NCUA Rules Limit Loan To One Borrower

- ALEXANDRIA, Va. (07/11/02) -- NCUA's rulesand regulations restricts loans to a single borrower to 10% of afederal credit union's unimpaired shares, defined as unimpairedcapital and surplus, NCUA said in a new legal opinion letter. Thelimitation even applies to share-secured loans, including memberbusiness loans (MBLs) that are fully secured by shares, NCUA said.The 10% limit is set by the Federal CU Act and is also repeated inNCUA's lending regulation.