Adviser? Advocate? Arbiter? Ally? Conciliator? Counselor?Consultant?

Credit unions routinely approach me for an "opinion" on ascenario they paint. Often, this consultation occurs after they'vesigned the contract, frozen the member's funds, sent out theadvance written notice, or terminated the employee. Sometimes,credit unions don't like the opinion I give them. They seek asecond opinion from me, as if my answer varies based on whim, orthey try to get me to concede that their scenario is an exceptionfrom my opinion.

I don't blame them. After all, they are paying for my opinion,so shouldn't I give them the opinion they want, the opinion thatmakes their lives easier? I wish it were that simple. Nobody enjoysbeing the one who always says "no," but the reality is that a goodcredit union attorney's job is to minimize risk by keeping creditunions as much within the confines of the law as possible.

Of course, good credit union attorneys must also help creditunions explore the limits of those laws and provide as muchflexibility to their clients as possible. How do attorneysaccomplish this dual objective? How can credit unions mosteffectively utilize their attorneys?

Involve your attorney in the process as early as possible. Don'twait until the contract is ready to be executed for legal review.The more the attorney understands the context and the real worldramifications of the contract, the easier it will be for yourattorney to spot issues that need to be addressed internally by thecredit union and between the parties to the contract. This willreduce frustration and most likely even costs.

Don't be afraid to disagree with your attorney or to take adifferent approach. A good credit union attorney is going to giveyou the most conservative path. Your attorney is charged with theresponsibility of apprising you of your risk. Like it or not,operating a credit union today requires quite a bit of riskanalysis. If in your business judgment the cost outweighs the riskthen make the decision that you feel is in your credit union's bestinterest.

With that in mind, a good credit union attorney is not going toamend his or her opinion to appease you. And a good credit unionattorney certainly isn't going to put something in writing withwhich he or she disagrees, regardless of how persuasive you are.Attorneys must strike a delicate balance with their clients:alienation vs. protection.

Be painfully honest with your attorney. Attorney/clientprivilege exists for a reason. Don't be afraid to tell us thetruth, even if it reflects poorly on you. Attorneys can help youmost effectively when they have all of the facts. Nothing is moredetrimental to a credit union's interests than when their attorneyfinds out new facts half-way through a negotiation orlitigation.

In the end, always keep in mind that your attorney has a stakein the future of your credit union. We want to see you prosper, butwe try to ensure that you don't do anything to jeopardize yourcredibility with your members and regulators and your safety andsoundness with vendors and business partners. It is truly a specialrole to play--attorney to credit unions.

John Porter, an attorney with Weltman, Weinberg & ReisCo., submitted this guest blog entry.