(1) The department will further evaluate a designated loan to determine if the transaction is in reality a loan or an ownership interest. A review of the transaction will be conducted by using standards found either in the Uniform Commercial Code, the Internal Revenue Code, or standards which are in accordance with generally accepted commercial lending practices.
(2) The department will decline to find a loan arrangement where the money borrowed has not been returned when due and alternate arrangements have not been memorialized in a written contract. Such an extended financial arrangement must be documented and available to the department.