DES MOINES, Iowa — Iowa Governor Kim Reynolds has signed into law updates to the Iowa Credit Union Act that includes the ability to compensate board members.
The Iowa Credit Union Act was originally enacted in 1925.
According to the Iowa Credit Union League, changes in the update include:
- Board Compensation. Existing law prohibits compensation of directors. The update legislation expressly allows for a credit union to compensate its directors up to a cap of $8,000 or $16,000 per director per year, based on the credit union’s asset size.
- Frequency of Board Meetings. Credit union boards are currently required to meet monthly. The bill now allows a credit union to meet between six to 12 times a year, unless the credit union has a composite CAMELS rating of three, four or five, or if it has an individual rating of four or five.
- Member Expulsion. The bill adds new language to make clear that a member may be expelled from the credit union by the board of directors if he/she has a) been physically or verbally abusive to another member or credit union staff, or b) committed fraud, attempted fraud or other illegal conduct in relation to the credit union.
Remaining ‘Contemporary’
“Iowa credit unions appreciate the legislature and Governor’s bipartisan support to make important updates to the Iowa Credit Union Act with House File 131,” Murray Williams, president/CEO of the Iowa league, said in a statement. “Credit unions’ ability to best serve their members and stay competitive in a quickly changing marketplace requires that our state code remain contemporary, and this legislation was a positive step to that end.”
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