17:13-104 - Loans to members; security; interest; fees; lien on accounts - New Jersey Statutes

17:13-104.  Loans to members;  security;  interest;  fees;  lien on accounts
    a.  A credit union may make loans to its members, evidenced by a written instrument, upon terms and upon any security, including, but not limited to, the endorsement of a note by a surety, comaker, or guarantor, assignment of an interest in real or personal property, or assignment of shares, as the board may provide.  The adequacy of any security shall be determined by the credit committee.  No loan shall be made to any member when the aggregate amount of all that member's loans outstanding exceeds 10% of the credit union's total assets.  The board, in its discretion, may fix a lower amount.

    b.  Notwithstanding the provisions of R.S. 31:1-1 to the contrary, a credit  union may charge, contract for, and receive interest on loans at a rate or  rates agreed to by the credit union and the member.  A credit union may charge  late fees and lawful fees paid to any public officer for filing, recording, or  releasing a document, and may charge collection fees, not to exceed 20% of the  principal balance and interest outstanding, which may be added to the principal  balance of any loan placed for collection after default thereon.

    c.  A credit union shall have a lien on the shares, share certificates, deposits, deposit certificates, and accumulated interest or dividends of a member in any individual, joint, or trust account, for any sum past due the credit union from the member or for any loan endorsed by him.  The credit union  shall have a right of immediate set-off with respect to these accounts.

     L.1984, c. 171, s. 26, eff. Oct. 31, 1984.