Current through Bulletin 2024-06, March 15, 2024
(1) The
individual and aggregate loan limitations set forth in Section
7-9-20
shall apply to all loans and extensions of credit and member business loans
made by a credit union and its wholly owned credit union service organization
as if they were one entity.
(a) A credit
union service organization may extend a member business loan to a person if the
person is a business entity, and at least one individual having a controlling
interest in that business entity has been a member of the credit union for at
least six months prior to the date of the extension of the member business
loan; or
(b) A credit union service
organization may extend a member business loan to a person if the person is an
individual, and the individual is a member of the credit union for at least six
months prior to the date of the extension of the member business
loan.
(2) The individual
and aggregate loan limitations for a credit union service organization that is
a non wholly owned subsidiary of a credit union shall be the same as set forth
in Section 7-9-20. The limitation shall be determined by allocating loans made
by the non wholly owned credit union service organization to its member credit
unions on a pro-rata ownership basis.
(a) A
credit union service organization that is a non wholly owned subsidiary of a
credit union may extend a member business loan to a person if the person is a
business entity, and at least one or more of the individuals having a
controlling interest in that business entity has been a member of each of the
credit unions participating in the credit union service organization for at
least six months prior to the date of the extension of the member business
loan; or
(b) A credit union service
organization that is a non wholly owned subsidiary of a credit union may extend
a member business loan to a person if the person is an individual, and the
individual is a member of each of the credit unions participating in the credit
union service organization for at least six months prior to the date of the
extension of the member business loan.
(3) Loan limitations shall be determined
using the last quarterly report of condition filed with the
Department.
