Section 6-708 - Power to borrow. - Maryland Statutes

§ 6-708. Power to borrow.
 

(a)  Fixed assets.-  

(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)  Borrowing for other than fixed assets.- 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. 
 

[An. Code 1957, art. 11, § 161; 1980, ch. 33, § 2; 1996, ch. 326, § 2; 2001, ch. 147, § 1; ch. 148, § 1.]