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Can you summarize Chapter 208-460 WAAC?
Financial Institutions, Department of (See also Titles 50, 419, and 460) > Member business loans.
Short Summary
This document, part of the Washington Administrative Code, governs member business loans issued by credit unions. It provides guidelines for classifying these loans based on risk and potential loss. The document also specifies collateral and security requirements for member business loans, including loan-to-value ratios and lien priorities. Waivers may be sought for certain loan requirements. The document sets minimum reserve requirements for classified member business loans. It defines member business loans and outlines their various purposes, while also specifying exemptions to the definition. The document requires credit unions to adopt specific member business loan policies and review them annually. It prohibits granting member business loans to certain individuals and requires approval from the board of directors for loans to directors. The document also sets limits on the aggregate amount of member business loans to a member or associated members. It governs the process of obtaining waivers for member business loans and sets the aggregate limit on the amount of member business loans for credit unions. The document requires credit unions to have a member business loan policy addressing various aspects of MBLs. It provides definitions related to member business loans. The document does not mention any specific penalties or exemptions.
Whom does it apply to?
Credit unions
What does it govern?
Member business loans
What are exemptions?
Exemptions include credit card lines of credit granted to nonnatural persons for routine purposes, loans secured by a primary residence, loans secured by shares or deposits, loans below $49,999 to a member or associated member, loans with federal or state agency insurance or guarantees, and loans between credit unions.
What are the Penalties?
No penalties mentioned in the document.
Jurisdiction
Washington