OAR 441-720-0340: Aggregate (Net) Member Business Loan Limit

(1) For purposes of this rule, “net member business loans” means the amount of outstanding balances and any unfunded commitments of the member business loans, reduced by any loan in which a federal or state agency (or its political subdivision) fully insures repayment, fully guarantees repayment, provides an advance commitment to purchase the loan in full, or any loan that is fully secured by a lien on a 1-4 family dwelling; or any portion of a loan sold as a participation interest without recourse and qualifying for true sales accounting under GAAP. (2) The aggregate limit on the amount of a credit union’s net member business loan balances and any unfunded commitments, is the lesser of: (a) 1.75 times the credit union’s actual net worth; or (b) 1.75 times the minimum net worth required under section 1790d(c)(l)(A) of the Federal Credit Union Act (12 USC 1790d(c)(1)(A), as of 2018). (3) Purchases of non-member commercial loans or non-member participation interests are excluded from the aggregate member business loan limit provided the credit union acquired the non-member loans or participation interests in compliance with all relevant laws and regulations and it is not, with one or more credit unions, trading member business loans to circumvent the aggregate limit.