DFI-CU 72.10(1) (1) Construction and development loan requirements under s. DFI-CU 72.04.

DFI-CU 72.10(2) (2) Loan-to-value ratio requirements under s. DFI-CU 72.07.

DFI-CU 72.10(3) (3) Maximum loan amount to a member and associated members under s. DFI-CU 72.08.

DFI-CU 72.10(4) (4) Appraisal requirements under section 722.3 of NCUA rules.

DFI-CU 72.11(1)(1) To obtain a waiver under s. DFI-CU 72.10, a credit union shall submit a request to the director. The request shall contain all of the following:

DFI-CU 72.11(2) (2) Upon receipt of the request for waiver, the director shall do all of the following:

DFI-CU 72.11(3) (3) In connection with a waiver request under s. DFI-CU 72.10 (1) to (3), all of the following shall apply:

DFI-CU 72.11(4) (4) In connection with a waiver request under s. DFI-CU 72.10 (4), all of the following shall apply:

DFI-CU 72.12(1) (1) Substandard. A loan classified substandard is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. The loan must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. The loan is characterized by the distinct possibility that the credit union will sustain some loss if the deficiency is not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard.

DFI-CU 72.12(2) (2) Doubtful. A loan classified as doubtful has all the weaknesses inherent in one classified substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to the advantage and strengthening of the loan, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition or liquidation actions; capital injection; perfecting liens on collateral; and refinancing plans.

DFI-CU 72.12(3) (3) Loss. A loan classified loss is considered uncollectible and of such little value that its continuance as a loan is not warranted. This classification does not necessarily mean that the loan has absolutely no recovery or salvage value, but rather, that it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may occur in the future.

DFI-CU 72.15(1) (1) Credit unions that have a low-income designation.

DFI-CU 72.15(2) (2) Credit unions that participate in the Community Development Financial Institutions program.

DFI-CU 72.15(3) (3) Credit unions that are chartered for the purpose of making member business loans, as supported by documentary evidence.

DFI-CU 72.16(1) (1) The exception under s. DFI-CU 72.15 (1) and (2) shall be effective upon written notice to the director of such designation or participation.

DFI-CU 72.16(2) (2) To obtain an exception under s. DFI-CU 72.15 (3), a credit union shall submit its request to the director. An exception shall not be effective until approved by the director. The exception request shall include documentation demonstrating that the credit union meets the criteria for the exception. The exception shall not expire unless revoked for safety and soundness reasons by the director.

DFI-CU 72.16(3) (3) The director shall promptly notify the applicable region of the NCUA of his or her decision on the request.