Reimbursement, insurance, and indemnification of officials and employees.

CFR · 2024-01-01 · US · Title 12

(a) (b) (2) For purposes of this section, the term (i) Payment (by reimbursement to an official or direct credit union payment to a third party) for reasonable and proper costs incurred by an official in carrying out the responsibilities of the position to which that person has been elected or appointed, if the payment is determined by the board of directors to be necessary or appropriate in order to carry out the official business of the credit union, and is in accordance with written policies and procedures, including documentation requirements, established by the board of directors. Such payments may include the payment of travel costs for officials and one guest per official; (ii) Provision of reasonable health, accident and related types of personal insurance protection, supplied for officials at the expense of the credit union: (iii) Indemnification and related insurance consistent with paragraph (c) of this section. (c) (2) Indemnification shall be consistent either with the standards applicable to credit unions generally in the state in which the principal or home office of the credit union is located, or with the relevant provisions of the Model Business Corporation Act. A Federal credit union that elects to provide indemnification shall specify whether it will follow the relevant state law or the Model Business Corporation Act. Indemnification and the method of indemnification may be provided for by charter or bylaw amendment, contract or board resolution, consisten

official document · source cfr-2024 · id 12:§ 701.33