17-2216a. Loans to directors or members of credit or supervisory committees; conditions.
17-2216a
17-2216a. Loans to directors or members of credit or supervisory
committees; conditions.
Subject to rules and regulations of the administrator, a credit union may
make loans to its directors, credit committee members
and supervisory committee members or other members for which the director
or committee member acts as guarantor or endorser who are not employees
only if: (a) Such a loan complies with all lawful requirements under the
credit union law
with respect to loans to other borrowers and is not on terms more
favorable than those extended to other borrowers; (b) in the case where,
upon the making of the loan, the aggregate of loans outstanding to the borrower
exceeds by $20,000 the total amount of shares, share
certificates
and other shareholdings in any credit union, not otherwise encumbered or
pledged, which are pledged as security for the loans of the borrower, the
loan is approved by the credit committee or duly authorized loan officer
and the board of directors; and (c) the borrower takes no part in the
consideration
of the application and does not attend any committee or board meeting while
the application is under consideration. All such loans shall be reported
to 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.