41 THE NAFCU JOURNAL NOVEMBER–DECEMBER 2022 official having an aggregate amount of indebtedness to the credit union that exceeds $20,000. Thus, federal regulations prohibit an official from receiving more than $20,000 in loans or other credit from the FCU unless the board of directors approves those arrangements. Finally, section 723.7 of the NCUA’s commercial lending regulations prohibits a FCU from granting commercial loans to the compensated director of the FCU. Restrictions in the NCUA Model Bylaws In addition to the restrictions from the Federal Credit Union Act and NCUA regulations, there are also restrictions in the NCUA’s FCU Model Bylaws which, if adopted by a FCU, may place limitations on officials of the credit union. First, Article XVI, Section 4 of the model bylaws requires officials to withdraw from consideration or determination of a matter that affects the director’s interest. Secondly, the Model Bylaws also include a fill-in-the-blank provision that lets a FCU limit the number of paid employees that may serve on the board of directors. Thus, a FCU may limit the number of paid employees that may serve on the board of directors—and vice versa. Third, the bylaws include provisions through which a FCU may limit how many immediate family members of a board or committee member may be paid employees of the credit union. Thus, depending on the FCU’s bylaws, serving as an official may prevent the official’s family members from being hired at the FCU. Finally, depending on the FCU’s bylaws, a former official may be prohibited from becoming a paid employee of the FCU for a specified period of time. Index to Advertisers Daon Website: daon.com...............................................35 FIS Website: fisglobal.com....................................... C2 Franklin Madison Website: franklin-madison.com.........................19 Gallagher Website: nafcu.org/gallagher........................... 37 MasterCard Website: mastercard.us..................................... C3 MemberFirst Mortgage Website: discovermfm.com................................. 7 Open Lending Website: openlending.com................................. 21 Personetics Website: personetics.com.................................. 25 Q2 Website: q2.com................................................... C4 SentiLink Website: sentilink.com.........................................20 TruStage Website: cunamutual.com/life............................ 4
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