10 Pa. Code § 34a.2 - Consumer loans

(a) An association may make direct or indirect consumer loans as follows:

(1) The following shall be complied with:

(i) At any one time the total investment made under this section and § 34a.3 (relating to commercial paper and corporate debt securities) added together shall not exceed 20% of an association's assets.

(ii) Before indirect loans are made through a dealer, the dealer must be approved by the association's board of directors.

(2) The authority to make a consumer loan includes the authority to originate, purchase, sell, service, and participate in such loans; however such loans shall conform to the provisions of this section and the association's written underwriting standards.

(b) If a loan that may be made under this section is also authorized to be made under another section of this chapter or under other statute or regulation which may have different percentage-of-assets and other limitations or requirements, an association shall have the option of choosing under which applicable provision the loan shall be made.

(c) The total balances of all outstanding loans that may be made under this section in unsecured loans to one borrower is limited to the lesser of .25% of an association's assets or 5.0% of its net worth; however, an association may make up to $3,000 in unsecured loans to any one borrower and, beginning on January 1, 1982 and annually thereafter, such amount shall be adjusted by the dollar amount that reflects the percentage increase, if any, in the Consumer Price Index during the previous 12 months as shown in the November-to-November index.

Notes

10 Pa. Code § 34a.2

This section cited in 10 Pa. Code § 34a.3 (relating to commercial paper and corporate debt securities).