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. 6, March 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-
(5) The credit union's board of directors must adopt a clear and concise policy regarding employees and elected officials and their immediate family members bidding on and/or purchasing assets, such as vehicles, that were previously repossessed by the credit union. The credit union must also implement the proper steps to ensure the policy is followed, which should include preventing the possibility of insider abuse, which includes a bidding process. Any purchases of credit union assets, by employees or elected officials or members of their immediate family, must be reported to the board of directors and recorded in the board minutes.
*Original authority: 370.100, RSMo 1939, amended 1945, 1945, 1949, 1959, 1967, 1972, 2011 and 370.310, RSMo 1945, amended 1951, 1965, 1969, 1972, 1982, 1986, 1988, 1991, 1994, 2011 .