The Florida Senate

657.038  Loan powers.--

(1)  A credit union may extend credit to members for such purpose and upon such security and terms as the credit committee, credit manager, or loan officer approves, pursuant to written loan policies established by the board of directors, or as may otherwise be provided by law.

(2)  The total unsecured obligations outstanding from any member must not exceed the greater of $500 or 15 percent of the equity of the credit union.

(3)  The total obligations outstanding from any member must not exceed the greater of $1,000 or 25 percent of the equity of the credit union. The limitations provided in this subsection do not apply to loans which are fully secured by assignment of shares or deposits in the lending credit union.

(4)  A member may receive credit in installments or in one sum and may pay the whole or any part of his or her indebtedness on any day on which the office of the credit union is open for business.

(5)  The credit committee or credit manager may approve in advance, upon request of a member, a line of credit, and disbursements may be granted to such member within the limit of such line of credit. When a line of credit has been approved, no additional credit applications are required as long as the aggregate obligation does not exceed the limit of such line of credit; however, no additional disbursements may be made to any member whose existing extensions of credit are in default or are subject to adverse classification without receiving current financial information.

(6)  Loans secured by mortgages on real property must be made in accordance with written policies of the board of directors and rules of the commission.

(7)  As used in this section, the term "related interest" means a person's interest in a partnership as a general partner, and any limited partnership, corporation, or other business organization controlled by that person. A limited partnership, corporation, or other business organization is controlled by a person who:

(a)  Owns, controls, or has the power to vote 25 percent or more of any class of voting securities of any such business organization;

(b)  Controls in any manner the election of a majority of the directors of any such business organization; or

(c)  Has the power to exercise a controlling influence over the management or policies of such business organization.

(8)  In computing the total liabilities of any person, all loans endorsed or guaranteed as to repayment by such person and by any related interest of such person must be included.

(9)  A loan may not be made to any corporation, except to the Florida Credit Union Guaranty Corporation, Inc., or a corporation in which the credit union holds an equity interest.

(10)  The loan limitations stated in this section shall not be enlarged by the provision of any other section of this chapter.

(11)  Any approval of extension of credit requiring approval of the board of directors shall be recorded in the minutes of the board, including the borrower's account number or other code, the amount of the loan, the maturity of the loan, and the general type of security.

(12)  The commission may adopt rules to provide for minimum documentation and safe lending procedures necessary to protect the members' funds.

(13)  A credit union may participate in extensions of credit to its members jointly with other credit unions, corporations, or financial institutions.

(14)  A credit union may participate in guaranteed loan programs of the federal and state governments, provided the borrower is a member of the credit union.

(15)  If approved by the board of directors, a credit union may extend credit to other credit unions, or to the corporation, in an amount not greater than 25 percent of the unimpaired capital of the lending credit union.

(16)  A credit union may purchase the conditional sales contracts, notes, and similar instruments of its members, provided that the credit union could have originally made the loan to the member.

History.--ss. 1, 6, ch. 80-258; ss. 2, 3, ch. 81-318; ss. 16, 50, 51, ch. 84-216; s. 1, ch. 91-307; ss. 1, 91, ch. 92-303; s. 537, ch. 97-102; s. 1750, ch. 2003-261.