Wisconsin Bank Legal Lending Limit

4. Loans granted by a savings bank to a borrower to finance the sale of immovable property acquired in execution may not exceed 50 per cent of the capital of the savings bank. (1) an exemption of $500,000 for savings associations. Notwithstanding that restriction in clause (a) of this section, if the total credit restriction of a savings association calculated in accordance with clause (a) of this section is less than $500,000, the savings association may have a total of loans and loan extensions to a borrower not exceeding $500,000 for any purpose. (ii) the acquisition of ineligible acceptances by a national bank or savings association by a national bank or savings association (representing a loan from the purchasing bank or savings association to the acquiring bank or savings association equal to the purchase price); and (iii) if the bank or savings association relies primarily on the paper manufacturer to pay for loans or loan extensions and not on a confirmation or guarantee in whole or in part from the seller of the paper, the credit limits of this section apply only to the manufacturer. Wisconsin banks started 2022 strong with total assets that grew 5.04% year-over-year from March 31, 2021 to March 31, 2022. Despite fears of rising inflation, total deposits increased by 7.08% over the same period. The financial health of consumers was also evidenced by a 20.88% year-over-year decline in long-term loans and leases. (a) Combined general limit. The total outstanding amount of loans and extensions of loans of a regional bank or savings association to a borrower may not exceed 15 per cent of the capital and surplus of the bank or savings association, plus an additional 10 per cent of the capital and surplus of the bank or savings association if the amount exceeds the general limit of the bank or savings association of 15 per cent: is fully backed by easily negotiable guarantees; as defined in § 32.2(V).

To benefit from the additional 10% limit, the bank or savings association must provide security in the collateral under applicable law and the collateral must at all times have a current market value of at least 100% of the amount of the loan or loan extension that exceeds the general limit of 15% set by the bank or savings bank. (8) If the value of the collateral falls below 100 per cent of the outstanding balance of a loan or loan extension, to the extent that the loan or extension of the loan does not comply with subsections 1 and 2, the savings bank shall reinstate the loan within 15 working days, unless legal proceedings or other extraordinary events prevent the savings bank from to act. « Wisconsin`s banking industry is poised to meet the banking needs of Wisconsinians in 2022 as state pandemic assistance expires. Bankers will be closely watching the global supply chain and geopolitical issues, as well as the Fed`s interest rate hike for the rest of the year. (iv) The leases of the commercial occupier are assigned and paid directly to the bank or savings bank. (iii) the amount of additional financing does not exceed the uncovered part of the eligible credit obligation of the bank or savings association; (iii) Under the laws of some States, persons who provide pasture under a grazing contract may have a lien over livestock equal to the amount due for the use of the pasture. Where a land-based lien made available to the bank or savings association by the secured creditor prior to the loan or extension of the loan is assigned to the bank or savings association by means of a registrable instrument protected by payment to a person other than the bank or savings association against defeat by another lien or claim: Otherwise, it will be covered by this exception, provided that the amount of the lien made available is at least equal to the amount of the loan and that the value of the livestock is at no time less than 115% of the part of the loan or loan extension exceeding the combined general limit of the bank or savings association. If the amount due under the grazing contract depends on future performance, the resulting lien does not meet the requirements of the exception. Government chartered banks may have their own credit limits, but they are often similar to the OCC standard. For example, licensed banks in New York have a credit limit of 15% of their undivided capital, surplus and profits (CUPS) and 25% for loans secured by appropriate collateral. (vi) the terms of the lease are subject to the same restrictions as would apply to a national bank or savings bank as a lessor; (i) the provision of the financing is in accordance with safe and sound banking practices and serves to protect the position of the bank or savings association; 7.

In relation to a loan approved in accordance with paragraph 2, a savings bank shall establish procedures to ensure at all times that the collateral fully guarantees the outstanding amount of credit or loan extension. (c) loans that are not subject to credit limits. The following loans or loan renewals are not subject to credit limits of 12 U.S.C. 84 or 12 U.S.C. 12 U.S.C. 1464(u) of this Part. (B) The lending bank or savings association shall establish procedures for the regular revaluation of foreign currency deposits to ensure that the loan or loan remains fully secured at all times. (11) Credit risks arising from financing operations for certain government bonds. credit risks arising from SFTs where the securities financed are Type I securities within the meaning of 12 CFR 1.2(j) in the case of domestic banks or securities listed in Section 5(c)(1)(C), (D), (E) and (F) of HOLA, and the general obligations of a State or subdivision under Section 5(c)(1)(H) of HOLA; 12 U.S.C. 1464(C)(1)(C), (D), (E), (F), and (H) in the case of savings associations. (ii) basic foods eligible for this particular limit need not be perishable, refrigerated or frozen, and must be fully covered by insurance where such insurance is common. Whether a staple food is non-perishable must be decided on a case-by-case basis due to the different handling and storage of goods.

(7) Loans to financial institutions with the agreement of the competent Bundesbankanstalt. Loans or extensions of credit to a financial institution or to a beneficiary, depositary, bank supervisor or other agent responsible for the activities and property of a financial institution, where an emergency situation exists and a national bank or savings association is requested to provide assistance to another financial institution and the loan is approved by the competent agency of the Bundesbank.