Board governance modernization would provide needed flexibility

The Credit Union Board Modernization Act (H.R. 6889) would free up credit union resources to better serve members, CUNA wrote to bill sponsors Reps. Juan Vargas, D-Calif., and Anthony Gonzalez, R-Ohio, this week. The bill would the Federal Credit Union Act to allow credit union boards the flexibility to meet at minimum six times a year rather than the required 12 times a year.

“This outdated board meeting requirement can place a burden on credit union staff and their volunteer board members, especially smaller credit unions with few employees and those in rural areas,” the letter reads. “The amount of resources it takes for a credit union to run a monthly board meeting can shift employee time away from the services that a credit union provides to its community.

CUNA also supports exemptions in the legislation for credit unions with a low CAMELS composite rating, credit unions with a low Management component rating and de novo credit unions as they stabilize operations.