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Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
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Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
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Analysis
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Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
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Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Hiring of Consultants

97-0412 / April 1997

Hiring of Consultants

Subject

Governance

Historic Status

Non-historic

April 16, 1997

Charles R. Simpson, Jr., President/CEO
First Citizens' Federal Credit Union
271 Union Street
New Bedford, MA 02740

Re: Hiring of Consultants (Your April 3, 1997, Letter)

Dear Mr. Simpson:
You have asked whether it is permissible for a federal credit union (FCU) to enter into a contract with a consulting company which is partially owned by a member of your FCU's board of directors. The consulting services will consist of assisting the FCU in strategic planning, ALM planning and technology planning. You advise that pursuant to Article XIX, Section 4 of the FCU Bylaws, the director will recuse himself from participating in any of the contract negotiations. As explained in the attached opinion letter dated January 21, 1992, from Hattie G. Ulan, Associate General Counsel to Mr. Arthur G. DeRusso, although we have no legal objection based on the facts provided, NCUA's Rules and Regulations have a number of conflict of interest provisions applicable to FCU directors which should be checked to ensure that there is no conflict.

Sincerely,

Sheila A. Albin
Acting Associate General Counsel

GC/MFR:bhs
SSIC 3600
97-0412

Enclosure

Last modified on

11/14/24