Wis. Admin. Code Department of Financial Institutions DFI-CU 72.02 - Member business loan
(1) "Member business loan" means a loan, line of credit, letter of credit including unfunded commitments, and any
interest a credit union obtains in such loans made by another lender to individuals, sole proprietorships, partnerships, corporations, or other
business enterprises for commercial, industrial, agricultural, or professional purposes.
(2) "Member
business loan" does not include any of the following:
(a) Loans for personal expenditure purposes.
(b) Loans made by a corporate credit union.
(c) Loans made by a
federally insured credit union to another federally insured credit union.
(d) Loans made by a credit
union to a credit union service organization.
(e) Loans secured by a one- to four-family residential
property.
(f) Loans fully secured by shares in the credit union making the extension of credit or
deposits in other financial institutions.
(g) Loans secured by a vehicle manufactured for household use,
except that such loans will be considered member business loans if they will be used for a purpose set forth in sub. (1) and the outstanding
aggregate net member business loan balance is $50,000 or greater.
(h) Business purpose loans that are
equal to or less than $50,000 after calculating the aggregate outstanding balances plus unfunded commitments less any portion secured by shares in
the credit union held by the borrower or an associated borrower.
(i) Loans for which a federal or state
agency fully insures repayment, fully guarantees repayment, or provides an advance commitment to purchase the loan in full.
(j) Any non-member business purpose loan or non-member participation interest in a business purpose loan made by
another lender, provided the credit union acquired the loan or interest in compliance with all relevant laws and regulations and the credit union is
not, in conjunction with another credit union, trading member business loans to circumvent the aggregate limit.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
(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.
(2) "Member business loan " shall not include any of the following:
(a) A business purpose loan fully secured by a lien on a 1 to 4 family dwelling that is the member's primary residence.
(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.
(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.
(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.
(e) A loan granted by a corporate credit union to another credit union.