§ 6-06-19 — Authority to borrow - Limitation - Exception

North Dakota § 6-06-19

• Jurisdiction: North Dakota
• Title 6: Banks and Banking
• Ch. 6-06: Credit Unions

Text

A credit union may borrow money from any source, but the total borrowings may not exceed
twenty-five percent of the credit union's assets unless the commissioner authorizes a larger
amount. The board or commissioner may suspend or restrict the borrowing powers of a credit
union. The limitation on borrowing does not apply to a corporate central credit union which is
limited to borrowing up to five times the corporate central credit union's capital, surplus, and
reserve fund. For purposes of this section, capital, surplus, and reserve fund for a corporate
central credit union includes statutory or regulatory reserves, reserves established for
contingencies or any other purposes, undivided earnings, all sums on deposit by other credit
unions which are membership capital share deposits as defined by the bylaws of the corporate
central credit union, or any other funds being held by the corporate central credit union for the
purpose of maintaining a capital base. A credit union must provide within one week written
notification to the commissioner of the amount, terms, and source of all borrowings under this
section. Written notification is not required if the borrowings are provided by the corporate
central credit union and that information is available to the commissioner through electronic
inquiry.