United States Code

12 U.S.C. § 1757a

Limitation on member business loans

Statute Watch

Get an alert when any bill in Congress would change this law — and every time it moves.

Sign in to follow →

Bills that would change it 39

  • HR 7056 Community Bank Regulatory Tailoring Act Amends its part · introduced · 119th Congress
  • HR 2038 American Housing and Economic Mobility Act of 2025 Amends its part · introduced · 119th Congress
  • S 934 American Housing and Economic Mobility Act of 2025 Amends its part · introduced · 119th Congress
  • HR 1791 Increasing Credit Union Lending for Business Growth Act Amends 1757a(c)(1)(B)(iii) · introduced · 119th Congress
  • HR 507 Veterans Member Business Loan Act Amends 1757a(c) · introduced · 119th Congress
  • S 110 Veterans Member Business Loan Act Amends 1757a(c) · introduced · 119th Congress
  • HR 4867 Veterans Members Business Loan Act Amends 1757a(c) · introduced · 118th Congress
  • HR 4868 Member Business Loan Expansion Act Amends 1757a(c)(1)(B)(iii) · introduced · 118th Congress
  • S 1160 Financial Regulators Transparency Act of 2023 Amends its part · introduced · 118th Congress
  • S 539 Veterans Member Business Loan Act Amends 1757a(c) · introduced · 118th Congress
  • HR 7776 James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 Amends its part · enacted · 117th Congress
  • S 5300 Financial Regulators Transparency Act of 2022 Amends its part · introduced · 117th Congress
  • HRES 1512 Providing for the concurrence by the House in the Senate amendment to H.R. 7776, with an amendment. Amends its part · introduced · 117th Congress
  • S 4698 Improving Cybersecurity of Credit Unions Act Amends its part · introduced · 117th Congress
  • HR 7900 National Defense Authorization Act for Fiscal Year 2023 Amends its part · introduced · 117th Congress
  • S 4879 Expanding Financial Access for Underserved Communities Act Amends 1757a(c)(1)(B) · introduced · 117th Congress
  • HR 2543 Financial Services Racial Equity, Inclusion, and Economic Justice Act Amends 1757a(c)(1)(B) · introduced · 117th Congress
  • HR 7003 Expanding Financial Access for Underserved Communities Act Amends 1757a(c)(1)(B) · introduced · 117th Congress
  • S 4295 Financial Data Transparency Act of 2022 Amends its part · introduced · 117th Congress
  • S 3813 Veterans Member Business Loan Act Amends 1757a(c) · introduced · 117th Congress
  • S 1368 American Housing and Economic Mobility Act of 2021 Amends its part · introduced · 117th Congress
  • HR 2989 Financial Transparency Act of 2021 Amends its part · introduced · 117th Congress
  • HR 2768 American Housing and Economic Mobility Act of 2021 Amends its part · introduced · 117th Congress
  • HR 5189 Member Business Loan Expansion Act Amends 1757a(c)(1)(B)(iii) · introduced · 117th Congress
  • HR 4232 Financial Guidance Review Act of 2021 Amends its part · introduced · 117th Congress
  • HR 1471 Access to Credit for Small Businesses Impacted by the COVID–19 Crisis Act of 2021 Amends 1757a(c)(1)(B) · introduced · 117th Congress
  • S 3326 Credit Union Modernization Act of 2019 Amends its part · introduced · 116th Congress
  • S 2834 Veterans Members Business Loan Act Amends 1757a(c) · introduced · 116th Congress
  • HR 4476 Financial Transparency Act of 2019 Amends its part · introduced · 116th Congress
  • HR 1737 To make housing more affordable, and for other purposes. Amends its part · introduced · 116th Congress
  • HR 2305 Veterans Members Business Loan Act Amends 1757a(c) · introduced · 116th Congress
  • S 787 A bill to make housing more affordable, and for other purposes. Amends its part · introduced · 116th Congress
  • S 2155 Economic Growth, Regulatory Relief, and Consumer Protection Act Amends 1757a(c)(1)(B)(i) · enacted · 115th Congress
  • HR 3866 To amend the Federal Credit Union Act to exclude extensions of credit made to veterans from the definition of a member business loan. Amends 1757a(c) · introduced · 115th Congress
  • HR 10 Financial CHOICE Act of 2017 Amends its part · introduced · 115th Congress
  • S 836 Credit Union Residential Loan Parity Act Amends 1757a(c)(1)(B)(i) · introduced · 115th Congress
  • HR 1530 Financial Transparency Act of 2017 Amends its part · introduced · 115th Congress
  • HR 1244 Capital Access for Small Businesses and Jobs Act Amends its part · introduced · 115th Congress
  • HR 389 Credit Union Residential Loan Parity Act Amends 1757a(c)(1)(B)(i) · introduced · 115th Congress

The law today

From the official United States Code, current through Public Law 119-121.

(a) In general On and after August 7, 1998, no insured credit union may make any member business loan that would result in a total amount of such loans outstanding at that credit union at any one time equal to more than the lesser of— (1) 1.75 times the actual net worth of the credit union; or (2) 1.75 times the minimum net worth required under section 1790d(c)(1)(A) of this title for a credit union to be well capitalized. (b) Exceptions Subsection (a) does not apply in the case of— (1) an insured credit union chartered for the purpose of making, or that has a history of primarily making, member business loans to its members, as determined by the Board; or (2) an insured credit union that— (A) serves predominantly low-income members, as defined by the Board; or (B) is a community development financial institution, as defined in section 4702 of this title. (c) Definitions As used in this section— (1) the term “member business loan”— (A) means any loan, line of credit, or letter of credit, the proceeds of which will be used for a commercial, corporate or other business investment property or venture, or agricultural purpose; and (B) does not include an extension of credit— (i) that is fully secured by a lien on a 1- to 4-family dwelling; (ii) that is fully secured by shares in the credit union making the extension of credit or deposits in other financial institutions; (iii) that is described in subparagraph (A), if it was made to a borrower or an associated member that has a total of all such extensions of credit in an amount equal to less than $50,000; (iv) the repayment of which is fully insured or fully guaranteed by, or where there is an advance commitment to purchase in full by, any agency of the Federal Government or of a State, or any political subdivision thereof; or (v) that is granted by a corporate credit union (as that term is defined by the Board) to another credit union. (2) the term “net worth”— (A) with respect to any insured credit union, means the credit union’s retained earnings balance, as determined under generally accepted accounting principles; and (B) with respect to a credit union that serves predominantly low-income members, as defined by the Board, includes secondary capital accounts that are— (i) uninsured; and (ii) subordinate to all other claims against the credit union, including the claims of creditors, shareholders, and the Fund; and (3) the term “associated member” means any member having a shared ownership, investment, or other pecuniary interest in a business or commercial endeavor with the borrower. (d) Effect on existing loans An insured credit union that has, on August 7, 1998, a total amount of outstanding member business loans that exceeds the amount permitted under subsection (a) shall, not later than 3 years after August 7, 1998, reduce the total amount of outstanding member business loans to an amount that is not greater than the amount permitted under subsection (a). (e) Consultation and cooperation with State credit union supervisors In implementing this section, the Board shall consult and seek to work cooperatively with State officials having jurisdiction over State-chartered insured credit unions.
Official text at uscode.house.gov ↗