1. (a) A credit union may participate in loans jointly with other credit unions, credit union organizations, corporations or other financial organizations pursuant to written policies established by the board of directors. Before the disbursement of proceeds to the originating lender, each credit union shall perform its own due diligence of the loan(s).
2. (b) A participating credit union shall treat a participation as an investment, unless the participation is in a loan of a type that the credit union is authorized to make and the borrower is a member of the credit union or a member of another participating credit union.
3. (c) A credit union may sell to or purchase from any participant the servicing of any loan in which it owns a participation interest.

Source Note:The provisions of this §91.711 adopted to be effective August 9, 1999, 24 TexReg 6023; amended to be effective August 10, 2003, 28 TexReg 6268.