17-2210.   Method of making loans.(a) The credit committee shall approve every loan or advance made by thecredit union. Every application for a loan shall be in writing and shallstate the purpose for whichthe loan is desired and the security, if any, offered. Endorsement of anote or assignment of shares or investments in any credit union shall be deemed securityin the meaning of this section.

      (b)   No loan shall be made unless it hasreceived the unanimous approval of the members of the credit committee presentwhen the loan was considered, which number shall constitute at least amajority of the credit committee, nor if any member of the creditcommittee shalldisapprove thereof. The credit committee mayappoint one or more loan officers, who may be the treasurer or an assistanttreasurer and delegate to such persons power to approve or disapproveloans. Each loan officer shall furnish to the creditcommittee a record of each loan approved or not approved by such officer withinseven days of the date of the filing of the application therefor or thedate of the next credit committee meeting, whichever is later. Allsuch loans not approved by a loan officer may be acted upon by the creditcommittee. An applicant for a loan may appeal to the directors from thedecision of the credit committee, if it is so provided in the bylaws, andin the way and manner therein provided.

      (c)   The credit committee shall meet asoften as the business of the credit union requires, to consider applicationsfor loans or review the work of the loan officers, or both and after duenotice has been given to each member.

      History:   L. 1929, ch. 141, § 10; L. 1941, ch. 181, § 2; L. 1959,ch. 117, §3; L. 1976, ch. 107, § 1; L. 1982, ch. 103, § 3; July 1.