Ind. Code § 28-7-1-17.2
Extensions of credit to officers, directors, or supervisory committee members; applicability of federal regulation; delinquencies by directors or committee members; waiver
Redline — January 1, 2018 → current.View current text →
Current — January 1, 2023
As of January 1, 2018
Sec. 17.2. (a) A credit union may make a loan to the credit union's individual officers under the following terms and conditions:
Sec. 17.2. (a) A credit union may extend credit to:
(1) The loan must comply with all requirements under this chapter that apply to loans made to other borrowers.
(2) The loan may not be on terms more favorable than those extended to other borrowers unless the loan is made in connection with a benefit or compensation plan that:
(A) is widely available to employees of the credit union; and
(B) does not give preference to any officers of the credit union over other employees of the credit union.
(3) The loan must be promptly reported to the credit union's board of directors.
(4) A loan to the officer, the officer's immediate family, or the officer's related interests either by itself or when added to the amounts of all other loans made under this section to the officer, the officer's immediate family, or the officer's related interests, for any purpose, must be made in accordance with 12 CFR 215.5 (Regulation O).
(b) A credit union may not make a loan under this section to an officer, the officer's immediate family, or the officer's related interests if the amount of the loan, either by itself or when added to the amounts of all other loans made under this section to the officer, the officer's immediate family, or the officer's related interests, exceeds the lending limits set forth in IC 28-7-1-39.
(c) The department may apply the provisions of 12 CFR 215 (Regulation O) in applying and administering this section.
(1) an officer, an officer's immediate family member, or an officer's related interests;
(2) a director, a director's immediate family member, or a director's related interests; or
(3) a supervisory committee member, a supervisory committee member's immediate family member, or a supervisory committee member's related interests;
in accordance with the definitions, restrictions, and provisions of Regulation O of the Board of Governors of the Federal Reserve System (12 CFR 215). Restrictions on extensions of credit to supervisory committee members, and to the immediate family members or related interests of supervisory committee members, shall be treated consistently with restrictions on extensions of credit to directors as imposed by Regulation O. For purposes of applying Regulation O to an extension of credit made by a credit union under this section, the term "unimpaired capital and unimpaired surplus", as used in Regulation O, is considered to mean "capital and surplus" (as defined in section 0.5(18) of this chapter).
(b) If an extension of credit made to or cosigned, endorsed, or guaranteed by a director or a member of the supervisory, credit, or other committee is more than three (3) months delinquent, the individual:
(1) is automatically removed from the individual's position as director or committee member; and
(2) is ineligible to serve as a director or committee member for two (2) years.
The director of the department may waive the application of this subsection if the director determines that a waiver is in the best interests of the credit union.
Official source: Indiana General Assembly. Reproduced from public-domain Indiana statutes; confirm against the official source for the current text. Not legal advice.