CODE OF VIRGINIA

CREDIT COMMITTEE OR LOAN OFFICERS; APPEAL (§ 6.2-1354)

A. The credit committee of a credit union shall approve every loan or advance
made by the credit union to members, unless the committee is replaced by a loan
officer as provided in subdivision E 2 of § 6.2-1348.

B. If the credit committee has not been replaced by action of the board of
directors, it may appoint and delegate to loan officers the authority to approve
or disapprove loan applications, subject to the written policies prescribed by
the board of directors. The approval of an application by the credit committee
shall be by a majority of members of the committee who are present at the
meeting at which it is considered, provided a majority of the full committee is
present.

C. All applications disapproved by a loan officer may, upon request of the
applicant, be reviewed by the credit committee. The approval of a majority of
members of the credit committee who are present at the meeting when such review
is undertaken shall be required to reverse the loan officer’s decision. A
majority of members of the full credit committee shall be present at such
review. A member whose application was disapproved by a loan officer or the
credit committee may appeal such action to the board of directors.

D. No individual shall have the authority to disburse funds of the credit union
for any loan for which the application has been approved by him in his capacity
as a loan officer.

E. The credit committee shall meet as often as the business of the credit union
may require to consider applications for loans or to review the work of the loan
officers, as the case may be. Reasonable notice of each such meeting shall be
given to each member of the committee.

HISTORY: Code 1950, § 6-221; 1964, c. 75; 1966, c. 584, § 6.1-212; 1974, c.
143; 1983, c. 302; 1990, c. 373, § 6.1-225.37; 2010, c. 794.