(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.
(Amended by Stats. 2018, Ch. 267, Sec. 8. (AB 2862) Effective January 1, 2019.)
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