(a) A credit union may lend to its members at a maximum effective rate of interest, which shall not be in excess of the greater of:
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(1) The applicable formula rate; or(2) The rate of interest permitted to be charged by credit unions chartered by the federal government.(b) For installment loans, the maximum effective rate of interest shall:
(1) Be determined in accordance with the actuarial method;(2) Be calculated, in the case of a precomputed loan, on the assumption that all scheduled payments will be made as contracted; and(3) Not be affected by the prepayment of the loan, in whole or in part.
