§ 13.3. Participations in pools of evidences of indebtedness or agreements for the payment of money.
Institutions may purchase from and sell to other institutions, National banks or similar banking companies existing under the laws of any other state, and may sell to other corporations, participations or undivided interests in pools of evidences of indebtedness or agreements for the payment of money, if:
(1) The originating institution, national bank or other banking company retains an undivided interest of at least 25% of the pool.
(2) Evidence of indebtedness or agreement which is included in, or added to, the pool shall be clearly identified in the records of the originating institution, National bank or other banking company as being a part of the pool.
(3) An institution which sells a participation in a pool, may not directly or indirectly guarantee the payment of principal or interest of any evidence of indebtedness or agreement included in the pool. An institution may, however, agree to pay, solely from the earnings of the pool, a fixed rate of return on any participation therein.
Source The provisions of this § 13.3 amended January 2, 1998, effective January 3, 1998, 28 Pa.B. 14. Immediately preceding text appears at serial pages (223173) to (223174).
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