20:07:03:23Loans made with the assistance of third parties.

If a third party is not the vendor of property that ultimately will be collateral for a particular loan, a bank may make the loan with the assistance of the third party or in connection with prior arrangements between the bank and the third party subject to the following conditions: (1) Final approval or disapproval of a proposed loan is made by the bank at an authorized bank office or branch based upon bank credit standards; (2) Disbursements of loan proceeds are made at an authorized bank office or branch; and (3) The bank maintains proof that the activities engaged in under this section are included in coverage by its banker's blanket bond or an equivalent form of insurance.

Source: 16 SDR 114, effective January 15, 1990.