AN ACT RELATIVE TO CREDIT UNION REAL ESTATE LOANS.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
Section 13 of chapter 171 of the General Laws, as appearing in the
2000 Official Edition, is hereby amended by striking out the fourth sentence and
inserting in place thereof the following sentence:- It shall act upon all
applications for membership and upon the expulsion of members, shall determine
the rate of interest on loans subject to the limitations contained in this
chapter, shall determine the rate of interest to be paid on deposits, may declare
dividends as provided in section 29 and shall fill vacancies in the board of
directors and committees until the next annual election.
Section 15 of said chapter 171, as so appearing, is
hereby amended by
striking out the last paragraph.
Section 17 of said chapter 171, as so appearing, is
hereby amended by
adding the following paragraph:-
Notwithstanding the foregoing, the credit committee may appoint 1 or more
employees of the credit union, who need not be members of the board of
or the credit committee, as loan officers and delegate to them the authority to
approve applications for loans authorized by this chapter. The delegation of
authority shall be in writing, shall be approved by the board of directors,
define the term and scope of the authority, and shall include standards for
approving loans to be secured by mortgages of real estate which are consistent
with the written loan policies of the credit union. The delegation of
shall be subject to annual review and approval by the board of directors. Not
more than 1 member of the credit committee may be appointed as a loan officer.
Applications for loans to be secured by a mortgage on real estate not approved
a loan officer shall be acted upon by the credit committee. Applications for
loans to be secured by a mortgage on real estate approved by a loan officer or
the credit committee shall require ratification by the board of directors.