(1) The powers of a corporation shall be subject to the following restrictions:
- (a) It shall not approve any application for a loan until the applicant shall have shown that the applicant has applied to a financial institution that could lawfully lend the amount of money sought and that the financial institution has refused in writing to make the requested loan.
- (b) It shall not incur any secondary liability for the debts of others but may assume primary liability therefor.
- (c) It shall not give security for any loan made to it unless all loans to it are secured ratably in proportion to unpaid balances due.
Source: L. 65: p. 449, § 1. C.R.S. 1963: § 31-23-6. L. 2004: (1)(a) amended, p. 1404, § 16, effective July 1.