1. (a) Expense reimbursement. A credit union may, by written board policy, authorize the payment of reasonable expenses incurred by directors and committee members and their spouses for attending and participating in board approved conferences and/or educational programs.

2. (b) Payment of fees. A credit union may, by written board policy, authorize the payment of reasonable fees for directors and/or committee members attending duly called meetings for the conduct of appropriate credit union business. In addition to the limitations of this section, the policy shall include a schedule of meeting fee amounts and a provision that fees may be paid only for actual attendance at duly called meetings. The authority to pay any such fee is subject to the following limitations:

   1. (1) the credit union is not operating under a Net Worth Restoration Plan;
   2. (2) the credit union must not be subject to a cease and desist order or removal order issued under Finance Code §122.257 and §122.258;
   3. (3) the credit union must notify the commissioner by furnishing a copy of the policy, and any amendments thereto, at least 30 days prior to the implementation of the policy or any revisions thereof; and
   4. (4) the credit union must keep accurate and detailed records of the fees paid under the policy.

3. (c) Use of credit union equipment. A credit union may provide personal computers, access to electronic mail, and other electronic conveniences to directors during their terms of office provided:

   1. (1) the board of directors determines that the equipment and the electronic means are necessary and appropriate for the directors to fulfill their duties and responsibilities;
   2. (2) the board of directors develops and maintains written policies and procedures regarding this matter; and
   3. (3) the arrangement ceases immediately upon the person's leaving office, without providing any residual physical benefits.
4. (d) Insurance. A credit union may, in accordance with written board policy, provide health, life, accident, liability, or similar personal insurance protection for directors and committee members. The kind and amount of these insurance protections must be reasonable given the credit union's size, financial condition, and the duties of the director or committee member. The insurance protection must cease upon the director or committee member's leaving office, without providing residual benefits beyond those earned during the individual's term on the board or committee.
5. (e) Review by board. A credit union shall implement and maintain controls and other safeguards to prevent the payment of fees or expenses that are excessive or that could lead to material financial loss to the institution. At least annually, the board, in good faith, shall review the director/committee member fees and director/committee member-related expenses incurred, paid or reimbursed by the credit union and determine whether its policy continues to be in the best interest of the credit union. Fees and expenses shall be considered excessive when amounts paid are disproportionate to the services performed by a director or committee member, or unreasonable considering the financial condition of the institution and similar practices at credit unions of a comparable asset size, geographic location, and/or operational complexity.
6. (f) Waiver by commissioner. The commissioner in the exercise of discretion may grant a waiver in writing of the limitations described in subsection (b) of this section.

Source Note:The provisions of this §91.502 adopted to be effective August 14, 2000, 25 TexReg 7632; amended to be effective July 11, 2004, 29 TexReg 6628; amended to be effective July 8, 2007, 32 TexReg 3979.