TITLE 26

BANKS AND BANKING

CHAPTER 21

IDAHO CREDIT UNION ACT

26-2120A.  LIMIT ON LOAN MATURITY. The maturity of a loan to a member may not exceed fifteen (15) years except as follows:

(1)  A credit union may make loans with maturities not to exceed twenty (20) years in the case of:

(a)  A loan to finance the purchase of a manufactured home if the manufactured home will be used as the member’s residence and the loan is secured by a first lien on the manufactured home, and the manufactured home meets the requirements for the deductibility of residential mortgage interest for income tax under the Internal Revenue Code;

(b)  A second mortgage loan or a nonpurchase money first mortgage loan in the case of a residence on which there is no existing first mortgage, if the loan is secured by a residential dwelling that is the residence of the member; and

(c)  A loan to finance the repair, alteration, or improvement of a residential dwelling that is the residence of the member.

(2)  A credit union may make residential real estate loans on one-to-four family dwellings used as second or vacation residences, including an individual cooperative unit, and that are secured by a first lien upon such dwelling, with maturities not to exceed thirty (30) years.

(3)  A credit union may make residential real estate loans to members, including loans secured by manufactured homes permanently affixed to the land, with maturities not to exceed forty (40) years, subject to the following conditions:

(a)  The loan shall be made on a one-to-four family dwelling that is or will be the principal residence of the member, and the loan shall be secured by a perfected first lien in favor of the credit union on such dwelling, or a perfected first security interest in the case of either a residential cooperative or a leasehold or ground rent estate;

(b)  The loan application shall be a completed standard federal housing administration, veterans administration, federal home loan mortgage corporation, federal national mortgage association, or federal home loan mortgage corporation/federal national mortgage association application form. In lieu of use of a standard application, the credit union may have a current attorney’s opinion on file stating that the forms in use meet the requirements of applicable federal, state, and local laws;

(c)  The security instrument and note shall be executed on the most current version of the federal housing administration, veterans administration, federal home loan mortgage corporation, federal national mortgage association, or federal home loan mortgage corporation/federal national mortgage association uniform instruments for the jurisdiction in which the property is located. In lieu of use of a standard security instrument and note, the credit union may have a current attorney’s opinion on file stating that the security instrument and note in use meet the requirements of applicable federal, state, and local laws; and

(d)  The loan shall be secured by a perfected first lien or first security interest in favor of the credit union supported by a properly executed and recorded security instrument.

(4)  Lines of credit are not subject to a maturity limit except as determined by contract between the credit union and the member.

History:

[26-2120A, added 2020, ch. 230, sec. 9, p. 677.]