Credit Union Board Modernization Act

Subjects: Finance and Financial Sector

Summary:  <p><b>Credit Union Board Modernization Act </b></p> <p>This bill revises the required frequency of meetings held by a credit union's board of directors. Specifically, new credit unions and credit unions with a low soundness rating must meet monthly. All other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter. Currently, all credit union boards must meet at least once a month.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 610 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                 S. 610

To amend the Federal Credit Union Act to modify the frequency of board 
             of directors meetings, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 1, 2023

  Ms. Sinema (for herself, Mr. Hagerty, Mr. Padilla, and Mr. Tillis) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the Federal Credit Union Act to modify the frequency of board 
             of directors meetings, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Union Board Modernization 
Act''.

SEC. 2. FREQUENCY OF BOARD OF DIRECTORS MEETINGS.

    Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is 
amended--
            (1) in paragraph (15), by striking ``monthly'' each place 
        the term appears;
            (2) in the matter preceding paragraph (1), by striking 
        ``The board of directors'' and inserting the following:
    ``(a) In General.--The board of directors'';
            (3) in subsection (a), as so designated, in the matter 
        preceding paragraph (1), by striking ``shall meet at least once 
        a month and''; and
            (4) 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.''.
                                 &lt;all&gt;
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