Organization and Operation of Federal Credit Unions
701.22 Loan participations.
This section establishes the requirements a federally insured credit union must satisfy to purchase a participation in a loan. This section applies only to a federally insured credit union’s purchase of a loan participation where the borrower is not a member of that credit union and where a continuing contractual obligation between the seller and purchaser is contemplated. Federally insured, state-chartered credit unions are required by §741.225 to comply with the loan participation requirements of this section.