Required Board Actions (RBA) is an action plan, which has been created by the Examiner. It is constructed to address and correct identified problems, regulatory violations, significant weaknesses or deficiencies noted in internal controls, risk management, or sound business practices, and/or other safety and soundness concerns facing the credit union. The plan contains specific and required corrective steps and time-lines for their completion. The Board of Directors must ensure these corrective steps are implemented and adhered to. Within 60 days of the receipt of the final exam report from the Division of Financial Services, the Board is required to submit a certification stating that the exam report was received and read, along with a written response to each step in the plan. The Commissioner may impose regulatory sanctions for failure to implement timely corrective action although external factors beyond the Board’s control or other reasonable circumstances will be considered in rendering such a decision.

Division of Financial Services

Policy Number: 300-25

Date Issued: 03/11/93

Date Revised: 05/02/96; 11/03/06

Title: ISSUANCE OF REQUIRED BOARD ACTIONS

Purpose: To provide guidelines as to when to issue Required Board Actions (RBA)

This policy will discuss the issuance of Required Board Actions (RBA) to any CAMEL 1 or 2 rated state-chartered credit union.

The minor directives that would be needed in cases of 1 and 2 rated state-chartered credit unions (correct loan exceptions and operating exceptions) may be addressed as directives in the examination report rather than in a RBA.

This is satisfactory only if the necessary actions are of a routine nature. In this case, they should be placed in the report as directives, IN BOLD. If any directive, even one, is not of a routine nature (charge off or correction of minor exceptions or violations), a RBA should be issued.