Code of the District of Columbia

§ 26–505.01. Authority and duty of a board of directors.

(a) The business and affairs of a District credit union shall be managed by the board of directors of the District credit union. The duties of the board of directors of a District credit union include the following duties:

(1) The board of directors shall:

(A) Set the par value of shares, if any, of the District credit union;

(B) Set the minimum number of shares, if any, required for membership;

(C) Designate those persons or positions authorized to execute or certify documents or records on behalf of the District credit union;

(D) Authorize the purchase of adequate fidelity and insurance coverage for officers, directors, committee members, and employees, and for losses caused by persons outside the District credit union for which the District credit union may be liable;

(E) Authorize the employment and compensation of the chief executive officer;

(F) Approve an annual operating budget for the District credit union;

(G) Authorize the conveyance or lease of real property;

(H) Review and approve the annual audit;

(I) Appoint any committees the board considers necessary;

(J) Establish conditions under which a member may be removed for cause, as defined in § 26-504.07; and

(K) Perform any other duties, or authorize any other actions, that are not inconsistent with this subchapter or the District credit union's bylaws.

(2) The board of directors shall:

(A) Establish policies under which the District credit union may borrow, lend, and invest money to carry on the functions of the District credit union;

(B) Act upon applications for membership in the District credit union;

(C) Establish the loan policies under which loans may be approved;

(D) Determine the amount that may be loaned to a member together with the terms and conditions of the loan;

(E) Declare dividends on shares and set the rate of interest on deposits; and

(F) Approve the charge-off of District credit union losses.

(b) The duties listed in subsection (a)(1) of this section shall not be delegated by the District credit union's board of directors. The duties listed subsection (a)(2) of this section may be delegated to a committee, officer, or employee of the District credit union with appropriate reporting to the board.


(May 6, 2020, D.C. Law 23-86, § 501, 67 DCR 3476.)