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 decision. The seller may initially determine whether the prospective buyer is a member or eligible for membership in the credit union, but the final determination of membership eligibility is the responsibility of the credit union.
2. (b) Credit unions may purchase or otherwise hold retail installment contracts when authorized by applicable law. The retail installment contract must provide for a rate or amount of time price differential that does not exceed a rate or amount authorized by applicable law.
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; amended to be effective August 10, 2003, 28 TexReg 6268.