Wisconsin Administrative Code
Department of Financial Institutions
DFI-CU 51-75 - Department of Financial Institutions-Credit Unions
Chapter DFI-CU 71 - Leasing of personal property
Section DFI-CU 71.02 - Definitions
Universal Citation: WI Admin Code ยง DFI-CU 71.02
Current through February 26, 2024
In this chapter:
(1) "Full-payout lease" means a lease from which the lessor can reasonably expect to realize a return of its full investment in the leased property plus the estimated cost of financing the property over the term of the lease from:
(a) Rentals;
(b) Estimated tax benefits if applicable;
and
(c) The estimated residual
value of the property at the expiration of the initial term of the lease,
provided any unguaranteed portion of the estimated residual value relied upon
by the credit union to yield a full return under this subsection does not
exceed 25% of the original cost of the property to the lessor.
(2) "Net lease" means a lease under which the credit union will not, directly or indirectly, provide or be obligated to provide for any of the following:
(a) The servicing, repair or maintenance of
the leased property during the lease term;
(b) The purchasing of parts and accessories
for the leased property. However, improvements and additions to the leased
property may be leased to the lessee upon its request in accordance with the
full-payout requirements of this chapter;
(c) The loan of replacement or substitute
property while the leased property is being serviced;
(d) The purchasing of insurance for the
lessee, except where the lessee has failed in its contractual obligation to
purchase or maintain the required insurance; or
(e) The renewal of any license or
registration for the property unless the renewal by the credit union is clearly
necessary to protect its interest as an owner or financier of the
property.
Disclaimer: These regulations may not be the most recent version. Wisconsin may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
