Written by Steve Van Beek
NCUA recently published two legal opinion letters. One discusses a credit union service organization's (CUSO) ability to lease property to credit unions and the members of affiliated credit unions. The letter, NCUA Legal Opinion Letter 11-0642, is very detailed and fact specific so be sure to view the full letter.
The second letter, NCUA Legal Opinion Letter 11-0734, discusses loans to professional musicians to purchase musical instruments. From the letter:
"We do not consider IRS treatment of an expense to be determinative of whether a loan qualifies for MBL treatment under NCUA Part 723. Similarly, the fact that an item may be purchased for a non-business purpose is not controlling. For example, a $50,000 loan to purchase an automobile for use as a taxicab or package delivery truck is an MBL and not a personal loan. It is the loan’s actual purpose and amount, absent any applicable exemptions, that determine whether the loan is an MBL.
It is our view the instrument loan provides a means for your professional musician members to purchase a musical instrument for use in their trade as paid musicians. The musical instrument is a tool of the musician’s trade and is acquired for use in a business capacity. Therefore, where a loan to a member for this purpose totals $50,000 or more when aggregated with other such loans to the member, the loan is an MBL and subject to Part 723." (emphasis added).
Michigan Alert: Perhaps not the most scientific poll - but Good Morning America viewers did name Sleeping Bear Dunes on Lake Michigan the "Most Beautiful Place in America."
If you get a chance to visit northern Michigan, you will not be disappointed.