12 U.S.C. § 1761d: Supervisory committee…

Summary

The supervisory committee must have an annual audit done. It must give the full audit report to the board of directors and a short summary to members at the next annual meeting. It must also do extra audits when it thinks they are needed or when the board orders them, and give those reports to the board. By unanimous vote the committee can suspend any officer or any member of the credit committee or board until the next members’ meeting, which must be held at least seven and no more than fourteen days after the suspension. By majority vote the committee can call a special members’ meeting to deal with violations or unsafe or unauthorized practices. The board can suspend a supervisory committee member by majority vote. Members must meet between seven and fourteen days after that suspension to decide whether to remove or restore the suspended committee member. The supervisory committee must also check members’ passbooks and accounts against the treasurer’s records from time to time and at least once every two years. "Passbook" means any book, account statement, or other record the Board approves for federal credit unions.

Title 12, §1761d

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The supervisory committee shall make or cause to be made an annual audit and shall submit a report of that audit to the board of directors and a summary of the report to the members at the next annual meeting of the credit union; shall make or cause to be made such supplementary audits as it deems necessary or as may be ordered by the Board, and submit reports of the supplementary audits to the board of directors; may by a unanimous vote suspend any officer of the credit union or any member of the credit committee or of the board of directors, until the next members’ meeting, which shall be held not less than seven or more than fourteen days after any such suspension, at which meeting any such suspension shall be acted upon by the members; and may call by a majority vote a special meeting of the members to consider any violations of this chapter, the charter, or the bylaws, or any practice of the credit union deemed by the supervisory committee to be unsafe or unauthorized. Any member of the supervisory committee may be suspended by a majority vote of the board of directors. The members shall decide, at a meeting held not less than seven nor more than fourteen days after any such suspension, whether the suspended committee member shall be removed from or restored to the supervisory committee. The supervisory committee shall cause the passbooks and accounts of the members to be verified with the records of the treasurer from time to time, and not less frequently than once every two years. As used in this section, the term “passbook” shall include any book, statement of account, or other record approved by the Board for use by Federal credit unions.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those comprising this section were contained in section 11(e) of act

June 26, 1934, ch. 750, 48 Stat. 1219 (formerly classified to section 1761(e) of this title), prior to the amendment and renumbering of act

June 26, 1934 by Pub. L. 86–354.

Amendments

1978—Pub. L. 95–630 substituted “Board” for “Administrator”. 1974—Pub. L. 93–383 substituted “an annual” for “a semiannual”. 1970—Pub. L. 91–206 substituted “Administrator” for “Director” in two places. 1968—Pub. L. 90–375 substituted provisions which required a semiannual audit for provisions which required a quarterly examination of the affairs of a Federal credit union, including an audit of the books, authorized the making of such supplementary audits as deemed necessary by the supervisory committee or as ordered by the Director, eliminated the requirement of an annual audit, and provided that the suspension of any member of the supervisory committee be pursuant to a majority vote of the board of directors.

Statutory Notes and Related Subsidiaries

Effective Date

of 1978 AmendmentAmendment by Pub. L. 95–630 effective on expiration of 120 days after Nov. 10, 1978, and transitional provisions, see section 509 of Pub. L. 95–630, set out as a note under section 1752 of this title.

§1761d Supervisory Committee; Powers and Duties; Suspension of Members; Passbook