Section DFI-CU 72.11 - Obtaining a waiver(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.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.Wis. Admin. Code Department of Financial Institutions DFI-CU 72.11
CR 02-034: CR Register August 2002 No. 560, eff. 9-1-02.