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

(b)  The supervisory committee shall make orcause 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 publicaccountant or other qualified person or firm to conduct the audit if any of thefollowing conditions exist:

(1)  The supervisory committee has not conducted anannual supervisory committee audit;

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

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

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

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