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 February 26, 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.
