Wis. Admin. Code Department of Financial Institutions DFI-SB 14.01 - Real estate investments limited

(1) "REAL ESTATE INVESTMENT" DEFINED. A savings bank's real estate investment includes:

(a) Funds advanced for the purchase, development and operation of real estate.

(b) Partnership and joint venture capital contributions.

(c) Mortgage loans, commercial loans, loan guarantees and letters of credit related to underlying real estate in which the savings bank has invested.

(d) Liability for debt of the partnership or joint venture.

(e) Any other savings bank obligation for direct or contingent payment of debt relating to the real estate project.

(2) REAL ESTATE INVESTMENT CONDITIONS. A savings bank may make a real estate investment if:

(a) The division gives prior written approval after reviewing a feasibility study, a recent appraisal provided by the savings bank and other information which he or she may require; and

(b) The savings bank's real estate investment does not directly or indirectly benefit an officer, director or employee of the savings bank or of its holding company if any or a subsidiary in excess of reasonable employment compensation unless the division gives prior written approval.

(3) EXCEPTION. This section does not apply to a real estate investment permitted under s. 214.52, Stats.

Notes

Wis. Admin. Code Department of Financial Institutions DFI-SB 14.01

CR Register, February, 1994, No. 458, eff. 3-1-94.

This section interprets or implements s. 214.49, Stats.