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March 18, 2008 - S.B. 296, signed by Utah Gov. Jon Huntsman Jr. on March 14, modifies restrictions on member business loans for Utah’s state-chartered credit unions.
The bill amends the Utah Credit Union Act to increase the cap of member business loans a credit union can make from one percent to four percent of its capital and surplus. The bill also removes the requirement that six months of membership is necessary before a business loan can be made to a credit union member.
In addition, S.B. 296 allows the state regulator to increase the $250,000 business loan cap based on inflation rates as per the Consumer Price Index for the preceding calendar year. This change is effective May 5.
To view the bill, click here.
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