HB4887 Summary

• Allows credit union boards to appoint one or more associate directors in an advisory capacity who cannot vote, act as directors, or have statutory director duties delegated to them.

• Requires associate directors to meet all director qualifications and sign confidentiality and nondisclosure agreements before appointment.

• Changes director and committee member compensation rules by requiring written policies and establishing Department oversight standards rather than maximum rate rules, with compensation limited to monetary payments disclosed to members annually.

• Permits boards to hold regular meetings less frequently than monthly but at least quarterly with prior written Secretary approval, allowing flexible scheduling between board and executive committee meetings.

• Increases maximum loan amounts to credit union organizations from 3% to 6% of unimpaired capital and surplus, and increases maximum Credit Union Service Organization investment limits from 3% to 6%.

• Allows surviving credit unions in mergers to identify merging credit unions as divisions, branches, units, or other descriptive references, and requires network credit union advisory board members to sign confidentiality agreements.