§ 19-5-13 - Loan applications. - Rhode Island Statutes

SECTION 19-5-13

   § 19-5-13  Loan applications. – The credit committee or duly appointed loan officer shall approve, in writing,every loan or advance made by the credit union, subject to any limitationswhich may be set from time to time by the board of directors. Every applicationfor a loan shall be made in writing and shall state the purpose for which theloan is desired and the security offered. No loan shall be made unless thecredit committee or loan officer is satisfied that it promises to benefit theborrower, nor unless it has been approved by the committee or duly appointedloan officer in accordance with applicable credit union bylaw provisions. Theapplicant for a loan may appeal the decision of the credit committee or loanofficer to the board of directors. If written approval of the credit committeeor loan officer is obtained, nothing contained in this section shall prevent acredit union from extending credit to a member in any manner in which it seesfit; provided that no extension of credit shall be made upon an unsecuredrevolving credit plan, line of credit, or letter of credit in which the creditauthorization exceeds five thousand dollars ($5,000), unless the creditauthorization is reviewed at least annually by the credit committee.