Financial Code section 14959

(a)

A credit union may do either or both of the following:

(1)

Purchase, in whole or in part, from any source, loans made to its members.

(2)

Sell, in whole or in part, to any source, loans made to its members.

(b)

A credit union may purchase, in whole or in part, either or both of the following:

(1)

A loan originated by another credit union, which is made to a member of the originating credit union even though the member is not also a member of the credit union purchasing the loan.

(2)

A loan from any source, if the purchase will facilitate the purchasing credit union’s packaging of a pool of those loans to be sold or pledged on the secondary market.

(c)

A loan purchase that is authorized by this section shall not be an obligation with a nonmember within the meaning of Section 14750.

Source: Section 14959, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=FIN§ionNum=14959.­ (accessed Apr. 24, 2025).

Last Updated

Apr. 24, 2025

§ 14959’s source at ca​.gov