Advisories
Advisory 14
Amendment to Personal Lines of Credit Review
Period
Over the past month, we have been working with
Credit Union Central of Nova Scotia on the development
of a new Personal Line of Credit Loan Agreement
Form SF845. This allows credit unions to establish
lines of credit for a continuous period.
In order to facilitate the amendment that would
be required to each credit union's Capital Utilization
Policy, we are issuing an approved amendment that
can be inserted into the policy without any further
approval required from our office as per Blaise
Donovan's memo dated March 5, 1999.
Refer to Policy Manual, Capital Utilization 25000,
Consumer Loans 25100 2(D).
All personal lines of credit will be
written on a demand basis and the frequency of reviews
between one and five years will be at the discretion
of the credit union. The date established for the
scheduled review will take into consideration the
members' requirements, credit worthiness, and financial
stability. Credit unions are to ensure that a system
is in place to identify personal lines of credit
operating outside the terms and conditions of the
line of credit agreement and when deemed appropriate
initiate corrective action.
March 1999
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