§ 7-49-109 — Loan insurance fund established

Colorado § 7-49-109

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

Text

(1) The articles of incorporation
shall include provisions for the establishment of a loan insurance fund as follows:

(a) At the time of incorporation, and prior to initiating any loans under section
7-49-108, the corporation may call upon each member institution to contribute to
the loan insurance fund. The contribution of each institution shall not exceed two-one hundredths of one percent of its assets, unless a greater amount is contributed
voluntarily by a member institution or unless a greater amount is stated at the time
of incorporation. The corporation may call for contributions to the loan insurance
fund only as needed to meet its insurance obligations on loans insured under this
article that are in default and for the purpose of maintaining a fund of cash in the
loan insurance fund of five hundred thousand dollars. Calls for contributions shall
be made upon each of the member institutions in an amount that bears, at the date
of the call, the same proportion to the loan insurance fund as such institution's
assets bear to the total assets owned by the institutions.

(b) The loan insurance fund may be maintained by mortgage insurance fees
not to exceed one-half of one percent above the rate charged for the mortgage or
rehabilitation loan.

(2) In the alternative, mortgage insurance may also be provided under the
provisions of section 10-4-106, C.R.S.

Legislative History

Source: L. 75: Entire article added, p. 267, � 1, effective June 29. L. 2003: (1)(a) amended, p. 2211, � 36, effective July 1, 2004.