§ 15-12-1-26 — Extension of credit

(a) An association may provide in the
association's bylaws limits within which the association may extend
credit, either directly or indirectly, to any director, officer, or employee
of the association.
(b) A person who is a director, officer, or employee of the
association may not be extended credit on terms that are more
favorable than the terms available to any other customer or member of
the association.
(c) The provisions of this chapter:
(1) concerning the extension of credit to any director, officer, or
employee;
(2) requiring the inclusion of information concerning the
extension of credit to any director, officer, or employee in the
association's annual reports to the secretary of state; and
(3) providing penalties for failure to comply with those
provisions;
apply only to associations in which more than twenty-five percent
(25%) of the gross income arises directly from the purchasing of
supplies for their members and others. An association with a lesser
percentage of gross income arising from purchasing of supplies may
adopt similar provisions in the association's articles of incorporation as
originally filed or later amended. If adopted, the provisions apply in
every respect to the association and to the association's directors,
officers, and employees.
[Pre-2008 Recodification Citations: subsection (a) formerly
15-7-1-11(l); subsection (b) formerly 15-7-1-11(m); subsection (c)
formerly 15-7-1-11(n).]

Legislative History

As added by P.L.2-2008, SEC.3.