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:
186.25 Supervision; reports. All credit unions formed under this or other similar law, or authorized to transact in this state a business similar to that authorized to be done by this chapter, shall be under the control and supervision of the commissioner office of credit unions. Every such corporation shall make a full and detailed report of its business as of December 31 for that year, and of its condition on such date, in such form and containing such information as the commissioner office of credit unions may prescribe, and shall file with the commissioner a true and verified copy thereof on or before February 1 thereafter. Accompanying the same shall be attached a copy of the statement of the credit union at the close of its last fiscal year. If any such credit union fails or refuses to furnish the report herein required, it shall be subject, at the discretion of the commissioner
office of credit unions, to a forfeiture of $1 to $10 per day for each day of default, and the commissioner office of credit unions may maintain an action in the name of the state to recover such penalty, and the same shall be paid into the state treasury. A credit union shall publish the report as a class 1 notice, under ch. 985, in the municipality, as defined in s. 985.01 (3), where the credit union is located if the credit union has assets of $10,000,000 or more or has a membership as described in s. 186.02 (2) (b) 2. The published report shall be in the condensed form as the commissioner office of credit unions prescribes. Proof of publication shall be furnished to the commissioner
office of credit unions within 45 days after the date of the report.
27,4942
Section 4942
. 186.26 (1) (a) of the statutes is amended to read:
186.26 (1) (a) At least once each year, the commissioner office of credit unions shall make or cause to be made an examination of the cash, bills, collaterals, securities, assets, books of account, condition and affairs of each credit union and for that purpose the commissioner or the examiners appointed by the commissioner office of credit unions shall have full access to, and may compel the production of, each credit union's books, papers, securities and moneys, administer oaths to and examine each credit union's officers and agents as to their respective affairs. Special examination shall be made upon written request of 5 or more members, if those members guarantee the expense of the special examination. The refusal of any credit union to submit to an examination ordered or requested shall be reported to the department of justice for the purpose of instituting proceedings to have the charter of the credit union revoked because of the refusal.
27,4943
Section 4943
. 186.26 (1) (b) of the statutes is amended to read:
186.26 (1) (b) In lieu of an annual examination of a credit union under par. (a), the commissioner
office of credit unions may accept an audit report of the condition of the credit union made by a certified public accountant not an employe of the credit union in accordance with rules promulgated by the commissioner office of credit unions. The cost of the audit shall be paid by the credit union. A copy of each audit under this paragraph shall be furnished to the Wisconsin credit union savings insurance corporation if the credit union's savings are protected or guaranteed by the Wisconsin credit union savings insurance corporation.
27,4944
Section 4944
. 186.26 (2) of the statutes is amended to read:
186.26 (2) If records are located outside this state, at the option of the commissioner office of credit unions, the credit union shall either make the records available to the commissioner office of credit unions at a convenient location within this state or pay the reasonable and necessary expenses for the commissioner or examiners
office to examine the records at the place where they are maintained. The commissioner office of credit unions may designate examiners, including comparable officials of the state in which the records are located, to inspect them on the commissioner's office's behalf. Except as provided in s. 186.113 (1m), the maintenance of any office or branch outside this state is not allowed under this chapter.
27,4945
Section 4945
. 186.27 (intro.) of the statutes is amended to read:
186.27 Disclosure of information. (intro.) The commissioner, all other officers and employes of the office, Employes of the office of credit unions and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except:
27,4946
Section 4946
. 186.27 (3) (intro.) of the statutes is amended to read:
186.27 (3) (intro.) The commissioner office of credit unions may do any of the following:
27,4947
Section 4947
. 186.27 (3) (b) of the statutes is amended to read:
186.27 (3) (b) Give access to and disclose to the national board or any official or examiner of it any information possessed by the commissioner office of credit unions about the conditions or affairs of any credit union whose savings are insured by the national board.
27,4948
Section 4948
. 186.28 (title) of the statutes is amended to read:
186.28 (title) Bookkeeping; forfeiture for failure to obey commissioner.
27,4949
Section 4949
. 186.28 (1) of the statutes is amended to read:
186.28 (1) A credit union shall open and keep accurate and convenient records of its transactions and accounts. If the commissioner office of credit unions determines that a credit union does not keep its books and accounts in a manner which enables the commissioner office to readily ascertain the true condition of the credit union, the commissioner office of credit unions may require any officer of the credit union to open and keep such books or accounts as the commissioner office may prescribe in order to remedy the deficiency.
27,4950
Section 4950
. 186.28 (2) of the statutes is amended to read:
186.28 (2) Any credit union that refuses or neglects to maintain books or accounts in the manner prescribed under sub. (1) shall be subject, upon written notification of the commissioner office of credit unions, to a forfeiture not to exceed $10 for each day it is in violation. If any credit union fails or refuses to pay the forfeiture, the commissioner office of credit unions may institute proceedings to enforce its collection.
27,4951
Section 4951
. 186.29 (title) of the statutes is amended to read:
186.29 (title) Possession by
commissioner office.
27,4952
Section 4952
. 186.29 (1) (intro.) of the statutes is amended to read:
186.29 (1) Conditions for taking possession. (intro.) The commissioner office of credit unions may forthwith take possession and control of the business and property of any credit union to which this chapter is applicable whenever the commissioner office of credit unions finds a credit union violating this chapter or that the credit union:
27,4953
Section 4953
. 186.29 (1) (h) of the statutes is amended to read:
186.29 (1) (h) Has neglected or refused to comply with the terms of a duly issued order of the commissioner office of credit unions; or
27,4954
Section 4954
. 186.29 (1m) (a) of the statutes is amended to read:
186.29 (1m) (a) The commissioner
office of credit unions may suspend, for a period of up to 120 days, the business or an officer, director, committee member or employe of a credit union if the commissioner
office finds the existence of any condition under sub. (1) (a) to (k). The commissioner office of credit unions may renew a suspension under this paragraph any number of times and for periods of up to 120 days if the commissioner office finds that the condition or conditions continue to exist.
27,4955
Section 4955
. 186.29 (1m) (b) of the statutes is amended to read:
186.29 (1m) (b) The commissioner
office of credit unions shall suspend the business of a credit union, other than a corporate central credit union, if the credit union does not comply with s. 186.34 (2) (a). The commissioner office of credit unions shall then liquidate the credit union under this section unless the credit union files a complete application for federal share insurance from the national board within 30 days after the date the suspension under this paragraph commences. The commissioner office of credit unions shall authorize a credit union to resume its business if it files an application within the time period specified in this paragraph.
27,4956
Section 4956
. 186.29 (1p) (title) of the statutes is amended to read:
186.29 (1p) (title) Possession by
commissioner office of credit unions.
27,4957
Section 4957
. 186.29 (1p) (a) of the statutes is amended to read:
186.29 (1p) (a) Discretionary possession. The commissioner office of credit unions may take possession of the business and property of a credit union if the commissioner office finds the existence of any condition under sub. (1) (a) to (k).
27,4958
Section 4958
. 186.29 (1p) (b) of the statutes is amended to read:
186.29 (1p) (b) Mandatory possession. The commissioner office of credit unions shall take possession of the business and property of a credit union that violates s. 186.34 (2) (b), unless the commissioner office approves a consolidation under s. 186.31, and of a credit union that the commissioner office of credit unions is required to liquidate under sub. (1m) (b).
27,4959
Section 4959
. 186.29 (2) (intro.) of the statutes is amended to read:
186.29 (2) Procedure on taking possession. (intro.) Upon taking possession of the business and property of any such credit union the commissioner office of credit unions shall forthwith:
27,4960
Section 4960
. 186.29 (2) (a) of the statutes is amended to read:
186.29 (2) (a) Serve a notice in writing upon the president and secretary of said credit union setting forth therein that the commissioner office of credit unions has taken possession and control of the business and property of said credit union. Said notice shall be executed in duplicate, and immediately after the same has been served, one of the said notices shall be filed with the clerk of the circuit court of the county where said credit union is located together with proof of service.
27,4961
Section 4961
. 186.29 (2) (b) of the statutes is amended to read:
186.29 (2) (b) Give notice to all individuals, partnerships, corporations, limited liability companies and associations known to the commissioner office of credit unions to be holding or in possession of any assets of such credit union.
