6.2-1373 - (Effective October 1, 2010) Loans to members of credit committee; nonmember loans. - Virginia Statutes

§ 6.2-1373. (Effective October 1, 2010) Loans to members of credit committee;nonmember loans.

A. If the borrower or endorser on a loan by a credit union is a member of thecredit committee, or a member of the board of directors if the board isserving as the credit committee, the loan shall be approved by thesupervisory committee or a loan officer instead of by the credit committee.If the loan is fully secured by shares, such loan may be approved by thecredit 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, §6.1-225.54; 2010, c. 794.)