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§19-5-17  Compensation or loans to officers. –

Published: 2015

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Financial institutions


Credit Unions

SECTION 19-5-17

   § 19-5-17  Compensation or loans to

officers. –

(a) No member of the board of directors or member of either the credit or

supervisory committee shall directly or indirectly borrow from or become surety

for any loan or advance made by the credit union, except that any member of the

board of directors or any member from either of the committees may borrow from

the credit union up to the amount of shares and deposits pledged for the loan

or upon prior authorization and approval by the board of directors.

   (b) Any credit union may pay to each of the members of the

board of directors, credit committee, and supervisory committee for his or her

services as a member of the board or committee(s) a sum that may from time to

time be fixed by the members at an annual meeting. No officers, directors or

employees may receive any other compensation or fee for services provided to

the credit union beyond their compensation as officers, directors, and/or


   (c) The director or the director's designee shall promulgate

regulations relating to loans to officers and directors of credit unions. The

regulations shall provide for limitations and requirements similar to federal

regulations governing loans to officers and directors of financial institutions.

History of Section.

(P.L. 1995, ch. 82, § 43.)