§ 1790a. — Board disapproval of directors, committee members, and senior executive officers of insured credit unions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1790a]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER II--SHARE INSURANCE
Sec. 1790a. Board disapproval of directors, committee members,
and senior executive officers of insured credit unions
(a) Prior notice required
An insured credit union shall notify the Board of the proposed
addition of any individual to the board of directors or committee or the
employment of any individual as a senior executive officer of such
credit union at least 30 days before such addition or employment becomes
effective, if the insured credit union--
(1) has been chartered less than 2 years; or
(2) is in troubled condition, as determined on the basis of such
credit union's most recent report of condition or report of
examination.
(b) Disapproval by Board
An insured credit union may not add any individual to the board of
directors or employ any individual as a senior executive officer if the
Board issues a notice of disapproval of such addition or employment
before the end of the 30-day period beginning on the date the agency
receives notice of the proposed action pursuant to subsection (a) of
this section.
(c) Exception in extraordinary circumstances
(1) In general
The Board may prescribe by regulation conditions under which the
prior notice requirement of subsection (a) of this section may be
waived in the event of extraordinary circumstances.
(2) No effect on disapproval authority of Board
Such waivers shall not affect the authority of the Board to
issue notices of disapproval of such additions or employment of such
individuals within 30 days after each such waiver.
(d) Additional information
Any notice submitted to the Board by any insured credit union
pursuant to subsection (a) of this section shall include--
(1) the information described in section 1817(j)(6)(A) of this
title about the individual; and
(2) such other information as the Board may prescribe by
regulation.
(e) Standard for disapproval
The Board shall issue a notice of disapproval with respect to a
notice submitted pursuant to subsection (a) of this section if the
competence, experience, character, or integrity of the individual with
respect to whom such notice is submitted indicates that it would not be
in the best interests of the depositors of the insured credit union or
in the best interests of the public to permit the individual to be
employed by, or associated with, such insured credit union.
(f) Definition regulations
The Board shall prescribe by regulation a definition for the terms
``troubled condition'' and ``senior executive officer'' for purposes of
subsection (a) of this section.
(June 26, 1934, ch. 750, title II, Sec. 212, as added Pub. L. 101-73,
title IX, Sec. 914(b), Aug. 9, 1989, 103 Stat. 485.)
Codification
Section 914(b) of Pub. L. 101-73, which directed that this section
be added to title II of ``the Federal Credit Union Insurance Act (12
U.S.C. 1781 et seq.)'' was executed by adding this section to the
Federal Credit Union Act, which comprises this chapter, as the probable
intent of Congress.
Section Referred to in Other Sections
This section is referred to in section 4806 of this title.
