Rule 67. Membership and duty in general
- The board of directors shall appoint a credit committee of not less than three members which shall decide on applications for credit.
- A member of the credit control committee, the credit control officer or a credit officer shall not be eligible for membership of the credit committee.
Rule 68. Chair and secretary
- The credit committee shall choose from its number a chair and a secretary. The offices of chair and secretary shall not be held by the same person.
- The secretary shall prepare and maintain complete records of all meetings of the committee.
Rule 69. Meetings
The credit committee shall meet as often as necessary to carry out its functions, but not less frequently than once a month. Notice of such meetings shall be given to the committee members in such manner as the committee may from time to time prescribe.
Rule 70. Report to the board
The credit committee shall:
- submit a written report to the board of directors at each meeting of the board of directors; and
- comply with any instruction of the board of directors.
Rule 71. Approval of loans
Loans shall be approved in accordance with rule 35.
Rule 72. Credit office
- The board of directors may:
- approve the appointment of a person by the manager, other than a member of the board of directors, a member of the credit control committee or a credit control officer, as a credit officer to work under the supervision of the credit committee, and
- assign to the credit officer the power to approve credit on its behalf:
- that is fully secured by the shareholding of the borrowing member or to an amount in excess of that shareholding; or
- that qualifies as emergency credit within such definitions and limitations as to amount, the terms of repayment and security required for emergency credit as may be established in writing by the board of directors;
- and the amount in the excess referred to in paragraph (1)(b)(i) shall be determined from time to time by the board of directors.
- A record of each application for credit which has or has not been approved shall be furnished by the credit officer to the credit committee not later than seven days of receipt of the application.
Rule 73. Duties of credit committee and/or credit officer
The credit committee and/or a credit officer shall inquire into the character and financial circumstances of an applicant for credit and the security offered, if any, in order to:
- ascertain the applicant’s ability to repay a loan in accordance with its terms, and
- ensure that the provision of credit does not involve undue risk to members savings.
Rule 74. Appeal against non-approval of loan
An appeal against non-approval of a loan by the credit officer or the credit committee shall be in accordance with rule 36.