Wednesday, October 25, 2023

If The N.C. Credit Union Division Doesn't Interpret State Credit Union Laws, Who Does?

Ms. Kristina Ray, Administrator of N.C. Credit Unions

October 25, 2023

Dear Ms. Ray,

Thank you for your October 19, 2023 response. In our letter of October 9, 2023, we asked two questions:

Q: 1)  Is the N.C. Credit Union Division required  by North Carolina law to monitor and enforce compliance by state-chartered credit unions with their bylaws?
Q: 2)  May a N.C. state-chartered credit union adopt rules, policies and procedures which effectively amend its bylaws without approval by the NCCUD

Your response on October 19, 2023 was as follows:

"Among other responsibilities, the North Carolina Credit Union Division (NCCUD) reviews North Carolina state-chartered credit unions bylaws for compliance with required information outlined in North Carolina laws, rules, and regulations. Each credit union’s bylaws contain procedures for requesting amendment approvals from the NCCUD Administrator. Additionally, some provisions within the standard form bylaws, which may be used by credit unions as guidance, allow for the credit union Board of Directors to adopt policies and procedures, as long as the membership is notified within a specified time frame before becoming effective. The Administrator approves or disapproves proposed bylaws amendments after a thorough review of the request. If you have additional questions relating to this matter, consult legal counsel."

✅ As laypersons, we are concerned that we may not fully understand your response. It seems clear that your answer to Q: 1) is "Yes" - is that correct? It would appear that you did not answer Q: 2). Would you please clarify your answer for us: "Can a state-chartered credit union adopt policies and procedures which amend its bylaws without approval of the Administrator?"

Would also ask why you continue to suggest that we hire legal counsel to answer these questions? The N.C. Credit Union Division - and you as Administrator, with the help of the Attorney General's Office - are the parties designated by the State Legislature to interpret and enforce State Statutes governing credit unions.

Look forward to your answer to a simple question first asked over 90 days ago.

Jean and Jim Blaine