12 U.S.C. § 1761c — Credit committee

(a) Members; meetings; lines of credit and approval of loans; delegation to loan officers If the bylaws provide for a credit committee, then under the provisions of the bylaws, the board of directors can appoint or the members can elect a credit committee which must consist of an odd number of members of the credit union, but which must not include more than one loan officer. The method used must be set forth in the bylaws. The credit committee must hold that meetings as the business of the Federal credit union can require, not less frequently than once a month, to consider applications for loans or lines of credit. Reasonable notice of that meetings must be given to all members of the committee. Except for those loans or lines of credit required to be approved by the board of directors in section 1757(5) of this title , approval of an application must be by majority of the committee who are present at the meeting at which it is considered but only if a majority of the full committee is present. The credit committee can appoint and delegate to loan officers the authority to approve applications. (b) Review and reversal of loan refusals; review by board in lieu of committee; limitation on disbursements by loan officers If the bylaws provide for a credit committee, all applications not approved by the loan officer must be reviewed by the credit committee, and the approval of a majority of the members who are present at the meeting when that review is undertaken must be required to reverse the loan officer’s decision provided a majority of the full committee is present. If there is not a credit committee, a member must have the right upon written request of review by the board of directors of a loan application which has been denied. No individual must have authority to disburse funds of the Federal credit union about any loan or line of credit for which the application has been approved by him in his capacity as a loan officer. A quoted term that this section does not define keeps its quoted meaning; this section does not define it.