04 NCAC 06C .0404. LINE OF CREDIT LOANS

(a)  Limitations.  A credit union shall not make a line of credit loan that exceeds the stated sum or specified period of time approved by the Board of directors of that credit union.

(b)  Reserves.  A credit union shall maintain for a period of one month, beginning on the seventh day of each month, a reserve, which shall consist of cash on hand or legal investments that mature in one year or less, in an amount not less than five percent of the aggregate unused portion of its line of credit loans determined as of the close of the previous month.  Not more than 20 percent of the required reserve shall be in direct United States Government obligations.  The Credit Union shall keep current records of the aggregate unused portion of its line of credit loans and reserves, and the Administrator may require periodic or special reports based on these records.

 

History Note:        Authority G.S. 54‑109.12;

Eff. February 1, 1976;

Readopted Eff. April 4, 1978;

Amended Eff. January 1, 1992; December 1, 1979.