Washington Code 31.12.428 – Limit on loan amount
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(1) No loan may be made to any borrower if the loan would cause the borrower to be indebted to the credit union on all types of loans in an aggregated amount exceeding ten thousand dollars or twenty-five percent of the capital of the credit union, whichever is greater, without the approval of the director.
Terms Used In Washington Code 31.12.428
- Capital: means a credit union's reserves, undivided earnings, and allowance for loan and lease losses, and other items that may be included under RCW 31. See Washington Code 31.12.005
- Credit union: means a credit union organized and operating under this chapter. See Washington Code 31.12.005
- Director: means the director of financial institutions. See Washington Code 31.12.005
- Loan: means any loan, overdraft line of credit, extension of credit, or lease, in whole or in part. See Washington Code 31.12.005
(2) The director by rule may establish separate limits on business loans to one borrower.
NOTES:
Effective date—1997 c 397 § 35: “Section 35 of this act takes effect July 1, 1998.” [ 1997 c 397 § 90.]
Findings—Construction—1994 c 256: See RCW 43.320.007.