By the Division of Banks

Aggregate Loan Limitations Of One Credit Union Member

Section 58 of Mass. Gen. Laws chapter 171 provides the formula for calculating the maximum loan limitation for personal loans on which one borrower may be obligated to a credit union: "in computing the total liability of a member, there shall be included the direct liability of the member and his liability as an endorser, guarantor, or surety on the obligation of others which are held by the credit union." The Division is of the position that, in the event a member is at the legal maximum in loans from the credit union, he/she may not be a legal co-signor or co-maker of another member's promissory note. This analysis also applies to credit card limitations under said M.G.L. ch. 171 § 59A.