ALEXANDRIA, Va. — The NCUA Board issued three proposed regulations concerning board member indemnity and mutual savings bank conversions.
Federal credit unions wouldn't be able to indemnify officials and employees against liability based on "aggravated breach of duty of care when a breach affects members' rights and financial interests."
Paul Peterson of the NCUA Office of General Counsel said the agency purposely made the exemption from indemnification "very narrow," so that it takes effect when the decisions involved impact the financial situation of creidt union members and when a court of law determines if there is negligence or misconduct.
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