§ 7-49-108 — Membership - loans from members

Colorado § 7-49-108

• Jurisdiction: Colorado
• Title 07: Corporations
• Art.: Older Housing

Text

(1) Any financial institution is
authorized to become a member of the corporation by making application to the
board of directors on such form and in such manner as the board of directors may
by rule require, and membership shall become effective upon approval of the
application by said board. Membership shall be for the duration of the corporation;
but, upon written notice given to the corporation two years in advance, a member
may withdraw from membership at the expiration of the notice and shall not
thereafter be obligated to make any loans as a member of the corporation.

(2) Every member shall agree to make, pledge, or commit loans to the
corporation or to other borrowers as provided in this section when called upon by it
to do so, upon such terms and conditions as shall be approved by rule from time to
time by the board of directors.

(3) (a) Pursuant to procedures established by rule at the time of
incorporation, or as from time to time modified by the board of directors with the
approval of a majority of the member institutions, the corporation shall have the
right to ask every member to make, pledge, or commit loans up to two-tenths of one
percent of its assets (or more if a greater amount is subsequently authorized) for
rehabilitation, refinancing, or acquisition loans made under this article. A member's
obligation to make, pledge, or commit loans in excess of two-tenths of one percent
of its assets arises only with the consent of the individual member.

(b) Such request may be made by the corporation to a member institution
asking that the member fulfill its obligations by making an insured loan to finance
rehabilitation work, refinancing, or acquisition.

(c) If a member institution has made loans insured under this article,
outstanding principal amounts of which equal or exceed two-tenths of one percent
of such lending institution's assets or the amount of funds pledged, the institution
may assign a loan application qualified under this article to another member
institution which has not made loans insured under this article equal to the amount
of funds pledged or committed to the corporation or two-tenths of one percent of
its assets, and the member institution to which the assignment has been made will,
if such member institution approves, make the insured loan.

(d) In the alternative, a member institution which has exceeded its two-tenths of one percent quota may place a loan application qualified under this article
with the corporation which shall have the authority to assign such qualified loan
application to any member institution which has not exceeded its commitments, and
such institution shall make such loan if it approves thereof. The member institution
to which such assignment is made need not be located in the municipality in which
the housing facility mortgaged or to be mortgaged pursuant to such assigned loan
is located.

(e) Each loan shall be subject to reasonable administrative discretion and
approval by the lender, under rules established by the corporation, as to the
structural soundness of the housing structure and the economic soundness of the
proposed loan.

(f) If loans are made directly to the corporation by a member institution for
use by the corporation pursuant to procedures established at the time of
incorporation, the corporation may transfer amounts to each member institution for
the purpose of making loans as provided in this article. Each such loan shall be
subject to reasonable administrative discretion by the lender as to the structural
soundness of the housing structure and the economic soundness of the proposed
loan.

Legislative History

Source: L. 75: Entire article added, p. 266, � 1, effective June 29.