(1)A credit union must submit a request to the Director to obtain a waiver under OAR 441-720-0375 (Available Waivers for Specific Loan Types). The waiver request must contain the following:
(a)A copy of the member business loan policy;
(b)The higher limit sought, if applicable;
(c)An explanation of the need to raise the limit, if applicable;
(d)Documentation supporting the credit union’s ability to manage this activity; and
(e)Analysis of the credit union’s prior experience making member business loans, including:
(A)The history of loan losses and loan delinquency;
(B)Loan volume and cyclical or seasonal patterns;
(D)Concentrations of credit to one borrower or group of associated borrowers in excess of 15% of net worth;
(E)Underwriting standards and practices;
(F)Types of loans grouped by purpose and collateral;
(G)The qualifications of personnel responsible for underwriting and administering member business loans; and
(H)Any other information deemed relevant by the credit union or requested by the Director.
(2)The Director will:
(a)Review the information provided by the credit union in its request;
(b)Evaluate the level of risk to the credit union;
(c)Consider the credit union’s historical CAMEL composite and component ratings;
(d)Notify the credit union when the waiver request is deemed complete;
(e)Notify the credit union of the action taken within 45 calendar days of receiving a complete request, and, if the Director approves the waiver request as not detrimental to the safety and soundness of the credit union nor contrary to the public interest, issue an order subject to NCUA approval granting the waiver; and
(f)Provide a copy of the waiver request under 12 C.F. R. 723.11 to NCUA, Region VI (or if it is the Corporate Credit Union to the Director of the Office of Corporate Credit Unions) for their review and approval.
(3)The waiver is not effective until the Director approves it by order.
(4)If granted, the waiver does not expire unless it is revoked by the Director.
Rule 441-720-0380 — Waiver Procedure,