I400.1 General. It is the policy of NORTH CAROLINA COMMUNITY FEDERAL CREDIT UNION
(NCCFCU) to make loans that represent a desirable and profitable means of investing credit union
funds. Each such loan is made to a business organization, and the natural person members who
are principal(s) of the business organization are to provide their personal liability and guarantee of
the loan. Such loans must also conform to the provisions of the National Credit Union
Administration (NCUA) and to the written loan policies of NCCFCU.
1400.2 Authorized NCCFCU officers are expected to make loans that afford profitable opportunities
to the credit union, while adhering to prudent lending practices. When making business loans,
primary consideration shall be given to existing or potential members within the Geographic Region
noted under "Territory.” If NCCFCU liquidity is not adequate, it will be the policy of NCCFCU to
grant loans under a participation arrangement policy. Periodic disclosure will be made to the
membership and will be published in the lobby of all branches of NCCFCU by posting the
Statement of Financial Condition for each and every month end. NCCFCU will comply with the
NCUA Rules and Regulations Section 723 and DFI Title 10, Chapter 1, Subchapter 30, Article 8,
Section 30.803 regarding Member Business Lending (“MBL”). NCCFCU also will comply with rules
and regulations as set forth in the Small Business Administration’s (“SBA”) standard operating
procedures for SBA loans.
1401 Business Loan Definition. "Business Loan", as defined by NCUA guidelines, means any loan,