§ 19-5-17 - Compensation or loans to officers. - Rhode Island Statutes

SECTION 19-5-17

   § 19-5-17  Compensation or loans toofficers. – (a) No member of the board of directors or member of either the credit orsupervisory committee shall directly or indirectly borrow from or become suretyfor any loan or advance made by the credit union, except that any member of theboard of directors or any member from either of the committees may borrow fromthe credit union up to the amount of shares and deposits pledged for the loanor upon prior authorization and approval by the board of directors.

   (b) Any credit union may pay to each of the members of theboard of directors, credit committee, and supervisory committee for his or herservices as a member of the board or committee(s) a sum that may from time totime be fixed by the members at an annual meeting. No officers, directors oremployees may receive any other compensation or fee for services provided tothe credit union beyond their compensation as officers, directors, and/oremployees.

   (c) The director or the director's designee shall promulgateregulations relating to loans to officers and directors of credit unions. Theregulations shall provide for limitations and requirements similar to federalregulations governing loans to officers and directors of financial institutions.