04 NCAC 06C .0409         LOAN LIMITATIONS

(a)  No loan or line of credit advance shall be made to an individual member, or immediate family member, if such a loan or line of credit advance causes that member along with that member's immediate family to be indebted to the credit union in an aggregate amount exceeding 10 percent of the credit union's unimpaired shares and surplus as set forth in G.S. 54-109.67. For purposes of this Rule "unimpaired shares" shall mean shares without any assignments or pledges. "Surplus" shall mean undivided earnings and reserves.

(b)  In the case of member business loans, additional loan limitations apply as set forth in Rule .0205(d) of this Subchapter and pursuant to 12 C.F.R. Part 723.

History Note:        Authority G.S. 54-109.12; 54-109.26; 54-109.67;

Eff. August 1, 1998;

Readopted Eff. February 1, 2018.