222.0403 Loan powers.
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/wi/chapter-222/222-0403-2A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
222.0403 Loan powers.
(1)Permitted purposes. A universal bank may make, sell, purchase, arrange, participate in, invest in, or otherwise deal in loans or extensions of credit for any purpose.
(2)In general.
(a)Percentage limitation. Except as provided in subs.
(3)to
(8), the total liabilities of any person, other than a municipal corporation, to a universal bank for a loan or extension of credit may not exceed 20 percent of the universal bank’s capital at any time.
(b)Partnership liabilities. In determining compliance with this section, liabilities of a partnership include the liabilities of the general partners, computed individually as to each general partner on the basis of his or her direct liability.
(3)Increased limit for certain secured liabilities. The total liabilities of any person, other than a municipal corporation, to a universal bank for a loan or extension of credit may not exceed 50 percent of the universal bank’s capital at any time, if the liabilities consist entirely of any of the following types of liabilities:
(a)Warehouse receipts. A liability secured by warehouse receipts issued by warehouse keepers who are licensed and bonded in this state under ss. 99.02 and 99.03 or under the federal Bonded Warehouse Act or who are licensed under s. 126.26 , if all of the following requirements are met:
1. The receipts cover readily marketable nonperishable staples.
2. The staples are insured, if it is customary to insure the staples.
3. The market value of the staples is not, at any time, less than 140 percent of the face amount of the obligation.