701.38—Borrowed funds from natural persons.
(1)
The borrowing is evidenced by a signed promissory note which sets forth the terms and conditions regarding maturity, prepayment, interest rate, method of computation, and method of payment;
(2)
The promissory note and any advertisement for such funds contains conspicuous langauge indicating that:
(ii)
The note does not represent shares and, therefore, is not insured by the National Credit Union Share Insurance Fund.
(b)
Federal credit unions must comply with the maximum borrowing authority of § 741.2 of this chapter.