Missouri Code of State Regulations › Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE › Division 1100 - Division of Credit Unions › Chapter 2 - State-Chartered Credit Unions › Section 20 CSR 1100-2.040 - Loans

Current through Register Vol. 49, No. 14, July 15, 2024
PURPOSE: This rule establishes the requirement of
				  maintaining current written lending policies and establishes requirements
				  concerning loans to certain credit union officials.
(1) Each credit union will maintain current
				written lending policies. Written lending policies will be sufficiently
				detailed to adequately address all lending activities and products.
(2) No member of the board of directors or of
				the supervisory or credit committee shall enter into loan contracts with the
				credit union where the terms are more favorable than those of loans extended to
				other member-borrowers. It is recommended that employees of the credit union
				shall be subject to similar loan restrictions.
(3) In processing the loan application of a
				member of the board of directors or of the credit or supervisory committee
				where the official makes application to the credit union of which the member is
				an official, the loan application must be approved by the loan officer in the
				manner provided by law and the bylaws of the credit union adopted and where the
				loan is so approved.
(4) When a
				member of the board of directors or of the credit or supervisory committee
				makes application to the credit union of which the member is an official-
(A) The approval of the loan application
				shall be reported at the next regularly scheduled meeting of the board of
				directors. The minutes of the meeting of the board shall include the name of
				applicant and amount of loan;
(B)
				An application for an increase in the credit limit of a previously approved
				line of credit or credit card loan is considered a new application which, if
				approved, shall be reported to the board. Periodic advances on a previously
				approved and properly reported line of credit or credit card loan shall not be
				considered a new application if the previously approved credit limit is not
				exceeded;
(C) Any loan to a member
				of the board of directors or to a member of the supervisory or credit committee
				that becomes sixty (60) days or more delinquent shall be reported to the board
				of directors by the president or manager at the next board meeting following
				the discovery of the delinquency. That report shall be included in the board
				minutes. A copy of this report shall be forwarded to the director of the
				Division of Credit Unions. The board then shall act to make appropriate
				arrangements to bring the loan(s) current. Arrangements to bring the loan
				current shall be on terms no more favorable than those available to other
				members and be acceptable to the director of the Division of Credit Unions. In
				no event shall a loan to an official become more than ninety (90) days
				delinquent nor shall any loan remain thirty (30) days or more delinquent for
				more than one hundred eighty (180) consecutive days;
(D) No member of the board of directors or of
				the credit or supervisory committee shall, in any manner, directly or
				indirectly, participate in the deliberation of any question affecting the
				member's application for a loan; and
(E) These provisions also are applicable to
				officials who enter into contracts for a loan(s) as comakers.