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Can you summarize Chapter 208-400 WAAC?
Financial Institutions, Department of (See also Titles 50, 419, and 460) > Credit union corporate governance.
Short Summary
This document governs the compensation of directors and supervisory committee members in credit unions. It allows credit unions to pay reasonable compensation to these individuals for their services, subject to certain provisions. Compensation is defined as anything of value given to a director or supervisory committee member in exchange for their services, which is required to be reported as income to the IRS. However, certain types of payments and gifts are excluded from the definition of compensation. Credit unions are required to implement controls to ensure that compensation is reasonable and does not lead to material financial loss. The compensation must be proportional to the services provided, reasonable considering the credit union’s financial condition, and comparable to compensation paid by similar organizations. Credit unions are also required to disclose the compensation provided to directors and supervisory committee members to their members annually. The director of credit unions has the authority to prohibit or limit compensation if it has a materially adverse effect on the credit union or if the credit union fails to comply with the rules.
Whom does it apply to?
Credit unions
What does it govern?
Compensation of directors and supervisory committee members in credit unions
What are exemptions?
Certain types of payments and gifts are excluded from the definition of compensation
What are the Penalties?
The document does not specify any penalties for non-compliance or violations
Jurisdiction
Washington