reglab/statecodes huggingface dataset:
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 61 - Credit union purchase or acquisition of conditional sales contracts or similar instruments executed by credit union members › Section DFI-CU 61.03 - Sharing of interest

Current through June 24, 2024
(1) Subject to the discretion of the board of
				directors a portion of interest charges (finance charges) on purchased
				contracts may be shared by the credit union with the seller subject, however,
				to s. DFI-CU 61.02.
(2) When
				interest income (finance charges) is shared with the seller, on contracts
				purchased with recourse, the credit union shall establish as a liability on its
				records, a dealer reserve. This reserve shall be adjusted and negotiated with
				the seller at least annually on the basis of the interest which has been
				accrued or earned.
(3) On contracts
				purchased without recourse, the shared interest (finance charges) paid to the
				seller must be set up as a deferred charge and applied at least semi-annually
				to the income received on those contracts.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 61 - Credit union purchase or acquisition of conditional sales contracts or similar instruments executed by credit union members › Section DFI-CU 61.04 - Dealer financial statements

Current through June 24, 2024
Credit unions purchasing member contracts with recourse must
				  secure annual sworn financial statements from each participating seller until
				  the purchased contracts have been paid. These sworn financial statements are to
				  be retained by the credit union for review by departmental
				  examiners.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 62 - Supervisory orders › Section DFI-CU 62.01 - Supervisory orders

Current through June 24, 2024
(1) WHEN ISSUED. The director may issue a
				supervisory order to cease and desist whenever he or she determines that a
				credit union is:
(a) Violating the provisions
				of its articles or by-laws, or the laws of this state, or the laws of the
				United States, or any lawful rule, order or regulation promulgated by the
				director and the credit union review board; or
(b) Violating any order of the director which
				may restrict, limit or prohibit the credit union from engaging in any act or
				practice specified under s.
				186.235(11) (a)
				1 to 9., Stats., inclusive;
(c) The supervisory order could include but
				would not be limited to the declaration and/or payment of dividends on member
				savings; the granting or payout of member loans; the acceptance of payments on
				member savings; the payout of member requests for member savings; or any other
				portion of the business of a credit union.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 62 - Supervisory orders › Section DFI-CU 62.02 - Stay of order during appeal

Current through June 24, 2024
The institution of the proceedings for review shall not stay
				  enforcement of the director's decision, but the credit union review board may
				  order a stay upon such terms as it deems proper.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.01 - Joint rules

Current through June 24, 2024
This chapter is promulgated as a joint rule by the office of
				  credit unions and the division of banking in accordance with s.
				  186.113(15)
				  (a), Stats.
See chs.
					 DFI-Bkg 14, DFI-SB 12 and
					 DFI-SL 12, Wis. Adm. Code.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.02 - Definitions

Current through June 24, 2024
In this chapter:
(1)
				DIRECTOR. "Director" means the director of credit unions or authorized
				representative.
(2) DAYS.
(a) "Days" mean calendar days computed under
				s.
				990.001(4),
				Stats.
(b) "Business day" means
				that part of any day on which a credit union is open for carrying on
				substantially all of its business functions.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.04 - Restrictions on access prohibited

Current through June 24, 2024
(1) GENERAL
				PROVISIONS. Except as provided in sub. (2), no credit union may directly or
				indirectly acquire, place or operate a remote terminal and no credit union may
				participate in the acquisition, placement or operation of a remote terminal,
				unless the terminal is available on a nondiscriminatory basis to the following
				financial institutions and their designated customers:
(a) Any financial institution that has its
				home office in this state;
(b) Any
				other credit union which is qualified to do business in this state and has
				obtained the written consent of a credit union that has its home office in this
				state and is making use of the terminal;
(c) Any savings and loan association which is
				qualified to do business in this state and has obtained the written consent of
				a savings and loan association that has its home office in this state and is
				making use of the terminal; and
(d)
				Any other bank which is qualified to do business in this state and has obtained
				the written approval of a bank that has its home office in this state and is
				making use of the terminal.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.05 - Discriminatory rates or services prohibited

Current through June 24, 2024
A remote terminal will not be deemed available for use on a
				  nondiscriminatory basis unless:
(1)
				USER FEES. The fees charged to a financial institution for the use of the
				terminal by the institution or its customers are equitably apportioned and
				reasonably reflect the cost of the services actually provided to the
				institution or customer. Such fees may provide for the amortization of
				development costs and capital expenditures over a reasonable period of
				time.
(2) CUSTOMER SERVICES. Each
				financial institution making use of the terminal may permit its customers to
				make use of all of the functions performed by the terminal at each location of
				the terminal or only those functions and locations that such institution elects
				to make available to its customers.
(3) TECHNICAL INFORMATION AND SPECIFICATIONS.
				Each supplier provides at reasonable cost such technical information and
				specifications as may be necessary to enable a financial institution that is
				eligible to use the terminal, or any data processor serving the accounts of
				such an institution, to obtain interface with the terminal.
(4) OTHER REQUIREMENTS. No financial
				institution eligible to use the terminal is required to purchase from any
				supplier any goods, equipment or services not reasonably necessary to complete
				a transaction through the terminal.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.06 - Confidentiality and security requirements

Current through June 24, 2024
No credit union may directly or indirectly acquire, place or
				  operate a remote terminal, and no credit union may participate in the
				  acquisition, placement or operation of a remote terminal, unless precautions
				  acceptable to the director are provided to:
(1) PRECAUTIONS AGAINST UNAUTHORIZED ACCESS.
				Prevent unauthorized access to, or use of, the terminal.
(2) PRECAUTIONS TO ASSURE CONFIDENTIALITY.
				Prevent information regarding a transaction conducted through the terminal from
				being disclosed to any person other than:
(a)
				The customer making the transaction;
(b) Any other person who is a party to the
				transaction or is necessary to effect the transaction, but only to the extent
				that the information disclosed is necessary to effect the transaction;
				or
(c) Those persons lawfully
				authorized to have access to the records of the credit union or of parties to
				the transaction.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.07 - Allocation of liability

Current through June 24, 2024
(1) BETWEEN CREDIT UNION AND THIRD PARTIES.
				Each activity authorized under s.
				186.113(15),
				Stats., shall be conducted in accordance with a written agreement between the
				credit union and any participating merchant, service center, data processor or
				other third party, setting out the manner in which liability from errors,
				malfunctions or the unauthorized use of a remote terminal will be allocated
				between the parties.
(2) LIMITED
				CUSTOMER LIABILITY FOR UNAUTHORIZED USE.
(a)
				The liability of a customer of a credit union for the unauthorized use of a
				plastic card or other means providing the customer access to a remote terminal
				may not exceed the lesser of the following:
1.
				$50.
2. The amount of any money,
				property or services obtained by its unauthorized use prior to the time the
				credit union is notified of, or otherwise becomes aware of, circumstances which
				lead to the belief that unauthorized access to the customer's account may be
				obtained. Notice is sufficient when the customer takes such steps as may
				reasonably be required in the ordinary course of business to provide the credit
				union with the pertinent information.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.08 - Customer service and disclosure requirement

Current through June 24, 2024
(1) PERIODIC
				STATEMENTS. A credit union shall provide each customer with a periodic
				statement of each account of the customer accessible through a remote terminal.
				The statement shall be provided on a monthly basis for each month in which a
				transaction occurs, or once every 3 months, whichever is more frequent. The
				statement shall identify the date, location, and nature of each transaction. An
				account statement issued under this subsection may include transactions made
				through a remote terminal or otherwise.
(2) TRANSACTION DOCUMENTATION. Every transfer
				of funds through a remote terminal made by a customer of a credit union shall
				be evidenced by a written document made available to the customer at the time
				of the transaction. The document shall indicate with reasonable specificity the
				identity of any third party to whom funds are electronically transferred, the
				identity of the customer's account, the amount of funds transferred, the type
				of transaction, and the date of the transaction. A customer may be required to
				reenter an access device, such as a card, at a terminal in order to receive
				transaction documentation if all of the following conditions are met:
(a) The terminal simultaneously controls the
				distribution of products at several locations on the same site to more than one
				customer;
(b) Each customer must
				remove the access device from the terminal and move to another location in
				order to complete the transaction; and
(c) The terminal cannot produce transaction
				documentation for a particular transaction until the customer completes
				distribution of the product and the amount of the transaction is known.
Note: Paragraphs (a) to (c) apply, for example, to a terminal
				  which monitors a series of gasoline pumps. Each customer must remove the card
				  from the terminal in order to pump the gasoline and then reenter the card in
				  order to obtain a receipt.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.09 - Chargebacks

Current through June 24, 2024
When any sale of goods or services is paid directly through a
				  remote terminal and involves an aggregate transfer of funds of $50 or more from
				  an account of a customer to the account of another person, but does not involve
				  a check or draft, the credit union shall reverse the transaction and recredit
				  the customer's account upon receipt of oral or written notice by the customer
				  within 3 business days after the date of the sale.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.10 - Advertising restrictions

Current through June 24, 2024
If use of a remote terminal is restricted under s. DFI-CU
				  63.04(2), to designated financial institutions, all advertisements regarding
				  the terminal shall clearly state that use of the terminal will be available to
				  customers of other financial institutions, at the end of the period of
				  restricted use authorized by the director.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 63 - Remote Service Units › Section DFI-CU 63.11 - Filing of supplemental information

Current through June 24, 2024
Each credit union engaging in an activity authorized under s.
				  186.113(15),
				  Stats., shall file with the director such additional information regarding its
				  activity as the director may require.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 68 - Investment authority parity with federal credit unions › Section DFI-CU 68.01 - Purpose and scope

Current through June 24, 2024
The purpose of this chapter is to permit Wisconsin-chartered
				  credit unions to invest in the securities, deposits and obligations available
				  to federally chartered credit unions, subject to restrictions which are
				  intended to prevent transactions of a speculative nature. This rule does not
				  limit the investment authority of Wisconsin-chartered credit unions contained
				  elsewhere in the Wisconsin statutes or the Wisconsin administrative
				  code.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 68 - Investment authority parity with federal credit unions › Section DFI-CU 68.02 - Interpretation

Current through June 24, 2024
The interpretation of rules in this chapter shall be
				  coordinated with and parallel to the interpretation of federal laws,
				  regulations, and interpretations from which these rules are
				  derived.
This rule parallels 12 CFR Part 703, Investment and Deposit
					 Activities, effective May 21, 1984.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 68 - Investment authority parity with federal credit unions › Section DFI-CU 68.04 - Board responsibilities

Current through June 24, 2024
The board of directors of each credit union shall maintain a
				  current written policy governing the investment practices of the credit
				  union.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 68 - Investment authority parity with federal credit unions › Section DFI-CU 68.05 - General authority

Current through June 24, 2024
A credit union may contract for the purchase or sale of a
				  security provided that:
(1) The
				delivery of the security is to be made within 30 days of the trade date;
				and
(2) The price of the security
				at the time of purchase is the market price.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 68 - Investment authority parity with federal credit unions › Section DFI-CU 68.06 - Authorized activities

Current through June 24, 2024
In addition to the investments and securities authorized
				  elsewhere in the Wisconsin statutes or the Wisconsin administrative code,
				  Wisconsin-chartered credit unions may contract for the purchase and sale of the
				  following securities and enter into the following types of transactions:
(1) CASH FORWARD AGREEMENTS. A credit union
				may enter into a cash forward agreement to purchase or sell a security,
				provided that:
(a) The period from the trade
				date to the settlement date does not exceed 120 days;
(b) If the credit union is the purchaser, it
				has written cash flow projections evidencing its ability to purchase the
				security;
(c) If the credit union
				is the seller, it owns the security on the trade date; and
(d) The cash forward agreement is settled on
				a cash basis at the settlement date.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 68 - Investment authority parity with federal credit unions › Section DFI-CU 68.07 - Prohibited activities

Current through June 24, 2024
(1) The following types of investment
				transactions are prohibited for Wisconsin-chartered credit unions:
(a) Adjusted trading.
(b) Futures contracts.
(c) Short sales.
(d) Standby commitments.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 69 - Preferential Loan Treatment For Officials › Section DFI-CU 69.01 - Statement of policy

Current through June 24, 2024
The Wisconsin credit union review board and the director are
				  in agreement the Wisconsin credit union industry is best served by an
				  administrative rule prohibiting preferential treatment for loan transactions
				  involving credit union officials.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 69 - Preferential Loan Treatment For Officials › Section DFI-CU 69.02 - Definition

Current through June 24, 2024
In this chapter, "official" means any director, executive
				  officer, credit committee member or internal auditor of a credit
				  union.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 69 - Preferential Loan Treatment For Officials › Section DFI-CU 69.03 - Preferential loan treatment prohibited

Current through June 24, 2024
The interest rates, terms and conditions of any loan made to
				  an official or on which loan an official is a co-maker or guarantor, or of a
				  loan made for the substantial benefit of any official, shall not be more
				  favorable than the rates, terms and conditions prevailing at that time for
				  comparable loan transactions of any other member.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 71 - Leasing of personal property › Section DFI-CU 71.01 - Purpose and scope

Current through June 24, 2024
The purpose of this chapter is to permit Wisconsin-chartered
				  credit unions to engage in the financing of leased personal property for
				  members.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 71 - Leasing of personal property › Section DFI-CU 71.02 - Definitions

Current through June 24, 2024
In this chapter:
(1)
				"Full-payout lease" means a lease from which the lessor can reasonably expect
				to realize a return of its full investment in the leased property plus the
				estimated cost of financing the property over the term of the lease from:
(a) Rentals;
(b) Estimated tax benefits if applicable;
				and
(c) The estimated residual
				value of the property at the expiration of the initial term of the lease,
				provided any unguaranteed portion of the estimated residual value relied upon
				by the credit union to yield a full return under this subsection does not
				exceed 25% of the original cost of the property to the lessor.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 71 - Leasing of personal property › Section DFI-CU 71.03 - Authority to lease personal property

Current through June 24, 2024
Subject to the limitations in this chapter and provided the
				  lease is a net, full-payout lease representing a noncancelable obligation of
				  the lessee, notwithstanding the possible early termination of that lease, a
				  credit union may:
(1)
(a) Become the legal or beneficial owner and
				lessor of specific personal property or otherwise acquire such property at the
				request of the lessee who wishes to lease it from the credit union;
				or
(b) Become the owner and lessor
				of personal property by purchasing the property from another lessor in
				connection with its purchase of the related lease; and
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 71 - Leasing of personal property › Section DFI-CU 71.04 - Recovery in the event of default

Current through June 24, 2024
If, in good faith, a credit union determines that there has
				  been an unanticipated change in conditions which threatens its financial
				  position by significantly increasing its exposure to loss, the credit union
				  may:
(1) As the owner and lessor under
				a net, full-payout, lease, take reasonable and appropriate action to salvage or
				protect the value of the property or its interests arising under the lease,
				or
(2) As the assignee of a
				lessor's interest in a lease, become the owner and lessor of the leased
				property pursuant to its contractual right, or take any reasonable and
				appropriate action to salvage or protect the value of the property or its
				interests arising under the lease.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 71 - Leasing of personal property › Section DFI-CU 71.05 - Application of other laws

Current through June 24, 2024
Nothing in this chapter shall be construed to be in conflict
				  with the duties, liabilities and standards imposed by the Consumer Leasing Act
				  of 1976,
				  15
				  USC 1667 et. seq. or the Wisconsin Consumer
				  Act, chs. 421 to 427, Stats.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 71 - Leasing of personal property › Section DFI-CU 71.06 - Limitation on leasing concentrations

Current through June 24, 2024
Leases permissible under this chapter are subject to the
				  limitation on obligations under s.
				  186.098(5),
				  Stats., and Part 701.21 (h), CFR.
In operating under this chapter it is anticipated that
					 credit unions will estimate the total cost of financing the property over the
					 term of the lease to reflect, among other factors, the term of the lease, the
					 modes of financing available to the lessor, the credit rating of each lessor
					 and lessee involved in the transaction and prevailing rates in the money and
					 capital markets. Where the calculation of the cost of financing according to
					 this formula is not reasonably determinable, a lease may be considered to have
					 met the test for recovering the cost financing if the credit union's yield from
					 the lease is equivalent to what the yield would be on a similar loan. In all
					 cases, both the estimated residual value of the property and that portion of
					 the estimated residual value relied upon by the lessor to satisfy the
					 requirements of a full-payout lease must be reasonable in light of the nature
					 of the leased property and all relevant circumstances so that realization of
					 the lessor's full investment plus the cost of financing the property primarily
					 depends on the creditworthiness of the lessee and any guarantor of the residual
					 value, and not on the residual market value of the leased item.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.01 - Definitions

Current through June 24, 2024
In this chapter:
(1)
				"Amount" of a business loan includes all the following:
(a) Any unfunded commitment to make the
				loan.
(b) The outstanding balance
				of the loan.
(c) Any undisbursed
				proceeds of the loan.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.02 - Member business loan

Current through June 24, 2024
(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:
(a) Commercial.
(b) Corporate.
(c) Investment property.
(d) Business venture.
(e) Agricultural.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.03 - Prohibited member business loans

Current through June 24, 2024
(1) OFFICERS. A
				credit union shall not grant a member business loan to any of its following:
(a) Chief executive officer.
Example: President, Treasurer or Manager.
(b) Assistant chief executive officers.
Example: Assistant President, Vice President, Assistant
				  Treasurer or Assistant Manager.
(c) Chief financial officer.
Example: Comptroller.
(d) Any associated member or immediate family
				member of anyone listed in this subsection.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.04 - Construction and development loans

Current through June 24, 2024
Unless the director grants a waiver, a credit union that
				  makes construction or development loans shall be subject to all of the
				  following:
(1) The aggregate of all
				construction and development loans shall not exceed 15% of the credit union's
				net worth. In determining the aggregate, the credit union may exclude any
				portion of a loan that is any of the following:
(a) 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.
(b) Insured or guaranteed by any agency or
				subdivision of the state or the federal government.
(c) Subject to an advance commitment to
				purchase by any agency of the federal government, the state, or any of their
				political subdivisions.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.05 - Implementation of a member business loan program

Current through June 24, 2024
(1) The board of
				directors shall adopt a specific member business loan policy and review it at
				least annually.
(2) In making
				member business loans, the credit union shall utilize the services of an
				individual with at least 2 years direct experience with the type of lending in
				which it will engage, except as provided s. DFI-CU 72.04(4).
(3) A credit union does not have to hire
				staff to meet the requirements of this section. However, credit unions shall
				ensure that expertise with the type of lending in which it will engage is
				available.
Example: A credit union may meet the experience requirement
				  through various approaches, such as the services of a credit union service
				  organization, an employee of another credit union, an independent contractor or
				  other third parties.
(4)
				The actual decision to grant a loan shall reside solely with the credit
				union.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.06 - Member business loan policy requirements

Current through June 24, 2024
A credit union's member business loan policy shall include
				  all of the following:
(1) The types of
				business loans the credit union will make.
(2) The credit union's trade area.
(3) The maximum amount of the credit union's
				assets, in relation to net worth, that it will invest in member business
				loans.
(4) The maximum amount of
				the credit union's assets, in relation to net worth, that it will invest in a
				given type of business loan.
(5)
				The maximum amount of the credit union's assets, in relation to net worth, that
				it will loan to a member or associated members, subject to s. DFI-CU
				72.08.
(6) The qualifications and
				experience of personnel involved in making and administering business
				loans.
(7) A requirement for
				analysis and documentation of the ability of the borrower to repay the
				loan.
(8) A requirement for the
				receipt and periodic updating of financial statements and other documentation,
				including tax returns.
(9) A
				requirement for documentation sufficient to support each request to extend
				credit, or increase an existing loan or line of credit, except where the board
				of directors finds that the required documentation is not generally available
				for a particular type of loan and states the reasons for those findings in the
				credit union's written policies. The documentation shall include all of the
				following:
(a) Balance sheet.
(b) Cash flow analysis.
(c) Income statement.
(d) Tax data.
(e) Analysis of leveraging.
(f) Comparison with industry average or
				similar analysis.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.07 - Collateral and security requirements

Current through June 24, 2024
Unless granted a waiver by the director, all of the following
				  shall apply:
(1) All member business
				loans shall be secured by collateral in accordance with this section, except
				for the following:
(a) A credit card line of
				credit granted to nonnatural persons that is limited to routine purposes
				normally made available under such lines of credit.
(b) A loan made by a credit union where the
				loan and the credit union meet all of the following:
1. The amount of the loan or loans to any one
				individual does not exceed 1% of the credit union's net worth.
2. The aggregate of the unsecured business
				loans under this paragraph does not exceed 10% of the credit union's net
				worth.
3. The credit union has a
				net worth ratio of at least 7%.
4.
				The credit union submits reports to the Office of Credit Unions with its NCUA
				call reports providing numbers and such other details as may be required by the
				director to demonstrate compliance with this paragraph.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.08 - Amount of loan

Current through June 24, 2024
Unless the director grants a waiver for a higher amount, the
				  aggregate amount of business loans to a member or associated members shall not
				  exceed 15% of the credit union's net worth or $100,000.00, whichever is
				  greater.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.09 - Calculating the aggregate 15% limit

Current through June 24, 2024
To calculate the aggregate 15% limitation, the credit union
				  shall do the following:
(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:
(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.
(b) Any portion
				insured or guaranteed by any agency or subdivision of the state or federal
				government.
(c) Any portion subject
				to an advance commitment to purchase by any agency or subdivision of the state
				or federal government.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.10 - Available waivers

Current through June 24, 2024
A credit union may seek a waiver for any of the
				  following:
(1) Construction and
				development loan requirements under s. DFI-CU 72.04.
(2) Loan-to-value ratio requirements under s.
				DFI-CU 72.07.
(3) Maximum loan
				amount to a member and associated members under s. DFI-CU 72.08.
(4) Appraisal requirements under section
				722.3 of NCUA rules.
A copy of NCUA rules may be obtained by writing to the
					 Office of Credit Unions, P.O. Box 14137, Madison, WI 53714-0137.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.11 - Obtaining a waiver

Current through June 24, 2024
(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:
(a) A copy of
				the member business loan policy.
(b) The higher limit sought, if
				applicable.
(c) An explanation of
				the need to raise the limit, if applicable.
(d) Documentation supporting the credit
				union's ability to manage this activity.
(e) An analysis of the credit union's prior
				experience making member business loans, including each of the following:
1. The history of loan losses and loan
				delinquency.
2. Volume, and
				cyclical or seasonal patterns.
3.
				Diversification.
4. Concentrations
				of credit to a member and associated members in excess of 15% of net
				worth.
5. Underwriting standards
				and practices.
6. Types of loans
				grouped by purpose and collateral.
7. The qualifications of personnel
				responsible for underwriting and administering member business loans.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.12 - Classifying non-delinquent member business loans to reserve for potential loss

Current through June 24, 2024
Non-delinquent member business loans shall be classified
				  based on factors such as the adequacy of analysis and supporting documentation.
				  A credit union shall classify potential loss loans as either substandard,
				  doubtful or loss. The criteria for determining the classification of loans
				  shall be as follows:
(1) SUBSTANDARD.
				A loan classified substandard is inadequately protected by the current sound
				worth and paying capacity of the obligor or of the collateral pledged, if any.
				The loan must have a well-defined weakness or weaknesses that jeopardize the
				liquidation of the debt. The loan is characterized by the distinct possibility
				that the credit union will sustain some loss if the deficiency is not
				corrected. Loss potential, while existing in the aggregate amount of
				substandard loans, does not have to exist in individual loans classified
				substandard.
(2) DOUBTFUL. A loan
				classified as doubtful has all the weaknesses inherent in one classified
				substandard, with the added characteristic that the weakness or weaknesses make
				collection or liquidation in full, on the basis of currently existing facts,
				conditions and values, highly questionable and improbable. The possibility of
				loss is extremely high, but because of certain important and reasonably
				specific pending factors which may work to the advantage and strengthening of
				the loan, its classification as an estimated loss is deferred until its more
				exact status may be determined. Pending factors include proposed merger,
				acquisition or liquidation actions; capital injection; perfecting liens on
				collateral; and refinancing plans.
(3) LOSS. A loan classified loss is
				considered uncollectible and of such little value that its continuance as a
				loan is not warranted. This classification does not necessarily mean that the
				loan has absolutely no recovery or salvage value, but rather, that it is not
				practical or desirable to defer writing off this basically worthless asset even
				though partial recovery may occur in the future.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.13 - Schedule of reserves

Current through June 24, 2024
The following schedule sets the minimum amount a credit union
				  shall reserve for classified member business loans:
Classification
Amount Required
Substandard
10% of outstanding balance, unless other factors
								indicate a greater or lesser amount is appropriate.
Example: An example of a factor is the
								history of such loans at the credit union.
Doubtful
50% of the outstanding balance.
Loss
100% of the outstanding balance.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.14 - Aggregate member business loan limit

Current through June 24, 2024
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.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.15 - Exceptions to the aggregate business loan limit

Current through June 24, 2024
Credit unions that meet any one of the following criteria
				  qualify for an exception from the aggregate member business loan limit:
(1) Credit unions that have a low-income
				designation.
(2) Credit unions that
				participate in the Community Development Financial Institutions
				program.
(3) Credit unions that are
				chartered for the purpose of making member business loans, as supported by
				documentary evidence.
Example: The credit union's charter, bylaws, business plan,
				  field of membership, board minutes and loan portfolio.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.16 - Obtaining an exception

Current through June 24, 2024
(1) The exception under s. DFI-CU 72.15(1)
				and (2) shall be effective upon written notice to the director of such
				designation or participation.
(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.
(3) The director
				shall promptly notify the applicable region of the NCUA of his or her decision
				on the request.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 72 - Member business loans › Section DFI-CU 72.17 - Record keeping requirements

Current through June 24, 2024
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.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 74 - Debt Cancellation Contracts And Debt Suspension Agreements › Section DFI-CU 74.01 - Purpose

Current through June 24, 2024
This chapter authorizes a Wisconsin-chartered credit union to
				  engage in certain activities incidental to its business in the same manner that
				  the activities are available to federally-chartered credit
				  unions.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 74 - Debt Cancellation Contracts And Debt Suspension Agreements › Section DFI-CU 74.02 - Definitions

Current through June 24, 2024
In this section:
(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.
(2) "Credit union"
				has the meaning set forth in s.
				186.01(2),
				Stats.
(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.
(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.
(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.
(6) "Director" means the
				director of the office of credit unions or an authorized representative of the
				director.
(7) "Incidental powers
				activity" means an activity that is necessary or requisite to enable a credit
				union to effectively carry on the business for which it is incorporated. An
				activity meets the definition of "incidental powers activity" if it is
				convenient or useful in carrying out the mission or business of a credit union,
				is the functional equivalent or logical out-growth of activities that are part
				of the mission or business of a credit union, and involves risks similar in
				nature to those already assumed as part of the business of the credit
				union.
(8) "Loan-related products"
				mean the products, activities or services a credit union provides to its
				members in a lending transaction that protect it against credit-related risks
				or are otherwise incidental to its lending authority. "Loan-related products"
				include debt cancellation agreements, debt suspension agreements, letters of
				credit and leases.
(9) "Residential
				mortgage loan" means a loan secured by 1-4 family, residential real
				property.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 74 - Debt Cancellation Contracts And Debt Suspension Agreements › Section DFI-CU 74.03 - Debt cancelation contracts and debt suspension agreements

Current through June 24, 2024
A credit union may provide debt cancellation contracts and
				  debt suspension agreements as an incidental powers activity in the same manner
				  and to the same extent that the products are provided by federally-chartered
				  credit unions.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 74 - Debt Cancellation Contracts And Debt Suspension Agreements › Section DFI-CU 74.04 - Prohibited practices

Current through June 24, 2024
(1) ANTI-TYING. A credit union shall not
				extend credit or alter the terms or conditions of an extension of credit
				conditioned upon the customer entering into a debt cancellation contract or
				debt suspension agreement with the credit union.
(2) MISREPRESENTATIONS GENERALLY. A credit
				union shall not engage in any practice or use any advertisement that is false,
				misleading or deceptive, or which omits to state material information, or
				otherwise would cause a reasonable person to reach an erroneous belief with
				respect to information that may be disclosed under this section.
(3) PROHIBITED CONTRACT TERMS. A credit union
				shall not offer debt cancellation contracts or debt suspension agreements that
				contain any of the following:
(a) Terms giving
				the credit union the right unilaterally to modify the contract unless the
				modification is favorable to the customer and is made without additional charge
				to the customer, or the customer is notified of any proposed change and is
				provided a reasonable opportunity to cancel the contract without penalty before
				the change goes into effect.
(b)
				Terms requiring a lump sum, single payment for the contract payable at the
				outset of the contract, where the debt subject to the contract is a residential
				mortgage loan.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-CU 51-75 - Department of Financial Institutions-Credit Unions › Chapter DFI-CU 74 - Debt Cancellation Contracts And Debt Suspension Agreements › Section DFI-CU 74.05 - Refunds of fees in the event of termination or repayment of covered loan

Current through June 24, 2024
(1) REFUNDS. If a debt cancellation contract
				or debt suspension agreement is terminated, including when the customer prepays
				the covered loan, the credit union shall refund to the customer any unearned
				fees paid for the contract unless the contract provides otherwise. A credit
				union may offer a customer a contract that does not provide for a refund only
				if the credit union also offers that customer a bona fide option to purchase a
				comparable contract that provides for a refund.
(2) METHOD OF CALCULATING REFUND. The credit
				union shall calculate the amount of a refund using a method at least as
				favorable to the customer as the actuarial method.