§ 14955 Credit Union Loan Security

This law explains what can be used as security for a loan from a credit union. It lists things like notes, government-backed loans, and money you've already put into the credit union.

Key Takeaways

•Security for a loan can be things like notes, government-backed loans, or your own savings in the credit union.
•If you have money saved in the credit union, you can use it as security for a loan.
•If your loan amount is the same as what you’ve saved, you don’t need anything else as security.

Example

You want to borrow money from a credit union.

If you have money saved in the credit union, that can be used as security for your loan. If you save $5,000, you can borrow up to $5,000 without needing anything else as security.

How to Calculate

If the amount invested by a member is equal to the loan made to that member, he shall not be required to give further security.

Find out how much money you have invested in the credit union (like in shares or savings).
If you want to borrow the same amount or less, you don’t need to provide anything else as security.
If you want to borrow more, you’ll need to provide additional security.

You have $3,000 saved in the credit union and want to borrow money.

Result: You don’t need to provide any additional security because your loan amount is equal to what you’ve already invested.

“Security” includes, but is not limited to, the following: (a) A note endorsed by any member of the credit union or by any other person. (b) Any obligation wherein the payment of interest and principal is guaranteed by any municipal government, state government, the government of the United States, or by any instrumentality of the United States. (c) The amounts which a member has invested in the credit union, either in the form of shares or in funds received. If the amount invested by a member is equal to the loan made to that member, he shall not be required to give further security. (Added by Stats. 1979, Ch. 112.)

This law explains what can be used as security for a loan from a credit union. It lists things like notes, government-backed loans, and money you've already put into the credit union.

Key Takeaways

•Security for a loan can be things like notes, government-backed loans, or your own savings in the credit union.
•If you have money saved in the credit union, you can use it as security for a loan.
•If your loan amount is the same as what you’ve saved, you don’t need anything else as security.

Example

You want to borrow money from a credit union.

If you have money saved in the credit union, that can be used as security for your loan. If you save $5,000, you can borrow up to $5,000 without needing anything else as security.

How to Calculate

If the amount invested by a member is equal to the loan made to that member, he shall not be required to give further security.

Find out how much money you have invested in the credit union (like in shares or savings).
If you want to borrow the same amount or less, you don’t need to provide anything else as security.
If you want to borrow more, you’ll need to provide additional security.

You have $3,000 saved in the credit union and want to borrow money.

Result: You don’t need to provide any additional security because your loan amount is equal to what you’ve already invested.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 14955 Credit Union Loan Security

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References