California Code of Regulations
Title 10 - Investment
Chapter 1 - Commissioner of Business Oversight, Division of Financial Institutions
Subchapter 30 - Credit Unions
Article 5 - Insurance
Section 30.500 - Insurance Protection for Obligations Secured by Personal Property
The board of directors of a credit union shall adopt and review at least annually, and the credit union shall comply with, a policy on insuring personal property that secures an obligation. The policy shall (a) provide that, subject to reasonable and specified exceptions, personal property securing an obligation shall be insured in an amount at least equal to the lesser of (1) the principal balance of the obligation or (2) the fair market value of the personal property security, and (b) protect against such risks as the board of directors deems necessary or advisable to protect the credit union's interests.
1. Change
without regulatory effect adding new article 5 (sections
30.500-30.502) and renumbering and
amending former section
942 to new section
30.500 filed 8-19-97 pursuant to
section 100, title 1, California Code of
Regulations (Register 97, No. 34).
2. Repealer and new section filed
2-27-2003; operative 3-29-2003 (Register 2003, No.
9).
Note: Authority cited: Section 14201, Financial Code. Reference: Sections 14950, 14952, 14955 and 15100, Financial Code.