N.Y. Banking Law Section 472
Special duties of directors


Unless the bylaws shall expressly reserve any or all of the following duties to the shareholders, it shall be the special duty of the directors:

1.

To act upon applications for membership and to expel members; provided that the board of directors may appoint a membership committee consisting of not less than two directors, which committee may act upon applications for membership and approve persons for membership under such conditions as the board may prescribe; except that such committee so authorized shall submit to the board at each monthly meeting a list of approved or pending applications for membership received since the previous monthly meeting, together with such other related information as the board may require.

2.

To fix the amount of surety bond required of each officer having the control or custody of funds.

3.

To determine from time to time the rate of interest which shall be allowed on deposits and charged on loans.

4.

To fix the maximum number and classes of shares, share drafts and share certificates which may be held by, and the maximum amount which may be lent to, any member, subject in each case, however, to the restrictions contained in § 456 (Limitations upon powers)section four hundred fifty-six of this article.

5.

To declare dividends and authorize an interest refund to all members of record at the close of business on the last day of any dividend period in proportion to the interest paid by them during the dividend period. The amount of interest refund to the members shall be in proportion to the amount of interest paid by them during the dividend period as determined by the application of a uniform percentage. The board may authorize an interest refund for a dividend period only during a month in which, under the bylaws, it may declare a dividend for such period, except that if, under the bylaws, a credit union has for the calendar year dividend periods more frequently than annually and an interest refund was omitted for one or more of such dividend periods, the board, during the time permitted for the declaration of the current dividend, may authorize an interest refund for the current dividend period and for any one or more of the omitted dividend periods. However, the board shall not authorize an interest refund for any dividend period with respect to which it has not declared a dividend. An interest refund shall be recorded on the books of the credit union as a reduction of interest income.

6.

To recommend amendments to the bylaws.

7.

To fill vacancies in the board of directors or the credit or supervisory committees as provided for in the bylaws.

8.

To choose a chairman and recording officer of the credit committee from among the members thereof at the annual organization meeting of the board of directors of the credit union.

9.

To direct the deposit or investment of funds, except loans to members.

10.

To perform such other duties as the bylaws may prescribe.

Source: Section 472 — Special duties of directors, https://www.­nysenate.­gov/legislation/laws/BNK/472 (updated Sep. 22, 2014; accessed Mar. 23, 2024).

450
Incorporation
450–A
Designation of low income credit union
450–B
Designation of student branches
451
Proposed bylaws
451–A
Qualifications for membership
452
When corporate existence begins
453
Corporate credit unions
454
General powers
455
Trust powers
456
Limitations upon powers
457
Capital
458–A
Maintenance of reserves
459
Allowance for loan loss
460
Dividends to shareholders
461
Change of location
462
Foreign credit unions
463
Exemptions and individual liability of shareholders
464
Manner of withdrawal
465
Withdrawal of shares after voting to liquidate
466
Meetings of shareholders
467
Qualifications and disqualifications of directors and committee members
468
Oaths of directors, officers and members of committees
469
Vacancies
470
Powers and duties of directors
471
Duty of directors and officers
472
Special duties of directors
473
Loan officers, credit committee
474
Loan reports to directors
475
Supervisory committee
476
Officers
477
Retirement and insurance benefits for officers and employees
478
Amendment of bylaws
479
Credit union not liable for taxation
480
Fiscal year
481
Communications from department of financial services must be submitted to directors and supervisory committee, and noted in the minutes
482
Reports to superintendent
483
Penalty for loans to non-members
484
Penalty for use of term “credit union”
485
Entries in books
486
Conversion of a federal credit union into a state credit union
486–A
Retention of special additional mortgage recording tax exemption for converted federal credit unions
487
Conversion of a credit union into a federal credit union
487–A
Conversion of a credit union into a mutual savings bank

Accessed:
Mar. 23, 2024

Last modified:
Sep. 22, 2014

§ 472’s source at nysenate​.gov

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