6-564. Loans to officials
A. A credit union may make loans to an officer, director or member of its supervisory and credit committees if both of the following conditions are met:
1. The loan complies with all requirements of this chapter and is not on terms more favorable than those extended to other borrowers.
2. The aggregate of loans to all such officials, excepting those fully secured by share or deposit accounts, does not exceed twenty per cent of the credit union's capital.
B. A credit union may permit officers, directors and members of its supervisory and credit committees to act as comakers, guarantors or endorsers of loans to other members, subject to the requirements of subsection A.
C. All applications for loans in the aggregate of twenty thousand dollars or a greater amount as determined by the superintendent on which an official will be either a direct obligor or an endorser, cosigner or guarantor shall be initially acted on by the board of directors as provided in the bylaws.Section: Previous 6-555 6-556 6-557 6-558 6-561 6-562 6-563 6-564 6-571 6-572 6-573 6-574 6-576 6-577 6-581 Next
Last modified: October 13, 2016