Date of enactment: May 2, 1996
1995 Senate Bill 494 Date of publication*: May 16, 1996
* Section 991.11, Wisconsin Statutes 1993-94: Effective date of acts. "Every act and every portion of an act enacted by the legislature over the governor's partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication as designated" by the secretary of state [the date of publication may not be more than 10 working days after the date of enactment].
1995 WISCONSIN ACT 336
An Act to repeal 180.1150 (3) (h), 186.117, 186.118, 214.595, 215.136, 215.145, 219.08, 220.075, 223.025, 223.03 (10), 223.03 (11), 223.03 (12), 223.04, 224.08 and 404.213 (4m); to renumber and amend 138.052 (10) and 223.11; to amend 34.09, 66.04 (2m) (a), 157.19 (2) (a), 180.1132 (2) (a), 186.113 (15) (a), 215.13 (46) (a) 1., 215.13 (51), 217.11 (1), 220.04 (6) (a), 220.04 (7) (b) 3., 220.04 (9) (a) 2., 220.04 (10), 220.06 (1m), 220.09, chapter 223 (title), 223.01, 223.03 (14), 223.07 (1), 223.07 (3), 223.08, 701.19 (2) (d) and 946.82 (4); to repeal and recreate 138.056 (8), chapter 221, 223.02 and 223.03 (6); and to create 138.052 (10) (b), 186.70, 214.509, 215.26 (4m), 220.04 (11), 220.04 (12), 220.08 (3am), subchapter I (title) of chapter 223 [precedes 223.01], subchapter II (title) of chapter 223 [precedes 223.10] and subchapter III (title) of chapter 223 [precedes 223.20] of the statutes; relating to: state law governing banks, credit unions, savings banks and savings and loan associations, the definition of public depository, residential and variable interest rate loans, granting rule-making authority and providing a penalty.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
336,1 Section 1. 34.09 of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
34.09 Financial institutions eligible as public depositories. Every federal or state credit union, state bank, federal or state savings and loan association, savings and trust company and federal or state savings bank and every national bank located in this state which complies in all respects as to public deposits with this chapter and will accept payments made by the state under s. 16.412 may be designated as a public depository and may receive and hold public deposits, subject to this chapter, if the financial institution has a branch or main office located in this state, complies with this chapter with respect to public deposits and accepts payments made by the state under s. 16.412. The division of banking shall have has the same powers and duties with regard to making and continuing public deposits in national banks, federal and state credit unions, federal and state savings banks and federal and state savings and loan associations as the powers and duties exercised and performed by the division of banking with regard to public deposits in state banks.
336,2 Section 2. 66.04 (2m) (a) of the statutes is amended to read:
66.04 (2m) (a) The institution is authorized to exercise trust powers under s. 221.04 (6) 221.0316 or ch. 223.
336,3 Section 3. 138.052 (10) of the statutes is renumbered 138.052 (10) (intro.) and amended to read:
138.052 (10) (intro.) This section does not apply to loans any of the following:
(a) A loan to corporations a corporation or a limited liability companies company.
336,4 Section 4. 138.052 (10) (b) of the statutes is created to read:
138.052 (10) (b) A loan that is primarily for a business purpose or for an agricultural purpose, as defined in s. 421.301 (4).
336,5 Section 5. 138.056 (8) of the statutes is repealed and recreated to read:
138.056 (8) Applicability. This section does not apply to any of the following:
(a) A loan or forbearance to a corporation or a limited liability company.
(b) A loan that is primarily for a business purpose or for an agricultural purpose, as defined in s. 421.301 (4).
(c) A reverse mortgage loan, as defined in s. 138.058 (1) (b).
(d) A transaction initially entered into before November 1, 1981.
336,6 Section 6. 157.19 (2) (a) of the statutes is amended to read:
157.19 (2) (a) Except as provided in sub. (5) and the rules promulgated under sub. (4), the cemetery authority may deposit care funds under s. 157.11 (9g), and shall deposit care funds under s. 157.12 (3) and preneed trust funds under s. 440.92, with a financial institution located in this state. The financial institution shall be the trustee of the care funds and preneed trust funds. A bank need not comply with s. 221.04 (6) 221.0316 (1) or (2) or ch. 223 to accept or disburse deposits under this section. The trustee shall invest the care funds and preneed trust funds as provided under s. 881.01, except as provided in sub. (5) and the rules promulgated under sub. (4).
336,7 Section 7. 180.1132 (2) (a) of the statutes is amended to read:
180.1132 (2) (a) A corporation if a business combination involving the corporation is governed by s. 186.31, 215.53, 215.73, 221.25, 221.565 221.0702 or 223.11 223.21.
336,8 Section 8. 180.1150 (3) (h) of the statutes is repealed.
336,9 Section 9. 186.113 (15) (a) of the statutes, as affected by 1995 Wisconsin Acts 27 and 55, is amended to read:
186.113 (15) (a) Directly or indirectly, acquire, place and operate, or participate in the acquisition, placement and operation of, at locations other than its offices, remote terminals, in accordance with rules established by the office of credit unions. The rules shall provide that any remote terminal shall be available for use, on a nondiscriminatory basis, by any state or federal credit union which has its principal place of business in this state, by any other credit union obtaining the consent of a state or federal credit union which has its principal place of business in this state and is using the terminal and by all members designated by a credit union using the terminal. This subsection does not authorize a credit union which has its principal place of business outside the state to conduct business as a credit union in this state. The remote terminals also shall be available for use, on a nondiscriminatory basis, by any state or national bank, state or federal savings bank or state or federal savings and loan association, whose home office is located in this state, if the bank, savings bank or savings and loan association requests to share its use, subject to the joint rules established under s. 221.04 (1) (k) 221.0303 (2). The office of credit unions by order may authorize the installation and operation of a remote terminal in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.
336,9d Section 9d. 186.117 of the statutes, as affected by 1995 Wisconsin Act .... (Assembly Bill 569), is repealed.
336,9f Section 9f. 186.118 of the statutes, as affected by 1995 Wisconsin Act .... (Assembly Bill 569), is repealed.
336,9L Section 9L. 186.70 of the statutes is created to read:
186.70 Record search. A credit union is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting these expenses and costs or unless the person seeking the production is a government unit, as defined in s. 108.02 (17). The expenses and costs shall be paid by persons seeking such production. If a credit union is entitled to reimbursement under this section, a credit union may not be required to produce books, papers, records and other data in response to legal process unless the expenses and costs, identified in an itemized invoice to be provided by the credit union, are paid or unless payment is tendered to the credit union in cash or by certified check or draft.
336,9r Section 9r. 214.509 of the statutes is created to read:
214.509 Record search. A savings bank is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting these expenses and costs or unless the person seeking the production is a government unit, as defined in s. 108.02 (17). The expenses and costs shall be paid by persons seeking such production. If a savings bank is entitled to reimbursement under this section, a savings bank may not be required to produce books, papers, records and other data in response to legal process unless the expenses and costs, identified in an itemized invoice to be provided by the savings bank, are paid or unless payment is tendered to the savings bank in cash or by certified check or draft.
336,9y Section 9y. 214.595 of the statutes is repealed.
336,10 Section 10. 215.13 (46) (a) 1. of the statutes, as affected by 1995 Wisconsin Acts 27 and 55, is amended to read:
215.13 (46) (a) 1. Directly or indirectly, acquire, place and operate, or participate in the acquisition, placement and operation of, at locations other than its home or branch offices, remote service units, in accordance with rules established by the division. Remote service units established in accordance with such rules are not subject to sub. (36), (39), (40) or (47) or s. 215.03 (8). The rules of the division shall provide that any such remote service unit shall be available for use, on a nondiscriminatory basis, by any state or federal savings and loan association which has its principal place of business in this state, by any other savings and loan association obtaining the consent of a state or federal savings and loan association which has its principal place of business in this state and is using the terminal and by all customers designated by a savings and loan association using the unit. This paragraph does not authorize a savings and loan association which has its principal place of business outside this state to conduct business as a savings and loan association in this state. The remote service units also shall be available for use, on a nondiscriminatory basis, by any credit union, state or national bank or state or federal savings bank, whose home office is located in this state, if the credit union, bank or savings bank requests to share its use, subject to the joint rules established under s. 221.04 (1) (k) 221.0303 (2). The division by order may authorize the installation and operation of a remote service unit in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.
336,11 Section 11. 215.13 (51) of the statutes, as affected by 1995 Wisconsin Acts 27 and 55, is amended to read:
215.13 (51) Contract for financial services. Contract with a bank that is owned by a bank holding company which also owns the contracting association, to provide products or services under s. 221.04 (1) (p) 221.0301 (8). The bank shall be subject to regulation and examination by the division with regard to services performed under the contract to the same extent as if the services were being performed by the association itself on its own premises.
336,11c Section 11c. 215.136 of the statutes is repealed.
336,11L Section 11L. 215.145 of the statutes is repealed.
336,11p Section 11p. 215.26 (4m) of the statutes is created to read:
215.26 (4m) Record search. An association is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting these expenses and costs or unless the person seeking the production is a government unit, as defined in s. 108.02 (17). The expenses and costs shall be paid by persons seeking such production. If an association is entitled to reimbursement under this section, an association may not be required to produce books, papers, records and other data in response to legal process unless the expenses and costs, identified in an itemized invoice to be provided by the association, are paid or unless payment is tendered to the association in cash or by certified check or draft.
336,12 Section 12. 217.11 (1) of the statutes is amended to read:
217.11 (1) Every check sold by any licensee shall bear the name of the licensee clearly imprinted thereon, including the words authorized under s. 221.49 (2) 221.0402 (2) if applicable.
336,13 Section 13. 219.08 of the statutes is repealed.
336,14 Section 14. 220.04 (6) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
220.04 (6) (a) The division, with the approval of the banking review board, may establish uniform savings rules which shall be adopted by every bank and trust company bank. Such rules may provide the conditions under which banks or trust company banks may accept time deposits and the methods of figuring interest. Such rules may also provide the term of notice of withdrawal and the amounts which may be withdrawn by depositors, which conditions the bank may put in force in times of financial stress by action of its board of directors. The maximum rate of interest on deposits paid by banks whose deposits are not insured by the federal deposit insurance corporation, whether certificates of deposit or book savings deposits, shall be the same as the rate set by the federal deposit insurance corporation for banks whose deposits are insured by it.
336,15 Section 15. 220.04 (7) (b) 3. of the statutes is amended to read:
220.04 (7) (b) 3. Require the organization to maintain reasonable safeguards to protect fiduciary property including the maintenance of an indemnity fund in the same manner as that required of trust company banks under s. 223.02 (1).
336,16 Section 16. 220.04 (9) (a) 2. of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
220.04 (9) (a) 2. "Regulated entity" means a bank, trust company bank and any other entity which is described in s. 220.02 (2) or 221.56 221.0526 as under the supervision and control of the division.
336,17 Section 17. 220.04 (10) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
220.04 (10) If it appears to the division that a person has engaged or is about to engage in an act or practice constituting a violation of the laws of this state relating to banks and banking, including this chapter, chs. 217, 218 and 221 to 224 and s. 138.09, or a rule promulgated or order issued under those laws, the division may bring an action in the name of the state in the circuit court of the appropriate county to enjoin the acts or practices and to enforce compliance with the laws, rules or orders, or the division may refer the matter to the district attorney of the appropriate county or, if the alleged violation may be enforced by the attorney general under sub. (12) or s. 220.12, 221.18, 221.205, 221.28 221.1005 or 224.06 (7) or is statewide in nature, to the attorney general. Upon a proper showing, the court may grant a permanent or temporary injunction or restraining order, appoint a receiver for the defendant or the defendant's assets or order rescission of any acts determined to be unlawful. The court may not require the division to post a bond.
336,18 Section 18. 220.04 (11) of the statutes is created to read:
220.04 (11) In order to carry out ss. 220.07, 220.08 and 221.1005, the division may commence and maintain in the division's name any and all actions necessary or proper to enforce any of said sections.
336,19 Section 19. 220.04 (12) of the statutes is created to read:
220.04 (12) If the division has information that causes the division to believe that any bank, trust company bank, or any other person subject in whole or in part to supervision or control by the division, or any officer, employe, member or manager thereof, has violated any law, rule or order that subjects the person to prosecution for a criminal offense or to a penalty, the division shall bring such information to the attention of the banking review board, with the division's recommendation in writing as to action to be taken. The banking review board shall, if in its judgment probable cause exists for believing that a criminal offense has been committed, or a penalty incurred, call the facts and information to the attention of the attorney general whose duty it shall be to cause prosecution or other action to be instituted if, in the attorney general's judgment, the facts warrant. This subsection does not prevent the institution of any prosecution by any district attorney of this state with or without any advice or act on the part of the attorney general. This subsection does not preclude the division, in any case where the division deems it important to act immediately, from causing any arrest and prosecution where the division is satisfied that there is reason to believe the offense has been committed and that prosecution should be immediately commenced.
336,20 Section 20. 220.06 (1m) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
220.06 (1m) No division employe may examine a bank or licensee in which that person is interested as a stockholder, officer or employe. No division employe may examine a bank or licensee located in the same village, city or county with any bank or licensee in which that person is so interested. Employes in the division, and each member and employe of the banking review board, shall keep secret all facts and information obtained in the course of examinations or from reports not under s. 221.15 221.1002 (1) filed by a bank or licensee with the division, except so far as the public duty of the person requires reporting upon or taking special action regarding the affairs of any bank or licensee, and except when called as a witness in any criminal proceeding or trial in a court of justice. The division may furnish to the federal deposit insurance corporation or to any regulatory authority for state or federal financial institutions, insurance or securities a copy of any examination made of any such bank or licensee or of any report made by such bank or licensee and may give access to and disclose to the corporation or to any regulatory authority for state or federal financial institutions, insurance or securities any information possessed by the division with reference to the conditions or affairs of any such insured bank or licensee if the regulatory authority agrees to treat all information received with the same degree of confidentiality as applies to reports of examination that are in the custody of the division.
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