Katie BaileyThe Credit Union Board Modernization Act has been signed into law, providing regulatory relief by allowing certain eligible federal credit unions to reduce the minimum frequency of board meetings.
Under the new law, qualifying federal credit unions may hold at least six board meetings per calendar year, including at least one meeting during each calendar quarter. Newly chartered and lower-rated federal credit unions remain subject to more frequent meeting requirements.
The new meeting schedule is optional. Eligible federal credit unions may continue holding monthly board meetings or meet more frequently if doing so better supports their governance responsibilities, strategic initiatives, or risk profile. The law establishes a minimum meeting frequency rather than a prescribed schedule.
Federal credit unions should also remember that changes to the Federal Credit Union Act do not automatically amend their bylaws. Until the National Credit Union Administration (NCUA) updates the Federal Credit Union Bylaws and a credit union adopts any applicable changes, institutions should continue following their existing bylaw requirements.
Because the legislation amends the Federal Credit Union Act, it applies directly to federal credit unions. State-chartered credit unions should consult applicable state law and their state regulator to determine whether similar flexibility is available.
Eligible federal credit unions should work with management and legal counsel to evaluate whether reducing board meeting frequency is appropriate. Before making any changes, boards should confirm that their bylaws permit the revised meeting schedule and ensure any adjustments continue to support effective governance, oversight, and the credit union’s risk profile.
