Washington Code 31.12.267 – Officials — Fiduciary duty — Information relied on — Definition
Current as of: 2023 | Check for updates
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(1) Officials owe a fiduciary duty to the credit union, and must discharge the duties of their positions:
Terms Used In Washington Code 31.12.267
- Board: means the board of directors of a credit union. See Washington Code 31.12.005
- Board officer: means an officer of the board elected under RCW 31. See Washington Code 31.12.005
- Credit union: means a credit union organized and operating under this chapter. See Washington Code 31.12.005
- Director: means the director of financial institutions. See Washington Code 31.12.005
- Fiduciary: A trustee, executor, or administrator.
- Person: means an organization or a natural person including, but not limited to, a sole proprietorship. See Washington Code 31.12.005
- Senior operating officer: includes :
Washington Code 31.12.005
(a) In good faith;
(b) With the care an ordinarily prudent person in a like position would exercise under similar circumstances; and
(c) In a manner the official reasonably believes to be in the best interests of the credit union.
(2) In discharging the duties of an official, the official is entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared or presented by:
(a) One or more officers or employees of the credit union whom the official reasonably believes to be reliable and competent in the matters presented;
(b) Legal counsel, public accountants, or other persons as to matters the official reasonably believes are within the person’s professional or expert competence; or
(c) A committee of the board of directors or supervisory committee of which the official is not a member if the official reasonably believes the committee merits confidence.
(3) An official is not acting in good faith if the official has knowledge concerning the matter in question that makes reliance otherwise permitted by subsection (2) of this section unwarranted.
(4) An official is not liable for any action taken as a director, or any failure to take any action, if the director performed the duties of the director’s office in compliance with this section.
(5) As used in this section, “official” means a director, board officer, supervisory committee member, or senior operating officer of the credit union.