Ever since the bylaw dispute at DFCU Financial there have been a lot of questions about NCUA's role in bylaw enforcement.

In the case of DFCU, members obtained the necessary number of signatures needed to call a special meeting, but the credit union denied the request. The dispute is now in court and has yet to be decided. It is also very likely that the Lafayette FCU voting fiasco will wind up in court because members are claiming the CU ignored its own bylaws governing election procedures.

Should NCUA have stepped in and enforced the bylaws in the DFCU case? Many believe so. Taking a 30,000-foot view and not considering precedent and the current rules and regulations, I too wish the regulator ruled on the matter. They could have sent all credit unions a message that bylaws are more than just words on paper, they are living, breathing rules of the institution that are enforceable

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.