12 CFR § 715.11 - Sanctions for failure to comply with this part.

---
identifier: "/us/cfr/t12/s715.11"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 715.11 - Sanctions for failure to comply with this part."
title_number: 12
title_name: "Banks and Banking"
section_number: "715.11"
section_name: "Sanctions for failure to comply with this part."
chapter_name: "NATIONAL CREDIT UNION ADMINISTRATION"
subchapter_number: "A"
subchapter_name: "REGULATIONS AFFECTING CREDIT UNIONS"
part_number: "715"
part_name: "SUPERVISORY COMMITTEE AUDITS AND VERIFICATIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1761(b), 1761d, 1782(a)(6)."
regulatory_source: "64 FR 41035, July 29, 1999, unless otherwise noted."
cfr_part: "715"
---


# 715.11 Sanctions for failure to comply with this part.

(a) *Sanctions.* Failure of a supervisory committee and/or its independent compensated auditor or other person to comply with the requirements of this section, or the terms of an engagement letter required by this section, is grounds for:

(1) The regional director to reject the supervisory committee audit and provide a reasonable opportunity to correct deficiencies;

(2) The regional director to impose the remedies available in § 715.12, provided any of the conditions specified therein is present; and

(3) The NCUA Board to seek formal administrative sanctions against the supervisory committee and/or its independent, compensated auditor pursuant to section 206(r) of the Federal Credit Union Act, 12 U.S.C. 1786(r).

(b) *State Charters.* In the case of a federally-insured state chartered credit union, NCUA shall provide the state regulator an opportunity to timely impose a remedy satisfactory to NCUA before exercising it authority under § 741.202 of this chapter to impose a sanction permitted under paragraph (a) of this section.