Investment OperationsLeasing

Section § 7720

Explanation

This law allows an association to invest in physical items such as vehicles, mobile homes, machinery, equipment, or furniture. These items can be rented out or sold by the association.

However, there is a limit to these investments – they cannot exceed 10% of the association's total assets.

(a)CA Financial Code § 7720(a) An association may invest in tangible personal property, including without limitation, vehicles, mobilehomes, machinery, equipment, or furniture, and may hold the property for rental or sale.
(b)CA Financial Code § 7720(b) Investment under this section is limited to not in excess of 10 percent of the total assets of the association.
association investment tangible personal property vehicles ...