Credit Union Board Modernization Act

Bill: 119-hr-975
Sponsor: full_name: Rep. Vargas, Juan [D-CA-52]
Introduced: 2025-02-04
Policy area: Finance and Financial Sector
Subjects: Administrative remedies

Banking and financial institutions regulation

Corporate finance and management

National Credit Union Administration
Latest action: action_date: 2025-02-11
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2025-02-04
action_desc: Introduced in House
text: <p><strong>Credit Union Board Modernization Act </strong></p><p>This bill reduces the required frequency of meetings held by the board of directors of certain credit unions. Under the bill, new credit unions and credit unions with a low soundness rating must meet monthly, as required under current law. All other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter.</p>

tv_txt: IIB 119th CONGRESS 1st Session H. R. 975 IN THE SENATE OF THE UNITED STATES February 11, 2025 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs AN ACT To amend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.

1. Short title This Act may be cited as the Credit Union Board Modernization Act . 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. .

Passed the House of Representatives February 10, 2025. Kevin F. McCumber, Clerk.

tv_txt: I 119th CONGRESS 1st Session H. R. 975 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend the Federal Credit Union Act to modify the frequency of board of directors meetings, and for other purposes.

1. Short title This Act may be cited as the Credit Union Board Modernization Act . 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. .

Passed the House of Representatives February 10, 2025. Kevin F. McCumber, Clerk.

tv_txt: I 119th CONGRESS 1st Session H. R. 975 IN THE HOUSE OF REPRESENTATIVES February 4, 2025 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.

1. Short title This Act may be cited as the Credit Union Board Modernization Act . 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. .