Section DFI-CU 54.02 - DefinitionsIn this chapter:
(1) "Borrower's equity" means the market value of the subject real estate minus outstanding indebtedness.(2) "Director" means the director of credit unions or an authorized representative of the director.(3) "Equity loan" means any loan secured in whole or in part by a first or subordinate lien on real estate and whose purpose is anything other than to purchase the secured real estate.(4) "Indebtedness" means the balances of all outstanding closed-end loans, maximum approved lines of credit of all open-end loans, unpaid taxes due and any other unsatisfied liens or encumbrances applicable to the subject real estate.(5) "Market value" means the most probable price, which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (a) Buyer and seller are typically motivated;(b) Both parties are well informed or well advised, and acting in what they consider their own best interests;(c) A reasonable time is allowed for exposure in the open market;(d) Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and(e) The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.(6) "Purchase money loan" means any loan secured in whole or in part by a first or subordinate lien on real estate and whose sole purpose, as stated in the written loan application, is to purchase or acquire the subject property.Wis. Admin. Code Department of Financial Institutions DFI-CU 54.02
CR Register, June, 1990, No. 414, eff. 7-1-90; am. (1) (2) (5) r. (7), Register, October, 1997, No. 502, eff. 11-1-97.