Wis. Admin. Code Department of Financial Institutions DFI-SL 22.01

Current through November 25, 2024

Section DFI-SL 22.01 - Definitions

In this chapter:

(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) "Association" has the meaning set forth in s. 215.01(1), Stats.

(3) "Closed-end credit" means consumer credit other than open-end credit as defined in this section.

(4) "Contract" means a debt cancellation contract or a debt suspension agreement.

(5) "Customer" means an individual who obtains an extension of credit from an association primarily for personal, family or household purposes.

(6) "Debt cancellation contract" means a loan term or contractual arrangement modifying loan terms under which an association agrees to cancel all or part of a customer's obligation to repay an extension of credit from that association upon the occurrence of a specified event. The agreement may be separate from or a part of other loan documents.

(7) "Debt suspension agreement" means a loan term or contractual arrangement modifying loan terms under which an association agrees to suspend all or part of a customer's obligation to repay an extension of credit from that association 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 association's unilateral decision to allow a deferral of repayment.

(8) "Open-end credit" means consumer credit extended by an association under a plan in which:

(a) The association reasonably contemplates repeated transactions;

(b) The association may impose a finance charge from time to time on an outstanding unpaid balance; and

(c) The amount of credit that may be extended to the customer during the term of the plan, up to any limit set by the association, is generally made available to the extent that any outstanding balance is repaid.

(9) "Residential mortgage loan" means a loan secured by 1-4 family, residential real property.

Wis. Admin. Code Department of Financial Institutions DFI-SL 22.01

CR 05-045: CR Register January 2006 No. 601, eff. 4-1-06.