1. (a) Obligations shall not be extended, refinanced, renegotiated, or revised unless there is evidence that the borrower will be able to adhere to the terms of the extended, refinanced, renegotiated, or revised obligation.

2. (b) For the purposes of subdivision (a), an obligation shall not be deemed to be “extended” if the term of the obligation is lengthened by any of the following:

   1. (1) The terms and conditions of the obligation provide for a “skip payment” option.
   2. (2) A general offer is made by a credit union to all its members in good standing to skip a payment, provided no more than two payments per calendar year are skipped in reliance on this paragraph.

Note: Authority cited: Section 14201, Financial Code. Reference: Sections 14007 and 14950, Financial Code.

History

1. Change without regulatory effect renumbering and amending former section 936 to new section 30.401 filed 8-19-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 34).

2. Amendment of section heading and section filed 2-27-2003; operative 3-29-2003 (Register 2003, No. 9).