Section 1 Short title
This Act may be cited as the “Credit Union Board Modernization Act”.
Credit Union Board Modernization Act
A BILL
To amend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.
Sec. 2 Frequency of board of directors meetings
Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is amended—
in paragraph (15), by striking “monthly” each place the term appears;
in the matter preceding paragraph (1), by striking “The board of directors” and inserting the following:
“(a) In general—The board of directors”
in subsection (a), as so designated, in the matter preceding paragraph (1), by striking “shall meet at least once a month and”; and
by adding at the end the following:
“(b) Meetings—The board of directors of a Federal credit union shall meet as follows:
“(1) Not less frequently than monthly during the 5-year period beginning on the date on which the organization certificate of the Federal credit union is approved.
“(2) After the expiration of the 5-year period described in paragraph (1)—
“(A) not less frequently than 6 times annually, with at least 1 meeting held during each fiscal quarter, with respect to a Federal credit union—
“(i) with composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and
“(ii) with a capability of management rating under the composite rating described in clause (i) of 1 or 2; and
“(B) not less frequently than monthly, with respect to a Federal credit union—
“(i) with composite rating of 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or
“(ii) with a capability of management rating under the composite rating described in clause (i) of 3, 4, or 5.”