Section 202.041. Credit union and industrial loan association securities

(a) For the purpose of section 202(d) of the act (70 P. S. § 1-202(d)), the term, ‘‘any credit union’’ shall mean an institution organized as a credit union under the applicable laws of this Commonwealth:

(1) the business of which is substantially confined to the credit union business; and

(2) supervised and examined as a credit union by the appropriate Commonwealth authorities having supervision over any such institution. For the purpose of this section the ‘‘credit union business’’ shall be deemed to be exclusively the receipt of deposits from and the making of loans to bona fide members of the credit union. For the purpose of this section, securities issued by a credit union shall mean only those securities which are issued by an entity directly engaged in the credit union business as that term is used herein and shall not include securities issued by a credit union holding company or other similar entity.

(b) For the purpose of section 202(d) of the act, the term ‘‘industrial loan association’’ shall mean an institution organized as an industrial loan association under the applicable laws of this Commonwealth:

(1) the business of which is substantially confined to the industrial loan business; and

(2) examined and supervised as an industrial loan association by the appropriate Commonwealth authorities having supervision over any such institution.

(c) For the purpose of this section, the ‘‘industrial loan business’’ shall be deemed to be the making and discounting of secured and unsecured loans to bona fide members of the association. For the purpose of this section, securities issued by an industrial loan association shall mean only those securities which are issued by an entity directly engaged in the industrial loan business as that term is used herein and shall not include securities issued by an industrial loan holding company or other similar entity.

The provisions of this § 202.041 adopted May 31, 1974, effective June 1, 1974, 4 Pa.B. 1085; transferred and renumbered from 64 Pa. Code § 202.041, December 14, 2012, effective December 15, 2012, 42 Pa.B. 7533. Immediately preceding text appears at serial pages (317563) to (317564).