§ 28-7-1-15 — Selection of board of directors, supervisory committee, and credit committee; oath; term length; replacement of chief executive officer; qualification criteria

(a) At the annual meeting, the members shall
elect a board of directors and a supervisory committee.
(b) The bylaws:
(1) may provide for a credit committee; and
(2) if a credit committee is provided for, must state whether the
credit committee is to be elected by the members or appointed by
the board of directors.
(c) The credit committee must consist of not fewer than three (3) nor
more than seven (7) members. A director may not be a member of
either the credit committee or the supervisory committee.
(d) Each member of the board and each member of the credit
committee or the supervisory committee shall take an oath. The length
of the term of a member of the board or of the credit committee or the
supervisory committee must be set forth in the bylaws.
(e) If a credit union replaces the chief executive officer of the credit
union, the credit union shall give the department written notice of the
replacement not later than thirty (30) days after replacing a person as
the chief executive officer.
(f) Each individual elected or appointed to serve as a director,
supervisory committee member, or credit committee member of a
credit union, or as a member of any other committee that performs
significant ongoing functions relating to the ongoing operations of the
credit union, shall meet all of the following criteria:
(1) The individual is a member of the credit union and in good
standing according to reasonable criteria established by the credit
union board.
(2) The individual is acceptable as a bonding risk by a bonding
company licensed to do business in this state.
(3) The individual has not been removed as a director, officer,
committee member, or employee of a financial institution by a
federal regulator, a state regulator, or a court with jurisdiction.
(4) The department has not removed the individual as a director,
officer, committee member, or employee of a credit union,
financial institution, or other legal entity under the department's
enforcement powers under any law of this state.
(5) The individual has not been convicted of a crime involving
dishonesty or breach of trust.
(6) The individual is not habitually negligent in paying the
individual's financial obligations as determined by criteria
reasonably established by the credit union board.
(7) The individual has not been convicted by a court with
jurisdiction of a violation, or found in violation by a court with
jurisdiction or the department, of any law of this state enforced or
administered by the department.
(g) If an individual no longer meets one (1) or more of the
requirements of subsection (f) while serving as a director, supervisory
committee member, or credit committee member of a credit union, or
as a member of any other committee that performs significant ongoing
functions relating to the ongoing operations of the credit union, the:
(1) individual immediately shall be removed from that office
without further action of the members of the credit union board;
and
(2) credit union shall appoint or elect a replacement to fill the
vacancy in the manner described in the bylaws.
Formerly: Acts 1961, c.182, s.15. As amended by Acts 1977,
P.L.294, SEC.7; P.L.270-1983, SEC.4; P.L.263-1995, SEC.12;
P.L.35-2010, SEC.154.