BY DENNIS CHILD
In a continuing series, CUB takes a closer look at regulation 701.4, General authorities and duties of federal credit union directors. Listen in as we break down the seven major points covered by this regulation, how they impact your credit union and what steps your CU board must take to meet the regulation’s expectations.
In previous articles, I have written that credit union boards of directors are under much greater scrutiny than several years ago. The National Credit Union Administration (NCUA) expects individuals serving on federal credit union boards to serve under greater standards than in the past. Whether they are compensated or not, board members will be held to high levels of responsibility by NCUA and therefore they would be wise to pursue a constant state of learning.
A review of issues I raised in former articles on this subject is
Credit union board members’ expectations can be found in:
CODE OF FEDERAL REGULATIONS; Title 12—BANKS AND
BANKING; PART 701—ORGANIZATION AND OPERATION OF
FEDERAL CREDIT UNIONS; §701.4 General authorities and
duties of federal credit union directors.
Credit union board members, managers, auditors and supervisory committee members would be wise to review this regulation and become familiar with its content.
Let’s review the major points of this regulation:
Point 1: A board’s responsibilities are non-delegable.
This section of the regulation makes it clear that board members cannot delegate or defer their responsibilities and expectations to any other entity.