CUNA President/CEO Jim Nussle directed his management team to draft new bylaws to modernize the trade association's membership structure, according to summary document of the CUNA board's Oct. 20 meeting obtained by the CU Times.

On condition of anonymity, two sources verified the authenticity of Nussle's remarks in the document.

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“He (Nussle) believes there's a need to take a step back and re-evaluate the board's decision on membership choice. To that end, CUNA management will be drafting new CUNA bylaws to modernize its membership structure,” the document read. “As part of the process, he plans to reconsider the CUNA Structure and Governance Task Force recommendations. He plans to bring (the) revised bylaws back to the CUNA board for discussion and consideration at its December board meeting.”

In the board meeting summary, Nussle referred several times to this modernized structure as interdependent choice.

The document also revealed that Nussle asked CUNA's internal and outside lawyers to review the impact of these leagues granting membership choice as it relates to the CUNA bylaws.

“According to Jim, counsels' conclusion was leagues that grant membership choice could be in violation of the CUNA bylaws,” the document read. “Counsel said the intent of the bylaws is joint membership requirement. This issue and a range of opinions that CUNA could employ were discussed at a CUNA executive committing meeting on Friday, Oct. 16.”

Those opinions were not detailed in the summary document. CUNA declined to comment further on the subject.

However, Nussle made it very clear that he would not recommend to the board that CUNA take legal action against leagues that grant their credit unions membership choice, according to the summary document.

The CUNA board ignited an industry-wide debate after it voted to maintain the longstanding dual membership requirement despite a final recommendation by the CUNA System Structure and Governance Task Force to offer credit unions membership choice in CUNA and/or a league.

In addition, CUNA's national survey conducted earlier this year found that nearly 50% of credit unions supported membership choice and 30% backed joint membership.

Since the CUNA board's controversial decision on Sept. 18, the boards of directors for the Michigan Credit Union League, the League of Southeastern Credit Unions, the Ohio Credit Union League and the Carolinas Credit Union League voted to allow their credit union members to join their state trade organizations without requiring them to join CUNA in 2016.

Dave Adams, president/CEO of the Michigan league and Patrick LaPine, president/CEO of the Southeastern league, said in previous interviews with CU Times that providing choice to their credit unions does not violate and bylaw or policy of CUNA or AACUL.

Leagues that have publicly supported to maintain CUNA's dual membership requirement include: Cornerstone Credit Union League, Mountain West Credit Union Association, Northwest Credit Union Association, Maine Credit Union League, Credit Union Association of New Mexico and Credit Union Association of the Dakotas.

Those leagues said they believe the most effective advocacy model for credit unions is one in which credit unions are members of both their league and CUNA.

“Advocacy is at the heart of what we do for our member credit unions,” Scott Earl, president/CEO of the MWCUA, said last week. “Our efforts are championed by CUNA and together, we are able to present a united front that best represents the interests of our members and the credit union movement.”

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