November 27, 1998
Gwen Olsson, Chair, Supervisory Committee
Kitsap Community Federal Credit Union
1025 Burwell Street
Bremerton, WA 98337
You have asked several questions relating to the responsibilities
of a federal credit union's (FCU's) supervisory committee to the
FCU's wholly owned Credit Union Service Organization (CUSO).
The questions you have raised are not specifically addressed in
the Federal Credit Union Act or NCUA's Rules and Regulations.
We suggest you consult with the FCU's attorneys and accountants
to obtain their interpretation concerning the legal obligations
and potential liability of the FCU's board of directors and supervisory
committee with respect to the CUSO.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/MFR:bhs
SSIC 3000
98-1119