Md. Code, Financial Institutions § 6-708
This is the official text of Md. Code, Financial Institutions § 6-708, part of Maryland’s Code, Financial Institutions — regulates banks and lenders.
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§6–708.
Official statutory text
(a) (1) Subject to the provisions of paragraph (2) of this subsection, a credit union may borrow money for the purchase of fixed assets.
(2) The term of the loan may not exceed:
(i) 15 years for borrowings secured by real or leasehold property; and
(ii) 5 years for borrowings secured by other fixed assets.
(b) A credit union may borrow money for a purpose other than the purchase of fixed assets as long as the total borrowing does not exceed the greater of:
(1) Two times the net worth of the borrowing credit union; or
(2) 10% of the total assets of the borrowing credit union.
(2) The term of the loan may not exceed:
(i) 15 years for borrowings secured by real or leasehold property; and
(ii) 5 years for borrowings secured by other fixed assets.
(b) A credit union may borrow money for a purpose other than the purchase of fixed assets as long as the total borrowing does not exceed the greater of:
(1) Two times the net worth of the borrowing credit union; or
(2) 10% of the total assets of the borrowing credit union.
Status: in_force · Read it on the official government site
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