Federal credit unions may borrow from a natural person, provided:
The borrowing is evidenced by a signed promissory note which sets forth the terms and conditions regarding maturity, prepayment, interest rate, method of computation, and method of payment;
The promissory note and any advertisement for such funds contains conspicuous langauge indicating that:
The note represents money borrowed by the credit union;
The note does not represent shares and, therefore, is not insured by the National Credit Union Share Insurance Fund.
Federal credit unions must comply with the maximum borrowing authority of § 741.2 of this chapter.
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