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Can you summarize 3 NYCRR Part 96?
General Regulations of the Superintendent > Lending Limits for Credit Unions
Short Summary
This legal document, part of the New York Codes, Rules and Regulations, specifically the General Regulations of the Superintendent, pertains to lending limits for credit unions. It allows credit unions to make loans to their members that are secured by collateral other than shares of the credit union. The loans can be made in an amount not exceeding 25 percent of the net worth of the credit union or $15,000, whichever is greater. The document specifies various types of collateral that can be used, including the assignment of the cash surrender value of a life insurance policy, deposit or share accounts in federally insured banking institutions, common or preferred stocks listed on stock exchanges, securities that credit unions are allowed to invest in, and liens on tangible property appraised by the credit committee. Additionally, credit unions can make loans secured by mortgages on one- to six-family owner-occupied residences, with certain limitations on the fair market value of the residence. The document also allows credit unions to make loans to members in compliance with specific conditions if the loan is guaranteed or supported by the United States, any state, or any other authorized entity. Overall, this document provides guidelines for credit unions regarding loans secured by collateral other than shares of the credit union. A credit union may make loans to a member which are not secured by a member’s unhypothecated shares or by shares pledged by other members in an amount not exceeding 15 percent of the net worth of the credit union, provided that any credit union may make unsecured loans to a member in an amount of at least $5,000. A credit union may make loans to a member which are secured by the borrower’s unhypothecated shares or by shares pledged by another member or members subject to the limitations contained in sections 454(6) and 456(2) of the Banking Law. This Part applies to loans made by a credit union to its members. All such loans shall be made in compliance with this Part. For purposes of this Part: (a) The term net worth shall have the same meaning as set forth in section 702.2 of part 702 of the Regulations of the National Credit Union Administration. (b) The term loan shall mean any loan made to or guaranteed or endorsed by a member of a credit union.
Whom does it apply to?
Credit unions
What does it govern?
Lending limits for credit unions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York