(1)“Associated member” means any member with a shared ownership, investment, or other pecuniary interest in a business or commercial endeavor with the borrower.
(2)“Construction or development loan” means a financing arrangement for acquiring property or rights to property, including land or structures, with the intent to convert it to income-producing property such as residential housing for rental or sale; commercial use; industrial use; or similar uses.
(3)“Director” means the Director of the Department of Consumer and Business Services.
(4)“Immediate family member” means a spouse or other family member living in the same household.
(5)“Loan-to-value ratio or LTV ratio” means the aggregate amount of all sums borrowed including outstanding balances plus any unfunded commitment or line of credit from all sources on an item of collateral divided by the market value of the collateral used to secure the loan.
(6)“Net Worth” means retained earnings as defined under Generally Accepted Accounting Principles. Retained earnings normally includes undivided earnings, regular reserves and any other appropriations designated by management or regulatory authorities. It does not include the Allowance for Loan and Lease Losses account.
(7)“NCUA” means the National Credit Union Administration.
Rule 441-720-0300 — Definitions,