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This entry was published on 2014-09-22
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Special duties of directors
§ 472. Special duties of directors. Unless the bylaws shall expressly
reserve any or all of the following duties to the shareholders, it shall
be the special duty of the directors:

1. To act upon applications for membership and to expel members;
provided that the board of directors may appoint a membership committee
consisting of not less than two directors, which committee may act upon
applications for membership and approve persons for membership under
such conditions as the board may prescribe; except that such committee
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 board may require.

2. To fix the amount of surety bond required of each officer having
the control or custody of funds.

3. To determine from time to time the rate of interest which shall be
allowed on deposits and charged on loans.

4. To fix the maximum number and classes of shares, share drafts and
share certificates which may be held by, and the maximum amount which
may be lent to, any member, subject in each case, however, to the
restrictions contained in section four hundred fifty-six of this

5. To declare dividends and authorize an interest refund to all
members of record at the close of business on the last day of any
dividend period in proportion to the interest paid by them during the
dividend period. The amount of interest refund to the members shall be
in proportion to the amount of interest paid by them during the dividend
period as determined by the application of a uniform percentage. The
board may authorize an interest refund for a dividend period only during
a month in which, under the bylaws, it may declare a dividend for such
period, except that if, under the bylaws, a credit union has for the
calendar year dividend periods more frequently than annually and an
interest refund was omitted for one or more of such dividend periods,
the board, during the time permitted for the declaration of the current
dividend, may authorize an interest refund for the current dividend
period and for any one or more of the omitted dividend periods. However,
the board shall not authorize an interest refund for any dividend period
with respect to which it has not declared a dividend. An interest refund
shall be recorded on the books of the credit union as a reduction of
interest income.

6. To recommend amendments to the bylaws.

7. To fill vacancies in the board of directors or the credit or
supervisory committees as provided for in the bylaws.

8. To choose a chairman and recording officer of the credit committee
from among the members thereof at the annual organization meeting of the
board of directors of the credit union.

9. To direct the deposit or investment of funds, except loans to

10. To perform such other duties as the bylaws may prescribe.