NASHVILLE, Tenn. The Tennessee state legislature last week approved a bill that will allow state chartered credit unions to pay their volunteer directors.
The Volunteer State is one of two states Washington is the other considering whether to allow compensation of the traditional volunteers. Several other states, including Texas, already allow state charters to pay directors.
The Federal CU Act still bars federal charters from compensating directors and committee members.
The Tennessee bill gives credit unions the choice to compensate or reimburse board members, but not both. In either case, to reimburse or compensate is optional based on the credit union’s philosophy to be governed by volunteers or compensated board members.
The new law is effective July 1.
