Upon the sale of Section 6705 property, if the association makes a loan to finance the sale, and the loan secured by such property otherwise qualifies as an original loan, the Section 6705 classification shall terminate and the loan shall become part of the original loan portfolio of the association. If the loan does not qualify as an original loan it must qualify under Sections 6705.1, 6705.2, 6705.4, or 6705.6.

Note: Authority cited: Section 5255, Financial Code. Reference: Sections 6705-6705.6 and 6706, Financial Code.

History

1. Change without regulatory effect renumbering former Section 243.3 to Section 108.203 (Register 87, No. 14). For prior history, see Register 76, No. 20.