Siskiyou Central Credit Union
Policy #
Policy: ORGANIZATION
Areas of Responsibility:
Last Board Review:
CEO / MANAGEMENT
5/18/2008
Last Revision:
Revised 02/2006
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ORGANIZATION
Governing Rules and Regulations

Siskiyou Central Credit Union will be governed by the laws of the California
Department of Financial Institutions (DFI) relating to Credit Unions and
bylaws adopted by the Board and approved by the DFI.

Nothing included in this manual is to be in conflict with the rules and
regulations as identified above.

The policy of Siskiyou Central Credit Union shall be to emphasize its status
as a membership organization. Its policy shall be to provide maximum
communications to members within the constraints of the law.
Board of Directors, Officers and Management

Provisions of the bylaws relating to the Board of Directors, Officers and
Management are supplemented as follows:
o The President / CEO shall not be a member of the Board of
Directors.
o The offices of Secretary / Treasurer can be one office and must not
be held by the Credit Manager. The position must be a Board
Member.
o No Board of Director may be appointed or assume the
position of the President / CEO while serving as an
active director nor may they be appointed or assume
this position up to 2 years after serving as a director.
This would be a conflict of interest.
Siskiyou Central Credit Union Organization Policy
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Policy #
o No employee may be appointed or assume a position
on the Board of Directors or the Supervisory
Committee while employed by Siskiyou Central Credit
Union nor may they be appointed or assume any of
these positions up to two years after termination of
employment with Siskiyou Central Credit Union, this
could be a conflict of interest.
Organizational Structure

An organizational chart of Siskiyou Central Credit Union shall be included in
this section.

Each year, immediately after the Annual Meeting elections, the Board
Chairman shall appoint standing committees for the following year.

Committee members may be, but are not required to be, from the Board of
Directors.

The Chairman of the Board and CEO shall be ex-officio members of all
committees.

Nominating Committee:
o A committee of three Credit Union members, one of whom shall be
chairman, shall be appointed by the Chairman of the Board. Such
appointment shall be approved by the Board of Directors.

The committee responsibilities shall include:
o Selecting qualified candidates for the Board.
o Ascertaining the willingness and desire of candidates to serve.
o Placing names in nomination.
Relations to Credit Union Organizations and Associations

It is the policy of Siskiyou Central Credit Union to take advantage of all
possible assistance from Credit Union organizations and associations.
Participation in chapter, league, and other association affairs is anticipated.
Siskiyou Central Credit Union Organization Policy
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
The Board of Directors' prime responsibility is to its members and not to any
group.

Dues payments to any associations shall be approved by the Board and shall
be reflected in the annual operating budget.
Compensation-Job Classification etc

Salary ranges for management shall be established by the Board. Staff
salaries shall be determined by the President / CEO and approved by the
Board.

It is the general policy that officers, directors and committee members shall
not be paid for their services. The primary objective of the Credit Union is to
serve the members; this motivation guides the leadership, not financial
compensation.
Authorizations

The authorizations included in these sections are to be adopted each year by
the Board of Directors at the annual organizational meeting as part of the total
policy manual. Specific authorizations prescribed below are to be reproduced
in the minutes of the organizational meeting.

Bank
o WESCORP is designated as the depository bank.
o WESCORP shall be the primary financial institution with
management control of cash in the account normally at a level
required to cover share draft clearings, traveler's check clearings,
ACH settlements or all other daily clearings.

Borrowing
o The President / CEO is authorized to borrow to the maximum, as
established by the Board of Directors, using the WESCORP line of
credit.
Siskiyou Central Credit Union Organization Policy
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Policy #
Bond
o Having reviewed the present bond coverage, the Board directs the
maintenance of the $1,000,000 blanket bond coverage for the
current and future years. The President / CEO shall review bond
coverage annually and update as needed.

Purchase or Sale of Investments
o The President / CEO or in his/her absence, the Executive Vice
President may buy or sell investments which have been approved
under the Investment Policy adopted by the Board of Directors.

Garnishment Agent
o The collection officer shall be the garnishment agent on behalf of the
Siskiyou Central Credit Union as required by the small claims court.

Safety Deposit Box
o The President / CEO and a designated employee(s) are authorized
to rent jointly a safety deposit box in the name of the Credit Union
from the depository bank.

Travelers' Checks
o Travelers’ checks may be sold and issued by American Express.
o Remittance shall be made on a regular basis and outlined in
procedures.
o Sales shall normally be made to members. There shall be a charge
for travelers’ checks. This charge shall be set by the Board from
time to time and will be reflected in the Schedule of Fees booklet.
o The President / CEO is authorized to maintain an inventory within
limits as set by our CUMIS Bond for both offices.
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Legal Papers - Signatures
o The President / CEO or another designated officer shall be
authorized to sign and release real estate documents on behalf of
the Credit Union.
o Financing statements and security agreements may be signed by
the President / CEO, Executive Vice President, or other officer of the
credit union.
o Certificates of Deposit may be authorized by Management and
designated employees on behalf of the Credit Union.

Notary Service
o The Credit Union shall have a minimum of one notary public on staff
to notarize Credit Union documents. The notary will be available to
members or non-members to notarize other non credit union
documents. A fee for these services will be set by the Board and be
reflected in the Schedule of Fees booklet. The expense of bonds
and seals shall be paid by the Credit Union.

Representatives
o The Chairman shall have the authority to vote on matters of interest
to the Credit Union at the Credit Union National Association, CUNA
Mutual, Chapter and other meetings. Further, the chairman has the
authority to designate any member of the Board of Directors,
committee members, management or employees to represent the
Credit Union at meetings. Such assignments may include
instructions on how to vote. Any action taken under this provision
shall be reported to the Board.

Appraiser
o The President / CEO may contract the services of a licensed
appraiser to appraise real estate in the best interest of the Credit
Union, at a reasonable cost to members.
.
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Security Officer
o The President / CEO shall be the security officer.

Money Orders
o The Credit Union shall make available the sale of money orders at a
fee set by the Board and reflected in the Schedule of Fees booklet.

Membership
o The field of membership shall be limited to those having the
following common bond of association:
o Persons, who live, regularly work, regularly attend school, or
worship in Siskiyou County, and any business, associations,
organizations or other legal entities in Siskiyou County.
o Officers, directors, committee members and employees of other
Credit Unions.
o Family members related to a Credit Union member by blood or
marriage, to include mother, father, sister, brother, children,
grandparents, grandchildren and children of legal guardians.
o Other Credit Unions organized under federal or state law
appertaining to Credit Unions.
o Eligible persons who are properly admitted to membership in the
credit union may retain their membership, even if they thereafter
leave the field of membership, provided they maintain an open
share account with at least the minimum balance.

Mail receipts
o All deposits or loan payments made by mail shall be opened by two
employees (dual custody). This same process shall be enforced for
the night drop and ATM.
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Secured Party
o The President / CEO, Executive Vice President or other officer or
designated employee may sign loan documents as secured party on
behalf of the Credit Union.

Credit Bureau
o Management is authorized to contract with Experian for credit
information. Such contract shall be subject to the Fair Credit
Reporting Act and rule of CUMIS Insurance.

Transfers Under Regulation D
o The Credit Union will comply with Regulation D and is disclosed in
our Truth In Savings Disclosure.
o Members may request wire transfers to their accounts elsewhere.
Siskiyou Central Credit Union reserves the right to limit the wire
transfer to $25,000.

Equipment Purchases
o The President/CEO is authorized to purchase equipment, fixtures,
furniture or replacement equipment as provided in the budget. Any
single purchase of over $5,000 shall be approved by the Board of
Directors.

Credit Union Expense Policy
o All credit union expenses (bills) are to be reviewed by the
President/CEO or the Executive Vice President.

Directors' and Officers’ Liability Insurance
o The Credit Union shall provide an insurance policy to transfer /
mitigate the risk of legal liability brought against directors and
officers of the Credit Union, arising out of their exercise of powers
and discharge of duties in accordance with the standards of care
required by these policies and applicable legislation.
o The policy of insurance shall be updated annually to current
recommendations and shall be purchased from CUNA Mutual
Insurance Society.
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Wire Transfer Risk Analysis
o Authorized employee receives information to send or receive a wire
transfer of funds.
o Verification of telephone notifications: All incoming / outgoing
wires from our Corporate must be verified.

Disclosure of Confidential Information
To hold in strict confidence all transactions of Credit Union members and to
accommodate the processing of member transactions, the following persons or
firms are designated as those to whom confidential information may be
disclosed:
o Our present CPA
o Bank or other creditors with which the Credit Union performs
transactions that may touch upon confidential matters.
o The credit granting industry for the purpose of verifying or
establishing the credit worthiness or credit rating of a member.

Credit Union Image
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Special Interest Groups
o The Credit Union will not become involved in any support to special
interest groups, be they religious, political, or otherwise, except
where they form part and parcel of the Credit Union system.

Discrimination
o The Credit Union will not discriminate against individuals by using
race, color, religion, national origin, sex, age or marital status as a
basis for denying or restricting Credit Union services.
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Third Parties
o The Credit Union will not take sides in any issue between its
members and third parties (such as strikes, legal actions, etc.)
except where the issues at hand hold a direct third-party legal
relationship to the powers and operating allowances of the Credit
Union.

Display Advertising
o The Credit Union will use discretion in the display of posters,
leaflets, notices or other advertisements.
Regular and Special Meetings of the Board of Directors

It shall be the responsibility of the President / CEO of the Credit Union to
prepare the agenda for distribution at all meetings.

The President / CEO shall prepare, or have prepared, written monthly reports
on the operation of the Credit Union for each meeting for distribution with the
agenda. These should include but not be limited to:
o
o
o
o
o
o
o
Statement of Financial Condition
Statement of Income
Investment Report
Delinquent Loan Report
Loan Charge Off & Recovery Report
Activity Reports
Ratio & Trend Reports
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