15100-15103

FINANCIAL CODE
SECTION 15100-15103




15100.  (a) The board of directors shall establish written policies
which shall set forth the policies of the credit union with respect
to any obligation that is offered to the members of the credit union.
The written policies shall set forth the maximum amounts and terms
for any obligation offered to the members, including, but not limited
to, the following information:
   (1) For loans, the written policies shall set out the terms for
unsecured loans, the maximum amount and terms for secured loans, the
schedule of interest rates established pursuant to Section 15000 for
each type or class of unsecured and secured loan offered to members,
the maximum maturity for any loan, or, in the case of an open-end
loan, the rate of repayment for any type or class of open-end loan,
the limitations, if any, which shall be placed on the authority of
any loan officer appointed pursuant to Sections 14602 and 14603, and,
subject to the provisions of subdivisions (b) and (c), the
individual limits on obligations that are applicable to all members
of the credit union. Any policy developed pursuant to this section by
the board of directors shall, insofar as possible, and, subject to
individual creditworthiness, ensure equal access to funds available
for obligations with credit union members.
   (2) For obligations other than those set out in paragraph (1), the
board of directors shall set out the interest rates and essential
terms of the obligations offered to the members and any other
information as may be required pursuant to regulations that may be
adopted by the commissioner.
   (b) Notwithstanding subdivision (a), no credit union policy shall
permit a credit union to enter into obligations with an individual
credit union member whereby the total obligations of that member,
exclusive of amounts secured by shares or certificates for funds,
exceed 10 percent of the aggregate dollar amount of the credit union'
s savings capital.
   (c) Notwithstanding subdivision (b), no credit union policy shall
permit a credit union to enter into obligations with any one family
whereby the total obligations of the family would be greater than the
amount permitted by subdivision (b). For purposes of this article,
"family" means the marital couple or any head of household together
with those dependents residing with the marital couple or the head of
household and those dependents attending school away from the
principal residence of the marital couple or head of household.
   (d) Notwithstanding subdivisions (a), (b) and (c), any obligation
with a member which is not a natural person shall not result in
liability to the credit union in excess of that member's investment
in the credit union unless an exception is authorized in the credit
union's bylaws and approved by the commissioner. Any lending activity
permitted pursuant to this subdivision may be terminated by an order
issued by the commissioner pursuant to Sections 14200 and 14204.



15101.  Notwithstanding the provisions of Section 15100, if a loan
is made for educational purposes and such loan would cause the
aggregate of loans to an individual or to any one family to exceed
the limitations imposed by subdivision (b) or (c) of Section 15100,
such educational loan shall not be included in computing the
aggregate of loans pursuant to Section 15100, provided (1) that such
educational loan is secured in accordance with subdivision (b) or (c)
of Section 14955, and (2) that the aggregate amount of such
educational loan exempted by this subdivision from subdivision (c) of
Section 15100 shall not exceed ten thousand dollars ($10,000).




15102.  (a) Notwithstanding Section 726 of the Code of Civil
Procedure or any other provision of law to the contrary, a credit
union, an affiliate of a credit union, a credit union service
organization, or any successor in interest thereto, that originates,
acquires, or purchases, in whole or in part, any loan secured
directly or collaterally, in whole or in part, by a mortgage or deed
of trust on real property, or any interest therein, may bring an
action for recovery of damages, including exemplary damages not to
exceed 50 percent of the actual damages, against a borrower where the
action is based on fraud under Section 1572 of the Civil Code and
the fraudulent conduct by the borrower induced the original lender to
make that loan.
   (b) The provisions of this section shall not apply to loans
secured by single-family, owner-occupied residential real property,
when the property is actually occupied by the borrower as represented
to the lender in order to obtain the loan and the loan is for an
amount of one hundred fifty thousand dollars ($150,000) or less, as
adjusted annually, commencing on January 1, 1987, to the Consumer
Price Index as published by the United States Department of Labor.
   (c) Any action maintained under this section for damages shall not
constitute a money judgment for deficiency or a deficiency judgment
within the meaning of Section 580a, 580b, or 580d of the Code of
Civil Procedure.


15103.  A credit union, or the agent of a credit union, that has
received a notice pursuant to Section 7507.6 of the Business and
Professions Code, shall not make a subsequent assignment to skip
trace, locate, or repossess a vehicle without simultaneously, and in
the same manner by which the assignment is given, advising the
assignee of the assignment of the information contained in the
notice. As used in this section, "assignment" has the same meaning
set forth in Section 7500.1 of the Business and Professions Code.