LRBs0421/3
KSH:jlg:ch
1997 - 1998 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO 1997 ASSEMBLY BILL 746
January 29, 1998 - Offered by Representative Ward.
AB746-ASA1,1,8
1An Act to repeal 186.01 (3g), 186.01 (6), 186.02 (2) (a) 5k. and 186.12 (2);
to
2amend 186.015 (5), 186.07 (5) (c), 186.07 (6), 186.071 (1) (a), 186.071 (1) (b),
3186.08 (1m) (c), 186.098 (13) (a), 186.10 (2), 186.113 (1), 186.12 (title), 186.13,
4220.285 (1), 220.285 (2), 708.10 (1) (e) 2. and 708.10 (1) (e) 3.;
to repeal and
5recreate 186.19; and
to create 186.113 (1m) (title), 186.113 (23), 186.235 (7)
6(b) 1m. and 186.71 of the statutes;
relating to: the powers and duties of credit
7unions and their directors, officers, employes and members; and the "good
8funds" requirements for loan closings.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB746-ASA1,2,10
1186.015
(5) Reviews. Any interested person aggrieved by any act, order or
2determination of the office of credit unions that relates to credit unions may, within
360 days after the date of the act, order or determination, apply for review by the
4review board. The review board shall determine if the office of credit unions acted
5within the scope of the office's authority, has not acted in an arbitrary or capricious
6manner and has based the act, order or determination on evidence supported by the
7record. The review board shall dispose of a review application within 60 days after
8the date on which it is received
, unless the review board designates a hearing
9examiner, in which case the review board shall dispose of the review application
10within 180 days after the date on which it is received.
AB746-ASA1, s. 5
12Section
5. 186.07 (5) (c) of the statutes is amended to read:
AB746-ASA1,2,1413
186.07
(5) (c) The director is unable to be bonded
for all activities of the credit
14union in accordance with the standards set by the board of directors.
AB746-ASA1,2,2416
186.07
(6) Removal notice and appeal. A director who is removed under sub.
17(5) or s. 186.071 (2) shall be given notice of removal
and shall be given an opportunity
18to appeal before the board of directors. The removed director may petition the board
19of directors to reconsider its decision. If the board of directors does not reinstate the
20director, the director may appeal the decision of the board of directors to the office
21of credit unions. If the office of credit unions determines that the removal of the
22director was improper, the office of credit unions shall order the reinstatement of the
23director and, if the board of directors has already appointed a person to fill the
24vacancy created by the removal of the director, the removal of such person.
AB746-ASA1, s. 7
25Section
7. 186.071 (1) (a) of the statutes is amended to read:
AB746-ASA1,3,3
1186.071
(1) (a) Keep confidential the financial affairs of credit union members,
2unless state and federal laws, security requirements or sound lending practices
3require permit disclosure.
AB746-ASA1, s. 8
4Section
8. 186.071 (1) (b) of the statutes is amended to read:
AB746-ASA1,3,75
186.071
(1) (b) Keep confidential the records and accounts of the credit union
6and the deliberations of the board of directors unless state or federal law
requires
7permits disclosure.
AB746-ASA1, s. 9
8Section
9. 186.08 (1m) (c) of the statutes is amended to read:
AB746-ASA1,3,109
186.08
(1m) (c) Setting the
type and amount of
surety bond required
of each 10officer having custody of funds for directors, officers and employes.
AB746-ASA1,3,2212
186.098
(13) (a) Subject to any limitation on security interests identified in s.
13422.417 (3) and if the loan agreement or endorsement permits it, a credit union shall
14have a lien on the share deposits and deposit accounts and accumulated dividends
15of a member for any amount owed the credit union by the member and for any loan
16endorsed by the member. Upon the default of the owner of the account in an
17obligation owed to the credit union, the credit union shall have a right of immediate
18setoff for each share deposit and deposit account unless prohibited under
12 CFR
19226.12 (d).
Sections If the loan is a consumer credit transaction as defined in s.
20421.301 (10), ss. 425.104 and 425.105 apply to a default under this paragraph. The
21credit union may also refuse to allow withdrawals from any share deposit or deposit
22account in an amount not to exceed any delinquent obligation to the credit union.
AB746-ASA1,4,324
186.10
(2) Shares in trust. Shares may be issued in trust, subject to any
25conditions prescribed in the bylaws. Share accounts and deposit accounts may be
1owned held by a member in trust for a beneficiary,
or owned held by a nonmember
2in trust for a beneficiary who is a member
or held by a nonmember custodian for a
3member pursuant to ss. 880.61 to 880.72.
AB746-ASA1,4,105
186.113
(1) Branch offices. If the need and necessity exist and with the
6approval of the office of credit unions, establish branch offices inside this state or no
7more than 25 miles outside of this state. Permanent records may be maintained at
8branch offices established under this subsection.
In this subsection, the term
9"branch office" does not include a remote terminal, a limited services office or a
10service center.
AB746-ASA1, s. 13
11Section
13. 186.113 (1m) (title) of the statutes is created to read:
AB746-ASA1,4,1212
186.113
(1m) (title)
Limited services offices.
AB746-ASA1,4,1514
186.113
(23) Accept investments. Accept investments made by state or
15federally chartered credit unions.
AB746-ASA1,4,17
17186.12 (title)
Compensation of officers,
sureties, operation expenses.
AB746-ASA1,5,3
20186.13 Expulsion. If the board of directors adopts a written policy, a credit
21union may expel a member if the member neglects or refuses to comply with this
22chapter or the credit union bylaws or if the board has other just cause. The credit
23union shall provide notice to the member in writing of the reason for expulsion. The
24notice shall include a description of the member's right to a hearing
and the time
25period for the member to request a hearing. If a member requests a hearing in
1writing
within 45 days of receipt of the expulsion notice, the board shall give the
2member an opportunity to be heard on the expulsion within 90 days after the date
3of the expulsion notice.
AB746-ASA1, s. 18
4Section
18. 186.19 of the statutes is repealed and recreated to read:
AB746-ASA1,5,7
5186.19 Bonding requirements. A credit union shall maintain the necessary
6bonds for directors, officers and employes according to any standards prescribed by
7the national board.
AB746-ASA1, s. 19
8Section
19. 186.235 (7) (b) 1m. of the statutes is created to read:
AB746-ASA1,5,149
186.235
(7) (b) 1m. Furnish any state regulatory authority regulating state
10financial institutions with a copy of any examination made by the office of credit
11unions of any credit union or of any report made by the credit union, if the authority
12agrees to treat the information received under this subdivision with the same degree
13of confidentiality that is required of employes of the office of credit unions under par.
14(a).
AB746-ASA1,5,23
16186.71 Reproduction and destruction of records; evidence. (1) Any
17credit union may cause any or all records kept by such credit union to be recorded,
18copied or reproduced by any photostatic, photographic or miniature photographic
19process or by optical imaging if the process employed correctly, accurately and
20permanently copies, reproduces or forms a medium for copying, reproducing or
21recording the original record on a film or other durable material. A credit union may
22thereafter dispose of the original record after first obtaining the written consent of
23the office of credit unions.
AB746-ASA1,6,7
24(2) Any photographic, photostatic or miniature photographic copy or
25reproduction or copy reproduced from a film record or any copy of a record generated
1from optical disk storage of a credit union record is considered to be an original record
2for all purposes and shall be treated as an original record in all courts or
3administrative agencies for the purpose of its admissibility in evidence. A facsimile,
4exemplification or certified copy of any such photographic copy or reproduction, copy
5reproduced from a film record or copy generated from optical disk storage of a record
6shall, for all purposes, be considered a facsimile, exemplification or certified copy of
7the original record.
AB746-ASA1,6,199
220.285
(1) Any state bank, trust company bank, licensee under s. 138.09,
10138.12, 218.01, 218.02, 218.04 or 218.05 or ch. 217
or credit union may cause any or
11all records kept by such bank
, or licensee
or credit union to be recorded, copied or
12reproduced by any photostatic, photographic or miniature photographic process or
13by optical imaging if the process employed correctly, accurately and permanently
14copies, reproduces or forms a medium for copying, reproducing or recording the
15original record on a film or other durable material. A bank
, or licensee
or credit union 16may thereafter dispose of the original record after first obtaining the written consent
17of the division. This section, excepting that part of it which requires written consent
18of the division, is applicable to national banking associations insofar as it does not
19contravene federal law.
AB746-ASA1,7,421
220.285
(2) Any photographic, photostatic or miniature photographic copy or
22reproduction or copy reproduced from a film record or any copy of a record generated
23from optical disk storage of a bank record
, or record of a licensee
or credit union
24record is
deemed considered to be an original record for all purposes and shall be
25treated as an original record in all courts or administrative agencies for the purpose
1of its admissibility in evidence. A facsimile, exemplification or certified copy of any
2such photographic copy or reproduction, copy reproduced from a film record or copy
3generated from optical disk storage of a record shall, for all purposes, be
deemed 4considered a facsimile, exemplification or certified copy of the original record.
AB746-ASA1,7,66
708.10
(1) (e) 2. Cashier's check
or teller's check.