6.1-225.54 - (Repealed effective October 1, 2010) Loans to members of credit committee; nonmember loans. - Virginia Statutes

§ 6.1-225.54. (Repealed effective October 1, 2010) Loans to members of creditcommittee; nonmember loans.

A. If the borrower or endorser is a member of the credit committee, or amember of the board of directors if the board is serving as the creditcommittee, the loan shall be approved by the supervisory committee or a loanofficer instead of by the credit committee; however, where such loan is fullysecured by shares, such loan may be approved by the credit committee.

B. No loan shall be made to an individual or entity that is not a member ofthe credit union. If the credit committee or loan officer should knowinglyapprove such a loan, the members of the credit committee shall be jointly andseverally liable, or in the case of a loan officer, he shall be individuallyliable, to the credit union for the immediate repayment thereof.

(Code 1950, § 6-226; 1956, c. 90; 1966, c. 584, § 6.1-217; 1968, c. 560;1972, c. 192; 1975, c. 448; 1979, c. 139; 1987, c. 150; 1990, c. 373.)