(1) A loan made by a domestic credit union to another domestic credit union is not subject to any interest rate limitation contained in any law of this state.
  (2) In addition to any other loan authorized by law, a domestic credit union may enter into a loan agreement under this subsection with a member. All of the following apply to a loan under this subsection:

Terms Used In Michigan Laws 490.422

  • Credit union: means a domestic or foreign credit union. See Michigan Laws 490.102
  • Domestic credit union: means a cooperative, nonprofit entity organized under this act for the purposes of encouraging thrift among its members, providing a variety of financial services to its members, and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition. See Michigan Laws 490.102
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  (a) The loan may be for any amount up to $1,000.00.
  (b) The term of the loan shall be 30 days.
  (c) The domestic credit union may charge a fee in addition to any interest in connection with the loan. A fee is in addition to interest authorized by law and is not part of the interest collected or agreed to be paid on loans within the meaning of a law of this state that limits the rate of interest which may be exacted in a transaction.
  (d) The total interest, fees, and other costs of the loan shall not exceed 10% of the principal amount.
  (e) A member shall not have more than 1 loan under this subsection outstanding with the credit union.
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