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HomeFinancial CodeDiv. 5Ch. 4Art. 8§ 14761 Credit Union Liability Limit

§ 14761 Credit Union Liability Limit

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 14761 Credit Union Liability Limit

This law makes it a misdemeanor for a credit union officer or agent to guarantee or endorse a note, bill, or obligation that could make the credit union pay more than the amount it is allowed to loan or discount.

Key Takeaways

  • •Only applies to guaranties or endorsements on discounted notes, bills, or obligations.
  • •The guarantee cannot exceed the amount the credit union is legally allowed to loan or discount.
  • •Violating this rule is a misdemeanor.

Example

A credit union employee signs a guarantee that the credit union will cover a $50,000 loan when the credit union is only allowed to loan up to $30,000, causing the credit union to become liable for the extra $20,000.

Because the guarantee exceeds the legal loan limit, the employee is committing a misdemeanor under this statute.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 14761 Credit Union Liability Limit

Any officer or agent of any credit union who makes or delivers any guaranty or endorsement on behalf of the credit union whereby the credit union may become liable upon any of the credit union’s discounted notes, bills, or obligations in a sum beyond the amount of loans and discounts which the credit union may lawfully make, is guilty of a misdemeanor. (Added by Stats. 1986, Ch. 673, Sec. 10.)

Last verified: January 11, 2026

Key Terms

credit unionguarantyendorsementmisdemeanor

Related Statutes

  • § 14750 Credit Union Loan Violations
  • § 14760 Credit Union Director Misdemeanors
  • § 14762 Credit Union Director Loan Violations
  • § 14763 Credit Union Officer Concealment
  • § 14751 Credit Union Officer Liability

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 14761.
View Official Source