Current through Register Vol. 43, No. 39, September 26, 2024
(a) The board of directors of each corporate credit union shall be responsible for the proper exercise of fiduciary powers by the corporate credit union.
(1) The board of directors of each corporate credit union shall be responsible for all matters pertinent to the proper exercise of fiduciary powers, including determining policies, investing and disposing of property held in a fiduciary capacity, and directing and reviewing the actions of all officers, employees, and committees utilized by the corporate credit union in the exercise of its fiduciary powers.
(2) In discharging this responsibility, the board of directors may assign the administration of any of the corporate credit union's fiduciary powers to any designated officer, employee, or committee. The board of directors shall make such an assignment by action of the board duly entered in its minutes.
(3) A corporate credit union shall not accept an account without the prior approval of the board, or the board's designee. Each corporate credit union shall make a written record of the acceptance of each account and of the relinquishment or closing of any account. Each corporate credit union shall, upon the acceptance of an account, promptly verify that assets received have been properly placed on accounting records and documented. The board shall ensure that at least once during every calendar year, and within 15 months of the last review, all assets held in fiduciary accounts where the corporate credit union has investment discretion, are reviewed to determine the advisability of retaining or disposing of such assets.
(b) The trust committee of each corporate credit union shall:
(1) consist of at least three directors;
(2) keep minutes of its actions, and if not comprised of the entire board of directors, periodically report its actions to the board of directors; and
(3) ensure that each officer and employee exercising investment discretion is bonded.
(c) Each corporate credit union exercising fiduciary powers shall designate, employ or retain legal counsel who shall be readily available to review fiduciary matters and to advise the corporate credit union.
(d) Each corporate credit union exercising fiduciary powers shall adopt written policies and procedures to ensure that each decision or recommendation to purchase or sell any security complies with the applicable federal and state securities laws. Such policies and procedures shall ensure that the corporate credit union does not use material inside information in connection with any decision or recommendation to purchase or sell any security.
