regulatory and compliance issues and considerations

What if an applicant “volunteers” information about his medical condition while you are
taking a loan application? Can the Credit Union ask about or consider a medical
condition in connection with a loan application?
What if a middle-aged man falls in the lobby? The Credit Union offers assistance. He
declines; hops up and skips out of the Credit Union. The next day he falls off a ladder
and is hurt. Since he cannot sue himself – he claims he was hurt in the Credit Union
lobby fall and sues the Credit Union instead. What record does the Credit Union have to
prove the facts above?
What if there is an intrusion event? The Credit Union investigates and determines not
remediation is needed. Later, it turns out that some member information was in fact
compromised; or a member’s information is compromised elsewhere – but they blame
you. Are you prepared to either support your decision that remediation was not required;
or that the compromise was not as a result of the Credit Union event?
Evidence to Support the Credit Union:
Some time ago we adopted concepts from the insurance industry and the workplace in
creating “incident report forms.” (e.g., The form McDonald’s completes when a rocket
pharmacist pours hot coffee on themselves to address any legal or insurance claims
that later arise; the form the industrial plant complete when there is an accident on the
job to address worker’s comp and related potential claims). Personnel in other
industries are trained in responding and documenting “incidents” for a reason. Do you
do the same so the Credit Union can avail itself the possible legal and insurance
protections that can come into play?
Board Qualifications
APPLICATION TO BOARD OF DIRECTORS OF
_________________ CREDIT UNION
Qualifications for a Board Member: (This agreement may be significant revised and is
provided only as a guide. Please consult with competent legal counsel regarding
customization and/or revisions).
1. Be a member in good standing of the Credit Union.
Conditions under which a member maybe classified as not in good standing are defined as:
a) Member has caused the Credit Union a loss.
b) Member has an overdrawn account.
c) Member has a delinquent loan.
d) Member has exceeded authorized credit limit.
e) Member has an attachment and/or tax levy.
f) Member has failed to provide security documentation as specified in their loan/security
Copyright©1994-2010 by Credit Union Resources & Educational Services, LLC. All rights reserved.
Revised February 2010
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