The office of credit unions may expand the list of services under par. (b)
that are related to the routine daily operations of credit unions. Any service approved under this paragraph shall be authorized for all credit union service organizations under par. (a)
. A credit union may file a written request with the office of credit unions to exercise its authority under this paragraph and may include, along with the request, a description of any proposed service and an explanation of how that service is related to the routine daily operations of credit unions. Within 60 days after receiving a request under this paragraph, the office of credit unions shall approve or disapprove the request.
A credit union service organization under par. (a)
may provide any service described under par. (b)
or approved under par. (bd)
through an investment by the credit union service organization in a 3rd-party service provider. The amount that a credit union service organization may invest in a 3rd-party service provider under this paragraph may not exceed the amount necessary to obtain the applicable services, or a greater amount if necessary for the credit union service organization to obtain the services at a reduced cost.
A credit union service organization may be subject to audit by the office of credit unions.
See also chs. DFI-CU 59
, and 68
, Wis. adm. code.
A credit union may invest in a credit union service corporation that sells insurance to the general public so long as the corporation was organized to primarily serve credit unions and their members. 78 Atty. Gen. 96
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.
(2) Credit union center corporation.
With other credit unions, organize a credit union center corporation that provides facilities, equipment and personnel. A credit union center corporation shall be under the supervision of the office of credit unions.
(3) Financial counseling.
Provide nonprofit financial counseling.
Charge for perfection of security interests and investigations of borrowers.
(5) Third-party checks.
Issue 3rd-party checks from an account of a member upon request of the member.
Contract with a trust organization authorized to do business in this state to provide trust services to the credit union's members.
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.
Act as a depository for member qualified and nonqualified deferred compensation funds as permitted by federal law.
(7) Conditional sales contracts.
Purchase or acquire conditional sales contracts or similar instruments executed by credit union members.
See also ch. DFI-CU 61
, Wis. adm. code.
Make donations and grants, the total of which may not exceed 1.0 percent of regular reserves within a given year, if the board of directors approves any such donation or grant and the approval is based on a determination that the donation or grant is in the best interest of the credit union and is reasonable given the size and financial condition of the credit union.
(9) Financial services.
Collect, receive and disburse moneys in connection with the sale or provision of share drafts, travelers checks, money orders, credit cards, debit cards or, with the approval of the office of credit unions, similar instruments.
(10) Additional powers.
Exercise all powers necessary and proper to carry out the purposes of the credit union.
Offer deposit accounts to any person if the credit union satisfies the requirements specified in 12 CFR 701.34
(a) for designation as a low-income credit union and files a statement with the office of credit unions agreeing to be bound by requirements and conditions that are substantially identical to those imposed by the national board and the national credit union administration on federal credit unions designated under 12 CFR 701.34
Conduct annual board of director elections in the manner provided by the bylaws.
(13) Multiparty accounts.
Issue multiple accounts in joint tenancy with any person designated by the member. The person first named on the account shall be a member of the credit union. A nonmember named in the joint account shall not acquire the right to vote, obtain loans or hold office because of the nonmember's inclusion in the joint account.
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.
Directly or indirectly, acquire, place and operate, or participate in the acquisition, placement and operation of, at locations other than its offices, remote terminals, in accordance with rules established by the office of credit unions. The rules shall provide that any remote terminal shall be available for use, on a nondiscriminatory basis, by any state or federal credit union which has its principal place of business in this state, by any other credit union obtaining the consent of a state or federal credit union which has its principal place of business in this state and is using the terminal and by all members designated by a credit union using the terminal. This subsection does not authorize a credit union which has its principal place of business outside the state to conduct business as a credit union in this state. The remote terminals also shall be available for use, on a nondiscriminatory basis, by any state or national bank, state or federal savings bank or state or federal savings and loan association, whose home office is located in this state, if the bank, savings bank or savings and loan association requests to share its use, subject to the joint rules established under s. 221.0303 (2)
. The office of credit unions by order may authorize the installation and operation of a remote terminal in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.
In this subsection, "remote terminal" means a terminal or other facility or installation, attended or unattended, which is not located at the principal office or at a subsidiary office of a credit union and through which members and credit unions may engage, by means of either the direct transmission of electronic impulses to and from a credit union or the recording of electronic impulses or other indicia of a transaction for delayed transmission to a credit union, in transactions which are incidental to the conduct of the business of a credit union and which are otherwise permitted by law. "Remote terminal" also includes all equipment, regardless of location, which is interconnected with a remote terminal and which is necessary to transmit, route and process electronic impulses in order to enable the remote terminal to perform any function for which it is designed.
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.
If a 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 for any purpose or function, no laws governing such institutions or rules established by the office of credit unions shall apply to such person other than those laws or rules directly related to the particular function performed by the unit on such person's premises for a 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.
(16) Dormant accounts.
Subject to ch. 177
, establish a policy, including a fee schedule, for disposing of dormant accounts.
Make contracts necessary and proper to meet its purpose and to conduct its business.
(18) Legal actions.
To sue and be sued, and to appear and defend in all actions and proceedings under its corporate name.
(19) Client fund accounts.
Maintain real estate broker trust accounts under s. 452.13
for brokers who are eligible for membership in the credit union, attorney trust accounts under s. 757.293
for attorneys who are eligible for membership in the credit union and collection agency trust accounts under s. 218.04 (9g)
for persons who are eligible for membership in the credit union.
(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.
(22) Community currency exchange and seller of checks.
Engage in the business and functions provided for in s. 218.05
and ch. 217
upon receiving a certificate of authority from the office of credit unions. An applicant shall meet the same requirements as other applicants under ch. 217
, but no investigation fee may be charged of credit union applicants. The office of credit unions may revoke a certificate of authority following a hearing held upon 10 days' notice to the credit union for any reason which would have justified the rejection of an application or on the ground that the continued operation of the business threatens the solvency of the credit union.
(23) Accept investments.
Accept investments made by state or federally chartered credit unions.
(24) Funeral trusts.
Accept deposits made by members for the purpose of funding burial agreements by trusts created pursuant to s. 445.125
(25) Sale of insurance products.
Sell insurance, annuities, and related products.
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
Section 186.235 (19) authorizes the office of credit unions to control and supervise credit unions incorporated in other states, including whether and where a foreign credit union may operate a branch office in this state. It was not unreasonable to impose on a foreign credit union the analogous geographical limitations that this section imposes on state credit union branches located outside of the state. Heritage Credit Union v. Office of Credit Unions, 2001 WI App 213
, 247 Wis. 2d 589
, 634 N.W.2d 593
Under sub. (7), a credit union is not obliged to secure a sales finance company license to purchase installment contracts of its members, nor is an auto dealer subject to a penalty if it sells such a contract to a credit union. 61 Atty. Gen. 439.
Additional credit union authority. 186.115(1)
Scope of authority.
Subject to any regulatory approval required by law and subject to sub. (2)
, a credit union directly or through a subsidiary, may undertake any activity, exercise any power or offer any financially related product or service in this state that any other provider of financial products or services may undertake, exercise or provide or that the office of credit unions finds to be financially related.
The activities, powers, products and services that may be undertaken, exercised or offered by credit unions under sub. (1)
are limited to those specified by rule of the office of credit unions. The office of credit unions may direct any credit union to cease any activity, the exercise of any power or the offering of any product or service authorized by rule. Among the factors that the office of credit unions may consider in so directing a credit union are the credit union's net worth, assets, management rating and liquidity ratio and its ratio of net worth to assets.
(3) Insurance underwriting not authorized.
This section does not authorize a credit union, directly or through a subsidiary, to engage in the business of underwriting insurance.
History: 1985 a. 325
; 1995 a. 27
See also DFI-CU
, Wis. adm. code.
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:
NOTICE OF RELATIONSHIP
This company, .... (insert name and address of credit union or subsidiary), is related to .... (insert name and address of credit union or subsidiary) of which you are also a customer. You may not be compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction.
If you feel that you have been compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction, you should contact the management of either of the above companies at either of the above addresses or the office of credit unions at .... (insert address).
History: 1985 a. 325
; 1995 a. 27
Compensation of officers, operation expenses. 186.12(1)(1)
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.
The officers elected by the board of directors, the members of the credit committee and loan officers may receive such compensation as the board authorizes, but the expenditures of the credit union for all purposes shall be paid from its earnings.
If the board of directors adopts a written policy, a credit union may expel a member if the member neglects or refuses to comply with this chapter or the credit union bylaws or if the board has other just cause. The credit union shall provide notice to the member in writing of the reason for expulsion. The notice shall include a description of the member's right to a hearing and the time period for the member to request a hearing. If a member requests a hearing in writing within 45 days of receipt of the expulsion notice, the board shall give the member an opportunity to be heard on the expulsion within 90 days after the date of the expulsion notice.
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.
History: 1971 c. 193
s. 42 (3)
; 1995 a. 151
Except as provided in sub. (2)
, the board of directors shall hire a certified public accountant licensed or certified under ch. 442
or other qualified person to conduct a comprehensive annual audit of the records, accounts and affairs of 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.
(4) Audit reports.
Audit reports under this section shall be submitted to the board of directors and retained as records of the credit union.
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.
A credit union shall establish and maintain a regular reserve account and shall transfer amounts to the regular reserve account as required by the national board.
(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.