Purpose and scope.

CFR · 2024-01-01 · US · Title 12

(a) (b) (i) The credit union's total assets are less than $250 million. (ii) The credit union's aggregate amount of outstanding commercial loan balances and unfunded commitments, plus any outstanding commercial loan balances and unfunded commitments of participations sold, plus any outstanding commercial loan balances and unfunded commitments sold and serviced by the credit union total less than 15 percent of the credit union's net worth. (iii) In a given calendar year the amount of originated and sold commercial loans the credit union does not continue to service total less than 15 percent of the credit union's net worth. (2) This part does not apply to loans: (i) Made by a corporate credit union, as defined in part 704 of this chapter; (ii) Made by a federally insured credit union to another federally insured credit union; (iii) Made by a federally insured credit union to a credit union service organization, as defined in part 712 and § 741.222 of this chapter; or (iv) Fully secured by a lien on a 1- to 4-family residential property that is a member's primary residence. (c) (2) If a Federal credit union makes a commercial loan through a program in which a federal or state agency (or its political subdivision) insures repayment, guarantees repayment, or provides an advance commitment to purchase the loan in full, and that program has requirements that are less restrictive than those required by this rule, then the Federal credit union may follow the loan requirements of the

official document · source cfr-2024 · id 12:§ 723.1