AB299, s. 14 21Section 14. 186.113 (1) of the statutes is amended to read:
AB299,13,222 186.113 (1) Branch offices. If the need and necessity exist and with With the
23approval of the office of credit unions, establish branch offices inside this state or no
24more than 25 miles
or outside of this state. Permanent records may be maintained
25at branch offices established under this subsection. In this subsection, the term

1"branch office" does not include a remote terminal, a limited services office, or a
2service center.
AB299, s. 15 3Section 15. 186.113 (1m) (a) (intro.) of the statutes is amended to read:
AB299,13,64 186.113 (1m) (a) (intro.) Establish Before the effective date of this paragraph
5.... [revisor inserts date], establish
limited services offices outside this state to serve
6any member of the credit union if all of the following requirements are met:
AB299, s. 16 7Section 16. 186.113 (6) (b) and (c) of the statutes are amended to read:
AB299,13,108 186.113 (6) (b) Act as trustees or custodians of member tax deferred retirement
9funds, individual retirement accounts, medical savings accounts, or other employee
10benefit accounts or funds
permitted by federal law to be deposited in a credit union.
AB299,13,1211 (c) Act as a depository for member-deferred member qualified and
12nonqualified deferred
compensation funds as permitted by federal law.
AB299, s. 17 13Section 17. 186.113 (24) of the statutes is created to read:
AB299,13,1514 186.113 (24) Funeral trusts. Accept deposits made by members for the
15purpose of funding burial agreements by trusts created pursuant to s. 445.125.
AB299, s. 18 16Section 18. 186.20 of the statutes is created to read:
AB299,13,19 17186.20 Financial privacy. A credit union shall comply with any applicable
18requirements under 15 USC 6801 to 6803 and any applicable regulations prescribed
19by the national credit union administration under 15 USC 6804.
AB299, s. 19 20Section 19. 186.235 (7) (a) (intro.) of the statutes is amended to read:
AB299,14,221 186.235 (7) (a) (intro.) Employees of the office of credit unions and members
22of the review board shall keep secret all the facts and information obtained in the
23course of examinations, except or contained in any report provided by a credit union
24other than any semiannual or quarterly financial report that is regularly filed with

1the office of credit unions. This requirement does not apply
in any of the following
2situations:
AB299, s. 20 3Section 20. 186.235 (7) (c) of the statutes is created to read:
AB299,14,94 186.235 (7) (c) If any person mentioned in par. (a) discloses any information
5about the private account or transactions of a credit union or any information
6obtained in the course of an examination of a credit union, except as provided in pars.
7(a) and (b), that person may be required to forfeit his or her office or position and may
8be fined not less than $100 nor more than $1,000, or imprisoned for not less than 6
9months nor more than 3 years, or both.
AB299, s. 21 10Section 21. 186.235 (7m) of the statutes is created to read:
AB299,14,1311 186.235 (7m) Return of examination reports. Examination reports possessed
12by a credit union are confidential, remain the property of the office of credit unions,
13and shall be returned to the office of credit unions immediately upon request.
AB299, s. 22 14Section 22. 186.235 (16) (a) of the statutes is renumbered 186.235 (16).
AB299, s. 23 15Section 23. 186.235 (16) (b) of the statutes is repealed.
AB299, s. 24 16Section 24. 186.235 (16m) of the statutes is created to read:
AB299,14,1817 186.235 (16m) Financial privacy examination. The office of credit unions shall
18examine a credit union to determine the credit union's compliance with s. 186.20.
AB299, s. 25 19Section 25. 186.36 of the statutes is amended to read:
AB299,14,23 20186.36 Sale of insurance in credit unions. Any officer or employee of a
21credit union, when acting as an agent for the sale of insurance on behalf of the credit
22union, shall pay all commissions received from the sale of credit life insurance or
23credit accident and sickness
insurance to the credit union.
AB299, s. 26 24Section 26. 186.41 (title) of the statutes is amended to read:
AB299,15,2
1186.41 (title) Interstate acquisition acquisitions and merger mergers
2of credit unions.
AB299, s. 27 3Section 27. 186.41 (1) (a) of the statutes is renumbered 186.41 (1) (bm) and
4amended to read:
AB299,15,65 186.41 (1) (bm) "In-state Wisconsin credit union" means a credit union having
6its principal office located in this state.
AB299, s. 28 7Section 28. 186.41 (1) (c) of the statutes is renumbered 186.41 (1) (am) and
8amended to read:
AB299,15,119 186.41 (1) (am) "Regional Out-of-state credit union" means a state or federal
10credit union that has its, the principal office of which is located in one of the regional
11states
a state other than this state.
AB299, s. 29 12Section 29. 186.41 (1) (d) of the statutes is repealed.
AB299, s. 30 13Section 30. 186.41 (2) and (3) of the statutes are amended to read:
AB299,15,1514 186.41 (2) In-state Wisconsin credit union. (a) An in-state A Wisconsin credit
15union may do any of the following:
AB299,15,1716 1. Acquire an interest in, or some or all of the assets and liabilities of, one or
17more regional out-of-state credit unions.
AB299,15,1818 2. Merge with one or more regional out-of-state credit unions.
AB299,15,2219 (b) An in-state A Wisconsin credit union proposing any action under par. (a)
20shall provide the office of credit unions a copy of any original application seeking
21approval by a federal agency or by an agency of the regional another state and of any
22supplemental material or amendments filed in connection with any application.
AB299,15,24 23(3) Regional Out-of-state credit unions. Except as provided in sub. (4), a
24regional
an out-of-state credit union may do any of the following:
AB299,16,2
1(a) Acquire an interest in, or some or all of the assets of, one or more in-state
2Wisconsin credit unions.
AB299,16,33 (b) Merge with one or more in-state Wisconsin credit unions.
AB299, s. 31 4Section 31. 186.41 (4) (intro.), (a) to (d) and (f) of the statutes are amended to
5read:
AB299,16,76 186.41 (4) Limitations. (intro.) A regional An out-of-state credit union may
7not take any action under sub. (3) until all of the following conditions have been met:
AB299,16,118 (a) The office of credit unions finds that the statutes of the regional state in
9which the regional out-of-state credit union has its principal office permit in-state
10Wisconsin credit unions to both acquire regional out-of-state credit union assets and
11merge with one or more regional out-of-state credit unions in the regional that state.
AB299,16,1412 (b) The office of credit unions has not disapproved the acquisition of in-state
13Wisconsin credit union assets or the merger with the in-state Wisconsin credit union
14under sub. (5).
AB299,16,2315 (c) The office of credit unions gives a class 3 notice, under ch. 985, in the official
16state newspaper, of the application to take an action under sub. (3) and of the
17opportunity for a hearing and, if at least 25 residents of this state petition for a
18hearing within 30 days of the final notice or if the office of credit unions on its own
19motion calls for a hearing within 30 days of the final notice, the office of credit unions
20holds a public hearing on the application, except that a hearing is not required if the
21office of credit unions finds that an emergency exists and that the proposed action
22under sub. (3) is necessary and appropriate to prevent the probable failure of an
23in-state
a Wisconsin credit union that is closed or in danger of closing.
AB299,17,224 (d) The office of credit unions is provided a copy of any original application
25seeking approval by a federal agency of the acquisition of in-state Wisconsin credit

1union assets or of the merger with an in-state a Wisconsin credit union and of any
2supplemental material or amendments filed with the application.
AB299,17,53 (f) With regard to an acquisition of assets of an in-state a Wisconsin credit
4union that is chartered on or after May 9, 1986, the in-state Wisconsin credit union
5has been in existence for at least 5 years before the date of acquisition.
AB299, s. 32 6Section 32. 186.41 (5) (a), (b), (c) and (cr) of the statutes are amended to read:
AB299,17,107 186.41 (5) (a) Considering the financial and managerial resources and future
8prospects of the applicant and of the in-state Wisconsin credit union concerned, the
9action would be contrary to the best interests of the members of the in-state
10Wisconsin credit union.
AB299,17,1311 (b) The action would be detrimental to the safety and soundness of the
12applicant or of the in-state Wisconsin credit union concerned, or to a subsidiary or
13affiliate of the applicant or of the in-state Wisconsin credit union.
AB299,17,1814 (c) Because the applicant, its executive officers, or directors have not
15established a record of sound performance, efficient management, financial
16responsibility, and integrity, the action would be contrary to the best interests of the
17creditors, the members or, the other customers of the applicant or of the in-state , the
18Wisconsin
credit union, or contrary to the best interests of the public.
AB299,17,2219 (cr) The applicant has failed to propose to provide adequate and appropriate
20services of the type contemplated by the community reinvestment act of 1977 in the
21community in which the in-state Wisconsin credit union which the applicant
22proposes to acquire or merge with is located.
AB299, s. 33 23Section 33. 186.41 (6) (a) of the statutes is renumbered 186.41 (6).
AB299, s. 34 24Section 34. 186.41 (6) (b) of the statutes is repealed.
AB299, s. 35 25Section 35. 186.41 (8) of the statutes is repealed.
AB299, s. 36
1Section 36. 186.45 of the statutes is created to read:
AB299,18,3 2186.45 Non-Wisconsin credit union, Wisconsin offices. (1) Definitions.
3In this section:
AB299,18,54 (a) "Non-Wisconsin credit union" means a credit union organized under the
5laws of and with its principal office located in a state other than this state.
AB299,18,66 (b) "Wisconsin credit union" has the meaning given in s. 186.41 (1) (bm).
AB299,18,11 7(2) Approval. A non-Wisconsin credit union may open an office and conduct
8business as a credit union in this state if the office of credit unions finds that
9Wisconsin credit unions are allowed to do business in the other state under
10conditions similar to those contained in this section and that all of the following apply
11to the non-Wisconsin credit union:
AB299,18,1312 (a) It is a credit union organized under laws similar to the credit union laws of
13this state.
AB299,18,1414 (b) It is financially solvent based upon national board ratings.
AB299,18,1515 (c) It has member savings insured with federal share insurance.
AB299,18,1716 (d) It is effectively examined and supervised by the credit union authorities of
17the state in which it is organized.
AB299,18,1918 (e) It has received approval from the credit union authorities of the state in
19which it is organized.
AB299,18,2120 (f) It has a need to place an office in this state to adequately serve its members
21in this state.
AB299,18,2322 (g) It meets all other relevant standards or qualifications established by the
23office of credit unions.
AB299,18,25 24(3) Requirements. A non-Wisconsin credit union shall agree to do all of the
25following:
AB299,19,2
1(a) Grant loans at rates not in excess of the rates permitted for Wisconsin credit
2unions.
AB299,19,33 (b) Comply with this state's laws.
AB299,19,44 (c) Designate and maintain an agent for the service of process in this state.
AB299,19,8 5(4) Records. As a condition of a non-Wisconsin credit union doing business in
6this state under this section, the office of credit unions may require copies of
7examination reports and related correspondence regarding the non-Wisconsin
8credit union.
AB299, s. 37 9Section 37. 186.80 of the statutes is created to read:
AB299,19,11 10186.80 False statements. (a) No officer, director, or employee of a credit
11union may do any of the following:
AB299,19,1312 1. Willfully and knowingly subscribe to or make, or cause to be made, a false
13statement or entry in the books of the credit union.
AB299,19,1514 2. Knowingly subscribe to or exhibit false information with the intent to deceive
15any person authorized to examine the affairs of the credit union.
AB299,19,1716 3. Knowingly make, state, or publish any false report or statement of the credit
17union.
AB299,19,1918 (b) Any person who violates par. (a) may be fined not less than $1,000 nor more
19than $5,000, or imprisoned for not less than one year nor more than 15 years, or both.
AB299, s. 38 20Section 38. 220.04 (9) (a) 2. of the statutes is amended to read:
AB299,19,2321 220.04 (9) (a) 2. "Regulated entity" means a bank, universal bank, trust
22company bank, and any other entity which that is described in s. 220.02 (2) or
23221.0526 as under the supervision and control of the division.
AB299, s. 39 24Section 39. 220.14 (5) of the statutes is created to read:
AB299,20,2
1220.14 (5) Contain a statement of the total number of orders issued by the
2division during the year under s. 222.0203 (2).
AB299, s. 40 3Section 40. Chapter 222 of the statutes is created to read:
AB299,20,54 CHAPTER 222
5 UNIVERSAL BANKS
AB299,20,76 Subchapter I
7 General Provisions
AB299,20,9 8222.0101 Title. This chapter may be cited as the "Wisconsin universal bank
9law."
AB299,20,10 10222.0102 Definitions. In this chapter:
AB299,20,13 11(1) "Capital" of a universal bank means the sum of the following, less the
12amount of intangible assets that is not considered to be qualifying capital by a deposit
13insurance corporation or the division:
AB299,20,1814 (a) For a universal bank organized as a stock organization, the universal bank's
15capital stock, preferred stock, undivided profits, surplus, outstanding notes and
16debentures approved by the division, other forms of capital designated as capital by
17the division, and other forms of capital considered to be qualifying capital of the
18universal bank by a deposit insurance corporation.
AB299,20,2319 (b) For a universal bank organized as a mutual organization, the universal
20bank's net worth, undivided profits, surplus, outstanding notes and debentures
21approved by the division, other forms of capital designated as capital by the division,
22and other forms of capital considered to be qualifying capital by a deposit insurance
23corporation.
AB299,21,2 24(2) "Deposit insurance corporation" means the Federal Deposit Insurance
25Corporation or other instrumentality of, or corporation chartered by, the United

1States that insures deposits of financial institutions and that is supported by the full
2faith and credit of the U.S. government as stated in a congressional resolution.
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