November 13, 1997

Mr. Peter Nalaskowski, General Manager
Polish & Slavic Federal Credit Union
140 Greenpoint Avenue
Brooklyn, NY 11222

Dear Mr. Nalaskowski:

You have asked whether the board of directors may set guidelines for the nominating committee to follow in the selection process and whether the board of directors may nominate individuals whom the nominating committee fails to nominate.

The board of directors of a federal credit union (FCU) may establish policies for the nominating committee to follow. Section 113 of the Federal Credit Union Act (the Act) states that the board has the general direction and control of the affairs of the FCU and shall prescribe conditions and limitations for any committee it appoints. 12 U.S.C. §1761b. Such policies may include qualifications or requirements for nominees. The policies may only be applied in determining whether members are deserving of nomination and cannot be used to prevent other members from running for the board either by petition or by nomination from the floor, whichever your bylaws permit.

The only eligibility requirements for FCU board membership are those contained in the Act. Those sections provide that, as long as an individual is a member and has not been convicted of a crime involving dishonesty or breach of trust --or if convicted of such a crime, the NCUA Board has waived the prohibition-- then the individual is eligible for board membership. 12 U.S.C. §§1761, 1785(d). Article VI, Section 7 of the FCU Bylaws and the Standard Bylaw Amendments also permit the board of directors to set a minimum age requirement.

The FCU Standard Bylaws and Amendments provide the permissible ways for nominations to be made: by the nominating committee, by petition, or from the floor. The board of directors does not have the authority to nominate candidates or to add to those candidates selected by a nominating committee.

Sincerely,

Sheila A. Albin
Associate General Counsel

OGC/DMS:bhs
SSIC 3700
97-0831