determined by the board of directors in compliance with regulations
prescribed from time to time by the Board, and authorize the payment of
the premium or premiums therefor from the funds of the Federal credit
union; fill vacancies in the board and in the credit committee until
successors elected at the next annual meeting have qualified; have
charge of investments other than loans to members, except that the board
may designate a committee of not less than two to act as an investment
committee, such investment committee to have charge of making
investments under rules and procedures established by the board of
directors; determine from time to time the maximum number of shares and
share certificates and the classes of shares and share certificates that
may be held; subject to the limitations of this chapter, determine the
interest rates on loans, the security, and the maximum amount which may
be loaned or provided in lines of credit; subject to such regulations as
may be issued by the Board, authorized an interest refund to members of
record at the close of business on the last day of any dividend period
in proportion to the interest paid by them during that dividend period;
and provide for compensation of necessary clerical and auditing
assistance requested by the supervisory committee, and of loan officers
appointed by the credit committee. The board may appoint an executive
committee of not less than three directors to exercise such authority as
may be delegated to it subject to such conditions and limitations as may
be prescribed by the board. Such executive committee or one or more
membership officers appointed by the board from among the members of the
credit union, other than the treasurer, an assistant treasurer, or a
loan officer, may be authorized by the board to approve applications for
membership under such conditions as the board may prescribe; except that
such committee or membership officer so authorized shall submit to the
board at each monthly meeting a list of approved or pending applications
for membership received since the previous monthly meeting, together
with such other related information as the bylaws or the board may
require. If a membership application is denied, the reasons therefor
shall be furnished in writing to the person whose application is denied,
upon written request.''
1978--Pub. L. 95-630 substituted ``Board'' for ``Administrator'' in
two places.
1977--Pub. L. 95-22 substituted ``and share certificates and the
classes of shares and share certificates that may be held'' for ``that
may be held by an individual'' and ``, the security, and the maximum
amount which may be loaned or provided in lines of credit'' for ``and
the maximum amount which may be loaned with or without security to any
member''.
1974--Pub. L. 93-383 inserted provisions authorizing designation of
a committee of not less than two to act as an investment committee and
provisions relating to denial of a membership application, substituted
``one or more membership officers'' for ``a membership officer'', and
substituted provisions relating to exercise of authority by the
executive committee for provisions setting forth specified functions of
the executive committee.
1970--Pub. L. 91-206 substituted ``Administrator'' for ``Director''
in two places.
1968--Pub. L. 90-375 substituted ``the purchase and sale of
securities, the borrowing of funds, and the making of loans to other
credit unions'' for ``the purchase and sale of securities or the making
of loans to other credit unions, or both''.
1964--Pub. L. 88-353 substituted ``the last day of any dividend
period in proportion to the interest paid by them during that dividend
period'' for ``December 31 in proportion to the interest paid by them
during that year''.
Effective Date of 1978 Amendment
Amendment by Pub. L. 95-630 effective on expiration of 120 days
after Nov. 10, 1978, and transitional provisions, see section 509 of
Pub. L. 95-630, set out as a note under section 1752 of this title.
Section Referred to in Other Sections
This section is referred to in section 1761a of this title.
