Board disapproval of directors, committee members, and senior executive officers of insured credit unions

Source Credit

(a) Prior notice required
An insured credit union shall notify the Board of the proposed addition of any individual to the board of directors or committee or the employment of any individual as a senior executive officer of such credit union at least 30 days before such addition or employment becomes effective, if the insured credit union—
(1) has been chartered less than 2 years; or
(2) is in troubled condition, as determined on the basis of such credit union's most recent report of condition or report of examination.
(b) Disapproval by Board
An insured credit union may not add any individual to the board of directors or employ any individual as a senior executive officer if the Board issues a notice of disapproval of such addition or employment before the end of the 30-day period beginning on the date the agency receives notice of the proposed action pursuant to subsection (a).
(c) Exception in extraordinary circumstances
(1) In general
The Board may prescribe by regulation conditions under which the prior notice requirement of subsection (a) may be waived in the event of extraordinary circumstances.
(2) No effect on disapproval authority of Board
Such waivers shall not affect the authority of the Board to issue notices of disapproval of such additions or employment of such individuals within 30 days after each such waiver.
(d) Additional information
Any notice submitted to the Board by any insured credit union pursuant to subsection (a) shall include—
(1) the information described in section 1817(j)(6)(A) of this title about the individual; and
(2) such other information as the Board may prescribe by regulation.
(e) Standard for disapproval
The Board shall issue a notice of disapproval with respect to a notice submitted pursuant to subsection (a) if the competence, experience, character, or integrity of the individual with respect to whom such notice is submitted indicates that it would not be in the best interests of the depositors of the insured credit union or in the best interests of the public to permit the individual to be employed by, or associated with, such insured credit union.
(f) Definition regulations
The Board shall prescribe by regulation a definition for the terms "troubled condition" and "senior executive officer" for purposes of subsection (a).

History

(June 26, 1934, ch. 750, title II, §212, as added Pub. L. 101–73, title IX, §914(b), Aug. 9, 1989, 103 Stat. 485.)

Editorial Notes

Editorial Notes

Codification
Section 914(b) of Pub. L. 101–73, which directed that this section be added to title II of "the Federal Credit Union Insurance Act (12 U.S.C. 1781 et seq.)" was executed by adding this section to the Federal Credit Union Act, which comprises this chapter, as the probable intent of Congress.