A. The supervisory committee shall make or cause to be made by a certified public accountant or other qualified person or firm a comprehensive annual audit of the books and affairs of the credit union. It shall submit a report of each annual audit to the board of directors and make the report available to the director, and a summary of the report shall be presented to the members at the next annual meeting of the credit union.

B. The supervisory committee shall make or cause to be made such supplementary audits, examinations and verifications of members' share and loan accounts as it deems necessary or as are required by the board of directors and submit reports of those audits to the board of directors. A complete verification of members' share and loan accounts shall be performed at least once every two years in accordance with standards established by the director.

C. The supervisory committee by a two-thirds vote of the entire committee may in its sole discretion suspend a person authorized to extend credit if the person is not a paid employee of the credit union and shall report the action to the board of directors for appropriate action. Paid employees of the credit union that are authorized to extend credit may be suspended for any reason but only by the executive officer of the credit union.

D. The supervisory committee by a two-thirds vote of the entire committee may suspend any member of the board of directors until the next members' meeting, which shall be held not less than seven or more than twenty-one days after such suspension. At that meeting, the suspension shall be acted upon by the members and the board member removed from or restored to his position.

E. The supervisory committee by a majority vote may call a special meeting of the members to consider any violation or potential violation of the Credit Union Act, the credit union's articles of organization or bylaws or any practice of the credit union deemed by the supervisory committee to be unsafe, unsound or unauthorized. The bylaws shall prescribe the manner in which a special meeting of the members may be called by the members or by the board of directors.

History: Laws 1987, ch. 311, § 38; 1991, ch. 51, § 12; 1997, ch. 195, § 26.

Repeals. — Laws 1997, ch. 195, § 42 repealed Laws 1987, ch. 311, § 68, which had provided for the repeal of this section on July 1, 1997.

The 1997 amendment, effective July 1, 1997, substituted "and make the report available to the director, and a summary of the report shall be presented" for "and to the division, and a summary of the report" following "board of directors" in the second sentence of Subsection A, added "in accordance with standards established by the director" at the end of Subsection B, rewrote Subsection C, deleted Subsection E relating to the suspension or removal of any member of the supervisory committee, redesignated former Subsection F as Subsection E and, in the first sentence of Subsection E, substituted "violation or potential violation of the Credit Union Act" for "violation of the Credit Union Regulatory Act" preceding "the credit union's articles".

The 1991 amendment, effective July 1, 1991, in the first sentence of Subsection D substituted "vote of the entire committee may suspend any member" for "vote may suspend any officer or member" and in the second sentence deleted "officer or" preceding "board".