AGO 81-071.

• Case Date: July 08, 1981
• Court: North Dakota

North Dakota Attorney General Opinions 1981. AGO 81-071. OPINION 81-71Date Issued: July 8, 1981 (AGO 81-71) Requested by: L. M. Stenehjem, Jr., Commissioner,Department of Banking and Financial Institutions- QUESTION PRESENTED - Whether the State Credit Union Board has the authority to set an interest rate on loans in excess of one and one-half percent a month on unpaid balances.- ATTORNEY GENERAL'S OPINION - It is my opinion that the State Credit Union Board has the statutory authority to establish an unlimited interest rate on loans made by a credit union. - ANALYSIS - Section 6-06-18 of the North Dakota Century Code was amended by the 1981 Legislative Assembly (House Bill No. 1315) to provide as follows:

6-06-1 8. INTEREST RATES. Interest rates on loans made by a credit union shall not exceed one and one-half percent a month on unpaid balances, unless a greater maximum is approved by the state credit union board.

Therefore, effective July 1, 1981, the interest rate that may be charged on consumer loans by credit unions is eighteen percent. However, the State Credit Union Board has the specific authority to approve a greater maximum interest rate. This authority was granted to the State Credit Union Board primarily because existing usury ceiling rates in North Dakota have been repealed with respect to loans made by other lending...