17-2210. Method of making loans.
17-2210
17-2210. Method of making loans. (a) The credit committee shall approve every loan or advance made by the credit union. Every application for a loan shall be in writing and shall state the purpose for which the loan is desired and the security, if any, offered. Endorsement of a note or assignment of shares or investments in any credit union shall be deemed security in the meaning of this section.
(b) No loan shall be made unless it has received the unanimous approval of the members of the credit committee present when the loan was considered, which number shall constitute at least a majority of the credit committee, nor if any member of the credit committee shall disapprove thereof. The credit committee may appoint one or more loan officers, who may be the treasurer or an assistant treasurer and delegate to such persons power to approve or disapprove loans. Each loan officer shall furnish to the credit committee a record of each loan approved or not approved by such officer within seven days of the date of the filing of the application therefor or the date of the next credit committee meeting, whichever is later. All such loans not approved by a loan officer may be acted upon by the credit committee. An applicant for a loan may appeal to the directors from the decision of the credit committee, if it is so provided in the bylaws, and in the way and manner therein provided.
(c) The credit committee shall meet as often as the business of the credit union requires, to consider applications for loans or review the work of the loan officers, or both and after due notice has been given to each member.
History: L. 1929, ch. 141, § 10; L. 1941, ch. 181, § 2; L. 1959, ch. 117, § 3; L. 1976, ch. 107, § 1; L. 1982, ch. 103, § 3; July 1.