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§ 6-603. Loan approvals by credit committee

West's Annotated Code of MarylandFinancial Institutions

West's Annotated Code of Maryland
Financial Institutions
Title 6. Credit Unions (Refs & Annos)
Subtitle 6. Loans (Refs & Annos)
MD Code, Financial Institutions, § 6-603
§ 6-603. Loan approvals by credit committee
Currentness
In general
(a)(1) Except as provided in subsection (b) of this section, and in § 6-328 (7) and (8) of this title, a loan may not be made to any member of a credit union unless it is approved unanimously by those members of the credit committee who are present at a meeting that is attended by a majority of the members of the credit committee.
(2) If the bylaws of the credit union so provide, an applicant for a loan that is not approved by the credit committee may appeal to the board of directors.
Loan officers
(b)(1)(i) The credit committee or the president may appoint loan officers.
(ii) The appointment of loan officers by the president shall be subject to confirmation by the credit committee.
(iii) The credit committee shall supervise loan officers and delegate to them the power to approve or disapprove loans in accordance with written instructions or policies adopted by the board.
(2) Not more than one loan officer may be a member of the credit committee.
(3) A loan made by a loan officer in accordance with the written instructions or policies of the board does not have to be approved by the credit committee.
(4)(i) Each loan officer shall give the credit committee the record of each loan that the officer approves or disapproves within 7 days after a loan application is made.
(ii) The credit committee shall act on each loan application where the decision of the loan officer has been appealed by the credit union member.
(5) A loan officer may not disburse credit union funds for any loan that the loan officer approved.
Frequency of meetings
(c) The credit committee shall meet as often as necessary.

Credits

Added as Financial Institutions § 6-503 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1986, c. 835, § 1, eff. July 1, 1986; Acts 1988, c. 635, § 1, eff. June 1, 1988; Acts 1995, c. 359, § 1, eff. Oct. 1, 1995. Renumbered as Financial Institutions § 6-603 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001.
Formerly Art. 11, § 146.
MD Code, Financial Institutions, § 6-603, MD FIN INST § 6-603
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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