§ 23-35-304 - Duties of board of directors.
23-35-304. Duties of board of directors.
(a) The board of directors of the credit union shall be responsible for general management of the affairs, funds, and records of the credit union and shall meet as often as necessary, but not less than once each month.
(b) The board shall:
(1) Act upon applications for membership, or appoint and authorize an executive committee or a membership officer from among the members of the credit union, other than the treasurer, an assistant treasurer, or a loan officer, to approve applications for membership under such conditions as the board may prescribe. The committee or membership officer so authorized shall submit to the board, 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 board may require. The membership officer shall not have the authority to disapprove any application for membership;
(2) Purchase a blanket fidelity bond covering the officers, employees, members of official committees, attorneys at law, and other agents, with protection against loss caused by dishonesty, burglary, robbery, larceny, theft, holdup, forgery, alteration of instruments, misplacement or mysterious disappearance, and for faithful performance of duty, and, if applicable, building insurance, liability insurance, and such other insurance as is necessary for the operation and the protection of the credit union and its members. The State Credit Union Supervisor shall prescribe in his rules and regulations the amount of minimum bond coverage required for all credit unions according to their asset categories;
(3) Determine the rate of interest, consistent with the provisions of this chapter, which shall be charged on loans; the rate of interest refund, if any, to be paid to borrowing members; the qualifications for participation, and the manner of computation and payment. The interest rebates are to be paid from the credit balance of the retained earnings account;
(4) Declare dividends as provided by this chapter;
(5) Limit the number of shares which may be owned by a member, not to exceed the maximum amount insured under Title II of the Federal Credit Union Act;
(6) Fill vacancies, occurring between annual meetings, in the board, credit committee, and supervisory committee until the election, or appointment and qualification, of successors;
(7) Determine the maximum amount, both secured and unsecured, which may be loaned to any one (1) member;
(8) Have charge of the investment of surplus funds of the credit union as provided by this chapter;
(9) Authorize the employment of such persons as may be necessary to carry on the business of the credit union and determine the compensation of employees and the treasurer;
(10) Authorize the conveyance of property;
(11) Borrow or lend money to carry on the functions of the credit union;
(12) Perform such other duties as the members may require;
(13) Designate depositories for the funds of the credit union;
(14) Suspend any or all members of the credit and supervisory committees for failure to perform their duties upon unanimous approval by the board;
(15) Establish and provide for compensation of loan officers appointed by the credit committee and compensation of auditing assistance requested by the supervisory committee;
(16) Suspend any officer, director, or committee member from his official position for failure to attend three (3) consecutive regular meetings without cause or for otherwise failing to perform any of the duties required of him as an official, but only after he has been given reasonable notice of a meeting for suspension and an opportunity to be heard on the charges; and
(17) Perform or authorize any action consistent with this chapter not specifically reserved for the members by the bylaws or this chapter.