Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FCUs members may agree to waive some membership rights NCUA
ALEXANDRIA, Va. (3/9/12)--In the latest legal opinion letter posted to the National Credit Union Administration (NCUA) website, the agency said it is permissible for a federal credit union and an ex-employee to have a contractual agreement that the person will never run for the board of directors or serve on the supervisory committee.

The legal opinion letter, which is dated January 20, describes a situation in which a former employee of an unnamed credit union was offered a lump sum payment, and the chance to say they voluntarily resigned from their former position instead of being fired, if they agreed to certain terms.

Those terms included signing a confidentiality agreement, releasing the credit union from any claims, and refraining from seeking election or accepting appointment to the credit union's board of directors or supervisory committee for five years from the separation date. While the member in question said the final part of the agreement violated their rights as a member of the credit union, NCUA Associate General Counsel Hattie Ulan said this sort of agreement is permissible under the Federal Credit Union Act.

"While an FCU may impose only a few limitations on eligibility for election to the board of directors, a member may contractually agree not to run for or accept appointment to the board. For such a contract to be valid, the member must receive something from the FCU in return," the NCUA said.

Ulan said other aspects of the contract would be subject to state law.

For the full opinion, use the resource link.
Other Resources

RSS print
News Now LiveWire
Falling #gas prices: Pros, cons for U.S. economy #NewsNow #Market http://t.co/XWwwERwe7e
15 hours ago
Members of Interstate FCU have voted to merge with Credit Union of Southern California https://t.co/yYeSWEG4GH
17 hours ago
.@InfinityFCU has named Liz Hayes as president/CEO. Hayes was formerly EVP and chief administrative offficer at @Affinity_Plus
17 hours ago
.@wpcu battles Speedway in round 3 of Dayton Brand Madness via @DBJnews http://t.co/EbQL5f9be8
19 hours ago
New at #NewsNow: Fed regulators approve new #QRM rule. http://t.co/Bdz5q43xjZ
19 hours ago