Proposed Bylaws Changes

 

(Submitted by Lloyd K. Marbet on behalf of Robert Tice)

 
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AMENDED AND RESTATED

BYLAWS OF

COLUMBIA COMMUNITY CREDIT UNION

 

 


ARTICLE I. NAME & PURPOSE

 

Section 1.  Name. The name of this Credit Union is Columbia Community Credit Union.

 

Section 2. Purpose. The purpose of this Credit Union is to cooperatively provide service and benefits to our members through the principle of mutual self‑help and to operate in this fashion and form in perpetuity. 

 

Section 3. If Article 1, Section 2, is removed or altered, any alteration of the purpose or form of this credit union, such as conversion to an alternate type of financial institution, shall require the approval of a two-thirds (2/3) majority of all members of the credit union.  The sole exception shall be the alteration of form required by changes in the governing laws and regulations of the State of Washington, and/or the Federal Government, if applicable. 

 

ARTICLE II. QUALIFICATION FOR MEMBERSHIP

 

Section 1. Membership. Membership at the Credit Union is limited to those entities listed in the Field of Membership Appendix to these Bylaws, which is incorporated into and made a part of these Bylaws by reference.

 

The Appendix may be amended in order to add groups to the Credit Union's field of membership. All amendments expanding the Credit Union's field of membership shall be submitted for regulatory approval before new groups may be served by the Credit Union. Columbia adopts the enabling amendment pursuant to State of Washington, Department of Financial Institutions, WAC 419‑72‑041, streamlined procedure for Small Occupational Groups (SOGs), as listed in the Field of Membership Appendix to the Bylaws of Columbia Community Credit Union. Such streamlined amendments to the Bylaws do not require regulatory approval before the new groups may be served by the Credit Union.

 

Section 2. Eligibility. In order for an applicant to be eligible to join the Credit Union, the applicant must:

 

Qualify, within the Credit Union's Field of Membership.

Agree to purchase one share in the Credit Union.

Agree to pay the Credit Union's membership application fee.

Not have caused the Credit Union a loss. Those persons who have caused the Credit Union a loss, and who have not repaid or are not repaying the loss shall not be eligible for membership in the Credit Union.

 

Section 3. Approval of Applications. Applicants shall only become members of the Credit Union upon approval by the Credit Union. Each application shall be acted upon by the Credit Union's Board of Directors, or by the Committee, Officer, or employee authorized to act upon, and approve applications for membership in accordance with Article V, Section 8.

 

Section 4. Maintenance of Membership. In order to remain qualified for membership, a member must maintain at least one share in the Credit Union. A person withdrawing all shareholdings ceases to be a member of the Credit Union, and must re‑qualify for membership. Once qualified, however, a member in good standing shall remain a member of the Credit Union regardless of whether the member currently meets the field of membership qualifications set forth in these Bylaws.

 

Section 5. Member Duties. It shall be the duty of each member (a) to keep the Credit Union informed of such member's current address (b) to comply in accordance with the law and these bylaws, (c) to refrain from any willful destruction or damage to Credit Union property, and (d) to act with civility in all dealings with officers and employees of this Credit Union. In the event a member fails to keep the Credit Union informed of his/her current address, the Credit Union may engage a locator service and a charge may be made to the member's share account for the actual costs of any necessary locator services.

 

Section 6. Expulsion. The Credit Union may expel a member for cause immediately. For the purposes of this section, "for cause" includes, but is not limited to any abusive or threatening conduct to a Credit Union official or employee or any unlawful conduct or activity affecting the Credit Union; failing to comply with the member duties, causing the Credit Union a loss, failing to maintain his or her share balance required for admission to membership, and failing to increase the balance to at least the par value of one share within thirty (30) days of the reduction. The Credit Union shall notify persons of their expulsion, and the reasons upon which it is based. Upon request, the Credit Union shall allow a person to challenge the expulsion and seek reinstatement.

Persons seeking reinstatement must notify the Board of Directors, in writing, of the reasons for their challenge. Such challenge may take place either in person or through a written testimonial, and shall be considered at a meeting of Credit Union's Board of Directors or the Board's Executive Committee. Decisions made at this meeting shall be final, and shall be recorded in the Credit Union's records.

Amounts paid in on shares or deposited in the Credit Union by a member who has been expelled shall be paid to the member after deducting any amounts due to the Credit Union, as permitted by applicable law. Expulsion does not relieve a member from any outstanding liabilities owed to the Credit Union.

 

ARTICLE 111. MEETINGS OF MEMBERS

 

Section 1. Time of Annual Membership Meeting. The Credit Union's annual membership meeting shall be held no later than April 30 of each calendar year, unless the Credit Union's Board of Directors sets another date for the meeting, and notifies members as provided in Section 3 of this Article, but that date shall not be more than 18 months from the previous annual meeting. 

 

Section 2: Place of Annual Membership Meeting. The Credit Union's annual membership meeting place shall be designated by the Credit Union's Board of Directors.  In order to allow the maximum attendance by the members, all weekday annual meetings shall be held after the hour of 6:30 pm, or on weekends not before the hour of 10:00 am, but no Annual or Special Membership meetings shall be held on state or national holidays

 

Section 3. Notice of Annual Membership Meeting. Notice of the Credit Union's annual membership meeting shall be published and mailed to the members at least thirty (30) days prior to the date of the meeting. The notice of the Credit Union's annual membership meeting shall include both the time and place of the meeting.  There shall be a twice-published public notice of the date of publication of the annual meeting announcement not more than 90, nor less than 30, days before that announcement.  This notice shall include notification of all members by mail, such as by inclusion of the information in the quarterly newsletter, and a notice on the appropriate monthly statement.  Commercial advertisement may be used, but shall not substitute for other requirements for notification.  (NOTE:  This is necessary due to Article 4, section 2, which requires Board candidates submit information 10 days before the announcement of the Annual Meeting date.  This cannot be accomplished if the filer doesn’t know the date of the announcement.)

 

Section 4. Initiation of Special Membership Meeting. A special membership meeting may be called by the majority of the Credit Union's Board of Directors, a majority vote of the Credit Union's Supervisory Committee, or upon written application of the lesser of ten percent or two thousand members. The request for a special membership meeting must be submitted in writing to the Secretary of the Credit Union's Board of Directors. The request must specifically state the purpose or purposes for which the meeting has been called. If the special membership meeting is being called for the removal or one or more Directors or members of the Supervisory Committee, the request shall state the name of the Director or Directors, or Supervisory Committee member whose removal is sought. No business other than that specified in the request shall be transacted at a special membership meeting.  Consideration of the validity of any petition request shall be based solely on the validity of the petition signatures.

 

Section 5. Time & Place of Special Membership Meeting. Upon receiving an acceptable a request for a special membership meeting, the Board shall designate the time and place for the special membership meeting. Special membership meetings shall take place no sooner than twenty (20) and no later than thirty (30) days after receiving a request for a special membership meeting.

 

Section 6. Notice of Special Membership Meeting. The Secretary shall notify members of the special membership meeting. Notification of the meeting shall be published and mailed to the full membership within ten (10) days of receiving the request for the special membership meeting. The notice of the special membership meeting shall include the purpose for which the special meeting is being called. If the special membership meeting is being called for the removal of one or more Directors or members of the Supervisory Committee, the notice shall also state the name of the Director or Directors, or Supervisory Committee member or members whose removal is sought.  For the purpose of explanation to the owner/members, provision shall be made for inclusion, with the ballot, of not less than 500 word written  explanation by those seeking that removal, and a like amount may be included in a defense of that member or members if that member or members so chose.  Only those present at that Special Meeting shall vote on removal of a member or members of the Board of Directors or Supervisory Committee, as only those present can be aware of the discussion and debate of the issues involved.

 

Section 7. Quorum. For the purpose of all membership meetings, fifteen (15) members shall constitute a quorum. Meetings adjourned for failure to reach a quorum shall be reconvened by following those timing and notification requirements adopted for special membership meetings in Section 5 and Section 6, except that the notice of the adjourned meeting shall state that the meeting could not be held as originally scheduled because of failure to obtain a quorum according to the Credit Union's Bylaws.

 

Section 8. Voting. Each member shall have one vote, regardless of shares held in the Credit Union. In order to be eligible to vote at a membership meeting, the member must have reached eighteen years of age. No votes may be cast by proxy. Membership held by entities other than natural persons shall have one vote, which shall be cast through an agent designated in writing by the entity. Except for Special Membership Meetings, mMembers may vote through the use of mail ballots as permitted by the Credit Union's Board of Directors.  With respect to Special Membership Meetings, only those members attending the meeting shall vote on the items under consideration.

 

Section 9. Parliamentary Procedure. Meetings held under this section Article shall be conducted according to those rules of parliamentary procedure described in Robert's Rules of Order, latest revision.  Membership meetings shall have the full power and authority to conduct all manner of business normal to parliamentary proceedings, within the limits of these Bylaws.  All concerns not specifically assigned and specifically limited to an entity by these bylaws shall fall under the control and authority of the membership.  The Chair shall employee a Certified Professional Parliamentarian to guide the proceedings at all membership meetings.

 

ARTICLE IV. ELECTION OF BOARD & SUPERVISORY COMMITTEE

 

Section 1. Nominating Committee. At the annual organizational meeting, the Chair of the Credit Union's Board of Directors shall appoint a standing Nominating Committee. The Nominating Committee shall consist of not less than five three Credit Union members, at least one of which shall be a member of the Credit Union's Board of Directors. No member serving on the Nominating Committee may be seeking election at the Credit Union. The Nominating Committee shall nominate at least one insure at least two qualified candidates are presented member for each Board and Supervisory Committee vacancy to be filled at the next election. either by nomination or petition.  The Nominating Committee shall file its candidate list nominations with the secretary of the Credit Union at least seventy five (75) days prior to the annual meeting and the secretary shall notify all members eligible to vote at least sixty (60) days prior to the annual meeting of the nomination by petition requirements and election schedule.  The names of the Nominating Committee shall be published to the membership upon their appointment, and not less than 120 days prior to the annual meeting.

 

Section 2. Nomination by Petition. Any qualified member who wishes to be a candidate for the Credit Union's Board of Directors or Supervisory Committee, and who meets the Credit Union's candidate eligibility requirements, if any, may collect the names of five Hundred (500) fifty (50) members of the Credit Union and submit a petition to the Credit Union's Nominating Committee at least ten (10) days before the Credit Union sends out its notice of annual membership meeting under Article III, Section 3.  Notice of this qualification date shall be communicated to the members not less than 60 days before the notice of the meeting date is published.

 

Section 3. Elections. Elections for the Board of Director and Supervisory Committee positions, and which are held at the annual meeting, shall be conducted by using a mail ballot. except where there is only one nominee for each position to be filled. When only one member is nominated for each position to be filled, the Chair may declare each nominee elected by general consent or acclamation at the annual meeting. If sufficient nominations have been made by the Nominating Committee or by petition, to provide more than one nominee for any position to be filled, the Secretary shall cause ballots to be mailed to each member eligible to vote, at least fifteen (15) days prior to the annual meeting: The Board shall determine voter eligibility and mail ballot requirements for each election.  Elections of Board of Directors and Supervisory Committee members at Special Membership Meetings shall be by vote of the members present, provided a quorum is present at that meeting.

 

Section 4. Election Tellers. The Chair of the Credit Union's Board of Directors may appoint Election Tellers, as necessary. The Tellers shall be responsible for verifying the identity of each voting member, and assuring that each person voting is entitled to vote. The Tellers shall also be responsible for tallying election ballots, and communicating the results of the election to the Chair of the Credit Union's Board of Directors.

 

Section 5. Election by Majority Vote. All elections shall be conducted by secret ballot. The candidate receiving the greatest number of votes' in each position shall be elected. In the event of a tie vote, the Chair of the Credit Union's Board of Directors shall determine the run‑off election procedure to be used by the Credit Union.

 

Section 6. Destruction of Ballots. After completion of the election, the members of the Credit Union may approve the destruction of the election ballots after the ballots have been retained for ninety (90) days, unless the election has been challenged in any form.  If a challenge has been made, the ballots shall be retained for the duration of that challenge, plus 90 days.

 

Section 7.For the purposes of voting, a member shall be defined as a person, over the age of 18, who is included in or on the signature card or membership agreement.  It is acknowledged that one account may therefore have more than one member voting.  (Tice’s note:  I actually feel that the primary account holder should be the only voting member, not all persons on that account.  Otherwise, we could have one account holding six or eight votes and this could be abused.)

 

ARTICLE V. BOARD OF DIRECTORS

 

Section 1. Composition. The Credit Union's Board of Directors shall consist of nine (9) individuals. All Board members shall be elected in accordance with the procedures established in Article IV of these Bylaws. Persons appointed to fill vacancies occurring on the Credit Union's Board of Directors shall be chosen in accordance with the procedures established in this Article. No current employees of the Credit Union or members who have been employed by the Credit Union or any subsidiary within the last two (2) years may serve on the Credit Union's Board of Directors.  No change in the number of members of the Board of Directors shall be made without the vote and approval of the membership.

 

Section 2. Term of Office. Each Director, upon election, may serve a maximum of three (3)  two (2) consecutive, three (3) year terms, unless the Director resigns, dies, or is removed under this Article or other articles in the Bylaws. A mandatory absence from the Board of two (2) years is required before a Director can be re‑elected to serve another term of office. Each Board member's term of office shall be staggered, with an equal number of Directors elected each year, as far as possible.

 

Section 3. Eligibility. In order to qualify to serve on the Credit Union's Board of Directors, a member must:

Satisfy any bonding requirements of the Credit Union.

Agree to the terms of, and be bound by, the Credit Union's Code of Ethics and Diversity Policies.

Be eligible to vote in Credit Union elections and at membership meetings.

Not be employed by or have been employed by the Credit Union or its subsidiaries during the past two years.

 

Section 4. Regular and Special Meetings. The Credit Union's Board of Directors shall meet at a regular meeting at least once a month, with the date of the meeting to be set by the Board. A majority of the total number of Board members shall constitute a quorum. A special meeting of the Board may be called at any time by the Chair of the Board or upon request to the Chair by three or more Board members.  Board of Director’s meetings shall be open to the membership, with the exception of those discussions or negotiations which require confidentiality of membership information.  Minutes of the open portions of the meetings shall be available to the membership upon request.  Minutes of the closed or executive sessions shall be made available to members upon successful completion of an application that shall include a confidentiality agreement with sufficient legal protections for those confidential membership elements included in those minutes.  That confidentiality agreement shall not be binding for actions by the Board, member or employee which falls outside the bounds of these Bylaw, for illegal acts or for acts which violate the Credit Union’s Code of Ethics and/or Diversity Policies.  The confidentiality agreement shall require a ten (10) day notice to the Board of Directors of any intent to release information secured from the review of those minutes.

 

Section 5. Notice. The Chair shall give at least five (5) business days advance public notice of any special meeting of the Credit Union's Board of Directors, however, advance meeting notice may be waived by unanimous consent of the Board members. All notices may be delivered via mail, facsimile, telephone, or e‑mail as the Board may from time to time prescribe by resolution. Meetings of the Credit Union's Board of Directors may take place in person, or via electronic technology in accordance with a policy established by the Board, provided that provisions are made for public attendance, with the exception of closed or executive session meetings.

 

Section 6. Expenses. Directors shall not be compensated for services rendered to the Credit Union in their capacity as volunteers. However, Directors may be reimbursed for reasonable expenses incurred during the performance of their duties in accordance with a policy established by the Board.

 

Section 7. Non‑preferential Treatment. Loans extended to Directors shall be made under the same terms and conditions as those extended to other members of the Credit Union.

 

Section 8. Non‑Delegable Powers & Duties. The Credit Union's Board of Directors shall have general direction over the business and affairs of the Credit Union. In addition to the powers and duties conferred by applicable law, the Board shall have the power and duty to conduct the following:

Set the par value of shares and minimum number of shares required for membership in the Credit Union;

Designate a Principal Operating Officer who shall act as the President/CEO of the Credit Union, determine the CEO's salary, and evaluate the Principal Operating Officer's performance as necessary;

Designate such other officers of the Credit Union as may be deemed necessary by the Board of Directors;

Establish loan policies under which loans may be approved;

Establish the conditions under which a member may be expelled for cause;

Fill vacancies on all Standing and Special Committees except the Supervisory Committee;

Approve the Credit Union's annual operating budget;

Designate those persons or positions authorized to execute or certify documents and records on behalf of the Credit Union;

Review the Supervisory Committee's annual report; and Perform perform such other duties as the members may direct.

 

Section 9. Delegable Powers & Duties. The Credit Union's Board of Directors shall also have the powers listed under this section, however these powers may be delegated to a Committee, Officer, or employee under a policy established by the Board. The Board shall:

Act upon applications for membership;

Determine the maximum amount, if any, of shares and deposits that a member may hold;

Declare dividends on shares and set the rate of interest on deposits;

Set fees and charges;

Determine the amount which may be loaned to one member;

Establish loan terms and conditions;

Establish policies under which the Credit Union may borrow and invest;

Approve the charge‑off of losses; and

Perform any other delegable acts required by these Bylaws or applicable law.

Committees, Officers, and employees delegated the powers listed in this section shall be subject to supervision by the Credit Union's Board of Directors.

 

Section 10.  Fiduciary Duties. Members of the Credit Union's Board of Directors must perform their duties in a fiduciary manner as required by law.

 

Section 11. Authority to Remove & Suspend. The Credit Union's Board of Directors may, for cause, remove a Board Officer from office, or a Committee Member from a Committee other than the Supervisory Committee. The Credit Union's Board of Directors may also, for cause, suspend members of the Board, and suspend members of the Supervisory Committee until a membership meeting is held in accordance with Article III of these Bylaws. A membership meeting contemplating the removal of a parrty suspended under this section shall be held within thirty (30) days of the suspension, and Credit Union members attending the meeting shall vote on whether to permanently remove the suspended party or parties. For cause includes demonstrated financial irresponsibility, a breach of fiduciary duty to the Credit Union, or activities which threaten the safety and soundness of the Credit Union.

 

Section 12. Removal by Operation of Law. Members of the Credit Union's Board of Directors shall be removed from their position by operation of law under the following circumstances:

Should the Director cease to be a member of the Credit Union.

Should a Director, unless reasonably excused by the Board, be absent from more than thirty‑three percent of regularly scheduled Board meetings during a twelve month period; or

Should a Director fail to meet the requirements for bondability.

 

Section 13. Vacancies & Interim Directors. If the members of the Credit Union remove a Director at a special membership meeting, the members may either elect an Interim Director to complete the remainder of the removed Director's term of office, or authorize the Credit Union's Board to appoint an Interim Director. All vacancies, other than those filled by members at a special membership meeting, shall be filled by Interim Directors appointed by the remaining members of the Credit Union's Board of Directors. However, terms scheduled to expire in less than ninety days need not be filled by the Board. Interim Directors appointed by the Board of Directors shall serve on the Credit Union's Board only until the next annual membership meeting and shall not be eligible for election for the following term.

 

ARTICLE VI. SUPERVISORY COMMITTEE

 

Section 1. Composition. The Credit Union's Supervisory Committee shall consist of at least three (3) individuals who shall be members of the Credit Union. No more than one member of the Credit Union's Supervisory Committee shall also be a member of the Credit Union's Board of Directors. All Supervisory Committee Members shall be elected in accordance with the procedures established in Article IV of these Bylaws.      

Persons appointed to fill vacancies occurring on the Credit Union's Supervisory Committee shall be chosen in accordance with the procedures established in this Article.

 

Section 2. Term of Office. Each Supervisory Committee Member, upon election, may serve a maximum of three (3) two (2) consecutive, three (3) year terms, unless the Committee Member resigns, dies, or is removed under these Bylaws this Article. A mandatory absence from the Supervisory Committee of two (2) years is required before a member can be re‑elected to serve another term of office. Each Supervisory Committee Member's term of office shall be staggered, with an equal number of members elected each year, as far as possible.

 

Section 3. Eligibility. In order to qualify to serve on the Credit Union's Supervisory Committee, a member must:

Satisfy the bonding requirements of the Credit Union.

Agree to be bound by the terms of the Credit Union's Code of Ethics Policy.

Be eligible to vote in Credit Union elections and at membership meetings.

Not be an Operating Officer or employee of the Credit Union.

Not be employed by the Credit Union nor have been employed by the Credit Union or its subsidiaries during the past two years.

Not serve on the Credit Union's Credit Committee or Investment Committee.

 

Section 4. Meetings. The Credit Union's Supervisory Committee shall meet at least quarterly, with the date of the meetings to be set by the Committee. Additional meetings of the Supervisory Committee may be called at any time by the Chair of the Supervisory Committee or upon request to the Chair by two or more Supervisory Committee Members. Adequate advance notice of all meetings shall be provided to each member of the Supervisory Committee. All notices shall be delivered via mail, facsimile, telephone, or e‑mail as the Board shall determine by resolution from time to time. Meetings of the Credit Union's Supervisory Committee may take place in person, or via telephonic or electronic transmission in accordance with a policy established by the Board.

 

Section 5. Expenses. Supervisory Committee Members shall not be compensated for services rendered to the Credit Union in their capacity as volunteers. However, Committee Members may be reimbursed for reasonable expenses incurred during the performance of their duties in accordance with a policy established by the Credit Union's Board of Directors.

 

Section 6. Non‑preferential Loans. Loans extended to members of the Supervisory Committee shall be made under the same terms and conditions as those extended to other members of the Credit Union.

 

Section 7. Powers & Duties. The Credit Union's Supervisory Committee shall serve as a check and balance to the Credit Union's Board of Directors. At least one member of the Credit Union's Supervisory Committee who is not a Board Member may shall attend each regular meeting of the Credit Union's Board of Directors.

The Supervisory Committee shall:

Keep fully informed of the financial condition of the Credit Union;

Keep fully informed as to those decisions made by the Credit Union's Board of Directors;

Perform or authorize an annual audit of the Credit Union, and report the findings of the audit, along with any recommendations, to the Credit Union's Board of Directors; and

Make a written report available to members at the Credit Union's annual membership meeting.

 

Section 8. Authority to Suspend. By unanimous vote, the Supervisory Committee may, for cause, suspend a member of the Credit Union's Board of Directors, or a member of another Committee, until a membership meeting is held in accordance with Article III of these Bylaws. A membership meeting contemplating the removal of a party suspended under this section shall be held within thirty (30) days of the suspension, and Credit Union members attending the meeting shall vote on whether to permanently remove the suspended party or parties. For cause will include demonstrated financial irresponsibility, a breach of fiduciary duty to the Credit Union, or activities, in the judgment of the Supervisory Committee, which threaten the safety and soundness of the Credit Union., or actions that violate the Code of Ethics or the Bylaws.  

 

Section 9. Removal & Suspension of Supervisory Committee Members. Members of the Credit Union's Supervisory Committee may be suspended or removed from their position by the Board of Directors for cause, or by action of the members under these Bylaws. For cause shall include demonstrated financial irresponsibility, a breach of fiduciary duty to the Credit Union, or activities which, in the judgment of the Board, threaten the safety and soundness of the Credit Union., or actions that violate the Code of Ethics or the Bylaws.

 

Section 10. Removal by Operation of Law. Members of the Credit Union's Supervisory Committee shall be removed from their position by operation of law under the following circumstances:

Should the Supervisory Committee member cease to be a member of the Credit Union; or

Should the Supervisory Committee member fail to meet the requirements for bondability.

Should the Supervisory Committee member fail to meet the requirements of Section 3, Article VI.

 

Section 11. Vacancies & Interim Committee Members. All vacancies on the Credit Union's Supervisory Committee shall be filled by Interim Committee Members appointed by the remaining members of the Supervisory Committee. However, terms scheduled to expire in less than ninety (90) days need not be filled: Interim members of the Credit Union's Supervisory Committee appointed within 90 days of the annual meeting shall serve until the next annual membership meeting. Should a majority of the all positions on the Credit Union's Supervisory Committee become vacant at the same time, the Credit Union's Board of Directors shall call a Special Membership Meeting to elect new Supervisory Committee members within 30 days if the annual membership meeting is 90 days or more past the date of the occurrence of the vacancy.  If the vacancy occurs within 90 days of the next annual meeting, the Board of Directors shall be responsible for appointing an Interim Supervisory Committee which shall hold office until the next annual membership meeting.

 

ARTICLE VII. STANDING & SPECIAL PURPOSE COMMITTEES

 

Section 1. Formation of Standing & Special Purpose Committees. The Credit Union's Board of Directors may create and appoint other Standing Committees, subcommittees, and task forces as it deems necessary. The duties and term of any such Committees shall be set by the Board of Directors upon formation.

 

Section 2. Eligibility. In order to qualify to serve on one of the Credit Union's Committees,

a member must:

Be bonded by the Credit Union.

Be eligible to vote in Credit Union elections and at membership meetings.

 

Section 3. Meetings. Committees shall meet at such times as determined by resolution of the Credit Union's Board of Directors, by resolution of the Committee, or by the Chair of the Committee with the prior approval of the Chair of the Credit Union's Board of Directors.

 

Section 4. Expenses. Members of the Credit Union's Standing or Special Purpose Committees shall not be compensated for services rendered to the Credit Union in their capacity as volunteers, but may be reimbursed for reasonable expenses incurred during the performance of their duties in accordance with a policy established by the Board of Directors.

 

Section 5.        Non‑preferential Treatment. Loans extended to members of the Credit Union's Standing or Special Purpose Committees shall be made under the same terms and conditions as those extended to other members of the Credit Union.

 

ARTICLE VIII. OFFICERS OF THE BOARD

 

Section 1. Election of Officers. At the first meeting following the Credit Union's annual membership meeting, the Credit Union's Board of Directors shall elect: a Chair, one or more Vice‑Chairs, a Secretary, and such other Officers as the Board from time to time deems advisable. The offices of Chair and Vice Chair must be held by elected Board members, however the offices' of Secretary and Treasurer may be held by persons who are not elected Board members, and may be held by the same person. Board Officers shall continue to hold office until either their successors are elected and qualified, or until death, resignation, or removal.

 

Section 2. Duties of the Chair. It is the duty of the Board Chair to preside at membership meetings and meetings of the Credit Union's Board of Directors, appoint persons to the Credit Union's Standing and Special Purpose Committees, sign instruments requiring the Chair's signature, maintain joint control over all negotiable securities with the Credit Union's Treasurer, and perform other customary duties of office.  The Chair shall abide by the recommendations of the Certified Professional Parliamentarian in all cases of challenge to his/her rulings under Robert’s Rules of Order.  If the Parliamentarian is challenged from the floor, the Parliamentarian must provide the specific rule under which the ruling was made and a floor discussion, debate and a vote of verification or rejection of that ruling must be held.

 

Section 3. Duties of the Vice Chair. Persons elected to the office of Vice Chair must perform the duties of the Board Chair in his or her absence, and any other duties prescribed by the Board.

 

Section 4. Duties of the Treasurer. It is the duty of the Treasurer to act as custodian over finds, securities, books of account, and all other valuable Credit Union papers, report to the Board on their status at regular intervals, and perform other duties as necessary.

 

Section 5. Duties of the Secretary. It is the duty of the Secretary to keep a correct record of all meetings of Credit Union members, meetings of the Credit Union's Board of Directors, and keep a record of Supervisory Committee reports. The Secretary is required to give notice of all membership meetings in accordance with the manner prescribed by these Bylaws, and perform any other duties prescribed by the Board. In the absence of the Treasurer, the Board of Directors may delegate the Treasurer's duties to the Secretary.  All minutes of the Board of Directors meetings and Supervisory Committee Minutes shall be available to the membership as described in Article V, Section 4.

Bylaws, Minutes, Changes, Documents.  The Secretary shall provide to any member, upon request, copies of the Bylaws, minutes of all open sessions of the Board and Supervisory Committee, and shall insure notice is provided to all members of any changes in the Bylaws.  The Secretary shall provide any documents or records not specifically and normally held in confidence by the laws of the State of Washington or these Bylaws.  The regular and normal financial filings provided by the Credit Union and to the various regulating bodies, including all that are available under the Freedom of Information Act, shall be promptly made available to the membership upon request and payment of the actual cost of the physical copying, but never more than $0.20 per page.  Provision to the requesting member shall be within 5 working days at most.

The Secretary shall insure that all reports to be presented at the Annual Meeting are available at no cost to all requesting members not less than 21 days prior to the Annual Meeting.  This will include, but is not limited to, the Supervisory Committee Report, Annual Financial Reports, Committee Reports and all other normal reports.

 

Section 6. Removal of Board Officers. The Credit Union's Board of Directors may, by a majority vote, remove any Board Officer from their official position for cause, including demonstrated financial irresponsibility, a breach of fiduciary duty to the Credit Union, breach of the requirements of the Bylaws, or activities which threaten the safety and soundness of the Credit Union.

 

Section 7. Vacancies & Interim Officers. In the event of absence or disability of an Officer of the Board, the Chair of the Credit Union's Board shall appoint a remaining member of the Board to act as Interim Officer. If the absence or disability proves to be permanent, the remaining Board members shall elect a member of the Board to complete the Officer's term.

 

ARTICLE IX. SHARES & DEPOSITS

 

Section 1. Par Value. The par value of one share shall be five dollars ($5.00).

 

Section 2. Withdrawal. Shares and deposits may be withdrawn at any time, however the Credit Union may require up to ninety days' notice of intention to withdraw shares or deposits. In the event that the Credit Union requires notice of intention to withdraw, a member who has filed a notice of intention to withdraw may not exercise the privileges of Credit Union membership.

 

Section 3. Dividends. Dividends on dividend bearing accounts shall be declared for each account under dividend periods and policies as determined by the Board from time to time and dividends shall be paid on all eligible shares outstanding at the time of the declaration.

 

Section 4. Interest. Interest rates on interest bearing accounts, if applicable, may be set from time to time by the Credit Union.

 

Section 5. Non‑Negotiability of Shares. Shares in the Credit Union are non‑negotiable. Shares in the Credit Union may not be purchased directly from a member of the Credit Union.

 

ARTICLE X. LOANS & INVESTMENTS

 

Section 1. Loans. Loans may be granted to any member of the Credit Union in good standing. All loans shall be evidenced by records adequate to support enforcement or collection of the loan, and periodic reviews for safety and soundness. All loans shall be authorized and approved as provided by these Bylaws.

 

Section 2. Liability for Indebtedness upon Withdrawal Any member with outstanding loans or debts owed to the Credit Union, who severs their relationship with the Credit Union, shall not be relieved of any outstanding liabilities owed, and may be required to immediately discharge their indebtedness to the Credit Union, or may be allowed to repay their debts as initially agreed.

 

Section 3. Investments. The Credit Union shall make all investments in accordance with applicable law and under policies established by the Credit Union's Board of Directors.

 

ARTICLE XI. INDEMNIFICATION

 

Section 1. Indemnification. Except as provided in Section 2, the Credit Union shall indemnify a current or former Director, Officer, Committee Member, or employee made a party to a proceeding because the person is or was a Director, Officer, Committee member or employee if:

(1) The person acted in good faith; and

(2) The person reasonably believed

(a)    In the case of conduct in the person's official capacity with the Credit Union, that the person's conduct was in the Credit Union's best interests; and

(b)   In all other cases, that the person's conduct was at least not opposed to its best interests; and

(3)  In the case of any criminal proceeding, the person had no reasonable cause to believe that the person's conduct was unlawful.

 

Section 2. Limits on Indemnity. The Credit Union shall not indemnify a person under Section 1:

            (1)  In connection with a proceeding by or in the right of the Credit Union in which the person is adjudged liable to the Credit Union; or

(2)  In connection with any other proceeding charging improper personal benefit to the person, whether or not involving action in the person's official capacity, in which the person is adjudged liable on the basis that the person improperly received personal benefit.

                       

Section 3. Advances for Expenses. The Credit Union shall pay for or reimburse the reasonable expenses incurred by a person who is a party to a proceeding described in Section 1 before disposition of the proceeding, if‑.

 

(1) The person furnishes the Credit Union with a written affirmation of the person's         good faith belief that the person has met the standard of conduct described in Section 1; and

(2) The person furnishes the Credit Union with a written undertaking to repay the advance if it is ultimately determined that the person did not meet the standard of conduct described in Section 1.

 

Section 4. Authorization of Indemnity. Any determination as to indemnity or for advance of expenses under this section will be made by majority vote of disinterested Directors. Any indemnification or advance of expenses to a person under this section, will be reported, in writing, to the members of the Credit Union before the next annual membership meeting.

 

Section 5. Insurance. The Credit Union may purchase and maintain insurance on behalf of any individual who is or was a Director, Officer, Committee Member, employee or agent of the Credit Union against liability incurred by the person, whether or not the Credit Union would have had the power to indemnify the individual against the same liability under the provisions of this section or the laws of the state of Washington.

 

ARTICLE XII. MISCELLANEOUS PROVISIONS

 

Section 1. Bondability. Each Director, Officer, Committee Member, and employee of the Credit Union shall be bonded in accordance with conditions established by regulatory authority.

 

Section 2. Conflict of Interest. No Director, Committee Member, Officer, or employee of the Credit Union may have a pecuniary interest in any contract or transaction with the Credit Union unless this interest is disclosed and made known to the Board of Directors.  No Director or Committee Member of the Credit Union shall participate in the deliberation of any question affecting their own pecuniary interest. Such Director or Committee Member shall withdraw from the deliberation and decision upon such interest.

 

Section 3. Emergency Operations. In the event of an emergency sufficient to disrupt customary Credit Union operations, the Credit Union shall conduct its affairs under guidance from the Credit Union's Board of Directors and subject to any governmental directives. Emergency operations shall be conducted under a crisis recovery plan approved by the Credit Union's Board of Directors.

 

Section 5. Conformity. Any section or provision of these Bylaws in conflict with the laws of the State of Washington or the laws of the United States is deemed to be amended to conform to law. Any matter relating to the authority, control, management, or operation of this Credit Union, or any privileges granted by the Credit Union under law, but not specifically set forth in these Bylaws, may be carried out, granted, and exercised according to the provisions of law and the will of the membership, if not in violation of the law.

 

ARTICLE XIII. AMENDMENT & INITIAL CERTIFICATION

 

The Credit Union's Board of Directors may amend these Bylaws by majority vote at any regular or special Board meeting called for that purpose, but the amendment shall not take effect until approval is indicated by a vote of the membership.  The sole exception to this requirement for membership approval shall be amendments of the Field of Membership.

 

Certification of Secretary

 

We the undersigned, Chairman and Secretary of Columbia Community Credit Union, Charter #68186, Vancouver, Washington hereby certify: That by affirmative vote of a majority of the members of the board at a duly held meeting thereof on November 20, 2001                                    , the following resolution was adopted: Resolution "To adopt the Bylaws and Field of Membership Appendix as submitted for Columbia Community Credit Union, effective November 20, 2001                                      . Thereby, amending and restating the bylaws substantially in the format prescribed by the Department of Financial Institutions Division of Credit Unions. That notice of the above meeting was given to Board members in accordance with the bylaws."

 

The foregoing resolution, together with the names of directors voting for the resolution, those voting against the resolution, and those absent from the meeting have been entered into the minutes of the Board of Directors of this Credit Union.

 

William F. Byrd III; Chairman

L. Christine Wamsley; Secretary/Treasurer

 

11 /20/01

11/20/01

 

 

 

 


Summary and Explanation of changes to the Bylaws

By Robert Tice

 

 


Article I, Name and Purpose

 

Section 1 changes the Purpose to provide for CCU being a Credit Union “in perpetuity” (forever.)

 

Section 2, added, provides that should Section 1 be overturned, conversion or  a change in form would require a 2/3 vote of the membership.

 

Article II  Qualification for Membership

 

No changes

 

Article III  Meeting of Members

 

Section 1 insures that annual meetings be held not more than 18 months apart, regardless of the wishes of the Board of Directors or others.

 

Section 2 Requires all meetings be held after 6:30 pm on weekdays, or weekends after 10:00 am, and never on state or federal holidays.

 

Section 3 Requires at least two notices of public notice of the date of the annual meeting, within 30 to 90 days of the meeting, by mail and public notice.  This is necessary because the Bylaws require that a candidate filing for office file 10 days BEFORE the notice of the date of the annual meeting, a Catch-22 under normal circumstances, since the candidate has no way of knowing that date.  The change meshes with a change in Article IV, Section 2 to be effective.

 

Section 4  adds the Supervisory Committee to the Section and removes ambiguities in the Bylaws as to possible different treatment of the Board of Directors.  It also requires that petition validity be based ONLY on the validity of signatures, thus removing the Board’s personal concerns from this decision.  Had this already been in place, there would have been no need for the litigation requiring the Courts force the Special Membership Meeting to occur, saving tens of thousands of dollars and considerable damage to the reputation of the Columbia Credit Union.

 

Section 6 includes clarification elements by naming assumed parties.  It also assures that during a Special Membership Meeting mail-in vote, there be included at least one 500 word written statement by each side of the issue be provided to the members for their consideration.  It also requires that if the removal of a member of the Board of Directors or Supervisory Committee be sought, that members will have the opportunity to speak to the members and defend his/her position, and insures only those members present and informed are voting on that issue.  The intent is to insure informed voting and stop the voting in the dark that has occurred in the past.

 

Section 8 clarifies when members vote by mail and when member vote in person. 

 

Section 9 clarifies that membership meetings must be attended by a qualified Certified Professional Parliamentarian and established ground rules for their use.  Had one been present at the November 2003 meeting instead of an unqualified lawyer, it is likely the conversion attempt and the resulting Federal Investigation would not have occurred, saving perhaps as much as $1 million. It requires the Chair to abide by Robert’s Rules of Order, complying with state laws (RCW 31.12 and the existing Bylaws.) and conforms to the existing Bylaw requirements while clarifying that requirement to conform with the obvious intent that all meetings be held under Robert’s Rules of Order.  It also conforms to Judge Bennett’s ruling on this matter.

 

Article IV  Election of Board and Supervisory Committee

 

      Section 1 increases the number of the Nominating Committee Members from three (which includes one Board member) to five, also including the Board member.  Requires that two qualified candidate are presented for each Board and Supervisory Position

 

Section 2 reduces the number of petitions required to run for the Board or Supervisory Committee from 500 to100, making it less difficult but still insuring that a candidate has support for his position.  The petition for a special meeting last year proved how difficult it was to collect even 500 signatures.

 

Section 3 clarifies some ambiguities regarding elections.  In particular it insures that there are always a choice of candidates for each open position and prevents the automatic incestuous rotation of the same people in those positions.  Without this change, there would be no opposing candidates for office since the Nominating Committee was required to nominate only one candidate, and when only one candidate is running, no election is held.

 

Section 7  Defines what a member is, removing the problems noted by the Federal investigation.  At this  time, there is no clear definition of what a member is, and what a voting member is.

 

Article V  Board of Directors

 

Section 1 insures that any changed to the Bylaws are approved by the members, with the exception of the “Field of Membership”.  Prior to this change, the Board has full authority to change any aspect of the Bylaws.  It includes a specific provision to prevent the Board from changing it’s size without the approval of the membership, thus establishing a majority rule by appointing new members without approval of the membership, for example.

 

Section 2 reduces the length of terms to two consecutive 3 year terms (6 years) from the current 3 terms, or 9 years, and retains the existing provision of requiring a one-term break in service.  This would not take effect until the end of the current terms of the incumbent members.

 

Section 3 requires the Board be bound by the Credit Union Code of Ethics, not just agree with it.

 

Section 4 opens the Board meeting to the members, with the exception of private and confidential discussions on specific member’s accounts, requests, and so on.  It provides that members can have easy access to the minutes of the meetings, and review normal business reports, such as occurs in every other type of public and most private financial institutions around the U.S.  In some cases, a confidentiality agreement may be required in order to review certain sensitive documents.

 

Section 5 provides for public notice and attendance at Board meetings, with the exception of closed or executive sessions.

 

Section 12 provides that when the Board appoints a temporary Director, he or she serves only until the next Annual meeting and is not eligible for that office during that next term.

 

Article VI  Supervisory Committee

Section 2 changes the Supervisory board members term from 3 terms of 3 years (9 years) to 2 terms of 3 years (6 years total) without a full term break from service.  This would not take effect until the end of the current terms of the incumbent members.

 

Section 3 requires the members of the Supervisory Committee be bound by the Code of Ethics.

 

Section 7 requires a member of the Supervisory Committee who is not a Board member attend all Board meetings.  Only by this provision can the Supervisory Committee actually perform their duties.  It also requires the Committee to provide an written report on their activities and concerns at the annual meeting of members.

 

Section 8, the change provides for removal of a Supervisory Committee member for violation of the Code of Ethics, as well as the other listed items.

 

Section 9 provides clarity regarding the removal of a member of the Supervisory Committee by action of the members (by petition and subsequent vote, etc.)

 

Section 10 provides clarification by simply allowing removal for lack of legal qualification for the office.

 

Section 11 clarifies the handling of vacancies of the Committee.  The Board would appoint interim members, and if the term remaining exceeds 90 days, hold an election for that office.  If all positions come open at the same time, a Special Membership Meeting would be held within 30 days, unless the vacancy(s) occurs within 90 days of the Annual Meeting.  This is a very minor change from the existing rules and only clarifies that the Membership shall have control over the content of the Supervisory Committee.

 

Article VIII  Officers of the Board

 

Section 2 requires the Chair abide by the recommendations of the Certified Professional Parliamentarian, but with ultimate decisions in regard to procedure being provided by the vote of the members.  As the Bylaws require all procedure be governed by Robert’s Rules of Order, only the members can override those Rules.  This written provision is lacking in the current Bylaws.  It allows the members to vary from Robert’s Rules of Order and remain within the bounds of RCW 31.12 and the Bylaw requirements.

 

Section 5 requires the Secretary to provide to the members all minutes of the Board and Supervisory Committee meeting that are not confidential in nature, and to provide to the members copies of the reports to be presented at the annual meeting.  This allows for review of the reports 21 days prior to the Annual Meeting, which isn’t now possible since the reports are often verbal or to extensive to review at the meetings.  It reduces the time wasted in questions and answers during the meetings.  It minimizes charges for those reports, specifying not more than 20 cents per page.

 

Section 6 clarifies that only a majority vote is required by the Board to remove a fellow member for cause and adds a breach of the Bylaws as cause.

 

Article XII  Miscellaneous Provisions

 

Section 5 provides for the will of the membership to be enacted, provided that it conforms with the laws.

 

Article XIII Amendment and Initial Certification

 

This change inculcates the requirement that any changes in the Bylaws by first approved by the membership before submission to the Department of Financial Institutions for approval, with the exception of changes in the Field of Membership.

 

Certification:  Normal certification changes in dates, signatures, etc.