Section 72.02. Member business loan.

 

(1)  "Member business loan" means any loan, line of credit, letter of credit or any unfunded commitment to make a loan, where the borrower intends to use the proceeds for any of the following purposes:

(a) Commercial.

(b) Corporate.

(c) Investment property.

(d) Business venture.

(e) Agricultural.

(2)  "Member business loan" shall not include any of the following:

(a) A business purpose loan fully secured by a lien on a 1 to 4 family dwelling that is the member's primary residence.

(b) A business purpose loan fully secured by shares or deposits in the credit union making the extension of credit or in other credit unions, or by deposits in other financial institutions.

(c) One or more business purpose loans to a member or an associated member that, in the aggregate, are less than $50,000. The entire amount of such a loan or loans that equals or exceeds this amount, or that causes the aggregate to exceed this amount is a business loan.

(d) A business purpose loan where a federal or state agency or any of their political subdivisions fully insures repayment, or fully guarantees repayment, or provides an advance commitment to purchase in full.

(e) A loan granted by a corporate credit union to another credit union.

CR 02-034 : cr. Register August 2002 No. 560 , eff. 9-1-02.