§ 39.8. Purchase of participation interests in mobile home chattel paper.
(a) An association may purchase, within the percentage of assets limitation set forth under § 39.3 (relating to limitations), a participation interest in retail mobile home chattel paper which meets all the requirements of § 39.6 (relating to retail purchase money financing), except the lending area requirements, if all of the following applies:
(1) The seller of a participation interest is an institution whose accounts, deposits, or shares are insured by the Federal Savings and Loan Insurance Corporation, the Federal Deposit Insurance Corporation, the National Credit Union Administration, or a service corporation thereof, and the seller remains responsible for servicing of the chattel paper either directly or through a service corporation in the case of an institution seller.
(2) The seller of the chattel paper maintains at least a 25% interest in such chattel paper.
(3) Chattel paper is secured by a mobile home which is located at the time of such purchase, or is to be located within 90 days thereafter, at a mobile home park or other semipermanent site within 100 miles of any office of the seller or the seller’s service corporation which is servicing the chattel paper, provided that such office is maintained and staffed to properly service loans sold.
(b) In the event that any of the requirements set forth under subsection (a)(1) and (2) cease to be met, the association shall dispose of its participation interest within 90 days from the date it became aware that the requirement ceased to be met, unless it has, prior to expiration of the 90 days period, obtained the written approval of the Department to maintain the investment for a longer period, provided, however, that an association which sells a participation shall be under no obligation to repurchase such participation and shall not guarantee the payment of principal or interest thereon.
Source The provisions of this § 39.8 amended April 25, 1980, effective April 26, 1980, 10 Pa.B. 1661. Immediately preceding text appears at serial page (21355).
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