DFI-CU 72.09
DFI-CU 72.09 Calculating the aggregate 15% limit. To calculate the aggregate 15% limitation, the credit union shall do the following:
DFI-CU 72.09(1)
(1) Calculate the numerator by adding together the amount of the member business loans to a member and associated members, if any. From this amount, the credit union shall subtract each of the following:
DFI-CU 72.09(1)(a)
(a) Any portion secured by shares or deposits in the credit union making the extension of credit or in other credit unions, or deposits in other financial institutions.
DFI-CU 72.09(1)(b)
(b) Any portion insured or guaranteed by any agency or subdivision of the state or federal government.
DFI-CU 72.09(1)(c)
(c) Any portion subject to an advance commitment to purchase by any agency or subdivision of the state or federal government.
DFI-CU 72.09(2)
(2) After completing the calculation in
sub. (1), divide the numerator by the credit union's net worth.
DFI-CU 72.09 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.10
DFI-CU 72.10 Available waivers. A credit union may seek a waiver for any of the following:
DFI-CU 72.10(4)
(4) Appraisal requirements under section 722.3 of NCUA rules.
DFI-CU 72.10 Note
Note: A copy of NCUA rules may be obtained by writing to the Office of Credit Unions, P.O. Box 14137, Madison, WI 53714-0137.
DFI-CU 72.10 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.11(1)
(1) To obtain a waiver under
s. DFI-CU 72.10, a credit union shall submit a request to the director. The request shall contain all of the following:
DFI-CU 72.11(1)(d)
(d) Documentation supporting the credit union's ability to manage this activity.
DFI-CU 72.11(1)(e)
(e) An analysis of the credit union's prior experience making member business loans, including each of the following:
DFI-CU 72.11(1)(e)4.
4. Concentrations of credit to a member and associated members in excess of 15% of net worth.
DFI-CU 72.11(1)(e)7.
7. The qualifications of personnel responsible for underwriting and administering member business loans.
DFI-CU 72.11(2)
(2) Upon receipt of the request for waiver, the director shall do all of the following:
DFI-CU 72.11(2)(c)
(c) Consider the credit union's historical capital, asset, quality, management, earnings and liquidity (“CAMEL") composite and component ratings.
DFI-CU 72.11(2)(d)
(d) Notify the credit union when the waiver request is deemed complete.
DFI-CU 72.11(2)(e)
(e) Notify the credit union of the action taken within 45 calendar days of receiving a complete request.
DFI-CU 72.11(3)(a)
(a) The director shall provide a copy of the waiver request to the applicable regional director of the NCUA, and shall consult and seek to work cooperatively with the applicable regional director in deciding upon the request.
DFI-CU 72.11(3)(c)
(c) If the credit union requesting the waiver does not receive notification within 45 calendar days of the date the complete request was received by the director, the waiver request shall be deemed approved by the director.
DFI-CU 72.11(3)(d)
(d) The director shall promptly notify the applicable regional director of NCUA of his or her decision on the request.
DFI-CU 72.11(4)(a)
(a) If the director approves the request, the director shall promptly forward the request to the applicable regional director of the NCUA for decision under
12 CFR 723.12.
DFI-CU 72.11 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.14
DFI-CU 72.14 Aggregate member business loan limit. The aggregate limit on the amount of a credit union's member business loans is the lesser of 1.75 times the credit union's net worth or 12.25% of the credit union's total assets.
DFI-CU 72.14 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.15
DFI-CU 72.15 Exceptions to the aggregate business loan limit. Credit unions that meet any one of the following criteria qualify for an exception from the aggregate member business loan limit:
DFI-CU 72.15(2)
(2) Credit unions that participate in the Community Development Financial Institutions program.
DFI-CU 72.15(3)
(3) Credit unions that are chartered for the purpose of making member business loans, as supported by documentary evidence.
DFI-CU 72.15 Note
Example: The credit union's charter, bylaws, business plan, field of membership, board minutes and loan portfolio.
DFI-CU 72.15 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.16(2)
(2) To obtain an exception under
s. DFI-CU 72.15 (3), a credit union shall submit its request to the director. An exception shall not be effective until approved by the director. The exception request shall include documentation demonstrating that the credit union meets the criteria for the exception. The exception shall not expire unless revoked for safety and soundness reasons by the director.
DFI-CU 72.16(3)
(3) The director shall promptly notify the applicable region of the NCUA of his or her decision on the request.
DFI-CU 72.16 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.17
DFI-CU 72.17 Record keeping requirements. A credit union shall separately identify member business loans in its records. On its financial reports, a credit union shall identify member business loans in the aggregate.
DFI-CU 72.17 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
