Wisconsin Administrative Code
Department of Financial Institutions
DFI-CU 51-75 - Department of Financial Institutions-Credit Unions
Chapter DFI-CU 72 - Member business loans
Section DFI-CU 72.11 - Obtaining a waiver
Universal Citation: WI Admin Code ยง DFI-CU 72.11
Current through February 26, 2024
(1) To obtain a waiver under s. DFI-CU 72.10, a credit union shall submit a request to the director. The request shall contain all of the following:
(a) A copy of
the member business loan policy.
(b) The higher limit sought, if
applicable.
(c) An explanation of
the need to raise the limit, if applicable.
(d) Documentation supporting the credit
union's ability to manage this activity.
(e) An analysis of the credit union's prior
experience making member business loans, including each of the following:
1. The history of loan losses and loan
delinquency.
2. Volume, and
cyclical or seasonal patterns.
3.
Diversification.
4. Concentrations
of credit to a member and associated members in excess of 15% of net
worth.
5. Underwriting standards
and practices.
6. Types of loans
grouped by purpose and collateral.
7. The qualifications of personnel
responsible for underwriting and administering member business loans.
(2) Upon receipt of the request for waiver, the director shall do all of the following:
(a) Review the information provided in the
request.
(b) Evaluate the level of
risk to the credit union.
(c)
Consider the credit union's historical capital, asset, quality, management,
earnings and liquidity ("CAMEL") composite and component ratings.
(d) Notify the credit union when the waiver
request is deemed complete.
(e)
Notify the credit union of the action taken within 45 calendar days of
receiving a complete request.
(3) In connection with a waiver request under s. DFI-CU 72.10(1) to (3), all of the following shall apply:
(a) The director shall provide a copy of the
waiver request to the applicable regional director of the NCUA, and shall
consult and seek to work cooperatively with the applicable regional director in
deciding upon the request.
(b) The
waiver shall not be effective until the director approves it.
(c) If the credit union requesting the waiver
does not receive notification within 45 calendar days of the date the complete
request was received by the director, the waiver request shall be deemed
approved by the director.
(d) The
director shall promptly notify the applicable regional director of NCUA of his
or her decision on the request.
(4) In connection with a waiver request under s. DFI-CU 72.10(4), all of the following shall apply:
(a) If the director approves the request, the
director shall promptly forward the request to the applicable regional director
of the NCUA for decision under
12 CFR
723.12.
(b) The waiver shall not be effective until
the applicable regional director of the NCUA approves it in accordance with
12 CFR
723.12.
(c) The credit union may appeal the regional
director's decision in accordance with
12
CFR 723.13.
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.
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