1. (a) Credit unions may implement a program of indirect financing of motor vehicles and other chattels. For the purposes of this chapter, a retail installment contract purchased under this authority may be treated as a loan on the books and records of the credit union and is subject to the same limitations and restrictions imposed upon loan transactions. As with other lending, the credit union is responsible for making the final underwriting. Although the seller may initially determine whether the prospective buyer is a member or eligible for membership in the credit union, responsibility for membership eligibility decisions must be the credit union's first consideration.
2. (b) A retail installment contract may provide for a rate or amount of time price differential that does not exceed the rate or amount authorized by Chapter 124 of the Texas Finance Code.
3. (c) The board of directors shall establish, implement, and maintain prudent and reasonable written policies that specify guidelines and criteria to be used in purchasing contracts consistent with safe and sound credit union practices.

Source Note:The provisions of this §91.713 adopted to be effective August 9, 1999, 24 TexReg 6023.