2012 Pennsylvania Consolidated Statutes
Title 17 - CREDIT UNIONS
Chapter 5 - Corporate Powers, Duties and Safeguards
Section 510 - Loan interest

     § 510.  Loan interest.
        (a)  General rule.--Interest rates on loans made by a credit
     union to its members shall not exceed 15% per annum when
     calculated on the unpaid principal balances. Interest shall be
     computed for the actual number of days which have elapsed at the
     time of payment, except that interest for mortgage loans may be
     paid according to a preauthorized amortization schedule.
        (b)  Procedure for increase in rates.--Before any credit
     union shall charge any higher rate than that authorized in
     subsection (a), it shall obtain approval for such higher rate
     from at least two-thirds of the board of directors of the credit
     union, and such higher approved rate shall then apply only to
     loans made by the credit union thereafter. Members shall be
     notified in writing of the action of the board of directors not
     later than the next regular mailing of members account
     statements, which is at least 20 days subsequent to the action
     of the board.
        (c)  Penalty for overcharge.--The taking, receiving,
     reserving or charging interest greater than allowed by this
     section shall be deemed a forfeiture of the entire interest on
     the loan, except when such overcharge is the result of a
     clerical error in computation. In case an interest greater than
     that which is allowed by this section has been paid, the
     borrower may, within six months after payment, recover from the
     credit union the entire amount of interest paid, except when
     such overcharge is the result of a clerical error in computation
     in which case only the excess interest paid may be recovered.
        (d)  Additional powers of certain insured credit unions.--A
     credit union insured by a share insurance fund other than the
     National Credit Union Share Insurance Fund may make any loan
     authorized by this title, at such interest, finance charge, rate
     and terms as a credit union insured by the National Credit Union
     Share Insurance Fund, except that the authority permitted under
     this subsection shall not apply to the extension of credit for
     the purchase of goods and services through the issuance and use
     of credit cards.