Pennsylvania Code
Title 10 - BANKING AND SECURITIES
Part III - Savings Association Bureau
Chapter 39 - MOBILE HOME FINANCING
Section 39.5 - Investment practices in inventory financing
Current through Register Vol. 54, No. 12, March 23, 2024
(a) An association shall obtain an application for approval on a form provided by the association. Such application shall state the location of all of the sales and storage lots operated by the dealer as well as his primary business address. It shall name all manufacturers represented and include a general description of the units sold by the dealer (advertising literature is helpful). The application shall state positively whether each manufacturer represented subscribed to the Uniform Invoicing Code adopted by the Mobile Home Manufacturers Association. It shall also state whether the dealer is willing to sign recourse or repurchase agreements in favor of the association. Preferably, the dealer shall do both. The application shall include the names of all persons having a proprietary interest in the dealership and state the amount of such interest in terms of percentage of the whole.
(b) [Reserved].
(c) In approving an application for inventory financing, an association shall obtain a profit and loss statement for the last fully completed semi-annual period, supplemented by a similar statement for the months since the close of that semi-annual period. The Department does not prescribe a particular form for this statement, although the form shown in the appendix of the "Study of the Mobile Home Industry" is considered appropriate in form and detail.
(d) A written credit report on the dealer submitted by a recognized credit reporting agency shall be obtained.
(e) In order to insure that a dealer maintains high standards, current financial statements shall be obtained at least every 6 months for review by the board of directors. Such semi-annual review shall be noted in the minutes of the director's meetings.
(f) After a dealer has been approved an association may operate through that dealer to the full extent permitted by regulation. The following safeguards are considered necessary and proper: