Credit Union Board Modernization Act
This bill reduces the minimum number of board meetings required for highly rated federal credit unions. Instead of meeting monthly, credit unions with strong financial and management ratings can meet as few as six times a year, with at least one meeting per quarter. Newly established credit unions and those with lower regulatory ratings must continue to hold monthly meetings.
What this bill touches.
Who it helps · who it burdens.
Who it helps
- Well-rated federal credit unions and their boards of directorsGains flexibility to reduce board of directors meetings from monthly to at least six times per year (with at least one meeting per quarter) under Sec. 2(4)(b)(2).
Who it burdens
- Newly chartered federal credit unions (de novo)Must continue holding board meetings at least once a month during their first five years of operation under Sec. 2(4)(b)(1).
- Lower-rated federal credit unionsMust continue to hold board meetings at least once per month if their composite or management ratings fall into tiers 3, 4, or 5 under Sec. 2(4)(b)(3).
The provisions, in plain language.
Requires the board of directors of a newly chartered federal credit union to meet at least once a month during its first five years of operation.
Allows well-rated federal credit unions (those with top composite and management ratings of 1 or 2) to hold board meetings at least six times a year, with at least one meeting each fiscal quarter, rather than monthly.
Requires federal credit unions with lower financial or management ratings (ratings of 3, 4, or 5) to continue meeting at least once a month.