17-2216.   Loans to members;conditions.(a) Subject to rules and regulations of the administrator, a credit unionmay loan to its members, as provided, for suchpurposes and upon such security as the bylaws may provide and the creditcommittee or duly authorized loan officer shall approve. Loans to membersshall be made in conformity with criteria established by the board ofdirectors.No loan shall be made in excess of $500 or 10% of the credit union's totalassets,whichever amount is greater. A member who needs funds with which to purchasenecessary supplies for growing crops may receive a loan in fixed monthlyinstallments instead of one sum. A borrower may repay the whole or anypart of the loan on any day on which the office of the credit union isopen for the transaction of business, except that on a first or secondmortgage loan, a credit union may require that any partial prepayments bemade on the date monthly installments are due and be in the amount of thatpart of one or more monthly installments which would be applicable toprincipal.

      (b)   Any loan secured by the insurance or guarantee of, or with advancecommitment to purchase the loan by the federal government, a state governmentor any agency of either may be made under the terms and conditions specifiedin the law under which such insurance, guarantee or commitment is provided.

      History:   L. 1929, ch. 141, § 16; L. 1941, ch. 181, § 4; L.1949, ch. 190, § 2; L. 1951, ch. 204, § 6; L. 1953, ch. 131, § 1; L.1959, ch. 117, § 4; L. 1963, ch. 140, § 3; L. 1965, ch. 153, § 5; L.1972, ch. 60, § 1; L. 1976, ch. 108, § 1; L. 1981, ch. 101, § 5;L. 1983, ch. 83, § 2;L. 1992, ch. 225, § 7; July 1.