Section 186.098. Loans.

 

(1)   Loan approval. The credit union may make loans to members upon terms approved by the credit committee, loan officer or board of directors.

(2)   Appeals. A loan applicant may appeal in writing the decision of the credit committee or a loan officer to the president and may appeal in writing the president's decision to the board of directors.

(3)   Loan applications. Every application for a loan shall be documented and acknowledged by the member and shall state the security or collateral offered, if any.

(4)   Board approval. The board of directors or its designee shall act on the applications of credit committee members and loan officers.

(5)   Limits. No loans shall be made to any member in excess of 10 percent of the credit union's assets, plus the balance of the member's share account pledged as security for the loan. This subsection shall not apply to loans made to member credit unions by a corporate central credit union.

(6)   Policies. The board of directors shall determine policy regarding all of the following:

(a) Collateral acceptable for secured loans.

(b) Loan limits.

(c) Loan approval if a director, officer, credit committee member or employee provides security as a comaker, guarantor, endorser or other form of surety.

(7)   Surety repayment evidence. An endorser, comaker, guarantor or other surety shall provide the credit union with evidence of ability to repay the obligation of the member.

(8)   Credit extensions.

(a) The credit committee or a loan officer may approve, upon its own motion or upon application by a member, an extension of credit, and loans may be granted to the member within the limit of the extension of credit. The credit committee or loan officers shall review all extensions of credit in accordance with written policies adopted by the board of directors.

(b) A credit union may utilize credit cards, including point-of-purchase credit, if the credit committee or loan officer, upon its or his or her own motion or upon application by a member, has predetermined the extent of credit extension.

(9m)   Participation loans. A credit union may participate with other lenders in a loan of any type that the credit union may otherwise make.

(10)   Loans to members secured by mortgages. Loans to members secured by mortgages on real estate may be made subject to the rules prescribed by the office of credit unions. Such loans may provide for additional advances, but any additional advance made to a member, if the mortgage and mortgage note so provide, may not exceed an amount specified in the mortgage.

(11)   Guaranteed loans. A credit union may make loans to members that are guaranteed or insured by the federal government, any state or any federal or state agency. Loans under this subsection may be made under the conditions required for the insurance or guarantee.

(12)   Loans to members. A credit union may make loans to members secured by assignment or transfer of stock certificates or other evidence of the borrower's ownership interest in a corporation formed for the cooperative ownership of real estate. Sections 846.10 and 846.101 , as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender's rights in security given for a loan under this subsection. The office of credit unions shall promulgate joint rules with the division of banking that establish procedures for enforcing a lender's rights in security given for a loan under this subsection.

(13)   Liens.

(a) Subject to any limitation on security interests identified in s. 422.417 (3) and if the loan agreement or endorsement permits it, a credit union shall have a lien on the share deposits and deposit accounts and accumulated dividends of a member for any amount owed the credit union by the member and for any loan endorsed by the member. Upon the default of the owner of the account in an obligation owed to the credit union, the credit union shall have a right of immediate setoff for each share deposit and deposit account unless prohibited under 12 CFR 226.12 (d). If the loan is a consumer credit transaction as defined in s. 421.301 (10) , ss. 425.104 and 425.105 apply to a default under this paragraph. The credit union may also refuse to allow withdrawals from any share deposit or deposit account in an amount not to exceed any delinquent obligation to the credit union.

(b) The credit union may waive its rights to a lien, to immediate setoff or to restrict withdrawals or to any combination of these rights for any share deposit or deposit account.

1971 c. 193 ss. 20 , 42 (1) ; 1971 c. 239 , 307 ; 1973 c. 255 ; 1975 c. 345 ; 1979 c. 282 ; 1981 c. 156 ; 1983 a. 368 , 369 , 538 ; 1987 a. 13 s. 26f ; Stats. 1987 s. 186.098; 1989 a. 103 ; 1993 a. 482 ; 1995 a. 27 ; 1995 a. 151 ss. 94 to 112 , 301 ; 1997 a. 35 , 152 ; 1999 a. 9 , 83 ; 2003 a. 33 ; 2013 a. 277 . Cross-reference: See s. 138.053 for interest adjustment clauses and s. 138.055 for variable rate contracts. Cross-reference: See also chs. DFI-CU 54 and 69 , Wis. adm. code.