§ 6-708

Md. Code, Financial Institutions § 6-708, under Article — Financial Institutions.

Md. Code, Financial Institutions § 6-708

(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.