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ADMINISTRATIVE POLICY #008

 

FRANK WHITE, BANK COMMISSIONER                                             RETAIN FOR

SEPTEMBER 30, 2002                                                                                 FUTURE

SUBJECT:  BANK BOARD OF DIRECTORS                                          REFERENCE

 

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Business Policies of state banks are formulated by the bank’s Board of Directors.  These Boards should be composed of persons knowledgeable about economic conditions of their community and their region, competent business persons, and skilled in financial management.  The Board of Directors must be attentive to their duties, familiar with banking laws and regulations, and aware of their fiduciary responsibilities.  The bank’s Board of Directors has the ultimate responsibility and fiduciary liability to ensure the safe and sound operation of their financial institution for the benefit of the shareholders and general public.

 

In order to assist Directors in their industry education and awareness of responsibilities, all members of a state bank’s Board of Directors must attend Director training approved by the Bank Commissioner.  Directors first elected to the Board on or after October 15, 2002, must attend one training seminar within the first year of service.  Directors first elected prior to October 15, 2002, must attend one training seminar prior to October 15, 2004.

 

Evidence of Director attendance at a training seminar must be maintained in the Board Minutes of the bank.