Section 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(a) A credit union may extend credit to:(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.
Amended by P.L. 129-2020,SEC. 15, eff. 7/1/2020.Amended by P.L. 40-2016, SEC. 1, eff. 3/21/2016.As added by P.L. 90-2008, SEC.43.