(1) For the purposes of this section, “management team” means any individual who holds a position of vice president or higher or who has policymaking authority.
(2) A credit union may make loans to its individual directors, members of its management team, credit managers and members of its supervisory and credit committees, provided that:
(a) The loan complies with all lawful requirements under this chapter with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers;
(b) The combined aggregate amount of loans to any one such individual that exceeds five percent of the credit union’s equity or $25,000, whichever is less, has been approved by the credit union’s board of directors; and
(c) The combined aggregate amount of such loans to all such individuals may not exceed 10 percent of the credit union’s assets.
(3) Except when approved by the board of directors of the credit union, no director, officer or committee member shall be permitted to become surety or guarantor for any loan or advance made by the credit union except for the spouse or children of the director, officer or committee member.
(4) The Director of the Department of Consumer and Business Services may waive the requirements of this section by rule or order upon request of a credit union. The director may establish by rule a higher amount than set in subsection (2)(b) of this section and the type of loans to directors, officers or committee members that must be approved by the board of directors of the credit union. [1975 c.652 §58; 1985 c.206 §2; 1985 c.762 §98; 1987 c.286 §9; 1997 c.832 §7; 1999 c.185 §44]
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