Wis. Admin. Code Department of Financial Institutions DFI-WCA 1.09
The definition of "required deposit balance" in s. 421.301(38), Stats., together with the definition of "amount financed" requires that the required deposit balance be deducted from the amount financed for the purpose of calculating the finance charge and making disclosures. The purpose is to accurately disclose to the customer the amount of funds or credit of which he or she will have actual use, and thus the creditor is required to deduct from the funds advanced any compensating balance the creditor requires to be maintained with him or her. Consequently, the term does not apply to a deposit balance or deposit investment maintained by the customer with a financial institution other than the creditor, which is taken by the creditor as collateral for the advance made. The reference to "any investment" refers to deposit-type investments such as "share accounts" maintained with savings and loan associations, credit unions or mutual savings banks. The term "investment" in s. 421.301(38), Stats., does not include investment securities of the type defined in ch. 408, Stats.
Wis. Admin. Code Department of Financial Institutions DFI-WCA 1.09