A. The board of directors shall:
(1) act upon applications for membership or to appoint one or more membership officers to approve applications for membership under such conditions as the board prescribes. A record of the actions taken by a membership officer shall be made available in writing to the board of directors for inspection. A person denied membership may appeal the denial to the board, and the person shall be informed of that right of appeal in writing by the credit union;
(2) authorize and require the purchase of adequate fidelity coverage as it determines to be necessary for the board members, committee members, executive officers or employees of the credit union, with documentation made available to the director about who is covered;
(3) authorize and determine from time to time the interest rates that shall be charged on extensions of credit to members and authorize any interest refunds on extensions of credit under the conditions the board prescribes; provided that the board may delegate that authority to the chief executive officer and a committee with the requirement that any exercise of that authority shall be reported to the board at the next monthly board meeting;
(4) establish written policies with respect to the terms and conditions for granting loans and the extension of credit, including the maximum amount that may be provided to any one member;
(5) declare dividends on share accounts and membership shares in the manner and form as provided in the bylaws, which dividends shall not exceed the credit union's net earnings, including undivided earnings; provided that the board may delegate that authority, except with regard to an account that the credit union designates as a member's primary share account, to the chief executive officer and a committee, with the requirement that any exercise of that authority shall be reported to the board of directors at the next board meeting;
(6) have charge of the investment of funds, except that the board may designate an investment committee or investment officer under written investment policies established by the board;
(7) authorize the employment of persons to carry on the business of the credit union and establish the compensation of the executive officer;
(8) approve an annual operating budget for the credit union;
(9) authorize the conveyance of property;
(10) authorize the designation of depositories for the operating funds of the credit union;
(11) appoint any committees deemed necessary; and
(12) perform such other duties as the members from time to time direct and perform or authorize any action not inconsistent with the Credit Union Act and not specifically reserved by the bylaws to the members.
B. Any member of the supervisory committee or of any other committee established for the purposes of extending credit may be temporarily suspended or removed by the board of directors, by a two-thirds vote of the board of directors at a meeting in which a quorum is present, for failure to perform those duties in accordance with the Credit Union Act, the articles of organization or the bylaws and for no other reason. The suspension or removal of a supervisory committee member shall be acted upon by the members at a meeting to be held not less than seven or more than twenty-one days after such suspension or removal.
History: Laws 1987, ch. 311, § 36; 1991, ch. 51, § 10; 1997, ch. 195, § 25; 2003, ch. 28, § 8.
ANNOTATIONSRepeals. — Laws 1997, ch. 195, § 42 repealed Laws 1987, ch. 311, § 68, which had provided for the repeal of this section on July 1, 1997.
The 2003 amendment, effective June 20, 2003, added "provided that the board may delegate that authority to the chief executive officer and a committee with the requirement that any exercise of that authority shall be reported to the board at the next monthly board meeting" at the end of Subsection A(3); and added "provided that the board may delegate that authority, except with regard to an account that the credit union designates as a member's primary share account, to the chief executive officer and a committee, with the requirement that any exercise of that authority shall be reported to the board of directors at the next board meeting" at the end of Subsection A(5).
The 1997 amendment, effective July 1, 1997, rewrote this section to the extent that a detailed comparison is impracticable.
The 1991 amendment, effective July 1, 1991, in Subsection B, substituted "committee members, executive officers" for "general manager and any other officers"; in Subsection F, substituted "of" for "or"; and made stylistic changes in Subsections B, C and L.