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ALEXANDRIA, Va. — The instances when a federal credit union can issue member business loans to CEOs, assistant chief executive officers, chief financial officers, and any “immediate family members” of these officials was recently clarified by NCUA.

In a Jan. 23 opinion letter, NCUA responded to a query from an FCU seeking guidance on whether it might issue a line of credit to a law firm in which the CEO’s husband is a partner. The law firm in question is organized as a professional law corporation (PLC) under Louisiana law, which establishes it as a separate entity from its partners, thus the loan is permissible, NCUA Associate General Counsel Sheila Albin wrote.

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