Md. Code Ann., Fin. Inst. § 6-603
Loan approvals by credit committee
Effective Oct 1, 2001Added as Financial Institutions § 6-503 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1986, c. 835, § 1, eff. July 1, 1986; Acts 1988, c. 635, § 1, eff. June 1, 1988; Acts 1995, c. 359, § 1, eff. Oct. 1, 1995. Renumbered as Financial Institutions § 6-603 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001.State of Maryland
(a)
- (1) Except as provided in subsection (b) of this section, and in § 6-328 (7) and (8) of this title, a loan may not be made to any member of a credit union unless it is approved unanimously by those members of the credit committee who are present at a meeting that is attended by a majority of the members of the credit committee.
- (2) If the bylaws of the credit union so provide, an applicant for a loan that is not approved by the credit committee may appeal to the board of directors.
(b)
(1)
- (i) The credit committee or the president may appoint loan officers.
- (ii) The appointment of loan officers by the president shall be subject to confirmation by the credit committee.
- (iii) The credit committee shall supervise loan officers and delegate to them the power to approve or disapprove loans in accordance with written instructions or policies adopted by the board.
- (2) Not more than one loan officer may be a member of the credit committee.
- (3) A loan made by a loan officer in accordance with the written instructions or policies of the board does not have to be approved by the credit committee.
(4)
- (i) Each loan officer shall give the credit committee the record of each loan that the officer approves or disapproves within 7 days after a loan application is made.
- (ii) The credit committee shall act on each loan application where the decision of the loan officer has been appealed by the credit union member.
- (5) A loan officer may not disburse credit union funds for any loan that the loan officer approved.
- (c) The credit committee shall meet as often as necessary.
Added as Financial Institutions § 6-503 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1986, c. 835, § 1, eff. July 1, 1986; Acts 1988, c. 635, § 1, eff. June 1, 1988; Acts 1995, c. 359, § 1, eff. Oct. 1, 1995. Renumbered as Financial Institutions § 6-603 and amended by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001.
Formerly Art. 11, § 146.