§ 7-48-106 — Restrictions on powers

(1) The powers of a corporation shall be
subject to the following restrictions:

(a) It shall not approve any application for a loan until the applicant shall
have shown that the applicant has applied to a financial institution that could
lawfully lend the amount of money sought and that the financial institution has
refused in writing to make the requested loan.

(b) It shall not incur any secondary liability for the debts of others but may
assume primary liability therefor.

(c) It shall not give security for any loan made to it unless all loans to it are
secured ratably in proportion to unpaid balances due.

Legislative History

Source: L. 65: p. 449, � 1. C.R.S. 1963: � 31-23-6. L. 2004: (1)(a) amended, p. 1404, � 16, effective July 1.