Loans to Officers & Employees of the Credit Union

A Director, committee member or other officer or employee of the credit union, as a member of the credit union, may be granted a loan by the credit union subject to its own rules (63 – 65 in the 2012 Model Rules)and the relevant regulations. Such a member may not be involved in the decision on the loan and such a loan may not be approved solely by a loan officer. The Supervisory Committee shall be informed of the details of every such loan granted within 14 days of its approval.

A credit union must not make a loan to one of its officers or approved persons on terms more favourable than those available to other members of the credit union unless that person is a paid employee (other than a director) of the credit union (CREDS 7.2.7).

A credit union must not make a loan to a relative of, or any person otherwise connected with, an officer, approved person or paid employee of the credit union on terms more favourable than those available to other members of the credit union.