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BUREAU OF BANKING
Department of Professional and Financial Regulation
State of Maine
June 21, 1993

BULLETIN #57 REIMBURSEMENT OF CREDIT UNION DIRECTORS

To the Chief Executive Officer Addressed:

Title 9-B M.R.S.A. § 842.3 states that credit union directors may not be compensated for their services as a member of the board of directors. The Bureau of Banking has interpreted this statute so as not to preclude the reimbursement of directors for the reimbursement of reasonable expenses for attending meetings, seminars, or otherwise attending to credit union business. Such reimbursement, however, did not include the expenses of a taking a spouse to a conference or educational seminar.

The National Credit Union Administration ("NCUA") amended Regulation 701.33, Reimbursement, Insurance, and Indemnification of Officials and Employees, on December 21, 1992. The amended rule permits a federal credit union to reimburse a director for the travel costs of attending meetings, seminars, etc. to include the travel costs of one immediate family member traveling with the director while on official credit union business.

Therefore, in order to maintain parity between state and federal credit unions regarding this issue, and as the Federal Credit Union Act is consistent with Title 9-B M.R.S.A. § 842.3 as far as this reimbursement issue is concerned, state credit unions may reimburse directors for the travel expenses of one immediate family member per director to meetings, seminars, etc. It is expected, however, that the boards of directors of state credit unions will establish a reimbursement policy to insure this practice is not abused.

/s/H. Donald DeMatteis

Superintendent

Last Updated: June 5, 2013