(1) Any financial institution is authorized to become a member of a corporation by making application to the board of directors on such form and in such manner as the board of directors may require, and membership shall become effective upon acceptance of the application by said board. Membership shall be for the duration of the corporation; but upon written notice given to the corporation two years in advance, a member may withdraw from membership at the expiration date of the notice and shall not thereafter be obligated to make any loans to the corporation.
(2) Every member shall make loans to the corporation as and when called upon by it to do so, upon such terms and conditions as approved from time to time by the board of directors, subject to the following conditions:
All loans shall be evidenced by negotiable instruments of the corporation and shallbear interest at a rate of not less than one-half of one percent in excess of the rate of interest determined by the board of directors to be the prime rate on unsecured commercial loans as of the date of the loan.
All loan limits shall be established at the thousand dollar amount nearest to the amount computed in accordance with the provisions of this section.
No loan to a development corporation shall be made if immediately thereafter thetotal amount of the obligations of the said corporation would exceed ten times the amount then paid in on its outstanding capital stock.
(I) The total amount outstanding at any one time on loans to a development corporation made by any member must not exceed the lesser of twenty percent of the total amount then outstanding on loans to such development corporation by all members thereof, two hundred fifty thousand dollars, or the following limit to be determined as of the time a member becomes a member on the basis of figures contained in the most recent year-end statement prior to its application for membership:
Three percent of the capital and permanent surplus of banks and trust companies;
Three percent of the total reserve and surplus accounts of a savings and loan association;
One percent of the capital and unassigned surplus of stock insurance companies,except fire insurance companies;
One percent of the unassigned surplus of mutual insurance companies, except fireinsurance companies;
One-tenth of one percent of the assets of fire insurance companies; and
Comparable limits for other financial institutions as established by the board of directors of the development corporation.
(II) All loan limits shall be recomputed as of the first day of January of each evennumbered year, but no member's loan limit shall be increased as the result of such recomputation without the consent of the member.
Each call for loans made by the corporation shall be prorated among the members ofthe corporation in substantially the same proportion that the adjusted loan limit of each member bears to the aggregate of the adjusted loan limits of all members. The "adjusted loan limit" of a member shall be the amount of such member's loan limit reduced by the balance of outstanding loans made by the member to the corporation and the investment of such member in capital stock of the corporation at the time of the call.
A member of a corporation created under this article shall not be a member of morethan one such corporation.
Source: L. 65: p. 449, § 1. C.R.S. 1963: § 31-23-8. L. 2013: IP(2) and (2)(d) amended, (SB 13-154), ch. 282, p. 1469, § 24, effective July 1.