Nebraska Statutes 21-1793. Line of credit
(1) Upon application by a member, the credit union may approve a self-replenishing line of credit, either on an unsecured basis or secured by real or personal property, and loan advances may be granted to the member within the limit of such line of credit. When a line of credit has been approved, no additional credit application shall be required as long as the aggregate indebtedness of the line of credit with the credit union does not exceed the approved limit. The credit union may, at its option, require reapplication for a line of credit either periodically or as circumstances warrant.
Terms Used In Nebraska Statutes 21-1793
- Credit union: shall mean a cooperative, nonprofit corporation organized under the Credit Union Act for purposes of educating and encouraging its members in the concept of thrift, creating a source of credit for provident and productive purposes, and carrying on such collateral activities as are set forth in the act. See Nebraska Statutes 21-1705
- Line of credit: shall mean a loan in which amounts are advanced to the borrower upon his or her request from time to time, pursuant to a preexisting contract and conditional or unconditional credit approval, and in which principal amounts repaid automatically replenish the funds available under the contract. See Nebraska Statutes 21-1713
- Loan: shall mean any extension of credit pursuant to a contract. See Nebraska Statutes 21-1714
- Personal property: All property that is not real property.
(2) A line of credit shall be subject to a periodic review by the credit union in accordance with the written policies of the board of directors.