§ 31307. Credit committee; credit manager
(a) Except as provided in section 31313 of this title, the governing body may delegate, in accordance with its bylaws, all or part of its
lending authority to a credit committee, a credit manager, one or more loan officers,
or any combination thereof, who shall review and act on all applications for extensions
of credit, or for release or substitution of collateral, in accordance with the loan
policy prescribed by the governing body.
(b) If the bylaws of a credit union provide for a credit committee, such committee shall
consist of an odd number of three or more members of the credit union and may be appointed
by the governing body or elected by the members, as provided in the bylaws.
(c) No member of the credit committee shall simultaneously serve on the supervisory committee
or on the governing body, and all such credit committee members shall be members of
the credit union in good standing.
(d) The credit committee, if any, shall meet as often as necessary, but at least monthly.
All actions by the committee shall be by majority vote of those members present at
any meeting at which a quorum is present. A majority of the credit committee shall
constitute a quorum. The credit committee shall keep complete minutes of all of its
meetings, including the names of those present.
(e) The credit manager or loan officer shall provide to the governing body or the credit
committee, if any, on at least a monthly basis, a complete listing of all applications
for extensions of credit or for release or substitution of collateral that were reviewed
and acted upon or, alternatively, inform the governing body that such information
is available upon request.
(f) A credit manager or loan officer shall not disburse the funds of the credit union
for any extension of credit approved by such credit manager or loan officer.
(g) An applicant for an extension of credit or release or substitution of collateral that
has been disapproved by a credit manager or loan officer may appeal to the credit
committee or, in the absence of a credit committee, to the governing body. In those
instances where the credit committee made the initial denial of an applicant’s request
for an extension of credit or release or substitution of collateral, the applicant
may appeal to the governing body. Any such appeal to the credit committee or the governing
body, as applicable, shall be acted upon at the next regular meeting of the credit
committee or governing body. If the initial denial of the loan application has not
been reviewed by the credit committee or governing body, as applicable, the notice
of loan denial given to the member shall include a notice that the member has a right,
upon written request, to appeal the loan denial to the credit committee or the governing
body, as applicable. (Added 2005, No. 16, § 1, eff. July 1, 2005.)