Sec. 26. (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).]
As added by P.L.2-2008, SEC.3.