The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 221 : Organization and Management of Credit Union

Subchapter 003 : GOVERNING BODY, OFFICERS, AND COMMITTEES

• § 31302. Duties of governing body

  The governing body shall have authority for the general management of the credit union and, among other things, the governing body shall:

  (1) have the authority and responsibility for directing the operations, funds, and records of the credit union;

  (2) act upon applications for membership or appoint an executive committee, a membership committee, or one or more membership officers from among the members of the credit union, other than the treasurer, an assistant treasurer, the chief executive officer, an assistant chief executive officer, or a loan officer, who may be authorized by the governing body to approve applications for membership under such conditions as the governing body may prescribe; except that the membership committee or membership officers so authorized shall submit to the governing body or to the executive committee, if applicable, at each monthly meeting a list of approved or pending applications for membership received since the previous monthly meeting, together with such other related information as the bylaws or the governing body may require;

  (3) provide a blanket fidelity bond covering the directors, officers, employees, members of official committees, attorneys at law, and other agents as required by subsection 31602(a) of this title;

  (4) fill vacancies on the governing body until successors elected at the next annual meeting have qualified;

  (5) establish personnel policies, including policies for the compensation of employees;

  (6) authorize the employment and compensation of the chief executive officer and the treasurer;

  (7) authorize the employment of such person or persons as may be necessary to carry on the business of the credit union or delegate such authorization to the chief executive officer who shall hire such other persons necessary to carry on the business of the credit union, or contract with persons or organizations as may be necessary to carry on the operations of the credit union;

  (8) determine the number of shares and the amount of deposits that may be owned by a member, the limitations to apply alike to all members;

  (9) approve an annual operating budget for the credit union;

  (10) authorize the conveyance of property;

  (11) have the power to borrow or lend money to carry on the functions of the credit union;

  (12) have the power to appoint any special committees deemed necessary;

  (13) determine, from time to time, the interest rates not in excess of that allowed by law that shall be charged on loans to members and authorize interest refunds, if any, to members in proportion to the interest paid by them on loans or, at the discretion of the governing body, delegate to the executive committee or the chief executive officer the authority to establish interest rates pursuant to policies and guidelines adopted by the governing body;

  (14) establish lending policies and, within any limitations set forth in the credit union’s bylaws, fix a maximum amount that may be lent with and without security to a member;

  (15) have the authority to review a loan application denied by a loan officer or denied by the credit committee, as applicable;

  (16) declare dividends on share accounts at a credit union and determine the interest rate that will be paid on deposits at a community development credit union or, at the discretion of the governing body, delegate to the executive committee or the chief executive officer the authority to establish dividend rates and interest rates that will be paid on share accounts and on deposits pursuant to policies and guidelines adopted by the governing body;

  (17) establish investment policies and invest credit union funds, except that the governing body may designate an investment committee or any qualified individual or entity responsible for making investments under policies established by the governing body;

  (18) review and approve or reject loans to other credit unions that are not members if surplus funds warrant it and review and approve or reject loans to members of the supervisory and credit committees;

  (19) suspend or remove any or all officers, or any or all members of the credit, supervisory, membership, or other committees from their positions on the committees for failure to perform their duties;

  (20) establish and maintain a system of internal controls consistent with applicable law;

  (21) review and ratify all written policies of the credit union at least annually;

  (22) perform such other duties as the members from time to time direct and perform or authorize any action not inconsistent with this part and not specifically reserved by the bylaws to the members; and

  (23) establish other policies as the governing body deems reasonable or prudent, and such policies as required by law, by regulation, or by the Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 325, eff. July 1, 2022.)