See also s. DFI-SL 5.01
, Wis. adm. code.
Annual audit requirement. 215.25(1)
Except as provided in sub. (2)
, the board of directors of an association 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 association.
The board of directors of an association may appoint an auditing committee of one or more capable persons to annually audit the records, accounts, and cash of the association and to verify customer accounts. Verification procedures shall be conducted according to the association's auditing program or the rules of the division.
Audit reports under this section shall be submitted to the association's board of directors and retained as records of the association.
Miscellaneous provisions. 215.26(2)
Retaliatory taxes and restrictions.
When the laws of any other state or territory impose any taxes, fines, penalties, licenses, fees, deposits, money, securities or other obligations or prohibitions on associations of this state doing business in such other state or territory or upon their agents therein, so long as such laws continue in force, the same obligations and prohibitions shall be imposed upon all associations of such other state or territory and their agents in this state.
(4) Reproduction and destruction of records. 215.26(4)(a)(a)
Any association may cause any or all records kept by such association to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. An association may thereafter dispose of the original record. This section is applicable to federal associations insofar as it does not contravene federal law.
Any photographic, photostatic or miniature photographic copy or reproduction or copy reproduced from a film record or any copy of a record generated by optical disk storage of an association record shall be deemed to be an original record for all purposes and shall be treated as an original record in all courts or administrative agencies for the purpose of its admissibility in evidence. A facsimile, exemplification or certified copy of any such photographic copy or reproduction, copy reproduced from a film record or copy generated from optical disk storage of a record shall, for all purposes, be deemed a facsimile, exemplification or certified copy of the original record.
(4m) Record search.
An association is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting these expenses and costs or unless the person seeking the production is a government unit, as defined in s. 108.02 (17)
. The expenses and costs shall be paid by persons seeking such production. If an association is entitled to reimbursement under this section, an association may not be required to produce books, papers, records and other data in response to legal process unless the expenses and costs, identified in an itemized invoice to be provided by the association, are paid or unless payment is tendered to the association in cash or by certified check or draft.
(5) Legal holidays.
The division shall designate such of the legal holidays listed in s. 995.20
as days on which no association may transact business or be open for the purpose of transacting business. For purposes of this subsection, operation of a remote service unit as defined in s. 215.13 (46) (a) 1.
or an unstaffed facility does not constitute the transaction of business.
(6) Agent of savings and loan association.
Any person who acts as the agent for any unauthorized savings and loan association in this state, or sells or disposes of any savings accounts, certificates, bonds or other evidences of indebtedness of or for any such unauthorized association, not licensed to transact business in this state, and any person who acts for any such unauthorized association or in any manner aids in the transaction of the business of such association in this state shall be guilty of a misdemeanor and be fined not less than $100 nor more than $500 for each offense, and shall be personally liable for any sums received by the person for or on behalf of such unauthorized association.
(7) Federal associations located in Wisconsin.
Federal savings and loan associations which have their home offices located in Wisconsin, and are incorporated pursuant to the home owners' loan act of 1933, as now or hereafter amended, are not foreign corporations or associations. Unless federal law or regulations provide otherwise, such federal savings and loan associations and members thereof shall possess all of the rights, powers, privileges, benefits, immunities and exemptions that are now provided or that may be hereafter provided by the laws of this state for associations organized under the laws of this state and for the members thereof. This provision is additional and supplemental to any provision which, by specific reference, is applicable to such federal savings and loan associations and the members thereof.
Every person may inspect those books and records of an association which pertain to the person's loan or savings account. An association and officers and employees of an association may provide books, records or other information as required by court order or by a subpoena in a court or administrative proceeding.
If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3)
, shall provide that individual with a copy of any written appraisal report which is held by the financial institution, which relates to residential real estate that the individual owns or has agreed to purchase and for which a fee is imposed.
If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3)
, shall provide that individual, at no additional charge, with a copy of any written credit report which is held by the financial institution, which relates to that individual and for which a fee is imposed.
Except as provided under par. (a)
, the right of inspection and examination of the books and records of an association is limited to:
The deposit insurance corporation or any federal agency or other instrumentality approved by the division which is authorized to inspect and examine books and records of an insured association.
The books and records of an association pertaining to savings accounts and loans shall be kept confidential by the association, its directors, officers and employees. Except as authorized under pars. (a)
, no other person may have access to the books and records or may be furnished or may possess a partial or complete list of borrowers or savings account owners.
An association may disclose information from its books and records to a consumer reporting agency as defined in 15 USC 1681a
(f) for purposes of a consumer report as defined in 15 USC 1681a
An association may disclose information from its books and records as provided in s. 767.76 (5)
An association shall disclose the current balances of a saver's accounts and identify the accounts to any person who:
Submits an affidavit stating that the person has standing under s. 867.01 (3) (ac)
or 867.02 (2) (ac)
to petition for summary settlement or assignment of a decedent's estate or that the person is an heir of the decedent, or was guardian, as defined in s. 54.01 (10)
or s. 880.01 (3)
, 2003 stats., of the decedent at the time of the decedent's death, and may obtain transfer of property of a decedent under s. 867.03
Submits a certified copy of the saver's death certificate. If the association already possesses a certified copy of the saver's death certificate, this subdivision does not apply.
An association may furnish a partial or complete list of its customers to any person if all of the following apply:
The list does not classify customers by individual financial criteria and contains only the names and addresses of customers.
The association gives each customer prior written notice of the association's intent to furnish information about the customer and informs the customer that the customer has the right to prohibit the release by notifying the association in writing on a form provided by the association.
The person who is furnished a list agrees in writing not to furnish the list to another person.
(9) Closing books.
Each association shall close its books at least once annually and at such other times as the division requires. The date of the annual fiscal closing may be March 31, June 30, September 30 or December 31, unless rules of the division otherwise direct.
(10) Deceptive or misleading use of association name, logo, or symbol. 215.26(10)(a)(a)
Except as provided in par. (c)
, no person may use the name, logo, or symbol, or any combination thereof, of an association, or any name, logo, or symbol, or any combination thereof, that is deceptively similar to the name, logo, or symbol of an association, in any marketing material provided to or solicitation of another person in a manner such that a reasonable person may believe that the marketing material or solicitation originated from or is endorsed by the association or that the association is responsible for the marketing material or solicitation.
The division shall direct any person the division finds to have violated par. (a)
to cease and desist from violating par. (a)
. If a person violates par. (a)
after receiving such direction, the division may impose a forfeiture of up to $1,000 for each violation. Each instance in which marketing material is provided to another person or solicitation of another person takes place in violation of par. (a)
constitutes a separate violation. This subsection does not affect the availability of any remedies otherwise available to an association.
(c) Paragraph (a)
does not apply to a person who uses the name, logo, or symbol of an association in any of the following circumstances:
If the person is the association, an affiliate of the association, or an agent of the association.
See also ch. DFI-SL 6
and s. DFI-SL 2.07
, Wis. adm. code.
Possession by division; involuntary liquidation. 215.32(1)(1)
In this section, "circuit court" means the circuit court of Dane County, notwithstanding s. 801.50
(1m) Conditions for taking possession.
The division may take possession of the business and property of any association to which this chapter applies if the division finds that the association:
Is conducting its business in an unauthorized or unsafe manner; or
Is in an unsound or unsafe condition to transact its business; or
Cannot with safety and expediency continue business; or
Has failed to comply with an order of the division; or
Has refused to submit its books, papers, records or affairs for inspection; or
Has refused to be examined upon oath regarding its affairs.
(2) Procedure after taking possession.
After taking possession of the business and property of an association, the division shall immediately:
Serve written notice on an officer of the association stating that the division has taken possession and control of the business and property of the association. A copy of the notice and proof of service thereof shall be filed with the clerk of circuit court.
Mail notice to the last-known address of any person known to the division to be in possession of assets of the association.
(3) Employment of counsel; retention of officers and employees of association.
The division may employ necessary counsel and experts in a liquidation under this section and may retain any officer or employee of the association.
(4) Appointment of special deputy.
The division may appoint special deputies as agents to assist in the liquidation and distribution of the assets of associations whose business and property the division has taken possession of. A certificate of the appointment shall be filed with the division and a certified copy shall be filed in the office of the clerk of circuit court.
(5) Surety bonds of special deputies and assistants.
Special deputies and assistants shall furnish surety bonds in accordance with s. 215.11
Notice, allowance and payment of claims.
The special deputy shall publish a class 3 notice, under ch. 985
, requiring all persons who have claims against the association, other than savers whose claims are shown in the records of the association, to file proof of their claims at a place and by a date not earlier than 30 days after the last insertion of the notice. The special deputy shall mail a copy of the notice to all persons, at their last-known addresses, who appear as creditors upon the books of the association. Proof of publication and service of the notice shall be filed with the clerk of circuit court. A claim, other than that of a saver whose claim is shown on the records of the association, for which no proof of claim is filed by the date fixed in the notice is barred. Savers whose claims are shown in the records of the association need not file proof of their claims. Any interested party may file written objections to any claim with the special deputy. The special deputy may reject any claim, including a claim of a saver. After notice by registered mail of rejection, the claim is barred unless the claimant commences an action within 90 days after the date of mailing of the notice of rejection.
Inventory of assets and statement of liabilities.
The special deputy appointed under this section shall make an inventory of the assets of the association. One copy of the inventory shall be filed with the division and one in the office of the clerk of circuit court. After the time for filing proof of claims has expired, the special deputy shall make a complete list of the claims for which proof of claims were filed and specify the claims the special deputy has rejected. One copy shall be filed with the division and one in the office of the clerk of circuit court. The inventory of assets and list of claims shall be open to inspection.
Execution of legal documents; borrowing of money.
A special deputy appointed under this section may, with the prior approval of the division and the circuit court, execute, acknowledge and deliver all deeds, assignments, releases or other instruments necessary and proper to effect any sale or transfer or encumbrance of the property of an association subject to this section and may borrow money for use in the liquidation.
Conservation of assets; collection of claims; sale of assets and performance of any other acts upon order of the court.
A special deputy appointed under this section may take any action necessary to conserve the assets and business of an association subject to this section and shall proceed to liquidate its affairs. The special deputy shall collect all claims belonging to the association, and, with the prior approval of the division and the circuit court, may sell or compound all bad or doubtful claims, do any act or execute any necessary instruments, or sell the property of the association.
Depositing of moneys in one or more financial institutions.
The moneys collected by the special deputy under this section shall be deposited in financial institutions, and in case of the suspension or insolvency of the depository the deposits shall be preferred before all other deposits.
Claims against association.
Claims against an association subject to this section shall be satisfied according to the following priority:
All costs, expenses and debts of the association incurred on or after the date on which the division takes possession of the association.
All claims which are secured by, or which are liens on, assets of the association, to the extent of the value of the assets.
All portions of secured claims which remain unsatisfied and unsecured claims on equal priority and proportionate basis, except subordinated debt shall be paid according to the terms of the contract evidencing it.
After the date fixed for filing proof of claims under s. 215.32 (6) (a)
, the special deputy may, with the prior approval of the division and the circuit court, out of the funds remaining after the payment of costs, expenses, debts and claims under par. (em)
, declare liquidating dividends, and may declare a final liquidating dividend. The liquidating dividends shall be paid to those persons, in those amounts directed by the circuit court.
Notice prior to order for final distribution.
Prior to the order for final distribution under par. (f)
, the special deputy shall publish a class 3 notice, under ch. 985
, and give such further notice as the circuit court directs, requiring all persons who have claims against the association arising during the liquidation proceedings to file proof of their claims at a place and by a date not earlier than 30 days after the last insertion of the notice. Proof of publication of the notice shall be filed with the clerk of circuit court. A claim for which no proof of claim is filed by the date fixed in the notice is barred. Any interested party may file written objection to any claim with the special deputy. The special deputy may reject any claim. After notice by registered mail of rejection, the claim is barred unless the claimant commences an action within 90 days after the date of mailing of the rejection.
Transfer of residual assets to division.
After the order for final distribution has been made under par. (f)
, the special deputy shall, with the approval of the division and the circuit court, assign all assets, claims and demands that have been written off and considered worthless, and all unknown assets, to the division. The division may accept and hold the assets, claims and demands, with the power to compound, compromise, settle and assign them and execute and deliver any legal instrument incidental thereto without court approval. Any moneys received shall be paid into the general fund of the state after the division has deducted the cost of division services, attorney fees and other incidental expenses.
(7) Unclaimed liquidating dividends and unclaimed funds. 215.32(7)(a)1.a.
Any unclaimed liquidating dividends and all funds remaining in the hands of the special deputy at the date of the order for final distribution.
The division shall deposit moneys delivered under subd. 1.
in a financial institution, to the credit of the division in trust for the persons entitled to the moneys.
The sums of unclaimed and unpaid liquidating dividends and unclaimed funds with respect to each liquidated association.
Pay the moneys so held to the persons entitled thereto, upon being furnished satisfactory evidence of their right to the same.
In case of doubt or conflicting claims, require an order of the circuit court directing the payment.