Register May 2014 No. 701
Chapter DFI-CU 72
MEMBER BUSINESS LOANS
DFI-CU 72.01 Definitions.
DFI-CU 72.02 Member business loan.
DFI-CU 72.03 Prohibited member business loans.
DFI-CU 72.04 Construction and development loans.
DFI-CU 72.05 Implementation of a member business loan program.
DFI-CU 72.06 Member business loan policy requirements.
DFI-CU 72.07 Collateral and security requirements.
DFI-CU 72.08 Amount of loan.
DFI-CU 72.09 Calculating the aggregate 15% limit.
DFI-CU 72.10 Available waivers.
DFI-CU 72.11 Obtaining a waiver.
DFI-CU 72.14 Aggregate member business loan limit.
DFI-CU 72.15 Exceptions to the aggregate business loan limit.
DFI-CU 72.16 Obtaining an exception.
DFI-CU 72.17 Record keeping requirements.
DFI-CU 72.01(1)
(1) “Amount" of a business loan includes all the following:
DFI-CU 72.01(2)
(2) “Associated member" means a person who is associated with another by means of a shared ownership, investment or other pecuniary interest in a business or commercial endeavor.
DFI-CU 72.01(3)
(3) “Business purpose loan" means a loan where the borrower intends to use the proceeds for any of the purposes listed in
s. DFI-CU 72.02 (1).
DFI-CU 72.01(4)
(4) “Construction or development loan" means a financing arrangement for acquiring real property or rights to real property, including land or structures, with the intent to develop or improve it for any of the following:
DFI-CU 72.01(5)
(5) “Director" means the director of the office of credit unions or an authorized representative of the director.
DFI-CU 72.01(6)
(6) “Loan-to-value ratio" or “LTV ratio" means the amount of all loans by the credit union secured by an item of collateral added to the amount of all outstanding loans by other lenders secured by that item of collateral, that total amount then being divided by the market value of that item of collateral.
DFI-CU 72.01(9)
(9) “Net worth" means the retained earnings as defined under Generally Accepted Accounting Principles. Retained earnings include undivided earnings, regular reserves and any other appropriations designated by management or regulatory authorities.
DFI-CU 72.01 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.02(1)
(1) “
Member business loan" means any loan, line of credit, letter of credit or any unfunded commitment to make a loan, where the borrower intends to use the proceeds for any of the following purposes:
DFI-CU 72.02(2)
(2) “Member business loan" shall not include any of the following:
DFI-CU 72.02(2)(a)
(a) A business purpose loan fully secured by a lien on a 1 to 4 family dwelling that is the member's primary residence.
DFI-CU 72.02(2)(b)
(b) A business purpose loan fully secured by shares or deposits in the credit union making the extension of credit or in other credit unions, or by deposits in other financial institutions.
DFI-CU 72.02(2)(c)
(c) One or more business purpose loans to a member or an associated member that, in the aggregate, are less than $50,000. The entire amount of such a loan or loans that equals or exceeds this amount, or that causes the aggregate to exceed this amount is a business loan.
DFI-CU 72.02(2)(d)
(d) A business purpose loan where a federal or state agency or any of their political subdivisions fully insures repayment, or fully guarantees repayment, or provides an advance commitment to purchase in full.
DFI-CU 72.02(2)(e)
(e) A loan granted by a corporate credit union to another credit union.
DFI-CU 72.02 History
History: CR 02-034: cr.
Register August 2002 No. 560, eff. 9-1-02.
DFI-CU 72.03(1)(1)
Officers. A credit union shall not grant a member business loan to any of its following:
DFI-CU 72.03 Note
Example: President, Treasurer or Manager.
DFI-CU 72.03 Note
Example: Assistant President, Vice President, Assistant Treasurer or Assistant Manager.
