17:13-106. Credit to director, officer, employee, or committee member; participation in determination of question of interest
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/nj/title-17/chapter-13/17-13-106A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
a. No credit union may extend credit to any member of the board, any officer, or member of a committee or to any related interest of that person unless the extension of credit is made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions by the credit union with other members, and does not involve more than normal risk of repayment or present other unfavorable features.
b. No director, committee member, officer, agent, or employee of the credit union shall in any manner, directly or indirectly, participate in the deliberation upon or the determination of any question affecting his pecuniary interest or the pecuniary interest of any corporation, partnership, or association other than the credit union, in which he has a direct or indirect interest.
L.1984, c. 171, s. 28, eff. Oct. 31, 1984.