Section 13.06. Commercial loans.

 

(1)   Activities authorized. An association may:

(a) Commercial loans. Invest in, sell, purchase, participate in, make or otherwise deal in commercial loans.

(b) Consumer-related loans. Make loans to dealers in consumer goods to finance inventory, including floor planning loans.

(c) Commercial leases. Lease tangible personal property or real property acquired under s. DFI-SL 16.01 (2) for commercial, corporate, business or agricultural purposes.

(d) Overdraft loans. Extend secured or unsecured credit to cover payment of drafts or other funds transfer orders in excess of the available balance of an account on which they are drawn.

(e) "Indirect" commercial loans. Make an indirect commercial loan by purchasing commercial debt securities of a corporation which securities do not qualify as authorized investments.

(2)   Limitation. No association may make loans under this section exceeding 10% of its assets unless a greater amount is authorized in writing by the division.

(3)   Association policy required. The board of directors of each association making commercial loans shall establish a maximum dollar limit for such loans over which any unsecured portion of a commercial loan must be supported by a borrower's balance sheet and statement of operations attested to by an officer prior to the extension of credit and updated at least annually. This limit may be incorporated into the association's commercial loan policy.

History: Cr. Register, June, 1989, No. 402 , eff. 7-1-89.

Note

This section interprets or implements ss. 215.02 (18) and 215.135 , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1