§ 14762 Credit Union Director Loan Violations

Financial Code·California

AI SummaryVerified

It is a crime for a credit union director to approve a loan or discount to another director that goes beyond the legal limit.

Key Takeaways

•Directors cannot approve loans or discounts to other directors that exceed legal limits.
•Simply agreeing to such a vote makes the director criminally liable.
•The rule applies to both loans and discounts made to directors.

Example

A credit union director votes to give a fellow director a $250,000 loan when the law only permits loans up to $150,000.

Because the loan exceeds the allowed amount, the director who agreed to the vote can be charged with a misdemeanor.

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

Official Source

View on CA.gov

§ 14762 Credit Union Director Loan Violations

A director of a credit union who concurs in any vote or act of the directors of the credit union by which it is intended to make a loan or discount to any director of the credit union exceeding the amount allowed by law, is guilty of a misdemeanor. (Added by Stats. 1986, Ch. 673, Sec. 11.)

Last verified: January 11, 2026

Key Terms

director credit union loan or discount misdemeanor

References

Official text at leginfo.legislature.ca.gov
California Legislature. Financial Code. Section 14762.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References