The board of directors shall determine policy regarding all of the following:
Loan approval if a director, officer, credit committee member or employee provides security as a comaker, guarantor, endorser or other form of surety.
(7) Surety repayment evidence.
An endorser, comaker, guarantor or other surety shall provide the credit union with evidence of ability to repay the obligation of the member.
The credit committee or a loan officer may approve, upon its own motion or upon application by a member, an extension of credit, and loans may be granted to the member within the limit of the extension of credit. The credit committee or loan officers shall review all extensions of credit in accordance with written policies adopted by the board of directors.
(9m) Participation loans.
A credit union may participate with other lenders in a loan of any type that the credit union may otherwise make.
(11) Guaranteed loans.
A credit union may make loans to members that are guaranteed or insured by the federal government, any state or any federal or state agency. Loans under this subsection may be made under the conditions required for the insurance or guarantee.
Subject to any limitation on security interests identified in s. 422.417 (3)
and if the loan agreement or endorsement permits it, a credit union shall have a lien on the share deposits and deposit accounts and accumulated dividends of a member for any amount owed the credit union by the member and for any loan endorsed by the member. Upon the default of the owner of the account in an obligation owed to the credit union, the credit union shall have a right of immediate setoff for each share deposit and deposit account unless prohibited under 12 CFR 226.12
(d). If the loan is a consumer credit transaction as defined in s. 421.301 (10)
, ss. 425.104
apply to a default under this paragraph. The credit union may also refuse to allow withdrawals from any share deposit or deposit account in an amount not to exceed any delinquent obligation to the credit union.
See s. 138.053
for interest adjustment clauses and s. 138.055
for variable rate contracts.
Minors' rights; shares in trust. 186.10(1)
Shares may be issued in the name of a minor, and may be withdrawn by such minor or by the minor's agent under subch. I of ch. 705
. Minors' eligibility to vote at the meetings of the members is at the discretion of the board of directors.
(2) Shares in trust.
Shares may be issued in trust, subject to any conditions prescribed in the bylaws. Share accounts and deposit accounts may be held by a member in trust for a beneficiary, held by a nonmember in trust for a beneficiary who is a member or held by a nonmember custodian for a member under ss. 54.854
A corporate central credit union organized under s. 186.32
or under any other state or federal law.
Deposits and debt instruments of federally insured banks, credit unions, savings banks and savings and loan associations.
With the approval of the office of credit unions, other investment instruments.
Subject to par. (b)
, a credit union may purchase, hold and dispose of property as necessary for or incidental to its operations.
The board of directors may purchase, lease or construct a building for the operation of the credit union, if the aggregate depreciated value of the building, including any associated remodeling of the building or land improvements, land acquisition, office furnishings and equipment, does not exceed the greater of 5% of the credit union's total assets, including the building to be acquired, or 100% of the credit union's irrevocable reserve unless prior approval for greater amounts is given by the office of credit unions. Nothing in this subsection authorizes a credit union to lease a building owned by a director or by a corporation, limited liability company, partnership or association controlled by a director. The credit union may rent or lease a portion of its building or property.
Unless the office of credit unions approves a higher percentage, a credit union may invest not more than 1.5% of its total assets in the capital shares or obligations of credit union service organizations that, in the opinion of the office of credit unions, are sufficiently bonded and insured and that satisfy all of the following:
Are corporations, limited partnerships, limited liability companies, or other entities that are permitted under the laws of this state and that are approved by the office of credit unions.
Are organized primarily to provide goods and services to credit unions, credit union organizations and credit union members.
Checking and currency services, check cashing services, money order services, savings bond services, traveler's check services, and services regarding the purchase and sale of U.S. mint commemorative coins.
Tax preparation services, services regarding the development and administration of individual retirement accounts, Keogh plans, deferred compensation plans, and other personnel benefit plans, and financial counseling services, including, but not limited to, estate planning.
Trust and other fiduciary services, including, but not limited to, acting as an administrator for prepaid legal services plans or acting as a trustee, guardian, conservator, estate administrator, or in any other fiduciary capacity.
See also chs. DFI-CU 59
, Wis. adm. code.
Credit union borrowing.
The board of directors may borrow money from any source if the amount borrowed does not exceed 30% of the credit union's total savings, deposits and reserves. Credit union borrowing may exceed 30% if the office of credit unions approves.
Credit union powers.
A credit union may:
(1) Branch offices.
With the approval of the office of credit unions, establish branch offices inside or outside of this state. Permanent records may be maintained at branch offices established under this subsection. In this subsection, the term "branch office" does not include a remote terminal, a limited services office, or a service center.
(1s) Service centers.
Upon notice to the office of credit unions, establish and maintain service centers that are reasonably necessary to furnish services to members. A credit union may operate a shared service center with one or more credit unions and may participate in a shared service center network that is operated from inside or outside of this state. This subsection does not prohibit a credit union from referring to a service center as a branch office. A service center shall be under the supervision of the office of credit unions.
(5) Third-party checks.
Issue 3rd-party checks from an account of a member upon request of the member.
Act as trustees or custodians of member tax deferred retirement funds, individual retirement accounts, medical savings accounts, or other employee benefit accounts or funds permitted by federal law to be deposited in a credit union.
Conduct annual board of director elections in the manner provided by the bylaws.
Process applications, act as closing agent and service loans made under s. 45.37
, with the approval of the department of veterans affairs.
Make loans to members that are guaranteed by this state or by the federal government, with the approval of the appropriate state or federal administering agency.
Rent safe deposit receptacles upon its premises for an agreed upon fee. A credit union may store for safekeeping valuable or personal property of any member or of any person who is eligible to be a member. The credit union shall have a lien for its charges on any property received by it for safekeeping.
Sell any property subject to a lien under par. (a)
at public auction in accordance with procedures under ch. 815
. A credit union may retain from the proceeds of the sale all lien fees and charges due including reasonable expenses of the sale. A credit union shall pay the remaining balance to the person depositing the property or to the legal representatives or assigns.
If any person primarily engaged in the retail sale of goods or services owns or operates a remote terminal on such person's premises and allows access to the unit by any financial institution, group of financial institutions or their customers, nothing in this subsection or in rules established by the office of credit unions shall, or shall be construed or interpreted to, require such person to accept any connection to or use of the unit on its premises for any other purpose or function or to accept any connection to the unit on its premises by any other financial institution.
Information transmitted from a remote terminal, either identified as to particular transactions or aggregate information, shall only be used for purposes of effecting the financial transactions for which such information was received, for any other purpose lawfully authorized by contract, or for any other purpose permitted by statute and rules pertaining to the dissemination and disclosure of such information.
See also s. DFI-CU 63.01
, Wis. adm. code.
(20) Public depository.
Act as a depository of state and local public funds.
(21) Federal depository.
On request of the federal secretary of the treasury, act as federal depository, fiscal agent or both of the federal government. A credit union may perform such services as the federal secretary of the treasury may authorize in connection with the collection of taxes and other obligations due the federal government and the lending, borrowing and repayment of money by the federal government, including the issue, sale, redemption or repurchase of bonds, notes, treasury certificates of indebtedness, or other obligations of the federal government.
History: 1971 c. 193
; 1973 c. 12
; 1973 c. 208
; 1973 c. 255
; 1973 c. 336
; 1975 c. 345
; 1977 c. 136
; 1979 c. 121
; 1981 c. 5
; 1983 a. 368
; 1987 a. 403
; 1991 a. 221
; 1993 a. 112
; 1995 a. 27
; 1997 a. 35
; 2003 a. 63
; 2005 a. 22
; 2011 a. 205
; 2013 a. 277
History: 1985 a. 325
; 1995 a. 27
Financially related services tie-ins.
In any transaction conducted by a credit union or a subsidiary of a credit union with a customer who is also a customer of any other subsidiary of the credit union, the customer shall be given a notice in 12-point boldface type in substantially the following form:
The office of credit unions shall promulgate a rule establishing a list of activities and powers incidental to the business of a credit union that are authorized for federally chartered credit unions as of April 18, 2014.
The office of credit unions shall submit the proposed rule under par. (a)
to the legislative reference bureau in an electronic format approved by the legislative reference bureau, and the legislative reference bureau shall publish the proposed rule in the notice section of the Wisconsin administrative register under s. 35.93
After April 18, 2014, if any activity or power incidental to the business of a credit union that is not listed under sub. (2) (a)
becomes authorized for federally chartered credit unions, within 30 days after the activity or power becomes authorized the office of credit unions shall make a determination as to whether the activity or power should also be authorized for credit unions organized under s. 186.02
. In making this determination, the office of credit unions shall consider the degree to which the following apply with respect to the activity or power:
It is the functional equivalent or logical outgrowth of activities or powers that are part of the mission or business of a credit union.
The office of credit unions shall promulgate a rule adding an activity or power to the list of activities and powers established under sub. (2) (a)
if the office of credit unions determines under par. (a)
that the activity or power authorized for federally chartered credit unions should also be authorized for credit unions organized under s. 186.02
The office of credit unions shall publish and maintain on the department of financial institutions' Internet site the list of activities and powers under sub. (2) (a)
If the office of credit unions promulgates a rule listing an activity or power as provided in sub. (2) (a)
or (3) (b) 1.
, subs. (2) (b)
and (3) (b) 2.
do not apply to any subsequent rule modifying or eliminating the listed activity or power.
History: 2013 a. 277
No member of the board of directors may receive any compensation for services as a member of the board other than reasonable health, accident and similar insurance.
Expelled member rights and liabilities.
The amounts paid in on shares by members who have withdrawn or have been expelled shall be paid to them, but in the order of withdrawal or expulsion as funds become available and after deducting any amounts due from the members to the credit union. Expulsion or withdrawal shall not relieve a member from any remaining liability to the credit union.
(2) Audit committee.
The board of directors may appoint an auditing committee of one or more capable persons to annually audit the records, accounts and cash of the credit union and to verify member accounts. Verification procedures shall be conducted according to the credit union's bylaws or the rules of the office of credit unions.
(3) Independent audit.
The office of credit unions may order an independent audit at the credit union's expense if the office of credit unions finds an annual audit to be unsatisfactory.
See also ch. DFI-CU 73
, Wis. adm. code.
Board establishes dividends.
The board of directors shall establish the dividend period. Dividends shall be considered a normal operating expense of the credit union. Rates of dividends and terms of payment may be established and guaranteed in advance by action of the board of directors. The board of directors may classify its accounts and declare dividends which may be at variable rates.
(2) Maximum set by office of credit unions.
The office of credit unions may establish the maximum dividend that a credit union and a corporate central credit union may pay in each classification of its savings.
See also ch. DFI-CU 60
, Wis. adm. code.
(2) Special reserves.
Special reserves may be required by the office of credit unions on an individual credit union basis or for a corporate central credit union.
Upon a two-thirds recommendation of the board of directors, the members may vote to dissolve the credit union. If a majority of the total membership vote by ballot, in person or by letter or other written communication in favor of dissolution, and if not more than the greater of 15 members or 10% of the total membership, by written notice, vote against dissolution, the credit union shall be dissolved. If both the number of votes in favor of dissolution and the number of votes against dissolution are each less than 25% of the total number of members, the board of directors may, with the permission of the office of credit unions, mail to each member at the member's last-known address a written notice which states that the board's proposal to dissolve the credit union will be approved or disapproved at a special or annual meeting to be held at the time and place specified in the notice. The credit union shall be dissolved only if a majority of the members present at the meeting vote in favor of the board's proposal to dissolve the credit union. If the members vote to dissolve the credit union, a committee of 3 shall be elected by the members to liquidate the assets of the credit union. After assets are liquidated and debts paid, members shall be paid a liquidating dividend in proportion to their savings from remaining assets. The committee in charge of liquidation may sell or dispose of the assets in whole or in part at a public or private sale subject to confirmation by the board of directors and the office of credit unions.
A credit union shall maintain the necessary bonds for directors, officers and employees according to any standards prescribed by the national board.
A credit union shall comply with any applicable requirements under 15 USC 6801
and any applicable regulations prescribed by the national credit union administration under 15 USC 6804
Credit unions promoted. 186.21(3)
The office of credit unions shall offer without charge to any group, either joined in a credit union or considering such an organization, advice and direction on accounting practices and managerial problems.
Credit union finance corporation; incorporation; organization certificate. 186.22(1)
When authorized by the office of credit unions, 10 or more credit unions, the aggregate resources of which shall not be less than $50,000, may form the "Credit Union Finance Corporation". Each of such credit unions shall subscribe, acknowledge and submit to the office of credit unions an organization certificate in duplicate which shall specifically state:
The place in the state where its business is to be transacted.
The number of shares for which each credit union has subscribed, which shall amount in the aggregate to not less than $200.
The number of directors of such credit union finance corporation, which shall not be less than 7, and the names of the persons who shall be its directors until the first annual meeting. The certificate shall recite that the directors possess the qualifications specified in sub. (10)