Alabama § 45-37A-51.260 - Loans to Participants.
Full text of Alabama Code of Alabama § 45-37A-51.260 — Loans to Participants., with citation guidance and answers to common questions.
§ 45-37A-51.260. Loans to Participants.
The board shall have the right to lend to any employee member from the fund such an amount of money as will not cause the aggregate of indebtedness of the employee member to the fund immediately after such loan to exceed 50 percent of the amount of contribution returnable to him or her or to those claiming under him or her, were he or she to become separated from the service immediately after such loan. Interest on such loan shall be charged at the rate of six to seven percent per annum as determined by the board annually.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 45-37A-51.260
What does Code of Alabama § 45-37A-51.260 cover?
Section 45-37A-51.260 ("Loans to Participants.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 45-37A-51.260?
A common citation format is "Code of Alabama § 45-37A-51.260" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 45-37A-51.260 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.