Advisories
Advisory 18
COMMERCIAL CREDIT RENEWALS SUBMITTED TO SYSTEM
CREDIT COMMITTEE
There was discussion at the September 2006 Lenders
Forum in Halifax on when a credit union may extend
the renewal date for annual reviews that have been
submitted to System Credit Committee. There was
some confusion around two different timeframes:
- Whether it could be extended once the System
Credit Committee returned their review on the
account to the credit union; or
- Whether the date could be extended when the
annual review actually left the credit union.
It is not within the mandate of the System Credit
Committee to decline an annual review or force a
credit union to call a loan. Their review of the
account is to ensure the account continues to operate
properly and offer any constructive suggestions
on the handling of the account.
Thus, it is quite acceptable for the credit union
to extend the expiry date for a further period,
up to one year, upon a properly completed annual
review being submitted to the System Credit Committee.
For all internal reviews, it would also be upon
completion of the annual review.
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