N.Y. Banking Law § 483: Penalty for loans to non-members; recovery

§ 483. Penalty for loans to non-members; recovery. Any officer,

director or member of a committee of a credit union who knowingly

permits a loan to be made or participates in a loan to a non-member of

the corporation shall be guilty of a misdemeanor and shall be primarily

liable to the corporation for the amount thus illegally loaned, and the

illegality of such a loan shall be no defense in any action by the

corporation to recover the amount lent.