1995 Wisconsin Act 27

27,6123 Section 6123 . 221.06 (2) of the statutes is amended to read:

221.06 (2) If the commissioner division has reason to believe that the stockholders have formed the corporation for any other than the legitimate business contemplated by this chapter, or that any of the facts stated in the declaration are untrue, or that other reasons exist, which would make the opening of the bank injurious to the public interest, the commissioner division may, with the advice and consent of the attorney general, withhold the certificate herein mentioned.

27,6124 Section 6124 . 221.07 of the statutes is amended to read:

221.07 Publication of certificate. The bank shall cause the certificate issued hereunder to be published as a class 1 notice, under ch. 985, in the city, village or town where the bank is located. Such notice shall be published within 15 days of the issuing of the certificate. Proof of publication shall be filed with the commissioner of banking division. In the event of any bank failing to comply with the provisions of this section the commissioner division shall cause the notice to be published and the bank shall be liable for the expense thereof, and in addition thereto such bank shall be subject to a penalty of $100, which amount shall be collected by the commissioner division, and when recovered shall be paid into the state treasury.

27,6125 Section 6125 . 221.08 (3) of the statutes is amended to read:

221.08 (3) In the first instance, the directors shall be elected at the meeting held before the bank is authorized to commence business by the commissioner of banking division, and afterwards at the annual meeting of the stockholders which shall be held at a time established in the bylaws. Beginning with the annual meeting held in 1990, the bank shall include with each notice of an annual meeting delivered to shareholders copies for the 2 preceding fiscal years of the bank's balance sheets, statements of profit and loss and reconcilements of the bank's loan loss reserve. If for any reason an election is not had at that meeting, it may be held at a subsequent meeting called for that purpose, of which due notice shall be given as provided in the bylaws.

27,6126 Section 6126 . 221.08 (9) of the statutes is amended to read:

221.08 (9) The board of directors shall meet at least once each month. At the monthly meeting they shall generally investigate the affairs of the bank and determine whether the assets are of the value at which they are carried on the books of the bank. The directors shall name a loan committee of 3 or more of its members, a majority of whom shall be other than active executives, except in 1st or 2nd class cities, or except when a majority of the directors are actively engaged in the bank's management. The committee shall meet at least once each month and shall determine policies as to renewals and applications for new loans. Any director who is found to be lax in attendance may be removed by the commissioner division and the vacancy shall be filled within a reasonable time as the commissioner division may direct.

27,6127 Section 6127 . 221.09 (1) (intro.) of the statutes is amended to read:

221.09 (1) (intro.) After receipt by the board of directors of a bank of each report of examination of the bank by the office of the commissioner division, the board or an examining committee appointed under sub. (2), unless the commissioner division requires response by the board as provided in s. 220.05 (5), shall do all of the following:

27,6128 Section 6128 . 221.09 (5) of the statutes is amended to read:

221.09 (5) The board of directors shall transmit the report prepared under sub. (1) (b) and the acknowledgments prepared under sub. (3) to the office of the commissioner division within 45 days after receipt by the board of each report of examination under sub. (1) (intro.).

27,6129 Section 6129 . 221.12 of the statutes is amended to read:

221.12 Articles may be amended. A bank may amend its articles of incorporation in any manner not inconsistent with law, at any time, by a vote of its stockholders representing two-thirds of the capital stock taken at a meeting called for that purpose. The bank shall submit the amendment to the commissioner of banking division. The amendment is not effective unless approved by the commissioner division. The amendment may provide for a change of location of the bank. The amendment may provide for a change of the location of a parent bank to the location of a branch of the parent bank and a change of the location of a branch of the parent bank to the location of the parent bank if the change is first approved by the commissioner division upon application. The amendment, certified by the president or cashier, and setting forth the volume and page of recording in the office of the register of deeds of the original articles of incorporation, shall be recorded as required for articles of incorporation. No increase of the capital shall be valid until the amount of the increase has been subscribed and actually paid in. The entire surplus fund of a bank, or as much as may be required, may be declared and paid out as a stock dividend to apply on, and be converted into, an increase of capital. No reduction of capital shall be made to a less amount than is required under this chapter for capital, nor be valid or warrant the cancellation of stock certificates or diminish the personal liability of stockholders, until the reduction has been approved by the commissioner division. No reduction may be effected in any other way than by a proportional reduction of all outstanding shares unless approved by the commissioner division. The approval may be given only when the commissioner division is satisfied that the reduction of the capital is in the best interests of the depositors.

27,6130 Section 6130 . 221.14 (1) of the statutes is amended to read:

221.14 (1) Real estate necessary for the convenient transaction of its business, including with its banking offices other facilities to rent as source of income. No bank may invest in a banking office, including facilities connected with the office, together with furniture, equipment and fixtures, or become liable for it in a sum exceeding 60% of its capital and surplus; but in lieu of this it may invest, with the approval of the commissioner of banking division, an amount not to exceed 40% of its capital and surplus in the stocks, bonds or obligations of a bank building corporation. Any bank not owning its banking offices may not invest in furniture, equipment and fixtures a sum exceeding 20% of its capital and surplus.

27,6131 Section 6131 . 221.14 (4s) of the statutes is amended to read:

221.14 (4s) Real estate used as an attended or unattended remote facility for paying and receiving only. Remote facilities may be established only with specific approval by the commissioner division. The authority under this subsection is in addition to the authority to establish facilities that are attached to or a part of a bank or a branch bank. After July 31, 1989, and before February 1, 1990, a bank may inform the commissioner division in writing that it is converting a remote facility existing on August 1, 1989, into a branch bank, specifying the effective date of the conversion. An application fee is not required for a conversion under this subsection.

27,6132 Section 6132 . 221.14 (5) of the statutes is amended to read:

221.14 (5) Real estate purchased and held, subject to the approval of the commissioner of banking division, for the purpose of providing needed housing accommodations for its essential employes who are relocated by the bank, including purchasing the former residence of the relocated, essential employe.

27,6133 Section 6133 . 221.14 (6) of the statutes is amended to read:

221.14 (6) No real estate acquired under sub. (2), (3) or (5) may be held for a longer time than 5 years, unless an extension is granted by the commissioner division. If the extension is not granted, it must be sold at a private or public sale within one year thereafter. Nothing in this section may be construed to prevent a bank from lending moneys upon real estate security as provided by law. Real estate shall be conveyed under the corporate seal of the bank, and the hand of the president or vice president and cashier or assistant cashier.

27,6134 Section 6134 . 221.15 (1) of the statutes is amended to read:

221.15 (1) Every bank shall make to the commissioner of banking division not less than 2 reports during each calendar year, at such times as the said commissioner division shall require the same, according to the forms which the commissioner division shall prescribe and furnish. Such forms shall conform as nearly as practicable to that now required of national banks, including the schedules.

27,6135 Section 6135 . 221.15 (3) of the statutes is amended to read:

221.15 (3) Such report shall exhibit in detail and under proper heads, the resources and liabilities of the bank at the close of the business of any past day specified by the commissioner division, and shall be transmitted to the commissioner division within 30 days after the receipt of request therefor from the commissioner division.

27,6136 Section 6136 . 221.15 (4) of the statutes is amended to read:

221.15 (4) The most recent report filed under sub. (1) as of the last business day of the 4th calendar quarter shall be published by the bank as a class 1 notice, under ch. 985, where the bank is located, in the condensed form as the commissioner division prescribes. Each bank shall maintain proof of publication of the report.

27,6137 Section 6137 . 221.15 (6) of the statutes is amended to read:

221.15 (6) When requested by the commissioner division, any bank shall report to the commissioner on call by the commissioner, division a list of its stockholders, their residences, and the amount of stock held by each, which report shall be signed and verified by the oath or affirmation of one of the officers of said bank.

27,6138 Section 6138 . 221.15 (7) of the statutes is amended to read:

221.15 (7) The commissioner division shall also have the power to call for special reports from any bank whenever in the commissioner's division's judgment the same is necessary to inform the commissioner division fully of the condition of such bank.

27,6139 Section 6139 . 221.16 of the statutes is amended to read:

221.16 One hundred dollars per day forfeiture. Every bank failing to make and transmit to the commissioner of banking division any of the reports or proofs of publication as required by this chapter shall be subject, at the discretion of the commissioner division, to a forfeiture of $100 for each day after the time required for making such reports. Whenever any bank fails or refuses to pay the forfeiture herein imposed for a failure to make and transmit such report, the commissioner division is hereby authorized to institute proceedings for the recovery of such forfeiture.

27,6140 Section 6140 . 221.18 of the statutes is amended to read:

221.18 Inspection; refusal to permit; action to dissolve; prosecutions. Whenever any officer in charge of a bank refuses to submit the books, papers and concerns of such bank to the inspection of the commissioner of banking, the commissioner's deputy, or examiner appointed hereunder, division or refuses to be examined on oath touching the concerns of the bank, the commissioner division may inform the attorney general. The department of justice shall then institute an action to procure a judgment dissolving such corporation. In order to carry out this section the commissioner division may commence and maintain in the commissioner's division's name as commissioner of banking any and all actions necessary or proper to enforce this section.

27,6141 Section 6141 . 221.19 of the statutes is amended to read:

221.19 Prosecutions. In order to carry out ss. 220.07, 220.08 and 221.18, the commissioner of banking division may commence and maintain in the commissioner's division's name any and all actions necessary or proper to enforce any of said sections.

27,6142 Section 6142 . 221.205 of the statutes is amended to read:

221.205 Banks; disciplinary provisions. Whenever the commissioner of banking division shall have or receive information causing the commissioner division to believe that any bank, trust company bank, or any other corporation, limited liability company or association in respect to whose affairs or any part thereof the commissioner division has any supervision or control under the law, or any officer, employe, member or manager thereof has been guilty of a violation of any of the provisions of law or regulations or orders in execution thereof which subjects any such corporation, limited liability company or association or person to prosecution for a criminal offense or for recovery of penalty under the law, the commissioner division shall bring such facts and information to the attention of the banking review board with the commissioner's division's recommendation in writing as to action to be taken. Said banking review board shall, if in its judgment probable cause exists for believing that a criminal offense has been committed, or a penalty incurred, call the facts and information to the attention of the attorney general whose duty it shall be to cause prosecution or other action to be instituted if in the attorney general's judgment the facts warrant. Nothing herein contained shall be deemed to prevent the institution of any prosecution by any district attorney of this state with or without any advice or act on the part of the attorney general. Nothing herein contained shall preclude the commissioner of banking division, in any case where the commissioner division deems it important to act immediately, from causing any arrest and prosecution where the commissioner division is satisfied that there is reason to believe the offense has been committed and that prosecution should be immediately commenced.

27,6143 Section 6143 . 221.21 of the statutes is amended to read:

221.21 When organized as national bank. Any bank organized under this chapter may reorganize under the laws of the United States as a national bank. As soon as such bank shall have obtained the certificate from the comptroller of the currency, authorizing it to commence business under the United States banking law, such reorganized bank shall take and hold all of the assets, real and personal, of such bank organized under this chapter, subject to all liabilities existing against said bank organized under this chapter at the time of such reorganization, and shall immediately notify the commissioner of banking division of such reorganization and transfer.

27,6144 Section 6144 . 221.22 of the statutes is amended to read:

221.22 National banks may reorganize as state banks. Any national bank authorized to dissolve, and which shall have taken the necessary steps to effect dissolution, may reorganize under this chapter, upon the consent in writing of the owners of two-thirds of the capital stock of such bank, and with the approval of the commissioner of banking division. Such stockholders shall make, execute and acknowledge articles of organization as required by this chapter, and shall set forth the said written consent of such stockholders. A national bank seeking to reorganize under this section shall pay to the commissioner division a fee of $1,000 plus the actual costs incurred by the commissioner division in investigating the proposed reorganization. Upon the filing of the articles as provided by this chapter, and upon the approval of the commissioner division, such bank shall be deemed to be reorganized under this chapter, and thereupon all assets, real and personal, of such dissolved national bank shall be vested in and be and become the property of such reorganized bank, subject to all liabilities of such national bank not liquidated before such reorganization.

27,6145 Section 6145 . 221.23 of the statutes is amended to read:

221.23 Consolidation of banks. A bank, which is in good faith winding up its business, for the purpose of consolidating with some other bank, may transfer its resources and liabilities to the bank with which it is in process of consolidation; but no consolidation shall be made without the consent of the commissioner of banking division, and not then to defeat or defraud any of the creditors in the collection of their debts against such banks, or either of them.

27,6146 Section 6146 . 221.24 (1) of the statutes is amended to read:

221.24 (1) Any bank organized or doing business under this chapter may go into liquidation by a vote of its stockholders owning two-thirds of the capital stock. Whenever a vote is taken to go into liquidation, the board of directors shall give notice of this fact to the commissioner of banking division, and the notice shall be certified by the president or cashier under the seal of the bank. No liquidating bank may transfer assets or liabilities to another bank until the transfer is approved by the commissioner division.

27,6147 Section 6147 . 221.245 of the statutes is amended to read:

221.245 Cancellation of charter of merged bank. Whenever any bank has merged or consolidated with or been absorbed by another bank, the commissioner of banking division may cancel the charter of the first mentioned bank after notice of proposed cancellation has been published as a class 3 notice, under ch. 985, in the county wherein the bank is located, unless written objections are filed with the commissioner division within a time specified in the notice stating grounds which the commissioner division deems sufficient.

27,6148 Section 6148 . 221.25 (1) of the statutes is amended to read:

221.25 (1) Any 2 or more banks may, with the approval of the commissioner of banking division, consolidate into one bank under the charter of either existing bank on such terms and conditions as may be lawfully agreed upon by a majority of the board of directors of each bank proposing to consolidate and be ratified and confirmed by the affirmative vote of the stockholders of each such bank owning at least two-thirds of its capital stock outstanding and at least two-thirds of any outstanding preferred stock having voting rights, at a meeting to be held on call of the directors, after sending notice of the time, place and object of the meeting to each shareholder of record by registered mail at least 30 days prior to said meeting; provided that the capital stock of such consolidated bank shall not be less than that required under existing law for the organization of a state bank in the place in which it is located. When such consolidation is approved by the commissioner division, any shareholder of either of the banks so consolidated who has not voted for such consolidation shall be given notice of the approval by the bank in which the shareholder holds an interest and of the shareholder's right to receive the appraised value for the shareholder's shares. If within 20 days after the date that notice of approval is mailed or delivered to a shareholder the shareholder notifies the directors of the bank in which the shareholder is interested that the shareholder dissents from the plan of consolidation as adopted and approved and desires to withdraw from such bank, the shareholder shall be entitled to receive in cash the value of the shares so held by the shareholder, to be ascertained by an appraisal made by a committee of 3 persons, one to be selected by the shareholders, one by the directors, and the 3rd by the 2 so chosen; the expense of such appraisal shall be borne by the bank; and in case the value so fixed shall not be satisfactory to the shareholder he or she may within 5 days after being notified of the appraisal appeal to the commissioner, who division, which shall cause a reappraisal to be made by an appraiser or appraisers to be named by said commissioner the division, which appraisal shall be final and binding, and if said reappraisal shall exceed the value fixed by said committee the bank shall pay the expense of reappraisal, otherwise the shareholder shall pay said expense, and the value so ascertained and determined shall be deemed to be a debt due and be forthwith paid to said shareholder from said bank, and the share or shares so paid shall be surrendered and after such notice as the board of directors may provide, be sold at public auction within 30 days after the final appraisement provided for by this section.

27,6149 Section 6149 . 221.25 (3) of the statutes is amended to read:

221.25 (3) The commissioner division may after consultation with the banking review board make recommendations to any bank or trust company within this state as to advisability of consolidation with other banks and may make recommendations as to terms for consolidation or merger of banks in order to avoid a condition of oversupply of banks in any community or area of the state. The commissioner division may also, if requested so to do, act as mediator or arbitrator to fix any of the terms of any such consolidation or merger. It shall be within the power of the board of directors of any bank or trust company organized under the laws of this state to appropriate a reasonable amount from the assets of the bank toward assisting in bringing about a consolidation or merger of banks or to aid in reorganization or in avoiding the closing of a bank where such action is deemed to be in the interests of safe banking and the maintenance of credit and banking facilities in the county in which such bank is located.

27,6150 Section 6150 . 221.25 (4) of the statutes is amended to read:

221.25 (4) Application for approval of a consolidation under sub. (1) shall be made on a form prescribed by the commissioner division. The application shall be accompanied by a fee of $5,000, except that if more than 3 banks are to be consolidated the fee is $5,000 plus $1,000 for each bank after the 3rd bank.

27,6151 Section 6151 . 221.26 of the statutes is amended to read:

221.26 (title) Banks may be placed in hands of commissioner under division control . Any bank doing business under this chapter may place its affairs and assets under the control of the commissioner of banking division by posting a notice on its front door, as follows: “This bank is in the hands of the commissioner division of banking". Immediately upon posting such notice, the bank shall notify the commissioner division of such action. The posting of such notice, or the taking possession of any bank by the commissioner division, shall be sufficient to place all its assets and property of whatever nature in the possession of the commissioner division, and shall operate as a bar to any attachment proceedings. For each day the commissioner division is so placed in possession of the bank, and until such time as a special deputy commissioner of banking is appointed under s. 220.08 (4), the bank shall pay to the commissioner division the actual cost of such liquidation proceedings. All such fees shall be paid by the commissioner division to the state treasurer to be placed to the credit of s. 20.124 20.144 (1) (g) in the percentage specified in that paragraph.

27,6152 Section 6152 . 221.27 (2) of the statutes is amended to read:

221.27 (2) Every bank shall maintain sufficient reserves to meet anticipated withdrawals, commitments and loan demand. Every bank shall maintain at least the level of reserves required for it by the federal reserve system. The commissioner of banking division may prescribe additional reserve requirements for an individual bank based on examination findings or other reports available to the commissioner division.

27,6153 Section 6153 . 221.27 (3) (g) of the statutes is amended to read:

221.27 (3) (g) Short-term obligations approved by rule of the commissioner of banking division.

27,6154 Section 6154 . 221.28 of the statutes is amended to read:

221.28 Reserve to be kept up. Whenever the reserve of any bank falls below the amount required to be kept, such bank shall not increase its loans or discounts otherwise than by discounting or purchasing bills of exchange payable at sight or on demand, and the commissioner division shall notify any bank whose reserve is below the amount required, to make good such reserve, and in case the bank fails, for 30 days thereafter to make good such reserve, the commissioner division may assess such bank $100 for each 2-week period which the bank has been in default or may notify the attorney general and the department of justice shall institute proceedings for the appointment of a receiver and to wind up the business of the bank. Such assessment shall be paid to the commissioner division and if any such bank fails or refuses to pay such assessment the commissioner division may maintain an action for the recovery of the assessment.

27,6155 Section 6155 . 221.29 (1) (f) of the statutes is amended to read:

221.29 (1) (f) The limitations in this section shall not apply to that portion of any loan which is guaranteed by a federal or Wisconsin state guaranty program approved by the commissioner division. The commissioner division shall designate federal and Wisconsin state guaranty programs which qualify under this paragraph.

27,6156 Section 6156 . 221.295 (1) of the statutes is amended to read:

221.295 (1) Except as provided in sub. (3), a bank may lend under this subsection, through the bank or a subsidiary of the bank, to all borrowers from the bank and all of its subsidiaries, an aggregate amount not to exceed the percentage of its capital and surplus established by the commissioner division under sub. (3). Neither a bank nor any subsidiary of the bank may lend to any borrower, under this subsection and any other law or rule, an amount that would result in an aggregate amount for all loans to that borrower that exceeds the percentage of the bank's capital and surplus established under sub. (3). A bank or its subsidiary may take an equity position or other form of interest as security in a project funded through such loans. Every transaction by a bank or its subsidiary under this subsection shall require prior approval by the board of directors of the bank or its subsidiary, respectively. Such loans are not subject to s. 221.36 or to classification as losses for a period of 2 years from the date of each loan except as provided in sub. (3).

27,6157 Section 6157 . 221.295 (2) of the statutes is amended to read:

221.295 (2) Except as provided in sub. (3), a bank may invest under this subsection amounts not to exceed, in the aggregate, that percentage of its capital and surplus established by the commissioner of banking division under sub. (3) in equity positions, such as profit-participation projects. A bank may take an investment position in a project with respect to which it is also a lender. The bank shall limit its liability as an investor in a specific project under this subsection to an amount not exceeding the amount of its investment in that project. For purposes of calculating the bank's aggregate investment under this subsection, the amount of each investment shall be established as of the date that the investment is made. Every transaction by a bank under this subsection shall require prior approval by the board of directors of the bank and shall be disclosed to the shareholders of the bank prior to each annual meeting of the shareholders.

27,6158 Section 6158 . 221.295 (3) of the statutes is amended to read:

221.295 (3) The commissioner of banking division shall establish for each bank the applicable percentage, not to exceed 20%, under sub. (1) and the applicable percentage, not to exceed 10%, under sub. (2). The commissioner division may withdraw or suspend a percentage established under this subsection and, in such case, may specify how outstanding loans or investments shall be treated by the bank or subsidiary. Among the factors that the commissioner division may consider in establishing, withdrawing or suspending a percentage under this subsection are the bank's capital, assets, management and liquidity ratio and its capital ratio.

27,6159 Section 6159 . 221.295 (4) of the statutes is amended to read:

221.295 (4) At the time of making a loan or investment, the bank or subsidiary shall note in its records whether it is made under sub. (1) or (2). The forms of security for loans under sub. (1) and the forms of investment under sub. (2) shall be as approved by the commissioner of banking division by rule.

27,6160 Section 6160 . 221.295 (6) of the statutes is amended to read:

221.295 (6) A bank may make loans secured by assignment or transfer of stock certificates or other evidence of the borrower's ownership interest in a corporation formed for the cooperative ownership of real estate. Sections 846.10 and 846.101, as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender's rights in security given for a loan under this subsection. The commissioner division shall promulgate joint rules with the commissioners office of credit unions and the division of savings and loan that establish procedures for enforcing a lender's rights in security given for a loan under this subsection.

27,6161 Section 6161 . 221.296 (1) of the statutes is amended to read:

221.296 (1) A bank may invest amounts not to exceed, in the aggregate, that percentage of its capital and surplus established by the commissioner of banking division under sub. (2) in partnership interests in farm operations. A bank may acquire a partnership interest in a farm operation with respect to which it is also a lender. The bank may only acquire a partnership interest in a farm operation as a limited partner. For purposes of calculating the bank's aggregate investment, the amount of each investment shall be established as of the date that the investment is made. Every transaction by a bank under this subsection shall require prior approval by the board of directors of the bank and shall be disclosed to the shareholders of the bank prior to each annual meeting of the shareholder.

27,6162 Section 6162 . 221.296 (2) of the statutes is amended to read:

221.296 (2) The commissioner of banking division shall establish for each bank the applicable percentage, not to exceed 10%, under sub. (1). The commissioner division may withdraw or suspend a percentage established under this subsection and, in such case, may specify how outstanding investments shall be treated by the bank. Among the factors the commissioner division may consider in establishing, withdrawing or suspending a percentage established under this subsection are the bank's capital, assets, management and liquidity ratio and its capital ratio.

27,6163 Section 6163 . 221.297 (1) of the statutes is amended to read:

221.297 (1) Subject to any regulatory approval required by law and subject to sub. (2), a bank, 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 division finds to be financially related.

27,6164 Section 6164 . 221.297 (2) of the statutes is amended to read:

221.297 (2) The activities, powers, products and services that may be undertaken, exercised or offered by banks under sub. (1) are limited to those specified by rule of the commissioner of banking division and, with respect to loans under s. 221.295 (1) and investments under s. 221.295 (2), are subject to the limitations set forth in s. 221.295. The commissioner division may direct any bank 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 division may consider in so directing a bank are the bank's capital, assets, management and liquidity ratio and its capital ratio.

27,6165 Section 6165 . 221.33 (1) of the statutes is amended to read:

221.33 (1) Except as provided in s. 34.07, no bank or bank officer shall give preference to any depositor or creditor by pledging the assets of the bank as collateral security. A state bank may deposit with the treasurer of the United States, or in the custody of federal reserve banks or branches thereof designated by the judges of the several courts of bankruptcy, so much of its assets not exceeding its capital and surplus as may be necessary under the act of congress approved June 25, 1910, and all amendments thereof, to qualify as a depository for postal savings funds, other government deposits and as depository for bankrupt estates, debtors, corporations and railroads under reorganization under U.S. bankruptcy laws, and amendments thereto, and receivers, trustees and other officers thereof appointed by any U.S. district court or by any bankruptcy court of the United States and that in acting as such depository a state bank shall have all the rights and privileges granted to banking institutions under section 61 of the U.S. bankruptcy act, and amendments thereto; and any bank may borrow money for temporary purposes, and may pledge assets of the bank not exceeding 50% in excess of the amount borrowed as collateral security therefor. Any state bank so authorized by the commissioner of banking, who division, that complies with s. 223.02, shall be exempt from furnishing the bond specified in s. 221.04 (6), and shall be entitled to the same exemption as to making and filing any oath or giving any bond or security as is conferred on trust company banks by s. 223.03 (8), but it is unlawful for any bank to borrow money unless the board of directors has adopted a resolution designating the bank from which the money may be borrowed, the maximum amount for which the bank may become indebted at any one time, and the names of the officers who may sign the promissory note evidencing the indebtedness. A bank may pledge assets in an amount not to exceed 4 times the amount of its capital and surplus to the federal reserve bank (as fiscal agent of the United States) of the federal reserve district in which it is located, except that no such pledge shall be made in excess of the amount of its capital and surplus without the consent of the commissioner of banking division. Whenever it appears that a bank is borrowing habitually for the purpose of reloaning, the commissioner division may require the bank to repay money so borrowed. Nothing herein contained shall prevent any bank from rediscounting in good faith and endorsing any of its negotiable notes if the same has been authorized by a recorded resolution of the board of directors.

27,6166 Section 6166 . 221.37 (1) of the statutes is amended to read:

221.37 (1) Before the board of directors of a bank may declare and pay a cash dividend, a sum equivalent to not less than one-fifth of the net profits of the bank for the preceding half year, or for such period as is covered by the dividend, shall be carried to a surplus fund, until such surplus fund shall amount to 100 per cent of the capital stock, except that the bank, with the approval of the commissioner division, may be exempted from the requirements of this section whenever its daily average of deposits for a period of one year shall be less than 10 times the unimpaired capital and surplus; such surplus shall not include items classified by the commissioner of banking division as doubtful or loss.

27,6167 Section 6167 . 221.38 (1) (b) of the statutes is amended to read: