HUNTINGTON, Ind. – As a state-chartered credit union with a robust agricultural lending program, Community Link Federal Credit Union knew it was just a matter of time before new legislation would pull the reins back on its core loan program.

Last year Indiana bill HB 1179 updated the Indiana Credit Union Act to say total loans and extensions of credit at state-chartered credit unions cannot exceed 15% of the unimpaired capital and surplus of the credit union. For Community Link, that would have meant a $1.1 million reduction in borrowing limit to any one member. Previously state-chartered credit unions could loan up to 10% of assets to one borrower.

Because of this significant change, the $14 million credit union took several forward-thinking steps to ensure that it could still be a viable lending source for its members, many of which are farmers. After nearly 75 years as a state-chartered credit union, it changed its name from Community Credit Union and converted to a federal charter effective July 1. If it had continued on as a state credit union, the aggregate borrowing limit would have dramatically dropped from $1.4 million to $200,000, said Jim Countryman, president/CEO. A federal charter allows for a higher business lending cap, he added.