215.21 (6) (a) Direct reduction mortgage loans. The total monthly contractual payment on a direct reduction mortgage shall appear in the mortgage note. The commissioner division shall by regulation establish the maximum terms for the various types of direct reduction mortgages. The interest charges on loans of this type may be adjusted monthly or semiannually in accordance with the terms of the mortgage note.
27,5603
Section 5603
. 215.21 (7) (intro.) of the statutes is amended to read:
215.21 (7) Types of real estate security. (intro.) An association may make loans on the following types of real estate security as defined by the commissioner
division:
27,5604
Section 5604
. 215.21 (7) (c) of the statutes is amended to read:
215.21 (7) (c) Commercial type properties, the aggregate of which shall be fixed by the commissioner
division;
27,5605
Section 5605
. 215.21 (14) of the statutes is amended to read:
215.21 (14) Selling loans. Except as otherwise prescribed in s. 215.13 (22) an association may sell mortgage loans, without recourse, to any person, and service such loans for the purchaser in accordance with a duly executed servicing agreement. The aggregate of loans sold in any calendar year shall not exceed such limits as may be set by the commissioner division and review board.
27,5606
Section 5606
. 215.21 (15) of the statutes is amended to read:
215.21 (15) Participation loans. Any association may participate with other lenders in mortgage loans of any type that such association may otherwise make, subject to such rules as the commissioner division issues, including the interest in participation loans to be retained by the originator. The normal lending area, prescribed in sub. (2), shall not apply to any association purchasing a participating interest in such loan, provided the real estate securing such loan is located within the United States.
27,5607
Section 5607
. 215.21 (17) (b) (intro.) of the statutes is amended to read:
215.21 (17) (b) (intro.) Without the prior written approval of the commissioner division, no association may directly or indirectly make a mortgage loan to:
27,5608
Section 5608
. 215.21 (17) (b) 2. of the statutes is amended to read:
215.21 (17) (b) 2. Such other persons as the
commissioner division may by rule designate to avoid conflicts between the best interests of the association and the interests of its officers, directors or employes.
27,5609
Section 5609
. 215.21 (17) (d) 2. of the statutes is amended to read:
215.21 (17) (d) 2. To a nonprofit, religious, charitable or fraternal organization or a corporation in which the association has been authorized to invest by the commissioner division.
27,5610
Section 5610
. 215.21 (28) of the statutes is amended to read:
215.21 (28) Loans outside the lending area. Subject to the rules issued by the commissioner
division and without regard to the limitation set forth in sub. (2), an association may make or invest its funds in loans, originated and serviced by or through an institution, the accounts or deposits of which are insured by the federal savings and loan insurance corporation or the federal deposit insurance corporation or by or through an approved federal housing administration mortgagee, in an aggregate amount not exceeding 10% of such association's assets on the security of real estate or leasehold interests.
27,5611
Section 5611
. 215.22 (2) of the statutes is amended to read:
215.22 (2) All real estate acquired pursuant to this section shall be sold within 10 years from acquiring title thereto, unless the commissioner division grants extensions of time within which such real estate shall be sold.
27,5612
Section 5612
. 215.23 (intro.) of the statutes is amended to read:
215.23 Limitations on investments in office buildings and related facilities. (intro.) An association's aggregate investment in the following may not exceed the association's net worth without the prior written approval of the commissioner division:
27,5613
Section 5613
. 215.24 of the statutes is amended to read:
215.24 Minimum net worth. An association shall maintain net worth at an amount not less than the minimum amount established by the commissioner division. If an association fails to maintain the minimum net worth required under this section, the commissioner
division may take appropriate action, including but not limited to ordering the association to take corrective action or to restrict payment of dividends.
27,5614
Section 5614
. 215.25 of the statutes is amended to read:
215.25 Audit requirements. Each association shall be audited at least once in each fiscal year by auditors and in a manner satisfactory to the commissioner
division in accordance with the policies established by the commissioner division. The auditors are to be designated by the board of directors and must be independent, certified public accountants certified in this state. In lieu of audits by independent, certified public accountants, the board of directors may request an audit of the books and accounts to be made by the commissioner division to check the assets of the association and to determine losses, which request the commissioner division may refuse. The commissioner division may at any time make or cause to be made an audit of any association, with appraisals, when deemed advisable. Associations shall promptly file with the commissioner division a copy of the report of each audit, other than audits made by the commissioner division. The cost of any audit made pursuant to this section shall be paid by the association audited.
27,5615
Section 5615
. 215.26 (3) of the statutes is amended to read:
215.26 (3) Obsolete records. Any association may destroy or dispose of such of its records as may become obsolete after first obtaining the written consent of the commissioner division.
27,5616
Section 5616
. 215.26 (4) (a) of the statutes is amended to read:
215.26 (4) (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 after first obtaining the written consent of the commissioner division. This section, excepting the part of it which requires written consent of the commissioner division, is applicable to federal associations insofar as it does not contravene federal law.
27,5617
Section 5617
. 215.26 (5) of the statutes is amended to read:
215.26 (5) Legal holidays. The
commissioner division shall designate such of the legal holidays listed in s. 895.20 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.
27,5618
Section 5618
. 215.26 (8) (b) 1. of the statutes is amended to read:
215.26 (8) (b) 1. The commissioner division or duly its authorized representatives.
27,5619
Section 5619
. 215.26 (8) (b) 3. of the statutes is amended to read:
215.26 (8) (b) 3. Any federal agency or other instrumentality approved by the commissioner division which is authorized to inspect and examine books and records of an insured association.
27,5620
Section 5620
. 215.26 (9) of the statutes is amended to read:
215.26 (9) Closing books. Each association shall close its books at least once annually and at such other times as the commissioner division requires. The date of the annual fiscal closing may be March 31, June 30, September 30 or December 31, unless rules of the commissioner division otherwise direct.
27,5621
Section 5621
. 215.32 (title) of the statutes is amended to read:
215.32 (title) Possession by
commissioner division; involuntary liquidation.
27,5622
Section 5622
. 215.32 (1m) (intro.) of the statutes is amended to read:
215.32 (1m) Conditions for taking possession. (intro.) The commissioner division may take possession of the business and property of any association to which this chapter applies if the commissioner division finds that the association:
27,5623
Section 5623
. 215.32 (1m) (h) of the statutes is amended to read:
215.32 (1m) (h) Has failed to comply with an order of the commissioner division; or
27,5624
Section 5624
. 215.32 (2) (intro.) of the statutes is amended to read:
215.32 (2) Procedure after taking possession. (intro.) After taking possession of the business and property of an association, the commissioner division shall immediately:
27,5625
Section 5625
. 215.32 (2) (a) of the statutes is amended to read:
215.32 (2) (a) Serve written notice on an officer of the association stating that the commissioner 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.
27,5626
Section 5626
. 215.32 (2) (b) of the statutes is amended to read:
215.32 (2) (b) Mail notice to the last-known address of any person known to the commissioner division to be in possession of assets of the association.
27,5627
Section 5627
. 215.32 (3) of the statutes is amended to read:
215.32 (3) Employment of counsel; retention of officers and employes of association. The commissioner division may employ necessary counsel and experts in a liquidation under this section and may retain any officer or employe of the association.
27,5628
Section 5628
. 215.32 (4) of the statutes is amended to read:
215.32 (4) (title) Appointment of special deputy commissioners. The commissioner division may appoint special deputy commissioners deputies as agents to assist in the liquidation and distribution of the assets of associations whose business and property the commissioner division has taken possession of. A certificate of the appointment shall be filed in the office of the commissioner with the division and a certified copy
shall be filed in the office of the clerk of circuit court.
27,5629
Section 5629
. 215.32 (5) of the statutes is amended to read:
215.32 (5) (title) Surety bonds of special deputy commissioners deputies and assistants. Special deputy commissioners deputies and assistants shall furnish surety bonds in accordance with s. 215.11.
27,5630
Section 5630
. 215.32 (6) (title) of the statutes is amended to read:
215.32 (6) (title) Duties of special
deputy commissioners deputies.
27,5631
Section 5631
. 215.32 (6) (a) of the statutes is amended to read:
215.32 (6) (a) Notice, allowance and payment of claims. The special deputy commissioner 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 commissioner 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 commissioner. The special deputy commissioner 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.
27,5632
Section 5632
. 215.32 (6) (b) of the statutes is amended to read:
215.32 (6) (b) Inventory of assets and statement of liabilities. The special deputy commissioner appointed under this section shall make an inventory of the assets of the association. One copy of the inventory shall be filed in the office of the commissioner 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 commissioner shall make a complete list of the claims for which proof of claims were filed and specify the claims he or she the special deputy has rejected. One copy shall be filed in the office of the commissioner 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.
27,5633
Section 5633
. 215.32 (6) (c) of the statutes is amended to read:
215.32 (6) (c) Execution of legal documents; borrowing of money. A special deputy commissioner appointed under this section may, with the prior approval of the commissioner 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 incumbrance of the property of an association subject to this section and may borrow money for use in the liquidation.
27,5634
Section 5634
. 215.32 (6) (d) of the statutes is amended to read:
215.32 (6) (d) Conservation of assets; collection of claims; sale of assets and performance of any other acts upon order of the court. A special deputy commissioner 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 commissioner shall collect all claims belonging to the association, and, with the prior approval of the commissioner 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.
27,5635
Section 5635
. 215.32 (6) (e) of the statutes is amended to read:
215.32 (6) (e) Depositing of moneys in one or more financial institutions. The moneys collected by the special deputy commissioner 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.
27,5636
Section 5636
. 215.32 (6) (em) 1. of the statutes is amended to read:
215.32 (6) (em) 1. All costs, expenses and debts of the association incurred on or after the date on which the commissioner division takes possession of the association.
27,5637
Section 5637
. 215.32 (6) (f) of the statutes is amended to read:
215.32 (6) (f) Liquidating dividends. After the date fixed for filing proof of claims under s. 215.32 (6) (a), the special deputy commissioner may, with the prior approval of the commissioner 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.
27,5638
Section 5638
. 215.32 (6) (g) of the statutes is amended to read:
215.32 (6) (g) Notice prior to order for final distribution. Prior to the order for final distribution under par. (f), the special deputy commissioner 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 commissioner. The special deputy commissioner 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.
27,5639
Section 5639
. 215.32 (6) (h) of the statutes is amended to read:
215.32 (6) (h) Transfer of residual assets to commissioner. After the order for final distribution has been made under par. (f), the special deputy commissioner shall, with the approval of the commissioner
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 commissioner division. The commissioner 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 commissioner
division has deducted the cost of his or her division services, attorney fees and other incidental expenses.
27,5640
Section 5640
. 215.32 (7) (a) 1. (intro.) of the statutes is amended to read:
215.32 (7) (a) 1. (intro.) The special deputy
commissioner shall deliver to the commissioner
division:
27,5641
Section
5641. 215.32 (7) (a) 1. a. of the statutes is amended to read:
215.32 (7) (a) 1. a. Any unclaimed liquidating dividends and all funds remaining in the hands of the special deputy commissioner at the date of the order for final distribution.
27,5642
Section 5642
. 215.32 (7) (a) 2. of the statutes is amended to read:
215.32 (7) (a) 2. The commissioner division shall deposit moneys delivered under subd. 1. in a financial institution, to the credit of the commissioner division in trust for the persons entitled to the moneys.
27,5643
Section 5643
. 215.32 (7) (a) 3. (intro.) of the statutes is amended to read:
215.32 (7) (a) 3. (intro.) The commissioner division shall include in the annual report under s. 215.02 (11):
27,5644
Section 5644
. 215.32 (7) (c) (intro.) of the statutes is amended to read:
215.32 (7) (c) (intro.) The commissioner division may:
27,5645
Section 5645
. 215.32 (7) (d) of the statutes is amended to read:
215.32 (7) (d) The commissioner
division may make application to the circuit court for an order determining what books or records of an association subject to this section are to be kept or destroyed. All books or records ordered kept shall be kept in a manner and place ordered, subject to the further order of the circuit court. The expense of keeping books or records shall be paid before final distribution. All books or records ordered destroyed shall be delivered to the commissioner division to be destroyed.
27,5646
Section 5646
. 215.32 (8) of the statutes is amended to read:
215.32 (8) (title) Title passes to commissioner division. The possession of and title to all property of the association is transferred from the association to the commissioner division on the date the notice required by sub. (2) is filed. The filing of the notice bars any attachment, garnishment, execution or other legal proceedings against the association or its property.
