S522-119

1. Short title This Act may be cited as the Credit Union Board Modernization Act.

2. Frequency of board of directors meetings Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is amended— in paragraph (15), by striking monthly each place the term appears; in the matter preceding paragraph (1), by striking The board of directors and inserting the following: The board of directors in subsection (a), as so designated, in the matter preceding paragraph (1), by striking shall meet at least once a month and; and by adding at the end the following: The board of directors of a Federal credit union shall meet as follows: Not less frequently than monthly during the 5-year period beginning on the date on which the organization certificate of the Federal credit union is approved. After the expiration of the 5-year period described in paragraph (1)— not less frequently than 6 times annually, with at least 1 meeting held during each fiscal quarter, with respect to a Federal credit union— with composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and with a capability of management rating under the composite rating described in clause (i) of 1 or 2; and not less frequently than monthly, with respect to a Federal credit union— with composite rating of 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or with a capability of management rating under the composite rating described in clause (i) of 3, 4, or 5. (a)In generalThe board of directors; (b)MeetingsThe board of directors of a Federal credit union shall meet as follows:(1)Not less frequently than monthly during the 5-year period beginning on the date on which the organization certificate of the Federal credit union is approved.(2)After the expiration of the 5-year period described in paragraph (1)—(A)not less frequently than 6 times annually, with at least 1 meeting held during each fiscal quarter, with respect to a Federal credit union—(i)with composite rating of 1 or 2 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and(ii)with a capability of management rating under the composite rating described in clause (i) of 1 or 2; and(B)not less frequently than monthly, with respect to a Federal credit union—(i)with composite rating of 3, 4, or 5 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); or(ii)with a capability of management rating under the composite rating described in clause (i) of 3, 4, or 5..