27,4898
Section 4898
. 186.11 (1) of the statutes is amended to read:
186.11 (1) General. The board of directors may invest credit union funds in U.S. government direct and agency obligations, municipal bonds issued by municipalities of the state, central credit unions, banks, savings banks and savings and loans associations located in Wisconsin and may, with the approval of the commissioner office of credit unions, make other investments including investments in credit unions.
27,4899
Section 4899
. 186.11 (2) (b) of the statutes is amended to read:
186.11 (2) (b) The board of directors may purchase, lease or construct a building for the operation of the credit union, provided the aggregate cost of the building, remodeling of the building, land improvements and land acquisition does not exceed 100% of the credit union's regular reserve unless prior approval for greater amounts is given by the commissioner office of credit unions. The cost of land acquisition may include vicinal property for future expansion but may not exceed the aggregate cost limitation. 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.
27,4900
Section 4900
. 186.112 of the statutes is amended to read:
186.112 Credit union borrowing. The board of directors may borrow money from any source if the amount borrowed does not exceed 50% of the credit union's total savings, deposits and reserves and the loan is not for a period longer than 12 months. The limitations of this subsection do not apply to national corporate central credit unions. The 12-month limitation under this subsection does not apply to money borrowed by a credit union to acquire credit union property, buildings, remodeling or equipment. The commissioner office of credit unions may exempt any credit union from the limitations of this subsection.
27,4901
Section 4901
. 186.113 (1) of the statutes is amended to read:
186.113 (1) If the need and necessity exists, establish subsidiary offices where permanent records may be maintained within the state with the approval of the commissioner office of credit unions.
27,4902
Section 4902
. 186.113 (1m) (a) 3. of the statutes is amended to read:
186.113 (1m) (a) 3. The establishment of such offices has been approved by the commissioner office of credit unions.
27,4903
Section 4903
. 186.113 (1m) (a) 4. of the statutes is amended to read:
186.113 (1m) (a) 4. Such offices are established and operated in accordance with rules promulgated by the commissioner office of credit unions.
27,4904
Section 4904
. 186.113 (2) of the statutes is amended to read:
186.113 (2) Share office space with one or more credit unions and contract with a corporation to provide facilities or personnel. Such service center corporation shall be deemed thereby to be under the supervision of the commissioner office of credit unions.
27,4905
Section 4905
. 186.113 (15) (a) of the statutes is amended to read:
186.113 (15) (a) 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 commissioner office of credit unions. The rules of the commissioner 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. 221.04 (1) (k). The rules of the commissioner office of credit unions shall prohibit any advertising with regard to a shared remote terminal which suggests or implies exclusive ownership or control of the shared terminal by any credit union or group of credit unions operating or participating in the operation of the terminal. The commissioner
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.
27,4906
Section 4906
. 186.113 (15) (c) of the statutes is amended to read:
186.113 (15) (c) 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 commissioner 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.
27,4907
Section 4907
. 186.113 (15) (d) of the statutes is amended to read:
186.113 (15) (d) 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 commissioner 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.
27,4908
Section 4908
. 186.115 (1) of the statutes is amended to read:
186.115 (1) 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 commissioner office of credit unions finds to be financially related.
27,4909
Section 4909
. 186.115 (2) of the statutes is amended to read:
186.115 (2) 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 commissioner office of credit unions. The commissioner 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 under this subsection. Among the factors that the commissioner 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.
27,4910
Section 4910
. 186.116 of the statutes is amended to read:
186.116 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 the commissioner credit unions at .... (insert address).
27,4911
Section 4911
. 186.119 of the statutes is repealed.
27,4912
Section 4912
. 186.16 (2) of the statutes is amended to read:
186.16 (2) The commissioner
office of credit unions may establish the maximum dividend that a credit union and a central credit union may pay in each classification of its savings.
27,4913
Section 4913
. 186.17 (2) of the statutes is amended to read:
186.17 (2) Special reserves may be required by the commissioner office of credit unions on an individual credit union basis for purchased accounts or when serious threat of impairment threatens regular reserve.
27,4914
Section 4914
. 186.18 of the statutes is amended to read:
186.18 Dissolution. Upon the unanimous 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 15 members or 10% of the total membership, whichever is greater, 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 50% of the total number of members the board of directors may, with the permission of the commissioner office of credit unions, cause written notice to be mailed to each member at the member's last-known address which expressly 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 commissioner office of credit unions.
27,4915
Section 4915
. 186.19 (1) of the statutes is amended to read:
186.19 (1) As a condition precedent to qualification or entry upon the discharge of his or her duties, every person appointed or elected to any position requiring the receipt, payment or custody of money or other personal property owned by a credit union or in its custody or control as collateral or otherwise shall give a bond in some responsible corporate surety company, licensed to do business in this state, in such adequate sum as the directors shall require and approve. In lieu of individual bonds the commissioner office of credit unions may accept a schedule or blanket bond which covers all of the officers and employes of any credit union whose duties include the receipt, payment or custody of money or other personal property for or on behalf of the credit union. All such bonds shall be in the form prescribed by the commissioner office of credit unions.
27,4916
Section 4916
. 186.19 (2) of the statutes is amended to read:
186.19 (2) No officer or employe who is required to give bond shall be deemed qualified nor shall be permitted to enter upon the discharge of that officer's or employe's duties until that officer's or employe's bond shall have been approved by a majority of the board of directors. Such bonds shall be filed with the commissioner office of credit unions within 10 days next after approval thereof by the board of directors. The minute books of each credit union shall contain a record of each bond executed and approved.
27,4917
Section 4917
. 186.19 (3) of the statutes is amended to read:
186.19 (3) Such bond shall be sufficient in amount to protect the credit union from loss by reason of acts of fraud or dishonesty including forgery, theft, embezzlement, wrongful abstraction or misapplication on the part of the person, directly or through connivance with others. At any time the commissioner office of credit unions may require additional bond or security, when, in the commissioner's office's opinion, the bonds then executed and approved are insufficient.
27,4918
Section 4918
. 186.19 (4) (a) of the statutes is amended to read:
186.19 (4) (a) No cancellation or other termination of this bond shall be effective unless the surety gives in advance at least 10 days' written notice by registered mail to the commissioner office of credit unions. If this bond is canceled or terminated at the request of the insured (employer) this provision nevertheless shall apply, it being the duty of the surety to give the required written notice to the commissioner office of credit unions, such notice to be given promptly and in any event within 10 days after the receipt of such request.
27,4919
Section 4919
. 186.19 (4) (b) of the statutes is amended to read:
186.19 (4) (b) The surety agrees to furnish the
commissioner office of credit unions a copy of all riders and indorsements executed subsequently to the effective date of this bond.
27,4920
Section 4920
. 186.19 (5) of the statutes is amended to read:
186.19 (5) For reasons which the commissioner office of credit unions deems valid and sufficient the commissioner office may waive as to the cancellation or termination of any such bond the 10-day written notice in advance required by sub. (4) (a) and the commissioner office may give written consent to the termination or cancellation being made effective as of a date agreed upon and requested by the surety and credit union.
27,4921
Section 4921
. 186.21 (1) of the statutes is amended to read:
186.21 (1) It shall be the duty of the office of
the commissioner of credit unions to promote the extension of credit at the lowest possible rates and cooperate with every group of people who may be or may become interested in the formation and development of a credit union in this state for that purpose, and it may do all things reasonably necessary for the discharge of this duty.
27,4922
Section 4922
. 186.21 (2) of the statutes is amended to read:
186.21 (2) The office of the commissioner of credit unions shall carry on advertising of whatever character is most suitable and effective to acquaint the people of this state with the agencies and organizations dealing in consumer credit, and of the rates of interest, the condition of loans, the benefits and safeguards and the savings features of each such type, agency and organization.
27,4923
Section 4923
. 186.21 (3) of the statutes is amended to read:
186.21 (3) The office of the commissioner of credit unions shall further offer without charge to any group, either joined in a credit union or considering such an organization, whatever advice and direction on accounting practice and managerial problems that may be needful.
27,4924
Section 4924
. 186.21 (4) of the statutes is amended to read:
186.21 (4) The office of the commissioner of credit unions shall provide application blanks, model bylaws, and whatever other material may be needful or helpful in the organization, efficient functioning and expansion of credit unions.
27,4925
Section 4925
. 186.22 (1) (intro.) of the statutes is amended to read:
186.22 (1) Organization. (intro.) When authorized by the commissioner 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 commissioner office of credit unions an organization certificate in duplicate which shall specifically state:
27,4926
Section
4926. 186.22 (2) (intro.) of the statutes is amended to read:
186.22 (2) Proposed bylaws. (intro.) The incorporators shall subscribe and acknowledge and submit to the commissioner office of credit unions proposed bylaws in duplicate, which shall prescribe the manner in which the business of such credit union finance corporation shall be conducted with reference to the following matters:
27,4927
Section 4927
. 186.22 (3) (intro.) of the statutes is amended to read:
186.22 (3) When corporate existence begins; conditions precedent to commencing business. (intro.) When the commissioner shall have indorsed the commissioner's approval on office of credit unions approves the organization certificate, the corporate existence of the credit union finance corporation shall begin and it shall then have power to elect officers and transact such other business as relates to its organization; but such credit union finance corporation shall transact no other business until:
27,4928
Section 4928
. 186.22 (3) (a) of the statutes is amended to read:
186.22 (3) (a) Subscriptions to its shares aggregating $2,000 shall have been paid in cash and an affidavit stating that such subscriptions have been so paid, subscribed and sworn to by its 2 principal officers, shall have been filed with the secretary of state department of financial institutions and a certified copy thereof in the office of the commissioner credit unions.
27,4929
Section 4929
. 186.22 (3) (b) of the statutes is amended to read:
186.22 (3) (b) The commissioner
office of credit unions shall have duly issued to it an authorization certificate.
27,4930
Section 4930
. 186.22 (4) (d) of the statutes is amended to read:
186.22 (4) (d) To receive by assignment from its members and to deposit in trust with the commissioner office of credit unions to be held by the commissioner office as security for its and their outstanding obligations any first mortgages on real estate and the bonds secured thereby and such other securities as are provided for in s. 186.11 and are legally receivable by credit unions; to empower such credit unions as agents of the credit union finance corporation to collect and immediately pay over to the credit union the dues, interest and other sums payable under the terms, conditions and covenants of the bonds and mortgages or, prior to a default upon any such bond and mortgage so assigned and when adequate security has been given to the credit union finance corporation, by any such credit union, to retain such collections until a payment to the credit union finance corporation from such credit union becomes due; to return to, or permit such credit unions to retain any sums of money so collected in excess of the amount required to meet the obligations of such credit unions respectively.
27,4931
Section 4931
. 186.22 (4) (g) of the statutes is amended to read:
186.22 (4) (g) With the advice and approval of the commissioner office of credit unions, to become a member of or to subscribe for and purchase notes and debentures issued by any federal finance or credit corporation which may be organized by act of congress for aiding and assisting credit unions to utilize their resources and credit, or to borrow from such finance or credit corporation, in either case, in an amount not exceeding in the aggregate amount two-fifths of the assets on hand.
27,4932
Section 4932
. 186.22 (5) (c) of the statutes is amended to read:
186.22 (5) (c) Invest more than 25 per centum % of its surplus in real estate occupied, or to be occupied, by it for office purposes, without the written approval of the commissioner office of credit unions.
27,4933
Section 4933
. 186.22 (6) of the statutes is amended to read:
186.22 (6) Issuing of bonds. Bonds shall be issued in series of not less than $10,000. All bonds issued by the credit union finance corporation may be called on any interest day at 102 1/2% and interest by publishing a class 1 notice, under ch. 985, not less than 60 days prior to said day. Any member credit union which is not indebted for borrowed money to any other bank or trust company which does business exclusively with the credit union finance corporation shall submit a schedule of assets from time to time as the board of directors of such finance corporation shall require. Any member credit union which may have a loan from any other banking institution may borrow money from such credit union finance corporation upon pledging therefor such amount of its mortgages with the bonds secured thereby as collateral security for bonds issued on its behalf as the commissioner
office of credit unions and the board of directors of such credit union finance corporation may require; provided that the aggregate of all loans made by such credit union shall not exceed 40% of its assets as provided in s. 186.11. The amortization payments upon all mortgages accepted by the credit union finance corporation as collateral security for bonds shall be sufficient to liquidate the debt in a period not exceeding 40 years. In the event of any default for more than 90 days in the payment of the principal of, or for more than 90 days in the payment of any instalment of interest upon, any of said bonds, the commissioner office of credit unions may, on the commissioner's
office's own motion, and shall, upon the request in writing of the holders of said bonds in default to the amount of $10,000, forthwith take possession of and proceed to liquidate the credit union finance corporation. Upon such liquidation it shall be entitled in the name of the credit union finance corporation to enforce all of its rights and securities and to collect and realize upon all of its assets, including all mortgages assigned to said credit union finance corporation by the several member credit unions, and deposited with the state treasurer, up to the amounts advanced by the credit union finance corporation to the several member credit unions thereon. Upon any such liquidation all said bonds then issued and outstanding shall forthwith become due and payable equally and ratably out of all the assets of said credit union finance corporation in advance of any other debts thereof not specifically preferred by law.
27,4934
Section 4934
. 186.22 (10) of the statutes is amended to read:
186.22 (10) Qualifications and disqualifications of directors; bond. All of the directors of the credit union finance corporation must reside in the state of Wisconsin during their term of office, and all must be citizens of the United States. No person shall be elected a director unless the person is a shareholder of a member credit union and has been nominated by it for that office; and every person elected to be a director who, after such election, shall cease to be a shareholder of a member credit union, shall cease to be a director of the credit union finance corporation, and the person's office shall be vacant. Directors who have the custody or possession of money, securities or property shall give bond to the credit union finance corporation in an amount commensurate with their liability, as approved by the commissioner office of credit unions.
27,4935
Section 4935
. 186.22 (11) of the statutes is amended to read:
186.22 (11) Oath of directors. Each director, when appointed or elected, shall take an oath that the director will, so far as the duty devolves upon the director, diligently and honestly administer the affairs of the credit union finance corporation, and will not knowingly violate, or willingly permit to be violated, any of the provisions of law applicable to such corporation, and that the director is the owner in good faith and in the director's own right on the books of the credit union which nominated the director of shares in value of not less than $100, or other shares of the withdrawal value of $100, and that the same is not hypothecated, or in any way pledged as security for any loan or debt and, in case of reelection that such share was not hypothecated or in any way pledged as security for any loan or debt during the director's previous term. Such oath shall be subscribed by the directors and officers making it, and certified by an officer authorized by law to administer oaths, and immediately transmitted to the commissioner office of credit unions.
27,4936
Section 4936
. 186.22 (15) of the statutes is amended to read:
186.22 (15) Preference of credit. All the property of any bank, trust company or credit union which shall become insolvent shall be applied by the trustees, assignees or receivers thereof or by the commissioner
office of credit unions in the first place to the payment in full of any sum or sums of money deposited therewith by the credit union finance corporation or due to the credit union finance corporation for subscriptions, sinking funds, interest and principal of bonds, or guaranty of mortgages, ratably and proportionately but not to an amount exceeding that authorized to be so deposited or contracted by the provisions of this section and in accordance and on an equality with any other preference provided for in this section.
27,4937
Section 4937
. 186.23 of the statutes is amended to read:
186.23 Rules and regulations. The commissioner office of credit unions shall, with the approval of the credit union review board, issue orders prescribing reasonable rules and regulations in conducting the business of credit unions or corporations operating as provided in this chapter and it may in like manner issue orders amending, modifying, repealing or supplementing rules or orders. The violation of any such rule may be cause for the removal of any officer, director or employe of any credit union or corporation.
27,4938
Section 4938
. 186.24 (1) of the statutes is amended to read:
186.24 (1) Whenever the commissioner office of credit unions is of the opinion that the loaning, investing or other policies and practices of any officer, director or committee member of any credit union have been prejudicial to the best interest of such credit union or its investors, or that such policies or practices, if put into operation or continued, will endanger the safety or solvency of said credit union or impair the interest of its investors, the commissioner office of credit unions may request the removal of such officer, director or committee member. Such request shall be served on the credit union and on such officer, director or committee member in the manner provided by law for serving a summons in a court of record, or shall be transmitted to the credit union and the officer, director or committee member by registered mail, with return receipt requested. Such request shall specify the reasons for the removal of such officer, director or committee member, and also shall advise such officer, director or committee member relative to that person's rights to a hearing before the credit union review board as provided in this section. A copy of such request for removal shall be transmitted to each member of the credit union review board at the same time such request is being served upon the credit union and officer, director or committee member involved. If such request for removal is not complied with within a reasonable time fixed by the commissioner office of credit unions, the commissioner office may by order, with approval of the credit union review board, remove such officer, director or committee member, but no order for removal shall be entered until after an opportunity for a hearing before the credit union review board is given such officer, director or committee member upon not less than 30 days' notice. An order for removal shall take effect as of the date issued.
27,4939
Section
4939. 186.24 (2) of the statutes is amended to read:
186.24 (2) Any removal under this section shall be effective in all respects the same as if made by the board of directors or stockholders of said credit union. Any officer, director or committee member removed from such office under the provisions of this section shall not be reelected as an officer, director or committee member of any credit union without the approval of the commissioner office of credit unions and advisory committee.
27,4940
Section 4940
. 186.24 (3) of the statutes is amended to read:
186.24 (3) If the removal under sub. (1) or the resignation or death of credit union directors prevents a credit union board of directors from securing the quorum required at board meetings and thus prevents continued operation of the credit union, the commissioner
office of credit unions may appoint temporary directors to fill the vacancies for up to 120 days or until an election of directors to fill the vacancies has been held at a special meeting of the membership called for such purpose.
27,4941
Section 4941
. 186.25 of the statutes is amended to read:
