Wisconsin Administrative Code
Department of Financial Institutions
DFI-CU 51-75 - Department of Financial Institutions-Credit Unions
Chapter DFI-CU 54 - Real Estate Mortgage Loans
Section DFI-CU 54.02 - Definitions
Current through February 26, 2024
In this chapter:
(1) "Borrower's equity" means the market value of the subject real estate minus outstanding indebtedness.
(2) "Director" means the director of credit unions or an authorized representative of the director.
(3) "Equity loan" means any loan secured in whole or in part by a first or subordinate lien on real estate and whose purpose is anything other than to purchase the secured real estate.
(4) "Indebtedness" means the balances of all outstanding closed-end loans, maximum approved lines of credit of all open-end loans, unpaid taxes due and any other unsatisfied liens or encumbrances applicable to the subject real estate.
(5) "Market value" means the most probable price, which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
(6) "Purchase money loan" means any loan secured in whole or in part by a first or subordinate lien on real estate and whose sole purpose, as stated in the written loan application, is to purchase or acquire the subject property.