---
kind: "section"
citation: "12 C.F.R. § 715.11"
title: "12"
number: "715.11"
heading: "Sanctions for failure to comply with this part."
url: "https://uscodex.org/cfr/12/715.11"
---

# §715.11. Sanctions for failure to comply with this part.

- (a) **Sanctions.** Failure of a supervisory committee and/or its independent compensated auditor or other person to comply with the requirements of this section, or the terms of an engagement letter required by this section, is grounds for:
  - (1) The regional director to reject the supervisory committee audit and provide a reasonable opportunity to correct deficiencies;
  - (2) The regional director to impose the remedies available in [§ 715.12](/cfr/12/715.12.md), provided any of the conditions specified therein is present; and
  - (3) The NCUA Board to seek formal administrative sanctions against the supervisory committee and/or its independent, compensated auditor pursuant to section 206(r) of the Federal Credit Union Act, [12 U.S.C. 1786(r)](/usc/12/1786.md?p=r).
- (b) **State Charters.** In the case of a federally-insured state chartered credit union, NCUA shall provide the state regulator an opportunity to timely impose a remedy satisfactory to NCUA before exercising it authority under [§ 741.202](/cfr/12/741.202.md) of this chapter to impose a sanction permitted under [paragraph (a)](#a) of this section.

## Notes

### Authority

Authority: 12 U.S.C. 1761(b), 1761d, 1782(a)(6).

### Source

Source: 64 FR 41035, July 29, 1999, unless otherwise noted.