Kentucky Statutes 286.6-525 – Loans to credit union officials
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(1) A credit union may make loans to its officers, directors, employees, loan officers, credit manager, and to members of its supervisory and credit committees, provided that:
(a) The loan complies with all lawful requirements under this subtitle with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers; and
(b) Any loan or aggregate of loans to any official which exceeds twenty-five thousand dollars ($25,000) plus pledged shares shall be approved by the board of directors.
(2) A credit union may permit officers, directors, employees, loan officers, credit manager, and members of its supervisory and credit committees to act as comakers, guarantors or endorsers of loans to other members, except that when any such loan standing alone or when added to any outstanding loan or loans to the comaker, guarantor or endorser exceeds ten thousand dollars ($10,000), approval of the board of directors is required.
Effective: July 14, 2000
History: Amended 2000 Ky. Acts ch. 157, sec. 8, effective July 14, 2000. — Created
1984 Ky. Acts ch. 408, sec. 53, effective July 13, 1984.
Formerly codified as KRS § 290.525.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.
(a) The loan complies with all lawful requirements under this subtitle with respect to loans to other borrowers and is not on terms more favorable than those extended to other borrowers; and
Terms Used In Kentucky Statutes 286.6-525
- Credit union: means a cooperative, nonprofit association, incorporated under this subtitle, for the purposes of encouraging thrift among its members, creating a source of credit at a fair and reasonable rate of interest, and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition. See Kentucky Statutes 286.6-005
- Directors: when applied to corporations, includes managers or trustees. See Kentucky Statutes 446.010
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Statute: A law passed by a legislature.
(b) Any loan or aggregate of loans to any official which exceeds twenty-five thousand dollars ($25,000) plus pledged shares shall be approved by the board of directors.
(2) A credit union may permit officers, directors, employees, loan officers, credit manager, and members of its supervisory and credit committees to act as comakers, guarantors or endorsers of loans to other members, except that when any such loan standing alone or when added to any outstanding loan or loans to the comaker, guarantor or endorser exceeds ten thousand dollars ($10,000), approval of the board of directors is required.
Effective: July 14, 2000
History: Amended 2000 Ky. Acts ch. 157, sec. 8, effective July 14, 2000. — Created
1984 Ky. Acts ch. 408, sec. 53, effective July 13, 1984.
Formerly codified as KRS § 290.525.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.