Kentucky Statutes 286.6-225 – Specific duties of board
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It shall be the duty of the board of directors to:
(1) Act upon applications for membership or to appoint one (1) or more membership officers to approve applications for membership under such conditions as the board prescribes. A record of the actions taken by a membership officer on applications shall be available to the board of directors for inspection. A person denied membership by a membership officer may appeal the denial to the board;
(2) Purchase a blanket fidelity bond, in accordance with any rules and regulations of the commissioner, to protect the credit union against losses caused by occurrences covered therein such as fraud, dishonesty, forgery, embezzlement, misappropriation, misapplication, or unfaithful performance of duty by a director, officer, employee, member of a committee, attorney-at-law or other agent;
(3) Determine from time to time the interest rate or rates, consistent with this subtitle, which shall be charged on loans and to authorize any interest refunds on such classes of loans and under such conditions as the board prescribes;
(4) Establish the policies of the credit union with respect to the granting of loans and the extending of lines of credit, including the maximum amount which may be loaned to any one (1) member;
(5) Establish different types or classes of shares;
(6) Declare dividends on shares and share certificates in the manner and form as provided in the bylaws; and determine the interest rate or rates which will be paid on deposits and deposit certificates;
(7) If deemed desirable, limit the number of shares and the amount of share certificates, deposits and deposit certificates which may be owned by a member. Any such limitation shall apply alike to all members;
(8) Have charge of the investment of funds, except that the board may designate an investment committee or any qualified individual to have charge of making investments under conditions established by the board;
(9) Authorize the employment of such persons necessary to carry on the business of the credit union, including the credit manager, loan officers and auditing assistants requested by the supervisory committee, and fix the compensation, if any, of the president;
(10) Approve an annual operating budget for the credit union, which shall include provision for the compensation of employees;
(11) Authorize the conveyance of property;
(12) Authorize contributions to civic, charitable or service organizations, subject to regulations of the commissioner;
(13) Borrow or lend money to carry on the functions of the credit union;
(14) Designate a depository or depositories for the funds of the credit union;
(15) Suspend any or all members of the credit or supervisory committee for failure to perform their duties;
(16) Appoint any special committees deemed necessary; and
(17) Perform such other duties as the members from time to time direct, and perform or authorize any action not inconsistent with this subtitle and not specifically reserved by the bylaws for the members.
Effective: July 13, 1984
History: Created 1984 Ky. Acts ch. 408, sec. 25, effective July 13, 1984.
Formerly codified as KRS § 290.225.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.
(1) Act upon applications for membership or to appoint one (1) or more membership officers to approve applications for membership under such conditions as the board prescribes. A record of the actions taken by a membership officer on applications shall be available to the board of directors for inspection. A person denied membership by a membership officer may appeal the denial to the board;
Terms Used In Kentucky Statutes 286.6-225
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Attorney-at-law: A person who is legally qualified and licensed to practice law, and to represent and act for clients in legal proceedings.
- Commissioner: means the commissioner of financial institutions. See Kentucky Statutes 286.6-005
- Credit union: means a cooperative, nonprofit association, incorporated under this subtitle, for the purposes of encouraging thrift among its members, creating a source of credit at a fair and reasonable rate of interest, and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition. See Kentucky Statutes 286.6-005
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Forgery: The fraudulent signing or alteration of another's name to an instrument such as a deed, mortgage, or check. The intent of the forgery is to deceive or defraud. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Person: means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. See Kentucky Statutes 286.1-010
- Statute: A law passed by a legislature.
(2) Purchase a blanket fidelity bond, in accordance with any rules and regulations of the commissioner, to protect the credit union against losses caused by occurrences covered therein such as fraud, dishonesty, forgery, embezzlement, misappropriation, misapplication, or unfaithful performance of duty by a director, officer, employee, member of a committee, attorney-at-law or other agent;
(3) Determine from time to time the interest rate or rates, consistent with this subtitle, which shall be charged on loans and to authorize any interest refunds on such classes of loans and under such conditions as the board prescribes;
(4) Establish the policies of the credit union with respect to the granting of loans and the extending of lines of credit, including the maximum amount which may be loaned to any one (1) member;
(5) Establish different types or classes of shares;
(6) Declare dividends on shares and share certificates in the manner and form as provided in the bylaws; and determine the interest rate or rates which will be paid on deposits and deposit certificates;
(7) If deemed desirable, limit the number of shares and the amount of share certificates, deposits and deposit certificates which may be owned by a member. Any such limitation shall apply alike to all members;
(8) Have charge of the investment of funds, except that the board may designate an investment committee or any qualified individual to have charge of making investments under conditions established by the board;
(9) Authorize the employment of such persons necessary to carry on the business of the credit union, including the credit manager, loan officers and auditing assistants requested by the supervisory committee, and fix the compensation, if any, of the president;
(10) Approve an annual operating budget for the credit union, which shall include provision for the compensation of employees;
(11) Authorize the conveyance of property;
(12) Authorize contributions to civic, charitable or service organizations, subject to regulations of the commissioner;
(13) Borrow or lend money to carry on the functions of the credit union;
(14) Designate a depository or depositories for the funds of the credit union;
(15) Suspend any or all members of the credit or supervisory committee for failure to perform their duties;
(16) Appoint any special committees deemed necessary; and
(17) Perform such other duties as the members from time to time direct, and perform or authorize any action not inconsistent with this subtitle and not specifically reserved by the bylaws for the members.
Effective: July 13, 1984
History: Created 1984 Ky. Acts ch. 408, sec. 25, effective July 13, 1984.
Formerly codified as KRS § 290.225.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.