Amendment H-8219 to HF 131

Filed March 19, 2024 in the House by

What it changes

1. Page 1, line 2, by striking “2023” and inserting “2024”
2. By striking page 1, line 12, through page 2, line
4. Page 2, line 26, by striking “2023” and inserting “2024”
5. Page 2, by striking lines 28 through 33 and inserting: “
6. a. A credit union director shall not receive compensation for service as a director. However, a director may be reimbursed for reasonable expenses directly related to such service Subject to its bylaws, a credit union may provide compensation to members of the credit union’s board, elected pursuant to section 533.204, in an amount not to exceed sixteen thousand dollars per year per board member for a credit union with one billion dollars or greater in assets, or not to exceed eight thousand dollars per year per board member for a credit union with less than one billion dollars in assets. A director who receives compensation under this paragraph shall not be reimbursed for expenses directly related to service as a director . b. A credit union director who does not receive compensation under paragraph “a” may be reimbursed for reasonable expenses directly related to service as a director.”
7. Page 2, line 34, by striking “2023” and inserting “2024”
8. Page 3, after line 22 by inserting: “NEW SUBSECTION .
9. a. In addition to any other liability imposed by law upon the directors of a state credit union, the directors of a state credit union shall be liable for all of the following: (1) The directors of a state credit union who vote for, or assent to, the declaration of any dividend or other distribution of the assets of the state credit union to the state credit union’s members in willful or negligent violation of this chapter, any restrictions contained in the articles of incorporation, or any order by the superintendent restricting the payment of dividends or other distribution of assets, shall -1- HF 131.3755.S (1) 90 mb 1/ 4 be jointly and severally liable to the state credit union for the amount of the dividend which is paid, or the value of such assets which are distributed, in excess of the amount of such dividend or distribution which could have been paid or distributed had the violation not occurred. (2) The directors of a state credit union who vote for, or assent to, any distribution of the assets of the state credit union to the state credit union’s members during the dissolution of the state credit union without the payment and discharge of, or making adequate provision for, all known debts, obligations, and liabilities of the state credit union shall be jointly and severally liable to the state credit union for the value of the distributed assets to the extent that such debts, obligations, and liabilities of the state credit union are not thereafter paid and discharged. (3) The directors of a state credit union who willfully or negligently vote for, or assent to, a loan or an extension of credit in violation of this chapter shall be jointly and severally liable to the state credit union for the total amount of any loss sustained by the state credit union. (4) The directors of a state credit union who willfully or negligently vote for, or assent to, any investment of funds of the state credit union in violation of this chapter shall be jointly and severally liable to the state credit union for the amount of any loss sustained by the state credit union on the investment of funds. b. A director shall not be liable under paragraph “a” if the director relied and acted in good faith on information that was held out to the director to be correct by any officer of the state credit union, or was stated in a written report by a certified public accountant or firm of certified public accounts. A director shall not be deemed to be negligent if the director in good faith exercised the diligence, care, and skill which an ordinarily prudent person would exercise as a director under similar circumstances. -2- HF 131.3755.S (1) 90 mb 2/ 4 c. When deemed necessary by the superintendent, and after affording an opportunity for a hearing upon adequate notice, the superintendent may require that a director whom the superintendent reasonably believes to be liable to a state credit union pursuant to paragraph “a” to place in an escrow account in an insured credit union located in this state, as directed by the superintendent, an amount sufficient to discharge any liability which may accrue pursuant to paragraph “a” . Upon a final determination of the amount of liability owed pursuant to paragraph “a” , the superintendent shall pay over the amount due to the state credit union from the escrow account. Any portion of the escrow account in excess of the amount of liability owed shall be refunded on a pro rata basis to the directors required to contribute to the escrow account pursuant to this paragraph. d. The liability provisions of this subsection shall not apply to a director of a credit union who is not directly compensated for services as a director other than the reimbursement of actual expenses. NEW SUBSECTION .
10. a. Any director held liable for the payment of a dividend or other distribution of assets of a state credit union under subsection 13 shall be entitled to contribution from any member of the state credit union who accepted or received a dividend or other distribution of assets, knowing that the dividend or distribution of assets was made in violation of this chapter, in proportion to the amount received by each member. b. Any director held liable under subsection 13 shall be entitled to contribution from any other director found to be similarly liable. NEW SUBSECTION .
11. a. A director of a state credit union who is present at a meeting of the state credit union’s board of directors shall be presumed to have assented to any matter taken up by, or action taken by, the board, unless the director dissents by doing any of the following: -3- HF 131.3755.S (1) 90 mb 3/ 4 (1) Has the director’s dissent entered into the minutes of the board meeting. (2) Files the director’s written dissent with the individual acting as the secretary of the board meeting before the adjournment of the board meeting. (3) Forwards the director’s written dissent by registered or certified mail to the board secretary of the state credit union promptly after the adjournment of the board meeting. b. The right to dissent pursuant to paragraph “a” shall not apply to a director who votes in favor of the action of the board. NEW SUBSECTION .
12. Any action seeking to impose liability under this section, other than liability for contribution, shall be commenced within five years of the event giving rise to the liability.”
13. Page 3, line 23, by striking “2023” and inserting “2024”
14. Page 4, line 10, by striking “2023” and inserting “2024”
15. Page 5, by striking lines 1 through
17. By renumbering as necessary. -4- HF 131.3755.S (1) 90 mb 4/ 4

Official amendment (PDF) · In the Bill Book