AB898,14,1915 (b) For a universal bank organized as a mutual organization, the universal
16bank's net worth, undivided profits, surplus, outstanding notes and debentures
17approved by the division, other forms of capital designated as capital by the division
18and other forms of capital considered to be qualifying capital by a deposit insurance
19corporation.
AB898,14,23 20(3) "Deposit insurance corporation" means the Federal Deposit Insurance
21Corporation or other instrumentality of, or corporation chartered by, the United
22States that insures deposits of financial institutions and that is supported by the full
23faith and credit of the U.S. government as stated in a congressional resolution.
AB898,14,24 24(4) "Division" means the division of banking.
AB898,15,3
1(5) "Financial institution" means a state savings bank organized under ch. 214,
2state savings and loan association organized under ch. 215 or a state bank chartered
3under ch. 221.
AB898,15,5 4(6) "Universal bank" means a financial institution that has been issued a
5certificate of authority under s. 222.0205.
AB898,15,6 6(7) "Well-capitalized" has the meaning given in 12 USC 1831o (b) (1) (A).
AB898,15,11 7222.0103 Applicability. (1) Savings banks. A universal bank that is a savings
8bank organized under ch. 214 remains subject to all of the requirements, duties and
9liabilities, and may exercise all of the powers, of a savings bank, except that in the
10event of a conflict between this chapter and those requirements, duties, liabilities or
11powers, this chapter shall control.
AB898,15,16 12(2) Savings and loan associations. A universal bank that is a savings and loan
13association organized under ch. 215 remains subject to all of the requirements,
14duties and liabilities, and may exercise all of the powers, of a savings and loan
15association, except that, in the event of a conflict between this chapter and those
16requirements, duties, liabilities or powers, this chapter shall control.
AB898,15,20 17(3) Banks. A universal bank that is a bank chartered under ch. 221 remains
18subject to all of the requirements, duties and liabilities, and may exercise all of the
19powers, of a bank, except that, in the event of a conflict between this chapter and
20these requirements, duties, liabilities or powers, this chapter shall control.
AB898,15,23 21222.0105 Fees. The division may establish such fees as it determines are
22appropriate for documents filed with the division under this chapter and for services
23provided by the division under this chapter.
AB898,15,25 24222.0107 Administration. (1) Powers of division. The division shall
25administer this chapter for all universal banks.
AB898,16,5
1(2) Rule-making authority. The division may promulgate rules to administer
2and carry out this chapter. The division may establish additional limits or
3requirements on universal banks, if the division determines that the limits or
4requirements are necessary for the protection of depositors, members, investors or
5the public.
AB898,16,76 SUBCHAPTER II
7 Certification
AB898,16,12 8222.0201 Procedure. (1) Application. A financial institution may apply to
9become certified as a universal bank by filing a written application with the division.
10The application shall include such information as the division may require. The
11application shall be on such forms and in accordance with such procedures as the
12division may prescribe.
AB898,16,16 13(2) Review by division. An application submitted to the division shall either
14be approved or disapproved by the division in writing within 60 days after its
15submission to the division. The division and the financial institution may mutually
16agree to extend the application period for an additional period of 60 days.
AB898,16,19 17222.0203 Eligibility. (1) Requirements. The division shall approve an
18application for certification as a universal bank, if the applying financial institution
19meets all of the following requirements:
AB898,16,2220 (a) The financial institution is chartered or organized, and regulated, under ch.
21214, 215 or 221 and has been in existence and continuous operation for a minimum
22of 3 years prior to the date of the application.
AB898,16,2323 (b) The financial institution is well-capitalized or adequately capitalized.
AB898,17,324 (c) The financial institution does not exhibit a combination of financial,
25managerial, operational and compliance weaknesses that is moderately severe or

1unsatisfactory, as determined by the division based upon the division's assessment
2of the financial institution's capital adequacy, asset quality, management capability,
3earnings quantity and quality, adequacy of liquidity, and sensitivity to market risk.
AB898,17,74 (d) During the 12-month period prior to the application, the financial
5institution has not been the subject of an enforcement action and there is no
6enforcement action pending against the financial institution by any state or federal
7financial institution regulatory agency, including the division.
AB898,17,10 8(2) Failure to maintain compliance. For any period during which a universal
9bank fails to meet the conditions under sub. (1), the division may by order limit or
10restrict the exercise of the powers of the universal bank under this chapter.
AB898,17,14 11222.0205 Certificate of authority. Upon approval of the application under
12s. 222.0201 for certification as a universal bank, the division shall issue to the
13applicant a certificate of authority stating that the financial institution is certified
14as a universal bank under this chapter.
AB898,17,21 15222.0207 Decertification. A financial institution that is certified as a
16universal bank under this chapter may elect to terminate its certification upon 60
17days' prior written notice to the division and written approval of the division. The
18financial institution shall, as a condition to the termination, terminate its exercise
19of all powers granted under this chapter prior to the termination of the certification.
20Written approval of the termination by the division is void if the financial institution
21fails to satisfy the precondition to termination under this section.
AB898,17,2322 SUBCHAPTER III
23 ORGANIZATION
AB898,18,3 24222.0301 Articles of incorporation and bylaws. A universal bank shall
25continue to operate under its articles of incorporation and bylaws as in effect prior

1to certification as a universal bank or as such articles or bylaws may be subsequently
2amended in accordance with the provisions of the chapter under which the universal
3bank was organized or chartered.
AB898,18,10 4222.0303 Name. (1) Use of "bank". Notwithstanding ss. 214.035, 215.40 (1)
5and 215.60 (1) and subject to subs. (2) and (4), a universal bank may use the word
6"bank" in its name, without having to include the word "savings". Notwithstanding
7ss. 215.40 (1) and 215.60 (1) and subject to subs. (2) and (4), a universal bank that
8is organized under ch. 215 and that uses the word "bank" in its name in accordance
9with this section need not include the words "savings and loan association" or
10"savings association" in its name.
AB898,18,13 11(2) Distinguishability. Except as provided in subs. (3) and (4), the name of the
12universal bank shall be distinguishable upon the records of the division from all of
13the following names:
AB898,18,1514 (a) The name of any other financial institution organized under the laws of this
15state.
AB898,18,1716 (b) The name of a national bank or foreign bank authorized to transact business
17in this state.
AB898,18,21 18(3) Exceptions. A universal bank may apply to the division for authority to use
19a name that does not meet the requirement under sub. (2). The division may
20authorize the use of the name if any of the conditions under s. 221.0403 (2) (a) or (b)
21is met.
AB898,18,24 22(4) Use of same name. A universal bank may use a name that is used in this
23state by another financial institution or by an institution authorized to transact
24business in this state, if the universal bank has done any of the following:
AB898,18,2525 (a) Merged with the other institution.
AB898,19,1
1(b) Been formed by reorganization of the other institution.
AB898,19,32 (c) Acquired all or substantially all of the assets, including the name, of the
3other institution.
AB898,19,6 4222.0305 Capital and assets. (1) Capital requirements. Notwithstanding
5subch. VI of ch. 214 and ss. 215.24 and 221.0205, the division shall determine the
6minimum capital requirements of universal banks.
AB898,19,8 7(2) Certain asset requirements. Section 214.045 does not apply to universal
8banks.
AB898,19,15 9222.0307 Acquisitions, mergers and asset purchases. (1) In general. A
10universal bank may, with the approval of the division, purchase the assets of, merge
11with, acquire or be acquired by any other financial institution, universal bank,
12national bank, federally chartered savings bank or savings and loan association, or
13by a holding company of any of these entities. Notwithstanding subch. III of ch. 214
14and ss. 214.09 and 215.36, the approval of the division of savings institutions is not
15required.
AB898,19,19 16(2) Applications for approval. An application for approval under sub. (1) shall
17be submitted on a form prescribed by the division and accompanied by a fee
18determined by the division. In processing and acting on applications under this
19section the division shall apply the following standards:
AB898,19,2120 (a) For universal banks organized under ch. 214, ss. 214.09, 214.62 to 214.64
21and 214.665 and subch. III of ch. 214.
AB898,19,2322 (b) For universal banks organized under ch. 215, ss. 215.25, 215.36, 215.53 and
23215.73.
AB898,19,2424 (c) For universal banks chartered under ch. 221, subchs. VII and IX of ch. 221.
AB898,20,2
1SUBCHAPTER IV
2 POWERS
AB898,20,8 3222.0401 Federal financial institution powers. (1) In general. Subject
4to the limitations in this section, universal banks may exercise all powers that may
5be exercised, directly or indirectly through a subsidiary, by a federally chartered
6financial institution, including a federally chartered savings bank, a federally
7chartered savings and loan association, a federally chartered national bank or a
8federally chartered credit union, or by an affiliate of such an institution.
AB898,20,18 9(2) Required notification for exercise of a federal power. Except as
10provided in sub. (3), a universal bank may not exercise a power under this section
11without giving 60 days' prior written notice to the division of the universal bank's
12intention to exercise the power. If the division determines within the 60-day period
13that the power is not exercisable by federally chartered financial institutions, the
14division shall disapprove the notice and shall direct the universal bank not to
15exercise that power. A notice under this subsection that is not disapproved by the
16division within 60 days after receipt by the division is approved, unless the division
17and the universal bank mutually agree to extend the notice period for an additional
1860 days.
AB898,20,24 19(3) Previously recognized federal powers. The division shall periodically
20publish, in the Wisconsin Administrative Register, a list of all federal powers that it
21has allowed to be exercised by universal banks under this section. The division shall
22mail copies of the publication to all universal banks. A universal bank need not give
23prior written notice to the division of the universal bank's intention to exercise any
24federal power that the division has included in a list published under this subsection.
AB898,21,4
1(4) Exercise of federal powers through a subsidiary. The division may
2require that certain powers exercisable by universal banks under this section be
3exercised through a subsidiary of the universal bank with appropriate safeguards to
4limit the risk exposure of the universal bank.
AB898,21,7 5222.0403 Loan powers. (1) Permitted purposes. A universal bank may
6make, sell, purchase, arrange, participate in, invest in or otherwise deal in loans or
7extensions of credit for any purpose.
AB898,21,13 8(2) In general. Except as provided in subs. (3) to (8), the total liabilities of any
9person, other than a municipal corporation, to a universal bank for a loan or
10extension of credit may not exceed 20% of the capital of the universal bank at any
11time. In determining compliance with this section, liabilities of a partnership
12includes the liabilities of the general partners, computed individually as to each
13general partner on the basis of his or her direct liability.
AB898,21,16 14(3) Certain secured liabilities. The percentage limitation under sub. (2) is
1550% of the universal bank's capital, if the liabilities under sub. (2) are limited to the
16following types of liabilities:
AB898,21,2017 (a) Warehouse receipts. A liability secured by warehouse receipts issued by
18warehouse keepers licensed and bonded in this state under ss. 99.02 and 99.03 or
19under the federal Bonded Warehouse Act or holding a registration certificate under
20ch. 127, if all of the following requirements are met:
AB898,21,2121 1. The receipts cover readily marketable nonperishable staples.
AB898,21,2222 2. The staples are insured, if it is customary to insure the staples.
AB898,21,2423 3. The market value of the staples is not, at any time, less than 140% of the face
24amount of the obligation.
AB898,22,2
1(b) Certain bonds or notes. A liability in the form of a note or bond that meets
2any of the following qualifications:
AB898,22,53 1. The note or bond is secured by not less than a like amount of bonds or notes
4of the United States issued since April 24, 1917, or certificates of indebtedness of the
5United States.
AB898,22,106 2. The note or bond is secured or covered by guarantees or by commitments or
7agreements to take over, or to purchase, the bonds or notes, and the guarantee,
8commitment or agreement is made by a federal reserve bank, the federal small
9business administration, the federal department of defense or the federal maritime
10commission.
AB898,22,1211 3. The note or bond is secured by mortgages or trust deeds insured by the
12federal housing administration.
AB898,22,14 13(4) Obligations of local governmental units. (a) Definition. In this
14subsection, "local governmental unit" has the meaning given in s. 16.97 (7).
AB898,22,1715 (b) General limitation. Except as otherwise provided in this subsection, the
16total liabilities of a local governmental unit to a universal bank for money borrowed
17may not, at any time, exceed 25% of the capital of the universal bank.
AB898,22,2318 (c) Revenue obligations. Liabilities in the form of revenue obligations of a local
19governmental unit are subject to the limitations provided in par. (b). In addition, a
20universal bank is permitted to invest in a general obligation of that local
21governmental unit in an amount that will bring the combined total of the general
22obligations and revenue obligations of a single local governmental unit to a sum not
23in excess of 50% of the capital of the universal bank.
AB898,23,224 (d) General obligations. If the liabilities of the local governmental unit are in
25the form of bonds, notes or other evidences of indebtedness that are a general

1obligation of a local governmental unit, the total liability of the local governmental
2unit may not exceed 50% of the capital of the universal bank.
AB898,23,73 (e) Temporary borrowings. The total amount of temporary borrowings of any
4local governmental unit maturing within one year after the date of issue may not
5exceed 60% of the capital of the universal bank. Temporary borrowings and
6longer-term general obligation borrowings of a single local governmental unit may
7be considered separately in determining compliance with this subsection.
AB898,23,13 8(5) Obligations of certain international organizations; other foreign bonds.
9A universal bank may purchase bonds offered for sale by the International Bank for
10Reconstruction and Redevelopment and the Inter-American Development Bank or
11such other foreign bonds as may be approved under rules established by the division.
12At no time shall the aggregate investment in any of these bonds issued by a single
13issuer exceed 10% of the capital of such universal bank.
AB898,23,19 14(6) Foreign national government bonds. A universal bank may purchase
15general obligation bonds issued by any foreign national government if the bonds are
16payable in United States funds. The aggregate investment in these foreign bonds
17may not exceed 3% of the capital of the universal bank, except that this limitation
18does not apply to bonds of the Canadian government and Canadian provinces that
19are payable in United States funds.
AB898,24,2 20(7) Limits established by board. (a) When financial statements required. A
21universal bank may not make or renew a loan or loans, the aggregate total of which
22exceeds the level established by the board of directors without being supported by a
23signed financial statement of the borrower, unless the loan is secured by collateral
24having a value in excess of the amount of the loan. A signed financial statement
25furnished by the borrower to a universal bank in compliance with this paragraph

1must be renewed annually as long as the loan or any renewal of the loan remains
2unpaid and is subject to this paragraph.
AB898,24,73 (b) Treatment of loans complying with limits. A loan or a renewal of a loan made
4by a universal bank in compliance with par. (a), without a signed financial statement,
5may be treated by the universal bank as entirely independent of any secured loan
6made to the same borrower if the loan does not exceed the limitations provided in this
7section.
AB898,24,8 8(8) Exceptions. This section does not apply to any of the following:
AB898,24,129 (a) Liabilities secured by certain short-term federal obligations. A liability that
10is secured by not less than a like amount of direct obligations of the United States
11which will mature not more than 18 months after the date on which such liabilities
12to the universal bank are entered into.
AB898,24,1613 (b) Certain federal and state obligations or guaranteed obligations. A liability
14that is a direct obligation of the United States or this state, or an obligation of any
15governmental agency of the United States or this state, that is fully and
16unconditionally guaranteed by the United States or this state.
AB898,24,1817 (c) Commodity Credit Corporation liabilities. A liability in the form of a note,
18debenture or certificate of interest of the Commodity Credit Corporation.
AB898,24,2219 (d) Discounting bills of exchange or business or commercial paper. A liability
20created by the discounting of bills of exchange drawn in good faith against actually
21existing values or the discounting of commercial or business paper actually owned
22by the person negotiating the same.
AB898,25,323 (e) Certain other federal or federally guaranteed obligations. In obligations of,
24or obligations that are fully guaranteed by, the United States and in obligations of
25any federal reserve bank, federal home loan bank, the Student Loan Marketing

1Association, the Government National Mortgage Association, the Federal National
2Mortgage Association, the Federal Home Loan Mortgage Corporation, the
3Export-Import Bank of Washington or the Federal Deposit Insurance Corporation.
AB898,25,17 4(9) Additional authority. (a) In general. In addition to the authority granted
5under subs. (1) to (8), and except as provided in par. (b), a universal bank may lend
6under this subsection, through the universal bank or subsidiary of the universal
7bank, to all borrowers from the universal bank and all of its subsidiaries, an
8aggregate amount not to exceed 20% of the universal bank's capital. Neither a
9universal bank nor any subsidiary of the universal bank may lend to any borrower,
10under this subsection and any other law or rule, an amount that would result in an
11aggregate amount for all loans to that borrower that exceeds 20% of the universal
12bank's capital. A universal bank or its subsidiary may take an equity position or
13other form of interest as security in a project funded through such loans. Every
14transaction by a universal bank or its subsidiary under this subsection shall require
15prior approval by the governing board of the universal bank or its subsidiary,
16respectively. Such loans are not subject to s. 221.0326 or to classification as losses,
17for a period of 3 years from the date of each loan except as provided in par. (b).
AB898,25,2218 (b) Suspension of additional authority. The division may suspend authority
19established under this subsection and, in such case, may specify how an outstanding
20loan shall be treated by the universal bank or its subsidiary. Among the factors that
21the division may consider in suspending authority under this subsection are the
22universal bank's capital, assets, management, liquidity ratio and capital ratio.
AB898,26,4 23222.0405 Investment powers. (1) Investment securities. Except as
24provided in subs. (3) to (8), a universal bank may purchase, sell, underwrite and hold
25investment securities, consistent with safe and sound banking practices, up to 100%

1of the universal bank's capital. In this subsection, "investment securities" includes
2commercial paper, banker's acceptances, marketable securities in the form of bonds,
3notes, debentures and similar instruments that are regarded as investment
4securities.
AB898,26,8 5(2) Equity securities. Except as provided in subs. (3) to (8), a universal bank
6may purchase, sell, underwrite and hold equity securities, consistent with safe and
7sound banking practices, up to 20% of capital or, if approved by the division in
8writing, a greater percentage of capital.
AB898,26,22 9(3) Housing activities. With the prior written consent of the division, a
10universal bank may invest in the initial purchase and development, or the purchase
11or commitment to purchase after completion, of home sites and housing for sale or
12rental, including projects for the reconstruction, rehabilitation or rebuilding of
13residential properties to meet the minimum standards of health and occupancy
14prescribed for a local governmental unit, the provision of accommodations for retail
15stores, shops and other community services that are reasonably incident to that
16housing, or in the stock of a corporation that owns one or more of those projects and
17that is wholly owned by one or more financial institutions. The total investment in
18any one project may not exceed 15% of the universal bank's capital, nor may the
19aggregate investment under this subsection exceed 50% of capital. A universal bank
20may not make an investment under this subsection unless it is in compliance with
21the capital requirements set by the division under s. 222.0305 (1) and with the capital
22maintenance requirements of its deposit insurance corporation.
AB898,27,8 23(4) Profit participation projects. A universal bank may take equity positions
24in profit-participation projects, including projects funded through loans from the
25universal bank, in an aggregate amount not to exceed 20% of capital. The division

1may suspend the investment authority under this subsection. If the division
2suspends the investment authority under this subsection, the division may specify
3how outstanding investments under this subsection shall be treated by the universal
4bank or its subsidiary. Among the factors that the division may consider in
5suspending authority under this subsection are the universal bank's capital, assets,
6management, liquidity ratio and capital ratio. This subsection does not authorize a
7universal bank, directly or indirectly through a subsidiary, to engage in the business
8of underwriting insurance.
AB898,27,11 9(5) Debt investments. A universal bank may invest in bonds, notes, obligations
10and liabilities described under s. 222.0403 (3) to (7), subject to the limitations under
11those subsections.
AB898,27,13 12(6) Certain liabilities. This section does not limit investment in the
13liabilities described in s. 222.0403 (8).
AB898,27,15 14(7) Certain investments. A universal bank may invest without limitation in
15any of the following:
AB898,27,1816 (a) Business development corporations. Stocks or obligations of a corporation
17organized for business development by this state or by the United States or by an
18agency of this state or the United States.
AB898,27,2019 (b) Urban renewal investment corporations. Obligations of an urban renewal
20investment corporation organized under the laws of this state or of the United States.
AB898,27,2521 (c) Certain bank insurance companies. An equity interest in an insurance
22company or an insurance holding company organized to provide insurance for
23universal banks and for persons affiliated with universal banks, solely to the extent
24that this ownership is a prerequisite to obtaining directors' and officers' insurance
25or blanket bond insurance for the universal bank through the company.
AB898,28,4
1(d) Certain remote service unit corporations. Shares of stock, whether
2purchased or otherwise acquired, in a corporation acquiring, placing and operating
3remote service units under s. 214.04 (21) or 215.13 (46) or bank communications
4terminals under s. 221.0303 (2).
AB898,28,65 (e) Service corporations. Equity or debt securities or instruments of a service
6corporation subsidiary of the universal bank.
AB898,28,77 (f) Federal funds. Advances of federal funds.
AB898,28,118 (g) Certain risk management financial products. With the prior written
9approval of the division, financial futures transactions, financial options
10transactions, forward commitments or other financial products for the purpose of
11reducing, hedging or otherwise managing its interest rate risk exposure.
AB898,28,1312 (h) Certain fiduciaries. A subsidiary organized to exercise corporate fiduciary
13powers under ch. 112.
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