Wisconsin Statutes 943.62 – Unlawful receipt of payments to obtain loan for another
Current as of: 2024 | Check for updates
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Attorney's Note
Under the Wisconsin Statutes, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class F felony | up to 12 years 6 months | up to $25,000 |
| Class A misdemeanor | up to 9 months | up to $10,000 |
Terms Used In Wisconsin Statutes 943.62
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Following: when used by way of reference to any statute section, means the section next following that in which the reference is made. See Wisconsin Statutes 990.01
- in writing: includes any representation of words, letters, symbols or figures. See Wisconsin Statutes 990.01
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Person: includes all partnerships, associations and bodies politic or corporate. See Wisconsin Statutes 990.01
- State: when applied to states of the United States, includes the District of Columbia, the commonwealth of Puerto Rico and the several territories organized by Congress. See Wisconsin Statutes 990.01
(1) In this section, “escrow agent” means a state or federally chartered bank, savings bank, savings and loan association or credit union located in this state.
(2) Except as provided in sub. (2m), no person may receive a payment from a customer as an advance fee, salary, deposit or money for the purpose of obtaining a loan or a lease of personal property for the customer unless the payment is immediately placed in escrow subject to the condition that the escrow agent shall deliver the payment to the person only upon satisfactory proof of the closing of the loan or execution of the lease within a period of time agreed upon in writing between the person and the customer; otherwise the payment shall be returned to the customer immediately upon expiration of the time period.
(2m) This section does not apply to a savings and loan association, credit union, bank, savings bank, or a mortgage banker, mortgage loan originator, or mortgage broker licensed under s. 224.72 or 224.725.
(3)
(a) Advance payments to cover reasonably estimated costs are excluded from the requirements of sub. (2) if the customer first signs a written agreement which recites in capital and lowercase letters of not less than 12-point boldface type all of the following:
1. The estimated costs by item.
2. The estimated total costs.
3. Money advanced for incurred costs will not be refunded.
(b) If a cost under par. (a) is not incurred, the person shall refund that amount to the customer.
(4) Whoever violates this section is guilty of:
(a) A Class A misdemeanor, if the value of the advance payment or required refund, as applicable, does not exceed $2,500.
(c) A Class F felony, if the value of the advance payment or required refund, as applicable, exceeds $2,500.