Section 0180-09-01-.01 - DISCLOSURE REQUIRED IN BORROWING TRANSACTIONS OF STATE-CHARTERED CREDIT UNIONS(1) Any state-chartered credit union borrowing funds from an individual who is not a member of the credit union shall make the following disclosure in bold face type on the face of the instrument evidencing the borrowing: THIS OBLIGATION IS NOT A DEPOSIT, SHARE, OR SPECIAL ACCOUNT IN THE CREDIT UNION AND IS NOT INSURED BY THE NATIONAL CREDIT UNION ADMINISTRATION.
(2) The foregoing disclosure does not exclude the dissemination of additional information by the credit union in connection with the borrowing transaction; however, any such additional disclosure shall not be in violation of the anti-fraud provisions of state and federal law, T.C.A. § 48-2-101 et seq. and Rule 10b-5 ( 17 CFR 240. 10b-5), as now or hereafter amended.(3) The provisions of this Rule shall apply to all instruments evidencing a borrowing from a non-member individual issued after the effective date of this Rule.Tenn. Comp. R. & Regs. 0180-09-01-.01
Original rule filed April 29, 1980; effective July 29, 1980. Amendment filed January 17, 2017; effective 4/17/2017.Authority: T.C.A. §§ 45-1-107, 45-4-1001, 45-4-1001(b), and 45-4-502.