HRS §412:10-412
Rules for shared loans with other credit unions
This section says that when a credit union makes a loan together with other credit unions or financial groups, it must follow the board's written policies. The credit union that starts the loan must keep at least 10% of the loan's face value.
The statute, as written — Participation loans
Participation loans to credit union members jointly with other credit unions, credit union service organizations, or financial organizations shall be in accordance with written policies of the board of directors. A credit union which originates a loan for which participation arrangements are made in accordance with this section shall retain an interest of at least ten per cent of the face amount of the loan.
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