12 C.F.R. § 701.38 Borrowed funds from natural persons.
Title 12 - Banks and Banking
(a) Federal credit unions may borrow from a natural person, provided: (1) 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; (2) The promissory note and any advertisement for such funds contains conspicuous langauge indicating that: (i) The note represents money borrowed by the credit union; (ii) The note does not represent shares and, therefore, is not insured by the National Credit Union Share Insurance Fund. [45 FR 29271, May 2, 1980, as amended at 47 FR 17979, Apr. 27, 1982]
Title 12: Banks and Banking
PART 701—ORGANIZATION AND OPERATION OF FEDERAL CREDIT UNIONS
§ 701.38 Borrowed funds from natural persons.
