§ 54-109.65. Purposes, terms and interest rate.
Article14G.
Loans.
§ 54‑109.65. Purposes,terms and interest rate.
A credit union may loan to itsmembers for such purpose and upon such security and terms as the board ofdirectors prescribes at rates of interest not exceeding eighteen percent (18%)annual percentage rate, unless a greater rate not to exceed the annualpercentage rate permitted to be charged by federally chartered credit unions,is otherwise approved by the Credit Union Commission. Such action by theCommission will be uniform and apply to all credit unions.
The term "interest,"as used in this section, shall not be deemed to include charges made by acredit union for appraisals of real or personal property; attorneys' fees forsearching title to real property, preparing notes, deeds of trust, mortgagesand closing loans; and recording fees. Rate of interest and terms of repaymentshall appear on each note but the corporation may, for the purpose of makingloans, discount and negotiate promissory notes and deduct in advance, from theproceeds of such loan, interest at a rate not to exceed the rate herein fixed,which shall be the legal rate for corporations organized under this Article,and such deductions shall be made upon the amount of the loan from the datethereof until the maturity of the final installment, notwithstanding that theprincipal amount of such loan is required to be repaid in such installments. (1915,c. 115, ss. 19, 20; 1917, c. 232, s. 4; C.S., ss. 5220, 5221; 1925, c. 73, s.3; 1935, c. 87; 1955, c. 1135, s. 2; 1957, c. 989, s. 2; 1961, c. 1187, s. 1;1965, c. 956, ss. 1, 12, 13; 1969, c. 69, s. 9; 1973, c. 199, ss. 5, 6; 1975,c. 538, s. 1; 1983, c. 568, s. 4.)