§ 6-708. Power to borrow

   (a) Fixed assets. --

   (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) Borrowing for other than fixed assets. -- 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.

HISTORY: An. Code 1957, art. 11, § 161; 1980, ch. 33, § 2; 1996, ch. 326, § 2; 2001, ch. 147, § 1; ch. 148, § 1.