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Loan procedures - 17 Pa. Cons. Stat. § 713

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     § 713.  Loan procedures.
        (a)  Credit committee.--If the bylaws provide for a credit
     committee, the credit committee shall have the supervision of
     all loans to members other than first mortgage loans, except to
     the extent approval of such mortgage loans has been delegated to
     the credit committee, and loans to other credit unions and
     Federal credit unions.
        (b)  Conflict of interest.--No credit committee member, loan
     officer or director of a credit union shall vote on the granting
     of any loan in which such official has guaranteed the repayment
     of the loan or where a member of the member's immediate family
     has a beneficial interest.
        (c)  Applications.--Applications for loans shall be in
     writing on a form prepared or approved for that purpose by the
     credit committee or, in the absence of a credit committee, by
     either the board of directors or a person delegated by the board
     of directors; and all applications shall set forth the purpose
     for which the loan is desired, the security, if any, offered,
     and such other data as may be required. Within the meaning of
     this section, a pledge of shares in the credit union or the
     endorsement of a note may be deemed security.
        (d)  Approval by credit committee.--
            (1)  If the bylaws provide for a credit committee, at
        least a majority of the members of the credit committee shall
        pass on all loans, and no loan shall be approved unless it is
        approved by a majority of the members of the credit committee
        at a credit committee meeting.
            (2)  Notwithstanding paragraph (1), the credit committee
        may appoint one or more loan officers and delegate to such
        person or persons the power to approve loans, share
        withdrawals of amounts previously pledged as security for a
        loan, releases and substitutions of security, within limits
        specified by the committee.
            (3)  The appointment and delegation shall be approved by
        a majority of the credit committee present and voting at a
        credit committee meeting and shall be recorded in a written
        resolution signed by the credit committee members who
        approved the delegation or appointment. The written
        resolution shall be forwarded to the board of directors prior
        to the next board meeting.
            (4)  The credit committee shall meet as often as may be
        necessary after due notice to each member. The credit
        committee shall keep minutes of each meeting. The minutes
        shall include a list of loans approved and disapproved by the
        credit committee.
            (5)  The credit committee shall require any loan officers
        it appoints to report regularly to the credit committee on
        any loan approvals or other actions taken by the loan officer
        in the authority delegated to the loan officer by the credit
        committee.
        (e)  Approval by loan officer.--If the bylaws do not provide
     for a credit committee, the board of directors shall appoint a
     loan officer and delegate the powers of the credit committee
     under subsection (d) to the loan officer.
        (f)  Reports.--Each loan officer shall furnish to the credit
     committee or, in the absence of a credit committee, to the board
     of directors a record of each loan approved or not approved by
     such person within seven days of the date of the filing of the
     application therefor.
        (g)  Procedure in absence of loan officer.--All loans not
     approved by a loan officer shall be acted upon by the credit
     committee or, in the absence of a credit committee, by the board
     of directors or a director designated by the board of directors.
        (h)  Restrictions.--No individual shall have authority to
     disburse funds of the credit union for any loan which has been
     approved by such individual in his or her capacity as loan
     officer.
     (Dec. 12, 1994, P.L.1067, No.146, eff. 60 days; Dec. 9, 2002,
     P.L.1572, No.207, eff. 60 days)

        2002 Amendment.  Act 207 amended subsecs. (b) and (d).
        1994 Amendment.  Act 146 amended subsecs. (b) and (h).

Last modified: November 27, 2007