Official Summaries

Credit Union Board Modernization Act

This bill reduces the required frequency of meetings held by the board of directors of certain credit unions. Under the bill, new credit unions and credit unions with a low soundness rating must meet monthly, as required under current law. All other credit unions must hold at least six meetings annually, with at least one meeting held during each fiscal quarter.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 975 Referred in Senate (RFS)]

<DOC>
119th CONGRESS
  1st Session
                                H. R. 975


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 11, 2025

Received; read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 AN ACT


 
To amend the Federal Credit Union Act to modify the frequency of board 
             of directors meetings, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Credit Union Board Modernization 
Act''.

SEC. 2. FREQUENCY OF BOARD OF DIRECTORS MEETINGS.

    Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is 
amended--
            (1) by striking ``monthly'' each place such term appears;
            (2) in the matter preceding paragraph (1), by striking 
        ``The board of directors'' and inserting the following:
    ``(a) In General.--The board of directors'';
            (3) in subsection (a) (as so designated), by striking 
        ``shall meet at least once a month and''; and
            (4) by adding at the end the following:
    ``(b) Meetings.--The board of directors of a Federal credit union 
shall meet as follows:
            ``(1) With respect to a de novo Federal credit union, not 
        less frequently than monthly during each of the first five 
        years of the existence of such Federal credit union.
            ``(2) Not less than six times annually, with at least one 
        meeting held during each fiscal quarter, with respect to a 
        Federal credit union--
                    ``(A) with composite rating of either 1 or 2 under 
                the Uniform Financial Institutions Rating System (or an 
                equivalent rating under a comparable rating system); 
                and
                    ``(B) with a capability of management rating under 
                such composite rating of either 1 or 2.
            ``(3) Not less frequently than once a month, with respect 
        to a Federal credit union--
                    ``(A) with composite rating of either 3, 4, or 5 
                under the Uniform Financial Institutions Rating System 
                (or an equivalent rating under a comparable rating 
                system); or
                    ``(B) with a capability of management rating under 
                such composite rating of either 3, 4, or 5.''.

            Passed the House of Representatives February 10, 2025.

            Attest:

                                             KEVIN F. MCCUMBER,

                                                                 Clerk.