(a) Each credit union shall have a supervisory committee.
(b) The board shall appoint the members of the supervisory committee at:
(1) The first meeting of the board following the annual meeting of the members; and
(2) Any time there is a vacancy.
(c) (1) Subject to the provisions of paragraph (2) of this subsection, the board shall determine the number of members on the supervisory committee.
(2) The supervisory committee shall have at least three and not more than seven members.
(d) (1) Each member of the supervisory committee shall be appointed from among the members of the credit union.
(2) Not more than one member of the supervisory committee may be a director.
(3) An officer of the credit union, a member of the credit committee, or an employee of the credit union may not be a member of the supervisory committee.
(4) At least one member of the supervisory committee shall have experience in:
(i) Accounting;
(ii) Auditing; or
(iii) General business.
(5) Each member of the supervisory committee:
(i) Shall be bonded;
(ii) May not have been convicted of any criminal offense involving dishonesty or breach of trust;
(iii) May not have habitually neglected to pay any debts;
(iv) May not become insolvent or bankrupt while serving on the supervisory committee; and
(v) May not have been removed by the Commissioner or any state or federal regulatory agency as an officer, official, or employee of a financial institution.
(e) The members of the supervisory committee shall elect the chairman of the supervisory committee:
(1) At the beginning of each term of appointment to the committee; and
(2) At any time there is a vacancy and the board is notified.
(f) A member of the supervisory committee serves for 1 year and until a successor is appointed and qualifies.
(g) Each member of the supervisory committee shall take an oath to perform faithfully the duties of the office.
(h) (1) The board shall appropriate funds:
(i) For an audit conducted by an outside auditor; and
(ii) If required, for an internal auditing function.
(2) The supervisory committee has the sole authority to engage or terminate outside and internal auditors.