NEW YORK (Dow Jones/AP) ? Bermuda-based Tyco International Ltd.?s ex-head of human resources testified yesterday that the company?s compensation committee took no action when they learned in early 2002 that its top executives had millions of dollars of outstanding loans from the company.

Facing cross-examination by defence attorneys in her fourth day on the stand, Patricia Prue, senior vice president of human resources at the Bermuda conglomerate from 1998 to 2002, said the directors made no changes to the company?s so-called Key Employee Loan Program or its relocation loan programme in February 2002, other than to ask for a regular update of loan balances over $50,000.

The committee learned at a February 2002 meeting that L. Dennis Kozlowski, Tyco?s former chief executive, had more than $18 million in outstanding loans and Mark H. Swartz, its ex-chief financial officer, had more than $7 million in outstanding KELP loans, Prue said.

Prosecutors claim Kozlowski and Swartz used KELP as a personal line. ?They wanted an update, but not a change in administration (of the loan programmes),? Prue said in response to a question from Michael J. Grudberg, one of Swartz?s lawyers.

Kozlowski, 58 years old, and Swartz, 44,?!on trial in New York Stat???Ie Supreme Court, facing charges of grand larceny, se? testified that members of the compensation committee could have learned of the maximum borrowings by the executives under KELP and their outstanding balances by reviewing Tyco?s proxy statement each fiscal year prior to 2002.

Grudberg asked if it was true that Swartz never told her to conceal the KELP balances.

?That?s correct,? Prue said.

Defence attorneys have argued that information about bonuses prosecutors allege were stolen by Kozlowski and Swartz were available to Tyco?s directors and its auditors in the company?s books and records, including their usage of KELP loans.

Tyco has its headquarters in Bermuda, but now operates out of West Windsor, New Jersey.