What is the maximum loan limit set per borrower according to NCUA regulations?

The selection indicating that the maximum loan limit set per borrower according to NCUA regulations is 10% of the credit union's total unimpaired shares and surplus is correct. This regulation is in place to ensure that credit unions maintain adequate liquidity and risk management by limiting the amount of exposure to any single borrower.

By capping loans at this level, the NCUA promotes responsible lending practices, helping to safeguard the credit union's financial stability and the interests of its members. Adhering to this limit allows credit unions to diversify their lending portfolios, reducing the risk associated with large loans to individual borrowers, thus protecting both the institution and its members from potential defaults.

Other options propose higher limits or determine percentages based on different metrics which do not align with the established guidelines. This is important to maintain clarity and consistency across the lending practices within credit unions, ensuring they operate within an established framework that promotes sound financial health.