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IN SB0242
Bill
AI Summary
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Amends Indiana Code IC 28-7-1-17.2 to align state credit union lending rules with federal Regulation O (12 CFR 215.5) for loans to officers.
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Replaces the previous dollar-based lending limits ($25,000 or 2.5% of capital and unimpaired surplus, capped at $100,000) with compliance requirements under federal Regulation O.
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Maintains exemptions from lending limits for education loans, residential mortgages, and loans secured by U.S. Treasury obligations or segregated deposit accounts.
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Requires loans to officers to comply with all standard credit union lending requirements and prohibits preferential terms unless made through a widely available employee benefit or compensation plan.
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Declares an emergency for the act, making it effective upon passage.
Legislative Description
Loans to credit union officers. For purposes of the statute authorizing a state chartered credit union to make a loan to an officer of the credit union, makes the lending limit consistent with federal law that applies to loans to officers of a bank. (Current law provides that the total of all such outstanding loans may not exceed $100,000.)
Last Action
Public Law 40
3/21/2016