17-2245. Credit union may participate in loan with another credit union, financial organization or national cooperative bank.
17-2245
17-2245. Credit union may participate in loan with another credit
union, financial organization or national cooperative bank.
(a) A credit union may agree to participate in the risk liability and income
of loans to credit union members jointly with other credit unions, credit
union organizations, financial institutions or financial organizations.
Such participation loans shall be in accordance with written policies
of the board of directors. A credit union which originates a loan for which
participation agreements are made in accordance with this subsection shall
retain an interest of at least 10% of the face amount of the loan.
(b) A credit union may agree to participate in the risk liability and
income of loans or guarantees with the national cooperative bank established
pursuant to the act of congress known as the national consumer cooperative
bank act of 1978, and any amendments thereto. Such loans may be made to
any eligible borrower under such act of congress and may be made jointly
with any financial institution, agency, instrumentality or foundation authorized
to do so under such act.
History: L. 1974, ch. 93, § 1; L. 1982, ch. 103, § 6;
L. 1987, ch. 85, § 3; April 2.