17-2209.   Directors to elect officers; duties of board; executivecommittee.(a) At the first meeting and at each first meeting in the fiscal yearfollowing the annual meeting of the credit union, the board of directorsshall elect from their own number an executive officer who may be designatedas chairperson of the board or president, avice-chairperson of the board or one or more vice-presidents, a treasurerand a secretary, ofwhom the last two may be the same individual, and the persons so electedshall be the executive officers of the corporation. The board ofdirectors may employ an officer in charge of operations whose titleshall be either president or general manager; or, in lieu thereof, theboard of directors may designate the treasurer or an assistant treasurerto act as the officer in charge of operations and be in active charge ofthe affairs of thecredit union.

      (b)   The board of directors shall have the general managementof the affairs, funds and records of the corporation, and unless theyshall be specifically reserved to the members it shall be the specialduty of the directors:

      (1)   To act upon all applications for membership and on the exclusionof members. The board of directors may, however, delegate authority to amembership officer or officers to approve applications for membershipunder such conditions as it prescribes not inconsistent with the bylawsor law of the state. The membership officer or officers may approve butnot reject, applications for membership. All unapproved applicationsshall pend until the board acts upon them.

      (2)   To determine, from time to time, rates of interest which shallbe charged on loans and to authorize interest refunds, if any, on such classesof loans and under such conditions as the board prescribes.

      (3)   To acquire surety bonds, the amount and type of which shall be subjectto the administrator'sapproval.

      (4)   To fix the maximum number of shares which may be held by, andthe maximum or minimum amount which may be loaned to, any one member;to establish the policies of the credit union with respect to the grantingof loans and the extending of lines of credit; to set such limits and balancesas required for services which are to be applicable to all members in acategory; and to recommend or approve amendments to the bylaws.

      (5)   To fill vacancies on the board of directors and credit committeeuntil the election and qualification of successors and to fill vacanciesin the supervisory committee if the bylaws so allow.

      (6)   To have charge of the investment of funds of the credit union,other than loans to members, except that the board may designate an investmentcommittee or any qualified individual to have charge of investments underconditions established by the board; to authorize donations for civic, charitable,scientific, literary or educational purposes; to set fees and charges forthe credit unions' services and to establish policies for their application;and to perform such other duties as themembers may, from time to time, authorize.

      (7)   To meet at least six times each year with at least onemeeting in each quarter-year period.

      (c)   No member of the board of directorsor of the credit or supervisory committee shall receive any compensationas a member of the board or committee. The provision of reasonable life,health, accident, disability and similar insurance protection for a directoror committee member shall not be considered compensation. Directors andcommittee members, while on official business of the credit union, may bereimbursed for necessary expenses incidental to the performance of the business.The credit union may compensate any director, committee member or officerfor loss of salary or wages due tothe performance of business on behalf of the credit union.No salary shallbe paid to any officer or other employee of a credit union except suchas may have been duly approved by the board of directors.

      (d)   If provided for in the bylaws, the board of directors may elect anexecutive committee of not less than three board members. Such executivecommittee shall have and be able to execute such powers, duties andresponsibilities of the board of directors as the bylaws may provide at suchtimes other than regular or special meetings of the board of directors.Meetings of the executive committee shall not be counted to fulfill therequirements of paragraph (7) of subsection (b).

      History:   L. 1929, ch. 141, § 9; L. 1951, ch. 204, § 3; L. 1957,ch. 152, § 3; L. 1963, ch. 140, § 2; L. 1965, ch. 153, § 2; L.1968, ch. 160, § 6; L. 1973, ch. 94, § 1; L. 1982, ch. 102, § 5;L. 1992, ch. 225, § 3; July 1.