Section 72.03. Prohibited member business loans.

 

(1)   Officers. A credit union shall not grant a member business loan to any of its following:

(a) Chief executive officer.

Example: President, Treasurer or Manager.

(b) Assistant chief executive officers.

Example: Assistant President, Vice President, Assistant Treasurer or Assistant Manager.

(c) Chief financial officer.

Example: Comptroller.

(d) Any associated member or immediate family member of anyone listed in this subsection.

(2)   Equity agreements or joint ventures. A credit union shall not grant a member business loan if any additional income received by the credit union or its senior management employees is tied to the profit or sale of the business or commercial endeavor for which the loan is made.

(3)   Directors. A credit union shall not grant a member business loan to one of its directors unless the board of directors approves granting the loan and the director is recused from the decision-making process.

CR 02-034 : cr. Register August 2002 No. 560 , eff. 9-1-02.