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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

221

:
ORGANIZATION AND MANAGEMENT OF CREDIT UNION






Subchapter

003
:
GOVERNING BODY, OFFICERS, AND COMMITTEES










 

§

31307. Credit committee; credit manager

(a) Except as

provided in section 31313 of this title, the governing body may delegate, in

accordance with its bylaws, all or part of its lending authority to a credit

committee, a credit manager, one or more loan officers, or any combination

thereof, who shall review and act on all applications for extensions of credit,

or for release or substitution of collateral, in accordance with the loan

policy prescribed by the governing body.

(b) If the

bylaws of a credit union provide for a credit committee, such committee shall

consist of an odd number of three or more members of the credit union and may

be appointed by the governing body or elected by the members, as provided in

the bylaws.

(c) No member of

the credit committee shall simultaneously serve on the Supervisory Committee or

on the governing body, and all such credit committee members shall be members

of the credit union in good standing.

(d) The credit

committee, if any, shall meet as often as necessary, but at least monthly. All

actions by the committee shall be by majority vote of those members present at

any meeting at which a quorum is present. A majority of the credit committee

shall constitute a quorum. The credit committee shall keep complete minutes of

all of its meetings, including the names of those present.

(e) The credit

manager or loan officer shall provide to the governing body or the credit

committee, if any, on at least a monthly basis, a complete listing of all

applications for extensions of credit or for release or substitution of

collateral that were reviewed and acted upon or, alternatively, inform the

governing body that such information is available upon request.

(f) A credit

manager or loan officer shall not disburse the funds of the credit union for

any extension of credit approved by such credit manager or loan officer.

(g) An applicant

for an extension of credit or release or substitution of collateral that has

been disapproved by a credit manager or loan officer may appeal to the credit

committee or, in the absence of a credit committee, to the governing body. In

those instances where the credit committee made the initial denial of an

applicant's request for an extension of credit or release or substitution of

collateral, the applicant may appeal to the governing body. Any such appeal to

the credit committee or the governing body, as applicable, shall be acted upon

at the next regular meeting of the credit committee or governing body. If the

initial denial of the loan application has not been reviewed by the credit

committee or governing body, as applicable, the notice of loan denial given to

the member shall include a notice that the member has a right, upon written

request, to appeal the loan denial to the credit committee or the governing

body, as applicable. (Added 2005, No. 16, § 1, eff. July 1, 2005.)