12 U.S.C. § 1761 — Management

Page 869 TITLE 12—BANKS AND BANKING § 1761 1970—Pub. L. 91–206 substituted ‘‘Administrator’’ for ‘‘Director’’. 1959—Pub. L. 86–354 substituted ‘‘persons’’ for ‘‘per- son’’ before ‘‘designated’’. 1946—Act July 31, 1946, inserted sentence at end per- mitting a Federal credit union to issue shares in joint tenancy with a right of survivorship. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provi- sions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title. REPORT AND CONGRESSIONAL REVIEW REQUIREMENT FOR CERTAIN REGULATIONS Pub. L. 105–219, title II, § 205, Aug. 7, 1998, 112 Stat. 923, provided that: ‘‘A regulation prescribed by the Board [National Credit Union Administration Board] shall be treated as a major rule for purposes of chapter 8 of title 5, United States Code, if the regulation de- fines, or amends the definition of— ‘‘(1) the term ‘immediate family or household’ for purposes of section 109(e)(1) of the Federal Credit Union Act [12 U.S.C. 1759(e)(1)] (as added by section 101 of this Act); or ‘‘(2) the term ‘well-defined local community, neigh- borhood, or rural district’ for purposes of section 109(g) of the Federal Credit Union Act (as added by section 103 of this Act).’’ § 1760. Members’ meetings The fiscal year of all Federal credit unions shall end December 31. The annual meeting of each Federal credit union shall be held at such place as its bylaws shall prescribe. Special meet- ings may be held in the manner indicated in the bylaws. No member shall be entitled to vote by proxy, but a member other than a natural per- son may vote through an agent designated for the purpose. Irrespective of the number of shares held, no member shall have more than one vote. (June 26, 1934, ch. 750, title I, § 110, formerly § 10, 48 Stat. 1219; renumbered § 11, Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 631; amended Pub. L. 88–150, § 1, Oct. 17, 1963, 77 Stat. 270; renumbered title I, § 110, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 97–320, title V, § 519, Oct. 15, 1982, 96 Stat. 1531.) Editorial Notes AMENDMENTS 1982—Pub. L. 97–320 struck out ‘‘at such time during the following January, February, or March and’’ after ‘‘shall be held’’, and ‘‘by him’’ after ‘‘shares held’’. 1963—Pub. L. 88–150 substituted ‘‘during the following January, February, or March’’ for ‘‘during the month of the following January’’. § 1761. Management (a) Board of directors, credit committee, and su- pervisory committee; election to board The management of a Federal credit union shall be by a board of directors, a supervisory committee, and where the bylaws so provide, a credit committee. The board shall consist of an odd number of directors, at least five in number, to be elected annually by and from the members as the bylaws provide. Any vacancy occurring on the board shall be filled until the next annual election by appointment by the remainder of the directors. (b) Membership on supervisory committee; names and addresses of officers and com- mittee members The supervisory committee shall be appointed by the board of directors and shall consist of not less than three members nor more than five members, one of whom may be a director other than the compensated officer of the board. A record of the names and addresses of the execu- tive officers, members of the supervisory com- mittee, credit committee, and loan officers, shall be filed with the Administration within ten days after their election or appointment. (c) Compensation No member of the board or of any other com- mittee shall, as such, be compensated, except that reasonable health, accident, similar insur- ance protection, and the reimbursement of rea- sonable expenses incurred in the execution of the duties of the position shall not be considered compensation. (June 26, 1934, ch. 750, title I, § 111, formerly § 11, 48 Stat. 1219; June 15, 1940, ch. 366, 54 Stat. 398; July 31, 1946, ch. 711, §§ 3–6, 60 Stat. 745; 1947 Reorg. Plan No. 1, § 401, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 952; June 29, 1948, ch. 711, §§ 1, 2, 62 Stat. 1091; Oct. 25, 1949, ch. 713, § 2, 63 Stat. 890; June 30, 1954, ch. 426, § 1, 68 Stat. 335; Aug. 24, 1954, ch. 905, §§ 1, 2, 68 Stat. 792; renumbered § 12 and amended Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 632; Pub. L. 88–353, § 2, July 2, 1964, 78 Stat. 269; Pub. L. 91–206, § 2(3), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 111, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 93–495, title I, § 116, Oct. 28, 1974, 88 Stat. 1507; Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 97–320, title V, § 520, Oct. 15, 1982, 96 Stat. 1531.) Editorial Notes AMENDMENTS 1982—Pub. L. 97–320 substituted provisions divided into subsecs. (a), (b), and (c) relating to the manage- ment of a Federal credit union, including the board of directors, credit and supervisory committees, and the matter of their compensation, for provisions which read as follows: ‘‘The business affairs of a Federal cred- it union shall be managed by a board of not less than five directors, and a credit committee of not less than three members, all to be elected at the annual mem- bers’ meeting by and from the members, and by a su- pervisory committee of not less than three members nor more than five members, one of whom may be a di- rector other than the treasurer, to be appointed by the board. Any vacancy occurring in the supervisory com- mittee shall be filled in the same manner as original appointments to such committee. All members of the board and of such committees shall hold office for such terms, respectively, as the bylaws may provide. A record of the names and addresses of the members of the board and such committees and of the officers of the credit union shall be filed with the Administration within ten days after their election or appointment. No member of the board or of either such committee shall, as such, be compensated: Provided, however, That rea- sonable health, accident, and similar insurance protec- tion shall not be considered compensation under regu- lations promulgated by the Board.’’ Page 870 TITLE 12—BANKS AND BANKING § 1761a 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’. 1974—Pub. L. 93–495 inserted proviso relating to com- pensation in the form of health, accident, and similar insurance protection. 1970—Pub. L. 91–206 substituted ‘‘Administration’’ for ‘‘Bureau’’. 1964—Pub. L. 88–353 increased size of supervisory com- mittee from three members to not less than three members nor more than five members. 1959—Pub. L. 86–354 provided for appointment instead of election of members of supervisory committee and for filling of vacancies in such committee, and struck out former subsecs. (b) to (e) relating to officers, direc- tors, credit committee and supervisory committee. See sections 1761a to 1761d of this title, respectively. 1954—Subsecs. (b), (c). Act Aug. 24, 1954, provided ex- press authority for the Director of the Bureau of Fed- eral Credit Unions to regulate the minimum amount and character of surety bonds for officers and employ- ees. Subsec. (c). Act June 30, 1954, inserted provision with respect to interest refunds. 1949—Subsec. (d). Act Oct. 25, 1949, substituted ‘‘$400’’ for ‘‘$300’’ wherever appearing. 1946—Subsec. (c). Act July 31, 1946, struck out ‘‘fix the amount and character of the surety bond required of any officer having custody of funds’’ and inserted ‘‘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, from time to time, by the board and authorize the pay- ment of the premium or premiums therefor from the funds of the Federal credit union’’. Subsec. (d). Act July 31, 1946, struck out requirement that notice of meeting of the credit committee must be given by the treasurer and increased the maximum amount of an unsecured loan to a member from $100 to $300. Subsec. (e). Act July 31, 1946, inserted last sentence defining ‘‘passbook’’. 1940—Subsec. (d). Act June 15, 1940, substituted ‘‘$100’’ for ‘‘$50’’ in fourth sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provi- sions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title. Executive Documents TRANSFER OF FUNCTIONS Transfer of functions of Farm Credit Administration and Governor thereof, generally, see notes set out under section 1751 of this title. Functions of Governor of Farm Credit Administra- tion under this section transferred to Federal Deposit Insurance Corporation by Reorg. Plan No. 1 of 1947. § 1761a. Officers of the board At their first meeting after the annual meet- ing of the members, the directors shall elect from their number the board officers specified in the bylaws. Only one board officer may be com- pensated as an officer of the board and the by- laws shall specify such position as well as the specific duties of each of the board officers. The board shall elect from their number a financial officer who shall give adequate fidelity coverage in accordance with section 1761b(2) of this title. (June 26, 1934, ch. 750, title I, § 112, formerly § 13, as added Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 632; amended Pub. L. 88–150, § 2, Oct. 17, 1963, 77 Stat. 270; Pub. L. 91–206, § 2(1), Mar. 10, 1970, 84 Stat. 49; renumbered title I, § 112, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 95–630, title V, § 502(b), Nov. 10, 1978, 92 Stat. 3681; Pub. L. 97–320, title V, § 521, Oct. 15, 1982, 96 Stat. 1531; Pub. L. 100–86, title VII, § 704(a), Aug. 10, 1987, 101 Stat. 652.) Editorial Notes PRIOR PROVISIONS Provisions similar to those comprising this section were contained in section 11(b) of act June 26, 1934, ch. 750, 48 Stat. 1219 (formerly classified to section 1761(b) of this title), prior to the amendment and renumbering of act June 26, 1934, by Pub. L. 86–354. AMENDMENTS 1987—Pub. L. 100–86 inserted third sentence and struck out former third sentence which read as follows: ‘‘The board shall elect from their number a financial officer who shall give bond with good and sufficient surety, in an amount and character to be determined by the board of directors in compliance with regula- tions prescribed from time to time by the Board condi- tioned upon the faithful performance of the officer’s trust.’’ 1982—Pub. L. 97–320 substituted provisions relating to the officers of the board for provisions which read: ‘‘At their first meeting after the annual meeting of the members, the directors shall elect from their number a president, one or more vice presidents, a secretary, and a treasurer, who shall be the executive officers of the corporation. No executive officer, except the treasurer, shall be compensated as such. The offices of secretary and treasurer may be held by the same person. The du- ties of the officers shall be as determined by the by- laws. Before the treasurer shall enter upon his duties he shall 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, conditioned upon the faithful performance of his trust.’’ 1978—Pub. L. 95–630 substituted ‘‘Board’’ for ‘‘Admin- istrator’’. 1970—Pub. L. 91–206 substituted ‘‘Administrator’’ for ‘‘Director’’. 1963—Pub. L. 88–150 struck out ‘‘, except that the treasurer shall be the general manager of the corpora- tion’’ after ‘‘bylaws’’ in fourth sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provi- sions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title. § 1761b. Board of directors; meetings; powers and duties; executive committee; membership of- ficers; 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;