Prohibited activities.

CFR · 2024-01-01 · US · Title 12

(a) (1) Any senior management employee directly or indirectly involved in the credit union's commercial loan underwriting, servicing, and collection process, and any of their immediate family members; (2) Any person meeting the definition of an associated borrower with respect to persons identified in paragraph (a)(1) of this section; or (3) Any compensated director, unless the federally insured credit union's board of directors approves granting the loan and the compensated director was recused from the board's decision making process. (b) (c) (1) A third party may provide a service to the federally insured credit union that is related to the transaction, such as loan servicing. (2) The third party may provide the requisite experience to a federally insured credit union and purchase a loan or a participation interest in a loan originated by the federally insured credit union that the third party reviewed. (3) A federally insured credit union may use the services of a credit union service organization that otherwise meets the requirements of § 723.3(b)(3) of this part even if the credit union service organization is not independent from the transaction, provided the federally insured credit union has a controlling financial interest in the credit union service organization as determined under GAAP.

official document · source cfr-2024 · id 12:§ 723.7