Federal Credit Union Bylaws state that Board is responsible for “authorizing the charge-off of uncollectible loans".
NCUA Legal Opinion October 11 1994 states N"either the Act, the Regulations nor the Bylaws address the policies or procedures for charging off uncollectable loans". I could find no other relevant reference ito my question in NCUA Legal Opinion Letters.
My question is: the Board has delegated the charge-off responsibility to management (allowed by GCO 94-0489), and the Board ratifies the charge-offs at the next monthly meeting of the Board. In the past management has submitted the list of the loans that were charged-off to the Board. However, now management wants to give the Board just the total dollar amount that was charged-off without the detail list. Does any credit union Board do this (just approve a lump sum). And if so, I assume NCUA has blessed the method?
February 23, 2011 - 2:00pm
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