One of the things I’ve always believed is that good advocacy isn’t about making headlines it’s about removing unnecessary obstacles so credit unions can spend more time serving their members and less time checking regulatory boxes.
That’s why I’m pleased to share that the Credit Union Board Modernization Act has now become law.
For decades, federal credit unions have been required to hold at least 12 board meetings each year, regardless of their size, complexity, or operational needs. Under the new law, federal credit unions may now hold as few as six board meetings annually, provided they continue to fulfill all of their fiduciary and governance responsibilities.
This change recognizes something we’ve all known for a long time: good governance isn’t measured by how many times a board gathers around a table. It’s measured by informed directors, sound oversight, thoughtful decision-making, and a steadfast commitment to the members we serve.
It’s also important to understand what this legislation does not do. It does not lessen a board’s responsibilities. Directors remain accountable for strategic planning, financial oversight, risk management, CEO supervision, compliance, and ensuring the overall safety and soundness of their credit union. If circumstances require additional meetings, boards should continue to meet as often as necessary.
What This Means for Our Credit Unions
For our federally chartered credit unions in Tennessee, we anticipate that NCUA will provide additional guidance regarding implementation, including any updates to the Federal Credit Union Bylaws. We will keep you informed as that guidance becomes available.
For our Tennessee state-chartered credit unions, we will be reaching out to the Tennessee Department of Financial Institutions to discuss how the Department intends to address this legislative change and whether similar flexibility will be available under state law. As soon as we receive their guidance, we will share it with all affected credit unions.
For our Mississippi member credit unions, this legislation applies to you through your federal charter, and we expect implementation to follow NCUA’s guidance. Since Mississippi currently has no state-chartered credit unions, there is no separate state regulatory process associated with this change.
A Good Example of Advocacy at Work
This legislation is also a reminder of why advocacy matters.
Changes like this don’t happen overnight. They happen because credit union advocates, state leagues, America’s Credit Unions, and elected officials work together to identify outdated requirements and replace them with practical, common-sense solutions.
Strong relationships with lawmakers make a difference. When policymakers understand the credit union difference and hear directly from the people serving their communities, meaningful improvements become possible. This legislation is one example of what can be accomplished when our movement speaks with a unified voice.
At the Tennessee and Mississippi Credit Union Association, we remain committed to building those relationships, advocating for sensible regulation, and making sure your voice is heard at both the state and federal levels.
We’ll continue monitoring NCUA’s implementation guidance and will also keep you informed as we receive direction from the Tennessee Department of Financial Institutions.
As always, if you have questions about how this change may affect your credit union, please don’t hesitate to reach out to our team.
