Credit Union Board Modernization Act

Subjects: Finance and Financial Sector, Administrative remedies, Banking and financial institutions regulation, Corporate finance and management, National Credit Union Administration

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]
[H.R. 582 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 582

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 2023

  Mr. Vargas (for himself and Mr. Huizenga) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 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) by striking ``monthly'' each place such 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), 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) With respect to a de novo Federal credit union, not 
        less frequently than monthly during each of the first five 
        years of the existence of such Federal credit union.
            ``(2) Not less than six times annually, with at least one 
        meeting held during each fiscal quarter, with respect to a 
        Federal credit union--
                    ``(A) with composite rating of either 1 or 2 under 
                the Uniform Financial Institutions Rating System (or an 
                equivalent rating under a comparable rating system); 
                and
                    ``(B) with a capability of management rating under 
                such composite rating of either 1 or 2.
            ``(3) Not less frequently than once a month, with respect 
        to a Federal credit union--
                    ``(A) with composite rating of either 3, 4, or 5 
                under the Uniform Financial Institutions Rating System 
                (or an equivalent rating under a comparable rating 
                system); or
                    ``(B) with a capability of management rating under 
                such composite rating of either 3, 4, or 5.''.
                                 &lt;all&gt;
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