Wis. Admin. Code Department of Financial Institutions DFI-CU 72.03 - Prohibited member business loans
(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.
(2) EQUITY AGREEMENTS OR JOINT VENTURES. A
credit union shall not grant a member business loan if any additional income
received by the credit union or its senior management employees is tied to the
profit or sale of the business or commercial endeavor for which the loan is
made.
(3) DIRECTORS. A credit union
shall not grant a member business loan to one of its directors unless the board
of directors approves granting the loan and the director is recused from the
decision-making process.
Notes
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