Section DFI-CU 74.02 - DefinitionsIn this section:
(1) "Actuarial method" means the method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed.(2) "Credit union" has the meaning set forth in s. 186.01(2), Stats.(3) "Customer" means a member of a credit union who obtains an extension of credit from a credit union primarily for personal, family or household purposes.(4) "Debt cancellation contract" means a loan term or contractual arrangement modifying loan terms under which a credit union agrees to cancel all or part of a customer's obligation to repay an extension of credit from that credit union upon the occurrence of a specified event. The agreement may be separate from or a part of other loan documents.(5) "Debt suspension agreement" means a loan term or contractual arrangement modifying loan terms under which a credit union agrees to suspend all or part of a customer's obligation to repay an extension of credit from that credit union upon the occurrence of a specified event. The agreement may be separate from or a part of other loan documents. "Debt suspension agreement" does not include loan payment deferral arrangements in which the triggering event is the borrower's unilateral election to defer repayment or the credit union's unilateral decision to allow a deferral of repayment.(6) "Director" means the director of the office of credit unions or an authorized representative of the director.(7) "Incidental powers activity" means an activity that is necessary or requisite to enable a credit union to effectively carry on the business for which it is incorporated. An activity meets the definition of "incidental powers activity" if it is convenient or useful in carrying out the mission or business of a credit union, is the functional equivalent or logical out-growth of activities that are part of the mission or business of a credit union, and involves risks similar in nature to those already assumed as part of the business of the credit union.(8) "Loan-related products" mean the products, activities or services a credit union provides to its members in a lending transaction that protect it against credit-related risks or are otherwise incidental to its lending authority. "Loan-related products" include debt cancellation agreements, debt suspension agreements, letters of credit and leases.(9) "Residential mortgage loan" means a loan secured by 1-4 family, residential real property.Wis. Admin. Code Department of Financial Institutions DFI-CU 74.02
CR 05-046: CR Register January 2006 No. 601, eff. 2-1-06.