215.21(17)(b)1. 1. A business venture employing an officer, director or employee of the association.
215.21(17)(b)2. 2. Such other persons as the division may by rule designate to avoid conflicts between the best interests of the association and the interests of its officers, directors or employees.
215.21(17)(c) (c) In this subsection "business venture" means any partnership, joint venture, corporation or similar entity.
215.21(17)(d) (d) This subsection does not apply to loans made:
215.21(17)(d)1. 1. On the security of home-type property containing 4 dwelling units or less and used by the borrower as his or her residence; or
215.21(17)(d)2. 2. To a nonprofit, religious, charitable or fraternal organization or a corporation in which the association has been authorized to invest by the division.
215.21(18) (18)Basis of appraisals. All appraisals of real estate securing mortgage loans shall be based on the reasonable market value of the real estate.
215.21(21) (21)Penalty for giving or accepting money for loans. Every officer, director, employee or agent of any association, or any appraiser making appraisals for any association, who accepts or receives, or offers or agrees to accept or receive anything of value in consideration of its loaning any money to any person; or any person who offers, gives, presents or agrees to give or present anything of value to any officer, director, employee or agent of any association or to any appraiser making appraisals for any association in consideration of its loaning money to the person, shall be fined not more than $10,000 or imprisoned in the Wisconsin state prisons for not more than 3 years or both. Nothing in this subsection prohibits an association from employing an officer, employee or agent to solicit mortgage loans and to pay the officer, employee or agent on a fee basis.
215.21(23) (23)False statement in loan applications; penalty. Any person who makes or causes to be made any false written statement to any state or federal savings and loan association for the purpose of obtaining a loan for himself or herself or for another, with intent to mislead, or which may mislead the association, may be imprisoned for not more than 6 months or fined not to exceed $1,000.
215.21(24) (24)Board may waive principal payment on loans. Any association, in the discretion of its board, may accept only payments of interest on the loan and taxes on the mortgaged premises, and may waive the principal payments for periods not exceeding one year at a time.
215.21(25) (25)Loans due, when. Whenever a borrower is in arrears in any contractual payments, whether principal, interest, taxes or insurance, the board of directors may call the borrower's whole loan due and payable as provided in the mortgage note.
215.21(28) (28)Loans. Subject to the rules of the division, an association may make or invest its funds in loans, originated and serviced by or through an institution, the accounts or deposits of which are insured by the deposit insurance corporation or by or through an approved federal housing administration mortgagee, in an aggregate amount not exceeding 10% of such association's assets on the security of real estate or leasehold interests.
215.21 Annotation Cross-references: See ss. 138.051 and 138.052 for residential mortgage loans, s. 138.053 for interest adjustment clauses, and ss. 138.055 and 138.056 for variable interest rate clauses.
215.21 Annotation See s. 706.11 (1) for provision as to priority of mortgages to federal savings and loan associations and the department of veterans affairs.
215.21 Annotation The limitation on loans to one borrower is intended to protect the assets of the lender; a violation does not create a cause of action in favor of anyone else who claims that the excess loan damaged him. McNeill v. Jacobson, 55 Wis. 2d 254, 198 N.W.2d 611.
215.21 Annotation Where money is advanced in reliance upon justifiable expectation that lender will have security equivalent to that which its advances have discharged, equity will treat the transaction as tantamount to an assignment of the original security provided no innocent 3rd party will suffer. Rock River Lumber v. Universal Mortg. Corp. 82 Wis. 2d 235, 262 N.W.2d 114.
215.21 Annotation Adjustable interest rates in home mortgages: a reconsideration. 1975 WLR 742.
215.215 215.215 Nonconforming loans. Notwithstanding generally accepted underwriting standards, an association may make loans secured by real property used primarily for residential or farming purposes, even if those loans do not comply with one or more of the requirements under those provisions, if the total amount of loans made under this section does not exceed 5% of the association's total assets.
215.215 History History: 1997 a. 144.
215.22 215.22 Real estate owned by association.
215.22(1) (1) A savings and loan association may acquire such real estate, by purchase, exchange or otherwise, as may be necessary to protect or enforce its securities and to collect claims or debts due the association.
215.22(2) (2) All real estate acquired pursuant to this section shall be sold within 10 years from acquiring title thereto, unless the division grants extensions of time within which such real estate shall be sold.
215.22(3) (3) All real estate owned by the association shall be assessed for taxation.
215.22 History History: 1975 c. 359; 1995 a. 27.
215.23 215.23 Limitations on investments in office buildings and related facilities. An association's aggregate investment in the following may not exceed the association's net worth without the prior written approval of the division:
215.23(1) (1) Land used or intended to be used as the site of an office of the association.
215.23(2) (2) Buildings used in whole or in part as an office of the association.
215.23(3) (3) Leasehold improvements to properties rented or leased by the association for use as an office of the association.
215.23(4) (4) Parking facilities used by the association in connection with an office of the association.
215.23 History History: 1973 c. 205; 1975 c. 59; 1975 c. 359 ss. 36, 51; 1979 c. 287; 1995 a. 27.
215.24 215.24 Minimum net worth. An association shall maintain net worth at an amount not less than the minimum amount established by the division. If an association fails to maintain the minimum net worth required under this section, the division may take appropriate action, including but not limited to ordering the association to take corrective action or to restrict payment of dividends.
215.24 History History: 1973 c. 205; 1975 c. 359; 1983 a. 167; 1995 a. 27.
215.25 215.25 Audit requirements. Each association shall be audited at least once in each fiscal year by auditors and in a manner satisfactory to the division in accordance with the policies established by the division. The auditors are to be designated by the board of directors and must be independent, certified public accountants certified in this state. In lieu of audits by independent, certified public accountants, the board of directors may request an audit of the books and accounts to be made by the division to check the assets of the association and to determine losses, which request the division may refuse. The division may at any time make or cause to be made an audit of any association, with appraisals, when deemed advisable. Associations shall promptly file with the division a copy of the report of each audit, other than audits made by the division. The cost of any audit made pursuant to this section shall be paid by the association audited.
215.25 History History: 1973 c. 205; 1983 a. 167; 1995 a. 27.
215.26 215.26 Miscellaneous provisions.
215.26(2) (2)Retaliatory taxes and restrictions. When the laws of any other state or territory impose any taxes, fines, penalties, licenses, fees, deposits, money, securities or other obligations or prohibitions on associations of this state doing business in such other state or territory or upon their agents therein, so long as such laws continue in force, the same obligations and prohibitions shall be imposed upon all associations of such other state or territory and their agents in this state.
215.26(3) (3)Obsolete records. Any association may destroy or dispose of such of its records as may become obsolete after first obtaining the written consent of the division.
215.26(4) (4)Reproduction and destruction of records.
215.26(4)(a)(a) Any association may cause any or all records kept by such association to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. An association may thereafter dispose of the original record after first obtaining the written consent of the division. This section, excepting the part of it which requires written consent of the division, is applicable to federal associations insofar as it does not contravene federal law.
215.26(4)(b) (b) Any photographic, photostatic or miniature photographic copy or reproduction or copy reproduced from a film record or any copy of a record generated by optical disk storage of an association record shall be deemed to be an original record for all purposes and shall be treated as an original record in all courts or administrative agencies for the purpose of its admissibility in evidence. A facsimile, exemplification or certified copy of any such photographic copy or reproduction, copy reproduced from a film record or copy generated from optical disk storage of a record shall, for all purposes, be deemed a facsimile, exemplification or certified copy of the original record.
215.26(4m) (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.
215.26(5) (5)Legal holidays. The division shall designate such of the legal holidays listed in s. 895.20 as days on which no association may transact business or be open for the purpose of transacting business. For purposes of this subsection, operation of a remote service unit as defined in s. 215.13 (46) (a) 1. or an unstaffed facility does not constitute the transaction of business.
215.26(6) (6)Agent of savings and loan association. Any person who acts as the agent for any unauthorized savings and loan association in this state, or sells or disposes of any savings accounts, certificates, bonds or other evidences of indebtedness of or for any such unauthorized association, not licensed to transact business in this state, and any person who acts for any such unauthorized association or in any manner aids in the transaction of the business of such association in this state shall be guilty of a misdemeanor and be fined not less than $100 nor more than $500 for each offense, and shall be personally liable for any sums received by the person for or on behalf of such unauthorized association.
215.26(7) (7)Federal associations located in Wisconsin. Federal savings and loan associations which have their home offices located in Wisconsin, and are incorporated pursuant to the home owners' loan act of 1933, as now or hereafter amended, are not foreign corporations or associations. Unless federal law or regulations provide otherwise, such federal savings and loan associations and members thereof shall possess all of the rights, powers, privileges, benefits, immunities and exemptions that are now provided or that may be hereafter provided by the laws of this state for associations organized under the laws of this state and for the members thereof. This provision is additional and supplemental to any provision which, by specific reference, is applicable to such federal savings and loan associations and the members thereof.
215.26(8) (8)Access to books and records.
215.26(8)(a)1.1. Every person may inspect those books and records of an association which pertain to the person's loan or savings account. An association and officers and employees of an association may provide books, records or other information as required by court order or by a subpoena in a court or administrative proceeding.
215.26(8)(a)2. 2. If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3), shall provide that individual with a copy of any written appraisal report which is held by the financial institution, which relates to residential real estate that the individual owns or has agreed to purchase and for which a fee is imposed.
215.26(8)(a)3. 3. If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3), shall provide that individual, at no additional charge, with a copy of any written credit report which is held by the financial institution, which relates to that individual and for which a fee is imposed.
215.26(8)(b) (b) Except as provided under par. (a), the right of inspection and examination of the books and records of an association is limited to:
215.26(8)(b)1. 1. The division or its authorized representatives.
215.26(8)(b)2. 2. Persons duly authorized to act for the association.
215.26(8)(b)3. 3. The deposit insurance corporation or any federal agency or other instrumentality approved by the division which is authorized to inspect and examine books and records of an insured association.
215.26(8)(c) (c) The books and records of an association pertaining to savings accounts and loans shall be kept confidential by the association, its directors, officers and employees. Except as authorized under pars. (a) and (d) to (f), no other person may have access to the books and records or may be furnished or may possess a partial or complete list of borrowers or savings account owners.
215.26(8)(d) (d) An association may disclose information from its books and records to a consumer reporting agency as defined in 15 USC 1681a (f) for purposes of a consumer report as defined in 15 USC 1681a (d).
215.26(8)(dm) (dm) An association may disclose information from its books and records as provided in s. 767.267 (5).
215.26(8)(e) (e) An association shall disclose the current balances of a saver's accounts and identify the accounts to any person who:
215.26(8)(e)1. 1. Submits an affidavit stating that the person has standing under s. 867.01 (3) (ac) or 867.02 (2) (ac) to petition for summary settlement or assignment of a decedent's estate or that the person is an heir of the decedent, or was guardian, as defined in s. 880.01 (3), of the decedent at the time of the decedent's death, and may obtain transfer of property of a decedent under s. 867.03; and
215.26(8)(e)2. 2. Submits a certified copy of the saver's death certificate. If the association already possesses a certified copy of the saver's death certificate, this subdivision does not apply.
215.26(8)(f) (f) An association may furnish a partial or complete list of its customers to any person if all of the following apply:
215.26(8)(f)1. 1. The list does not classify customers by individual financial criteria and contains only the names and addresses of customers.
215.26(8)(f)2. 2. The association gives each customer prior written notice of the association's intent to furnish information about the customer and informs the customer that the customer has the right to prohibit the release by notifying the association in writing on a form provided by the association.
215.26(8)(f)3. 3. The person who is furnished a list agrees in writing not to furnish the list to another person.
215.26(9) (9)Closing books. Each association shall close its books at least once annually and at such other times as the division requires. The date of the annual fiscal closing may be March 31, June 30, September 30 or December 31, unless rules of the division otherwise direct.
215.32 215.32 Possession by division; involuntary liquidation.
215.32(1)(1)Definition. In this section, "circuit court" means the circuit court of Dane County, notwithstanding s. 801.50.
215.32(1m) (1m)Conditions for taking possession. The division may take possession of the business and property of any association to which this chapter applies if the division finds that the association:
215.32(1m)(a) (a) Is conducting its business contrary to law; or
215.32(1m)(b) (b) Has violated its charter or any law; or
215.32(1m)(c) (c) Is conducting its business in an unauthorized or unsafe manner; or
215.32(1m)(d) (d) Is in an unsound or unsafe condition to transact its business; or
215.32(1m)(e) (e) Has an impairment of its savings accounts; or
215.32(1m)(f) (f) Cannot with safety and expediency continue business; or
215.32(1m)(g) (g) Has suspended payment of its obligations; or
215.32(1m)(h) (h) Has failed to comply with an order of the division; or
215.32(1m)(i) (i) Has refused to submit its books, papers, records or affairs for inspection; or
215.32(1m)(j) (j) Has refused to be examined upon oath regarding its affairs.
215.32(2) (2)Procedure after taking possession. After taking possession of the business and property of an association, the division shall immediately:
215.32(2)(a) (a) Serve written notice on an officer of the association stating that the division has taken possession and control of the business and property of the association. A copy of the notice and proof of service thereof shall be filed with the clerk of circuit court.
215.32(2)(b) (b) Mail notice to the last-known address of any person known to the division to be in possession of assets of the association.
215.32(3) (3)Employment of counsel; retention of officers and employees of association. The division may employ necessary counsel and experts in a liquidation under this section and may retain any officer or employee of the association.
215.32(4) (4)Appointment of special deputy. The division may appoint special deputies as agents to assist in the liquidation and distribution of the assets of associations whose business and property the division has taken possession of. A certificate of the appointment shall be filed with the division and a certified copy shall be filed in the office of the clerk of circuit court.
215.32(5) (5)Surety bonds of special deputies and assistants. Special deputies and assistants shall furnish surety bonds in accordance with s. 215.11.
215.32(6) (6)Duties of special deputies.
215.32(6)(a)(a) Notice, allowance and payment of claims. The special deputy shall publish a class 3 notice, under ch. 985, requiring all persons who have claims against the association, other than savers whose claims are shown in the records of the association, to file proof of their claims at a place and by a date not earlier than 30 days after the last insertion of the notice. The special deputy shall mail a copy of the notice to all persons, at their last-known addresses, who appear as creditors upon the books of the association. Proof of publication and service of the notice shall be filed with the clerk of circuit court. A claim, other than that of a saver whose claim is shown on the records of the association, for which no proof of claim is filed by the date fixed in the notice is barred. Savers whose claims are shown in the records of the association need not file proof of their claims. Any interested party may file written objections to any claim with the special deputy. The special deputy may reject any claim, including a claim of a saver. After notice by registered mail of rejection, the claim is barred unless the claimant commences an action within 90 days after the date of mailing of the notice of rejection.
215.32(6)(b) (b) Inventory of assets and statement of liabilities. The special deputy appointed under this section shall make an inventory of the assets of the association. One copy of the inventory shall be filed with the division and one in the office of the clerk of circuit court. After the time for filing proof of claims has expired, the special deputy shall make a complete list of the claims for which proof of claims were filed and specify the claims the special deputy has rejected. One copy shall be filed with the division and one in the office of the clerk of circuit court. The inventory of assets and list of claims shall be open to inspection.
215.32(6)(c) (c) Execution of legal documents; borrowing of money. A special deputy appointed under this section may, with the prior approval of the division and the circuit court, execute, acknowledge and deliver all deeds, assignments, releases or other instruments necessary and proper to effect any sale or transfer or encumbrance of the property of an association subject to this section and may borrow money for use in the liquidation.
This is an archival version of the Wis. Stats. database for 1999. See Are the Statutes on this Website Official?