Georgia Code
Part 3 - Operation and Regulation
§ 7-1-658. Loans

History. Ga. L. 1925, p. 165, §§ 14, 18; Code 1933, §§ 25-115, 25-116; Ga. L. 1962, p. 74, § 2; Ga. L. 1968, p. 465, §§ 4, 5; Code 1933, § 41A-3109, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1976, p. 1681, §§ 4, 5; Ga. L. 1981, p. 1244, § 10; Ga. L. 1994, p. 1780, § 2; Ga. L. 2004, p. 458, § 5; Ga. L. 2018, p. 214, § 16/HB 780; Ga. L. 2020, p. 320, § 11/HB 781; Ga. L. 2022, p. 220, § 28/HB 891.
The 2018 amendment, effective May 3, 2018, substituted “directors, and committee members” for “directors, committee members, and employees” in the last sentence of subsection (c). See Editor’s notes for applicability.
The 2020 amendment, effective January 1, 2021, in paragraph (b)(2), inserted “to a borrower that do not in the aggregate exceed 5 percent of the net worth of the credit union” and “set forth in this Code section for loans generally and such further limitations and conditions” in the first sentence and deleted the former third sentence, which read: “All loans in excess of 50 percent of a credit union’s maximum loan limitation or such lower limit as the credit committee shall establish shall be acted upon by the credit committee”; in paragraph (b)(3), in the first sentence, inserted “a borrower that do not in the aggregate exceed 5 percent of the net worth of the credit union” and “set forth in this Code section for loans generally and such further limitations and conditions” and substituted “may prescribe” for “prescribes”; added subsection (d); redesignated former subsection (d) as present subsection (e); substituted the present provisions of subsection (e) for the former provisions, which read: “No credit union shall be authorized to lend to any individual borrower on an unsecured loan more than 1 percent of the first $100,000.00 of its deposits and shares plus one-fourth of 1 percent of its deposits and shares over $100,000.00. No credit union shall be authorized to lend to any individual borrower on a secured loan more than 10 percent of the first $100,000.00 of its deposits and shares plus 4 percent of the next $1 million of its deposits and shares plus 2 percent of its deposits and shares over $1.1 million. Deposits and shares reflected in the statement of condition on the last calendar day of the preceding quarter, to the nearest $100,000.00, shall be used to establish loan limits for the subsequent calendar quarter, provided that where a credit union has less than $1 million in total shares and deposits, the nearest $1,000.00 shall be used to establish these limits. Any credit union may make loans up to $200.00 regardless of the amount of its shares and deposits. The amount loaned to any one borrower on an unsecured basis when added to the amount loaned to any one borrower on a secured basis shall not exceed the limitation set forth in this subsection for secured loans, such limitation being the maximum loan limit of the credit union.”; deleted former subsection (e), which read: “For purposes of subsection (d) of this Code section:
“(1) ‘Borrower’ means the member who actually received the proceeds from a loan and shall not include any obligation which he may incur by being an endorser, guarantor, comaker, or similar obligor for another borrower;
“(2) ‘Secured loan’ means a loan for which adequate collateral is given. A secured loan may include a loan for which there is an endorser, guarantor, comaker, or similar obligor.”; added subsections (f) through (h); redesignated former subsection (f) as present subsection (i); and substituted “Except as provided in subsection (e) of this Code section, approval” for “Approval” at the beginning of subsection (i).
The 2022 amendment, effective July 1, 2022, deleted “and” from the end of paragraph (g)(3), substituted “; and” for a period at the end of subparagraph (g)(4)(C), and added paragraph (g)(5).
Code Commission notes.
Pursuant to Code Section 28-9-5, in 2004, “$1 million” was substituted for “$1,000,000.00” and “$1.1 million” was substituted for “$1,100,000.00” in two places in subsection (d).
Pursuant to Code Section 28-9-5, in 2020, an extra period was deleted in the middle of paragraph (b)(2).
Editor’s notes.
Ga. L. 2018, p. 214, § 26(b)/HB 780, not codified by the General Assembly, provides that: “It is not the intent of the General Assembly to affect the law applicable to litigation pending as of March 9, 2018.”
Law reviews.
For article discussing methods of computation of finance charges in Georgia consumer credit contracts, see 30 Mercer L. Rev. 281 (1978).

Structure Georgia Code