Arizona § 6-561 Purpose and conditions of loans; prepayment penalties

Arizona Statutes

§ 6-561 — Purpose and conditions of loans; prepayment penalties

Arizona § 6-561

Title 6Arizona Revised Statutes

Ch. 4CREDIT UNIONS

Art. 7Loans

This text of Arizona § 6-561 (Purpose and conditions of loans; prepayment penalties) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 6-561 (2026).

Text

A.A credit union may make loans, including lines of credit, to members for the purposes and on the conditions as prescribed by the board of directors. The board of directors shall establish written policies with respect to granting loans, including the terms, conditions and acceptable forms of security.

B.A person, except another credit union, may not become indebted, directly or indirectly, to the credit union for more than ten percent of the credit union's capital or $200, whichever is greater. This limit does not apply to loans that are fully secured by assignment of share or deposit accounts in the credit union.

C.An application for a loan shall state the security and other information required by the credit committee or credit manager. Each loan shall be evidenced by a written do

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A. A credit union may make loans, including lines of credit, to members for the purposes and on the conditions as prescribed by the board of directors. The board of directors shall establish written policies with respect to granting loans, including the terms, conditions and acceptable forms of security.

B. A person, except another credit union, may not become indebted, directly or indirectly, to the credit union for more than ten percent of the credit union's capital or $200, whichever is greater. This limit does not apply to loans that are fully secured by assignment of share or deposit accounts in the credit union.

C. An application for a loan shall state the security and other information required by the credit committee or credit manager. Each loan shall be evidenced by a written document.

D. A member may repay a loan or outstanding balance on a line of credit before maturity in whole or in part on any business day without penalty. Except as provided in this subsection, prepayment penalties may be charged on loans that are not made for personal, family or household purposes.