§412:10-407  Limitations on obligations ofone borrower.  (a)  No credit union shall permit a person to becomeindebted or liable to it, either directly or indirectly, on loans or extensionsof credit in a total amount outstanding at any one time in excess of ten percent of the credit union's capital.

(b)  The aggregate obligations of a borrower toa credit union shall include any obligations owed to the same credit union by apartnership or association of which the borrower is a partner or member if suchpartnership or membership imposes liability on the borrower for saidobligations by agreement or operation of law.

(c)  The limitations set forth in this sectionshall not apply to:

(1)  A credit union's deposits with another depositoryinstitution made in compliance with this chapter;

(2)  A credit union's sale of federal funds to anotherdepository institution with a maturity of one business day or under acontinuing contract;

(3)  Loans and extensions of credit secured by theinterest-bearing obligations of the United States or those for which the faithand credit of the United States are distinctly pledged to provide for thepayment of the principal and interest thereof or of the State or any county ormunicipal or political subdivision of this State, issued in compliance with thelaws of this State, where the market value of the security shall be at any timenot less than one hundred five per cent of the face amount of the loans andextensions of credit; and

(4)  Loans and extensions of credit to the extentsecured by a pledge or security interest in a share or deposit account in thelending credit union. [L 1993, c 350, pt of §1]