§412:10-117  Supervisory committee.  (a) 
Within thirty days following each annual election, the board of directors shall
appoint a supervisory committee consisting of no fewer than three and not more
than five members, one of whom may be a director other than the treasurer.  The
bylaws shall specify the qualifications, terms and other conditions of service
of the supervisory committee.  The board of directors shall fill vacancies in
the supervisory committee until successors are appointed after the next annual
election.



(b)  The supervisory committee shall make or
cause to be made an annual audit of the books and affairs of the credit union,
and such supplementary audits as the board or the commissioner may require;
provided that the supervisory committee shall hire a certified public
accountant or other qualified person or firm to conduct the audit if any of the
following conditions exist:



(1)  The supervisory committee has not conducted an
annual supervisory committee audit;



(2)  The board of directors or the commissioner deems
an outside audit necessary; or



(3)  The credit union has experienced persistent and
serious recordkeeping or accounting deficiencies in violation of the
requirements of sections 412:3-108 or 412:3-111 which continue past a usual, expected
or normal period of time.



The committee shall submit a report of each such
audit to the board of directors and upon request, to the commissioner, and a
summary of the report to the members at the next annual membership meeting of
the credit union.



(c)  The supervisory committee shall cause the
passbooks and accounts of the members to be verified with the records of the
credit union from time to time, and not less frequently than once every two
years.  The supervisory committee shall make or cause to be made such
supplementary audits, examinations, and verifications of members' accounts as
it deems necessary or as are required by the commissioner or the board of
directors, and submit reports of these supplementary audits to the board of
directors. [L 1993, c 350, pt of §1]