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Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
Consumers
Consumers
The NCUA works to protect credit union members and consumers, raise awareness of potential frauds, facilitate access to affordable financial services, and educate consumers on the importance of savings and how they can improve their financial well-being.
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Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Director with Loan in Default

93-1105 / November 1993

Director with Loan in Default

Subject

Governance

Historic Status

Non-historic

November 11, 1993

Stephen J. Edwards, Esq.
Epstein, Epstein, Brown & Bosek
P.O. Box 705
Springfield, NJ 07081

Re: Director with Loan in Default (Your October 14, 1993 Letter)

Dear Mr. Edwards:

You asked whether a director with a loan from the credit union that is in default can continue to serve on the credit union's board. We assume that the credit union in question is federally chartered. A state chartered credit union should refer this question to its state regulator. The fact that a federal credit union (FCU) director is in default on an FCU loan does not preclude the director from continued service on the board. Enclosed are the two opinion letters you requested (March 1, 1991 and April 2, 1991 letters from me to James J. Kallinger), one opinion letter addressing qualifications of directors (June 30, 1991 letter from James J. Engel to Karl F. Rapp) and one opinion letter addressing authority to remove directors due to bankruptcy (September 28, 1989 letter from me to Robert Bascom).

Sincerely,

Hattie M. Ulan
Associate General Counsel

GC/HMU:scg
SSIC 4060
93-1105

Enclosures

Last modified on

11/14/24