2006 Ohio Revised Code - 1733.25. Loans or other extensions of credit.

§ 1733.25. Loans or other extensions of credit.
 

(A)  A credit union may make loans or other extensions of credit to members for provident and productive purposes as authorized by law, including rules adopted by the superintendent of credit unions; the articles; and the regulations; and subject to policies adopted by the credit committee and approved by the board of directors. 

(B)  Upon the approval of the board of directors, a credit union may make loans or other extensions of credit to other credit unions, provided that loans or other extensions of credit made to other credit unions need not have the approval of the board of directors on a per case basis. The total of all such loans or other extensions of credit, including the aggregate of all money paid into any trust established by one or more credit unions for the purpose of making loans or other extensions of credit to other credit unions, shall not exceed twenty-five per cent of the shares and undivided earnings of the lending credit union, except that this percentage limitation does not apply to corporate credit unions. 

(C)  The interest on any loan or other extension of credit made by a credit union shall not exceed one and one-half per cent per month on unpaid balances. Such interest may accrue and be chargeable upon a monthly basis, and may be computed upon the unpaid balance of the loan or other extension of credit as of the end of the previous calendar month. 
 

Such interest may be accrued and charged by any technique approved by the superintendent so long as the effective interest rate on any loan or other extension of credit does not exceed the amount permitted to be charged by the computation authorized in this division. 

(D)  A credit union may accept security in such form and under rules as shall be set forth in the articles, the regulations, or established by the credit committee and approved by the board of directors. 

(E) (1)  The credit union shall have a lien on the membership share, shares, deposits, and accumulated dividends and interest of a member in an individual, joint, trust, or payable on death account for any obligation owed to the credit union by that member or for any loan co-signed or guaranteed by the member or account holder; provided, however, that a credit union shall not have a lien upon the funds in an individual retirement account or an account established pursuant to the Internal Revenue Code of the United States. 

(2) A credit union may refuse to allow withdrawals from any share or deposit account by a member while the member has any outstanding obligation to the credit union. 

(F)  Notwithstanding any limitation provided in any other provision of this chapter or Chapter 1343. of the Revised Code, a credit union may enter into a loan agreement with a member in accordance with all of the following: 

(1) The loan is for any amount up to one thousand dollars. 

(2) The term of the loan is thirty days or less. 

(3) The credit union may charge a fee in addition to any interest authorized by law in connection with the loan, which fee is not to be included in the computation of interest for any provision of the Revised Code, including division (C) of this section, that prescribes, regulates, or limits interest charged, collected, or received in connection with a transaction. 

(4) The total interest, fees, and other costs of the loan does not exceed ten per cent of the principal amount. 

(5) A member shall not have more than one loan under division (F) of this section outstanding at any one time with the credit union. 

(6) The loan is not being made to a member for purposes of retiring an existing loan between the credit union and that member, which existing loan was made pursuant to division (F) of this section. 
 

HISTORY: 134 v S 3 (Eff 11-19-71); 136 v S 77 (Eff 10-29-75); 137 v H 356 (Eff 1-1-79); 138 v H 708 (Eff 3-31-80); 141 v H 559 (Eff 6-26-86); 142 v S 149. Eff 7-14-87; 151 v H 81, § 1, eff. 4-14-06.
 

Analogous to former RC § 1733.12.

 

Effect of Amendments

151 v H 81, effective April 14, 2006, rewrote the section.