Current as of: 2009
A. The members of a credit union may make, amend and repeal the by-laws of the credit union. This power may be expressly vested by the articles, or by a by-law adopted by the members, in the board of directors, subject always to the power of the members to change the action of the directors. Unless the articles or by-laws provide otherwise, the powers hereby conferred shall be exercised by a majority vote of the directors or the members of the credit union, as the case may be, present at any regular or special meeting convened after at least ten days' notice, and the notice has contained a copy of the proposed by-laws or proposed amendment or amendments.
B. No by-laws or amendments of the by-laws shall become effective, however, until approved in writing by the commissioner.
C.(1) Notwithstanding Subsection B of this Section, a credit union may amend its bylaws through a field of membership expansion by providing written notice to the commissioner in the manner and on a form prescribed by him, if the credit union meets all the criteria below:
(a) The most recent credit union examination rating is two or better.
(b) The net worth ratio of the credit union is at least seven percent as of the previous quarter-end.
(c) The group proposed for membership consists of five hundred or fewer individuals.
(2) However, the commissioner may issue a written notice of disapproval within ten days after receiving such form, or longer time if the commissioner determines that additional information is required.
Added by Acts 1954, No. 530, §1. Amended by Acts 1968, No. 180, §4; Acts 2003, No. 363, §1, eff. June 18, 2003.Prev | Next
U.S. Code Provisions: Credit Unions
Federal Regulations: Credit Unions