§ 6-708
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/md/financial-institutions/6-708A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§6–708.
(1)Subject to the provisions of paragraph
(2)of this subsection, a credit union may borrow money for the purchase of fixed assets.
(2)The term of the loan may not exceed:
(i)15 years for borrowings secured by real or leasehold property; and
(ii)5 years for borrowings secured by other fixed assets.
(b)A credit union may borrow money for a purpose other than the purchase of fixed assets as long as the total borrowing does not exceed the greater of:
(1)Two times the net worth of the borrowing credit union; or
(2)10% of the total assets of the borrowing credit union.