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72d CONGRESS . SESS. I. CH. 272. JU NE 23, 1932 . of any officer having custody of funds ; recommend declaration of In ter dO nterestrateonloans . dividends ;; determine interest rates on loans : Provided, however, That the interest rate on loans shall not be in excess of the maximum Filling vacancies . amount fixe d by the provisi ons of this Act
- fill vacancies in the board
and in the credit committee until successor s to be elected at the next Loans to nonmem- annual meeting have qualified ; have charge of investments other than loans to members ; determine the maximum loans other th an uallholdings andloaansl
loans to members ; determine the maximum individual share holdings and th e maximu m indivi dual loa n which can be m ade with and wit hout security, if loan ex- security, except that no loan in excess of $50 shall be made without ceeds$50. adequate security ; and transmit to the members recommended amendments to the by-laws. For the purposes of this subdivision an assignment of shares or the indorsement of a note shall be deemed security . C ns id c ommit tee . Consideration
(d) CREDIT coMMIrTEE .-The credit committee shall hold meetings, approval of loans . of which due notice shall be given to its members, to consider appli- cations for loa ns to me mbers of the cor poration , and no loan sh all be made unless all members of the committee who are present when the application is considered and a majority of all the committee Applicati ons • approve the loan . Applications for loans shall be on forms pre- par ed by s uch committee, whi ch shall set forth the pu rp ose for which the loan is desired, the security, if any, and such other data as may be required . Supervisory commit (e) SuPERVIsoRY COMMITTEE .-The supervisory committee shall t actions, authori- make an examination of the affairs of the credit union at least quar- terly, including an audit of its books ; shall make an annual audit and report to be submitted at the annual meeting of the corporation ; by a una nimous v ote may suspend any offi cer of th e corpor ation, o r any member of the credit committee or of the board of directors until the next members' meeting, at which time the suspension shall be acted on by the members ; and, by a majority vote, may call a meeting of the shareholders to consider any violation of this subchapter or of the by-laws, or an practice of the corporation deemed by the committee to be unsafe or unauthorized . The said committee shall proviso. fill vacancies i n its membership until successor s to be elected a t the Treasurers bond. next annual meeting have qualified : Provided, however, That before the treasurer shall enter upon his duties he shall give bond with good and suffici ent secu rity, in an amou nt to be determin ed by th e board of directors, conditioned upon the faithful performance of his trust . Reserves. RESER VES Designated funds set aside for . SEC . 12 . All entrance fees and fines provided- by the by-laws and, before the declaration of any dividend therefrom, 20 per centum of the net earni ngs of each year , shall be set a side as a reserve fund against bad loans, which fund shall be kept liquid and intact and not distributed except in case of liquidation . Dividends . DI VIDEND S Board may declare, on nqt earnings . SEC . 13. At the annual meeting a dividend may be declared from net earnings on recommendation of the board, which dividend shall be paid on all paid-up shares outstanding at the end of the preceding fiscal year. Shares which become fully paid up during such year shall be entitled to a proportional part of said dividend calculated from the first day of the m onth f ollow ing s uch p ayment in full .
