17-2216a.   Loans to directors or members of credit or supervisorycommittees; conditions.Subject to rules and regulations of the administrator, a credit union maymake loans to its directors, credit committee membersand supervisory committee members or other members for which the directoror committee member acts as guarantor or endorser who are not employeesonly if: (a) Such a loan complies with all lawful requirements under thecredit union lawwith respect to loans to other borrowers and is not on terms morefavorable than those extended to other borrowers; (b) in the case where,upon the making of the loan, the aggregate of loans outstanding to the borrowerexceeds by $20,000 the total amount of shares, sharecertificatesand other shareholdings in any credit union, not otherwise encumbered orpledged, which are pledged as security for the loans of the borrower, theloan is approved by the credit committee or duly authorized loan officerand the board of directors; and (c) the borrower takes no part in theconsiderationof the application and does not attend any committee or board meeting whilethe application is under consideration. All such loans shall be reportedto the administrator at least semiannually.

      History:   L. 1976, ch. 108, § 2; L. 1981, ch. 101, § 6; L. 1983,ch. 83, § 3;L. 1992, ch. 225, § 8;L. 1997, ch. 5, § 2; July 1.