Colorado § 7-48-106 - Restrictions on powers.
Full text of Colorado Colorado Revised Statutes § 7-48-106 — Restrictions on powers., with citation guidance and answers to common questions.
§ 7-48-106. Restrictions on powers.
(1) The powers of a corporation shall be subject to the following restrictions:
(a) It shall not approve any application for a loan until the applicant shall have shown that the applicant has applied to a financial institution that could lawfully lend the amount of money sought and that the financial institution has refused in writing to make the requested loan.
(b) It shall not incur any secondary liability for the debts of others but may assume primary liability therefor.
(c) It shall not give security for any loan made to it unless all loans to it are secured ratably in proportion to unpaid balances due.
Source: L. 65: p. 449, § 1. C.R.S. 1963: § 31-23-6. L. 2004: (1)(a) amended, p. 1404, § 16, effective July 1.
Source: official Colorado text · Last verified 2026-08-27
Frequently Asked Questions About Colorado § 7-48-106
What does Colorado Revised Statutes § 7-48-106 cover?
Section 7-48-106 ("Restrictions on powers.") is part of the Colorado Revised Statutes, the codified statutory law of Colorado. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Colorado § 7-48-106?
A common citation format is "Colorado Revised Statutes § 7-48-106" (Colorado). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Colorado law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Colorado official source linked on this page or consult a licensed Colorado attorney.
How does Colorado § 7-48-106 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Colorado can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Colorado.