Chapter DFI-CU 74
DEBT CANCELLATION CONTRACTS AND DEBT SUSPENSION AGREEMENTS
DFI-CU 74.02 Definitions. DFI-CU 74.03 Debt cancellation contracts and debt suspension agreements. DFI-CU 74.04 Prohibited practices. DFI-CU 74.05 Refunds of fees in the event of termination or repayment of covered loan. DFI-CU 74.06 Method of payment of fees. DFI-CU 74.07 Disclosures. DFI-CU 74.08 Affirmative election to purchase and acknowledgement of receipt of disclosures required. DFI-CU 74.09 Safety and soundness. DFI-CU 74.02(1)(1) “Actuarial method” means the method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed. DFI-CU 74.02(3)(3) “Customer” means a member of a credit union who obtains an extension of credit from a credit union primarily for personal, family or household purposes. DFI-CU 74.02(4)(4) “Debt cancellation contract” means a loan term or contractual arrangement modifying loan terms under which a credit union agrees to cancel all or part of a customer’s obligation to repay an extension of credit from that credit union upon the occurrence of a specified event. The agreement may be separate from or a part of other loan documents. DFI-CU 74.02(5)(5) “Debt suspension agreement” means a loan term or contractual arrangement modifying loan terms under which a credit union agrees to suspend all or part of a customer’s obligation to repay an extension of credit from that credit union upon the occurrence of a specified event. The agreement may be separate from or a part of other loan documents. “Debt suspension agreement” does not include loan payment deferral arrangements in which the triggering event is the borrower’s unilateral election to defer repayment or the credit union’s unilateral decision to allow a deferral of repayment.