N.Y. Banking Law § 473: Loan officers, credit committee; duties

§ 473. Loan officers, credit committee; duties. Whenever the term

"credit committee" is used in this article, it shall solely be

applicable to those credit unions whose bylaws provide for such

committee. The credit committee of every credit union shall meet as

often as necessary, after due notice has been given to each member, for

the purpose of passing upon applications of members for loans. No loan

shall be made unless approved by a loan officer or by a majority of the

members of the credit committee; except the credit committee or a loan

officer may approve in advance upon application by a member, an

extension of credit, and loans may be granted to such members within the

limits of such extension of credit. The loan officers or the credit

committee shall be responsible for reviewing and affirming all

extensions of credit and any extension of credit shall expire if the

member becomes more than ninety days delinquent in his obligations to

the credit union. If the credit union has shares in excess of fifty

thousand dollars, the credit committee may appoint one or more loan

officers and delegate to him, her or them the power to approve loans

within the limits fixed by the board of directors. If the credit

committee appoints one or more loan officers, not more than one loan

officer shall be a member of the credit committee and each loan officer

shall report to the credit committee a record of each loan approved or

disapproved by him, her or them within seven days after filing of the

loan application. All applications not approved by a loan officer shall

be acted upon by the credit committee. If there is no credit committee,

a member shall have the right, upon written request, of review by the

board of directors of a loan application which has been denied.

In no case shall a loan officer or a member of the credit committee

serve as a member of the supervisory committee. No officer who is

authorized to sign checks shall act as a loan officer. If a credit

union has less than five hundred thousand dollars in assets, its board

of directors may act as its credit committee. The credit committee of

every credit union shall keep full and complete minutes of all the

business transacted at each of its meetings. Such minutes shall include

the names of those present at such meetings.