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Opinion Summary of Selected Opinion 98-083

Date: 06/01/1998
Organization: Division of Banks
Docket Number: 98-083

This opinion was issued in the second quarter of 1998.

Table of Contents

Aggregate loan limitation of one credit union member

Section 58 of Massachusetts 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.

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