Amendment ASA1-AB569

AB569-ASA1,60,17 5. The court in which the liquidation is pending, upon application of the office of credit unions, makes an order approving the office's recommendations, which order shall contain a finding that the credit union will be in a safe and sound condition when control is resumed by the shareholders.

AB569-ASA1,61,2 (n) Reinstatement upon restricted basis. In addition to the procedure under par. (m), a credit union may resume business upon a restricted basis, and upon such limitations and conditions as may be prescribed by the office of credit unions when approved by the circuit court for the county in which the credit union is located, upon application of the office of credit unions. The restrictions and conditions may include a prohibition against the selling of new shares, reasonable restrictions upon withdrawals and the payment of other liabilities. On approval, the credit union shall be relieved from the control and supervision of the office of credit unions, but the approval does not prohibit the office from again proceeding against the credit union if conditions warrant the office's action.

AB569-ASA1,61,13 (p) Liquidating dividends and unclaimed funds. 1. The special deputy shall deposit unclaimed liquidating dividends and unclaimed funds remaining unpaid in the hands of the special deputy for 6 months after the order for final distribution in a corporate central credit union in the name of the office of credit unions in trust for the shareholders and creditors of the liquidated credit union. The office of credit unions shall annually report to the governor and the chief clerk of each house of legislature for distribution to the legislature under s. 13.172 (2) the names of credit unions of which the office of credit unions has taken possession and liquidated, and the sums of unclaimed and unpaid liquidating dividends and unclaimed funds with respect to each of the credit unions and include a statement of interest earned upon those funds.

AB569-ASA1,61,21 2. The office of credit unions may pay over the funds held by the office of credit unions under subd. 1. to the persons entitled to the funds, upon being furnished satisfactory evidence of their right to the funds. In case of doubt or conflicting claims, the office of credit unions may require an order of the circuit court authorizing payment. The office of credit unions may apply the interest earned by the funds toward defraying the expenses in the payment and distribution of unclaimed liquidating dividends and unclaimed funds to the stockholders and creditors entitled to receive the dividends and funds.

AB569-ASA1,62,4 3. One year after the date of the order for final distribution, the office of credit unions shall report and deliver to the state treasurer all unclaimed funds as provided in ch. 177. All claims subsequently arising shall be presented to the office of credit unions. If the office of credit unions determines that any claim should be allowed, the office shall certify to the department of administration the name and address of the person entitled to payment and the amount of the payment and shall attach the claim to the certificate. The department of administration shall certify the claim to the state treasurer for payment.

AB569-ASA1, s. 216 Section 216. 186.235 (11) (m) 3. of the statutes is created to read:

AB569-ASA1,62,7 186.235 (11) (m) 3. A request for continuation of federal share insurance has been submitted and accepted.

AB569-ASA1, s. 217 Section 217. 186.235 (12) of the statutes is created to read:

AB569-ASA1,62,12 186.235 (12) Annual report. (a) The commissioner shall submit to the governor, and to the legislature under s. 13.172 (2), an annual report on the general conduct and condition of credit unions doing business in this state. The report shall be based upon the individual annual reports filed with the commissioner.

AB569-ASA1,62,14 (b) The commissioner shall designate the number of copies of the report to be made available for general distribution. Each credit union is entitled to one copy.

AB569-ASA1, s. 218 Section 218. 186.235 (12) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,62,21 186.235 (12) Annual report. (a) The commissioner office of credit unions shall submit to the governor, and to the legislature under s. 13.172 (2), an annual report on the general conduct and condition of credit unions doing business in this state. The report shall be based upon the individual annual reports filed with the commissioner office of credit unions.

AB569-ASA1,62,24 (b) The commissioner office of credit unions shall designate the number of copies of the report to be made available for general distribution. Each credit union is entitled to one copy.

AB569-ASA1, s. 219 Section 219. 186.235 (13) of the statutes is created to read:

AB569-ASA1,63,4 186.235 (13) Fees for office publications. (a) Whenever copies of reprints of this chapter, the annual report of credit unions or any other publication published by the office of the commissioner are requested, copies shall be furnished upon payment of any fee established by the commissioner.

AB569-ASA1,63,8 (b) Upon request, the commissioner may distribute copies of materials described under par. (a) free to agencies or legislators of this state or any other state, county clerks, the courts of this state, trade organizations and any agencies of the United States.

AB569-ASA1, s. 220 Section 220. 186.235 (13) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,63,15 186.235 (13) Fees for office publications. (a) Whenever copies of reprints of this chapter, the annual report of credit unions or any other publication published by the office of the commissioner credit unions are requested, copies shall be furnished upon payment of any fee established by the commissioner office of credit unions.

AB569-ASA1,63,19 (b) Upon request, the commissioner office of credit unions may distribute copies of materials described under par. (a) free to agencies or legislators of this state or any other state, county clerks, the courts of this state, trade organizations and any agencies of the United States.

AB569-ASA1, s. 221 Section 221. 186.235 (14) (a), (b) and (e) of the statutes, as affected by 1995 Wisconsin Act .... (this act), are amended to read:

AB569-ASA1,63,25 186.235 (14) (a) The commissioner office of credit unions, with the approval of the credit union review board, shall fix the amounts to be assessed against credit unions for their supervision and examinations under this chapter. Amounts shall be determined and paid as provided in this subsection.

AB569-ASA1,64,4 (b) On or before July 15 of each year, each credit union shall pay to the office of the commissioner credit unions an annual assessment, which shall represent as nearly as practicable its fair share of the maintenance of the office of the commissioner credit unions.

AB569-ASA1,64,8 (e) If the amounts collected under this subsection exceed the actual amounts necessary for the supervision and examination of credit unions in a year, the excess shall be retained by the commissioner office of credit unions and applied in reducing the amounts chargeable for ensuing years.

AB569-ASA1, s. 222 Section 222. 186.235 (15) of the statutes is created to read:

AB569-ASA1,64,11 186.235 (15) Testimonial powers. (a) The office of the commissioner may issue subpoenas and take testimony.

AB569-ASA1,64,18 (b) Witness fees shall be the same as fees under s. 814.67 (1) (b) and (c). The fees of witnesses who are called by the office in the interests of the state shall be paid by the state upon presentation of proper vouchers approved by the commissioner and charged to the appropriation under s. 20.141 (1) (g). A witness subpoenaed by the office at the instance of a party other than the office shall not be entitled to payment of fees by the state unless the office certifies that the testimony was material to the purpose for which the subpoena was issued.

AB569-ASA1, s. 223 Section 223. 186.235 (15) (a) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,64,22 186.235 (15) (a) The office of the commissioner credit unions may issue subpoenas and take testimony.

AB569-ASA1, s. 224 Section 224. 186.235 (16) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,65,6 186.235 (16) Annual examination. (a) At least once each year, the commissioner office of credit unions shall examine the records and accounts of each credit union. 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 records and accounts. They may administer oaths to and examine each credit union's officers and agents.

AB569-ASA1,65,12 (b) Instead 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 or may accept an examination or audit made or approved by the national board.

AB569-ASA1, s. 225 Section 225. 186.235 (17) of the statutes is created to read:

AB569-ASA1,65,17 186.235 (17) Refusal to submit to examination. The commissioner shall report to the department of justice any credit union that refuses to submit to an examination. The department of justice shall institute proceedings to revoke the charter of the credit union.

AB569-ASA1, s. 226 Section 226. 186.235 (17) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,65,23 186.235 (17) Refusal to submit to examination. The commissioner office of credit unions shall report to the department of justice any credit union that refuses to submit to an examination. The department of justice shall institute proceedings to revoke the charter of the credit union.

AB569-ASA1, s. 227 Section 227. 186.235 (18) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,66,7 186.235 (18) Record-keeping and accounting procedure. (a) A credit union shall keep records and accounts in a manner consistent with generally accepted accounting principles or with standards prescribed by the commissioner office of credit unions. If a credit union does not keep its records and accounts in a manner consistent with generally accepted accounting principles, the commissioner office of credit unions may require the credit union to keep records and accounts under standards prescribed by the commissioner office.

AB569-ASA1,66,12 (b) The commissioner office of credit unions may require a credit union that fails to open records or maintain prescribed records or accounts to forfeit not more than $100 for each day it is in violation. If the credit union fails to pay the forfeiture, the commissioner office of credit unions may institute proceedings to recover the forfeiture.

AB569-ASA1, s. 228 Section 228. 186.235 (19) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,66,17 186.235 (19) Financial reports. (a) A credit union shall file with the commissioner office of credit unions a report of its activities for the previous reporting period, on a form furnished by the commissioner office of credit unions.

AB569-ASA1,66,20 (b) The report shall include a true and verified copy of a condition statement of the credit union as of the close of the previous reporting period and shall include any other information that the commissioner office of credit unions requires.

AB569-ASA1,66,25 (c) If a credit union fails or refuses to furnish a required report, it shall be subject, at the discretion of the commissioner office of credit unions, to a forfeiture of $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 the forfeiture, which shall be paid into the general fund.

AB569-ASA1,67,8 (d) Annually, a credit union shall publish a 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 describe the condition of the credit union on December 31 of the previous year and shall be in a form that 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.

AB569-ASA1, s. 229 Section 229. 186.235 (20) of the statutes is created to read:

AB569-ASA1,67,16 186.235 (20) Approval of acts. Whenever any credit union requests approval of the commissioner for any act, which by statute requires approval, the commissioner shall have 90 days in which to grant, deny or defer the approval. A deferral may be for not more than 60 days. If the commissioner fails to act, approval shall be considered to have been granted. In matters which require the holding of public hearings, the 90-day period shall not commence until the conclusion of the hearing and the date set by the commissioner for receipt of briefs.

AB569-ASA1, s. 230 Section 230. 186.235 (20) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,68,2 186.235 (20) Approval of acts. Whenever any credit union requests approval of the commissioner office of credit unions for any act, which by statute requires approval, the commissioner office of credit unions shall have 90 days in which to grant, deny or defer the approval. A deferral may be for not more than 60 days. If the commissioner office of credit unions fails to act, approval shall be considered to have been granted. In matters which require the holding of public hearings, the 90-day period shall not commence until the conclusion of the hearing and the date set by the commissioner office of credit unions for receipt of briefs.

AB569-ASA1, s. 231 Section 231. 186.235 (21) (title) of the statutes is created to read:

AB569-ASA1,68,4 186.235 (21) (title) Parity.

AB569-ASA1, s. 232 Section 232. 186.24 of the statutes is repealed.

AB569-ASA1, s. 233 Section 233. 186.25 of the statutes is renumbered 186.235 (19) and amended to read:

AB569-ASA1,68,15 186.235 (19) (title) Supervision; Financial 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. Every such corporation (a) A credit union shall make a full and detailed file with the commissioner a 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 activities for the previous reporting period, on a form furnished by the commissioner may prescribe, and shall file with the commissioner.

AB569-ASA1,68,20 (b) The report shall include a true and verified copy thereof on or before February 1 thereafter. Accompanying the same shall be attached a copy of the a condition statement of the credit union at as of the close of its last fiscal year the previous reporting period and shall include any other information that the commissioner requires.

AB569-ASA1,68,25 (c) If any such a credit union fails or refuses to furnish the a required report herein required, it shall be subject, at the discretion of the commissioner, to a forfeiture of $1 to $10 per day for each day of default, and the commissioner may maintain an action in the name of the state to recover such penalty, and the same the forfeiture, which shall be paid into the state treasury. A general fund.

AB569-ASA1,69,7 (d) Annually, a credit union shall publish the a 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 describe the condition of the credit union on December 31 of the previous year and shall be in a form that the commissioner prescribes. Proof of publication shall be furnished to the commissioner within 45 days after the date of the report.

AB569-ASA1, s. 234 Section 234. 186.26 (title) of the statutes is repealed.

AB569-ASA1, s. 235 Section 235. 186.26 (1) of the statutes is renumbered 186.235 (16) and amended to read:

AB569-ASA1,69,23 186.235 (16) (title) Annual examination. (a) At least once each year, the commissioner shall make or cause to be made an examination of examine the cash, bills, collaterals, securities, assets, books of account, condition and affairs records and accounts of each credit union and for. For that purpose the commissioner or the examiners appointed by the commissioner shall have full access to, and may compel the production of, each credit union's books, papers, securities and moneys, records and accounts. They may 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.

AB569-ASA1,70,7 (b) In lieu Instead of an annual examination of a credit union under par. (a), the commissioner 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. 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 or may accept an examination or audit made or approved by the national board.

AB569-ASA1, s. 236 Section 236. 186.26 (2) of the statutes is repealed.

AB569-ASA1, s. 237 Section 237. 186.27 (title) of the statutes is renumbered 186.235 (7) (title).

AB569-ASA1, s. 238 Section 238. 186.27 (intro.), (1) and (2) of the statutes are renumbered 186.235 (7) (a) (intro.), 1. and 2. and amended to read:

AB569-ASA1,70,15 186.235 (7) (a) (intro.) The commissioner, all other officers and employes of the office of the commissioner, and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except in any of the following situations:

AB569-ASA1,70,17 1. So far as If the public duty of such the person requires the that person to report upon or take special action regarding the affairs of any credit union; or.

AB569-ASA1,70,19 2. When If the person is called as a witness in any criminal proceeding or trial in a court of justice; or.

AB569-ASA1, s. 239 Section 239. 186.27 (3) of the statutes is renumbered 186.235 (7) (b) and amended to read:

AB569-ASA1,70,23 186.235 (7) (b) The Notwithstanding par. (a) and unless otherwise provided by rule, the commissioner may do any of the following:

AB569-ASA1,71,3 1. Furnish to the national board or any official or examiner of it a copy of any examination made by the commissioner's office of any credit union or of any report made by the credit union.

AB569-ASA1,71,7 2. Give access to and disclose to the national board or any official or examiner of it any information possessed by the commissioner about the conditions or affairs of any credit union whose savings are insured by the national board federal share insurance.

AB569-ASA1, s. 240 Section 240. 186.28 of the statutes is renumbered 186.235 (18) and amended to read:

AB569-ASA1,71,20 186.235 (18) (title) Bookkeeping; forfeiture for failure to obey commissioner Record-keeping and accounting procedure. (a) A credit union shall open and keep accurate and convenient records of its transactions and accounts in a manner consistent with generally accepted accounting principles or with standards prescribed by the commissioner. If the commissioner determines that a credit union does not keep its books records and accounts in a manner which enables the commissioner to readily ascertain the true condition of the credit union consistent with generally accepted accounting principles, the commissioner may require any officer of the credit union to open and keep such books or records and accounts as under standards prescribed by the commissioner may prescribe in order to remedy the deficiency.

AB569-ASA1,72,2 (b) Any The commissioner may require a credit union that refuses or neglects fails to open records or maintain books prescribed records or accounts in the manner prescribed under sub. (1) shall be subject, upon written notification of the commissioner, to a forfeiture not to exceed $10 to forfeit not more than $100 for each day it is in violation. If any the credit union fails or refuses to pay the forfeiture, the commissioner may institute proceedings to enforce its collection recover the forfeiture.

AB569-ASA1, s. 241 Section 241. 186.29 (title) of the statutes is renumbered 186.235 (11) (title).

AB569-ASA1, s. 242 Section 242. 186.29 (1) (intro.), (a) to (c), (e) and (g) to (k) of the statutes are renumbered 186.235 (11) (a) (intro.) and 1. to 9. and amended to read:

AB569-ASA1,72,10 186.235 (11) (a) Conditions for taking possession. (intro.) The commissioner may forthwith take possession and control of the business and property of any credit union to which this chapter is applicable whenever the commissioner finds a if the credit union violating violates this chapter or that if the credit union does any of the following:

AB569-ASA1,72,11 1. Is conducting Conducts its business contrary to law; or.

AB569-ASA1,72,12 2. Has violated Violates its charter, or any law; or.

AB569-ASA1,72,14 3. Is conducting Conducts its business in an unauthorized or unsafe manner; or.

AB569-ASA1,72,15 4. Has an impairment of its capital; or.

AB569-ASA1,72,16 5. Has suspended Suspends payment of its obligations; or.

AB569-ASA1,72,18 6. Has neglected or refused Neglects or refuses to comply with the terms of a duly issued an order of the commissioner; or.

AB569-ASA1,72,20 7. Has refused Refuses to submit its books, papers, records, accounts or affairs for inspection to any a credit union examiner; or.

AB569-ASA1,72,21 8. Has refused Refuses to be examined upon oath regarding its affairs.

AB569-ASA1,72,23 9. Has been given Receives notice of intent to terminate insured status by the national board.

AB569-ASA1, s. 243 Section 243. 186.29 (1) (d) and (f) of the statutes are repealed.

AB569-ASA1, s. 244 Section 244. 186.29 (1m) of the statutes is renumbered 186.235 (11) (b) and amended to read:

AB569-ASA1,73,9 186.235 (11) (b) Suspension. 1. The commissioner may suspend, for a period of up to 120 days, the business or an officer, director, committee member or employe of a credit union from engaging in credit union business if the commissioner finds the existence of any condition under sub. (1) (a) to (k) par. (a) 1. to 9. The commissioner may renew a suspension under this paragraph subdivision any number of times and for periods of up to 120 days if the commissioner finds that the condition or conditions continue to exist.

AB569-ASA1,73,16 2. The commissioner 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 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 shall authorize a credit union to resume its business if it files an application within the time period specified in this paragraph.

AB569-ASA1, s. 245 Section 245. 186.29 (1p) (title) of the statutes is renumbered 186.235 (11) (c) (title).