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, as defined in Rule .0407(b)(1)(D), if such a loan or line of credit advance would cause 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.  For purposes of this Section "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 Rule .0407(b)(2)(C)(i) of this Section.

 

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

Eff. August 1, 1998.