3 Colo. Code Regs. § 703-3-16.1

Current through Register Vol. 47, No. 22, November 25, 2024

Section 3 CCR 703-3-16.1 - Loans to Non-Members

Credit unions may not make loans to non-members or permit the assumption of existing loans by non-members if the member is no longer liable on the note. This shall not prevent a credit union from selling such items of property acquired by the credit union upon foreclosure or repossession to a non-member purchaser on an installment contract or similar document of time purchase. A non-member joint tenant may neither borrow nor enjoy any of the remaining privileges of membership except as is otherwise specified in Rule 3.1 . The following shall not be deemed to be a loan to a non-member:

(a) When a non-member joint tenant acts as a comaker, cosignor or guarantor of a loan; or

(b) In the case of a loan to a member with the participation of a non-member as comaker, cosignor or guarantor, when the credit union considers the non-member to receive little or no benefit from the loan for himself/herself and considers the non-member as the secondary source of repayment. C.R.S. 11-30-103(4) and 11-30-116

3 CCR 703-3-16.1

39 CR 15, August 10, 2016, effective 9/1/2016