2021 New York Laws
BNK - Banking
Article 11 - Credit Unions
471 - Duty of Directors and Officers.

§ 471. Duty of directors and officers. 1. Directors and officers shall
discharge  the  duties  of  their respective positions in good faith and
with that degree of diligence, care and skill  which  a  prudent  person
would  exercise  under  similar  circumstances  in  like  positions.  In
discharging their duties, directors and officers, when  acting  in  good
faith,  may  rely  (a)  upon  financial  statements  of the credit union
represented to them to be  correct  by  the  executive  officer  or  the
officer  of  the  credit union having charge of the books of account, or
stated in a written report by an independent public or certified  public
accountant  or  firm of such accountants fairly to reflect the financial
condition of such credit union, and (b)  upon  reports  required  to  be
submitted  to  them  by any provision of this chapter or prepared in the
ordinary course of business by an officer or committee charged with  the
responsibility  therefor.  Nothing  in  this  section shall be deemed to
require the directors to perform  functions  vested  in  any  committee,
officer  or other person pursuant to the provisions of any other section
of this chapter.
  2. An action may be brought against one or more directors or  officers
of a credit union to procure a judgment for the following relief:
  (a) To compel the defendant to account for his official conduct in the
following cases:
  (i)  The  neglect of, or failure to perform, or other violation of his
duties in the management and disposition of the  credit  union's  assets
committed to his charge.
  (ii)  The acquisition by himself, transfer to others, loss or waste of
the credit union's assets due to any neglect of or failure  to  perform,
or other violation of his duties.
  (b)  To  set  aside a conveyance, assignment or transfer of the credit
union's assets by one or more  directors  or  officers,  contrary  to  a
provision of law, where the transferee knew the purpose of the transfer.
  (c)  To enjoin such a conveyance, assignment or transfer of the credit
union's assets by one or more of the directors or officers  where  there
is good reason to apprehend that it will be made.
  3.  Subject  to  section  six  hundred  thirty-one of this chapter, an
action may be brought for the relief  provided  in  this  section  by  a
credit union or an officer, director or judgment creditor thereof.
  4.  This  section  shall not affect any liability otherwise imposed by
law upon any director or officer.