6.2-1354 - (Effective October 1, 2010) Credit committee or loan officers; appeal.
§ 6.2-1354. (Effective October 1, 2010) Credit committee or loan officers;appeal.
A. The credit committee of a credit union shall approve every loan or advancemade by the credit union to members, unless the committee is replaced by aloan officer as provided in subdivision E 2 of § 6.2-1348.
B. If the credit committee has not been replaced by action of the board ofdirectors, it may appoint and delegate to loan officers the authority toapprove or disapprove loan applications, subject to the written policiesprescribed by the board of directors. The approval of an application by thecredit committee shall be by a majority of members of the committee who arepresent at the meeting at which it is considered, provided a majority of thefull committee is present.
C. All applications disapproved by a loan officer may, upon request of theapplicant, be reviewed by the credit committee. The approval of a majority ofmembers of the credit committee who are present at the meeting when suchreview is undertaken shall be required to reverse the loan officer'sdecision. A majority of members of the full credit committee shall be presentat such review. A member whose application was disapproved by a loan officeror the credit committee may appeal such action to the board of directors.
D. No individual shall have the authority to disburse funds of the creditunion for any loan for which the application has been approved by him in hiscapacity as a loan officer.
E. The credit committee shall meet as often as the business of the creditunion may require to consider applications for loans or to review the work ofthe loan officers, as the case may be. Reasonable notice of each such meetingshall be given to each member of the committee.
(Code 1950, § 6-221; 1964, c. 75; 1966, c. 584, § 6.1-212; 1974, c. 143;1983, c. 302; 1990, c. 373, § 6.1-225.37; 2010, c. 794.)