AB150-engrossed,1675,2120
186.113
(1m) (a) 4. Such offices are established and operated in accordance
21with rules promulgated by the
commissioner office of credit unions.
AB150-engrossed,1676,223
186.113
(2) Share office space with one or more credit unions and contract with
24a corporation to provide facilities or personnel. Such service center corporation shall
1be deemed thereby to be under the supervision of the
commissioner office of credit
2unions.
AB150-engrossed,1676,254
186.113
(15) (a) Directly or indirectly, acquire, place and operate, or participate
5in the acquisition, placement and operation of, at locations other than its offices,
6remote terminals, in accordance with rules established by the
commissioner office
7of credit unions. The rules
of the commissioner shall provide that any remote
8terminal shall be available for use, on a nondiscriminatory basis, by any state or
9federal credit union which has its principal place of business in this state, by any
10other credit union obtaining the consent of a state or federal credit union which has
11its principal place of business in this state and is using the terminal and by all
12members designated by a credit union using the terminal. This subsection does not
13authorize a credit union which has its principal place of business outside the state
14to conduct business as a credit union in this state. The remote terminals also shall
15be available for use, on a nondiscriminatory basis, by any state or national bank,
16state or federal savings bank or state or federal savings and loan association, whose
17home office is located in this state, if the bank, savings bank or savings and loan
18association requests to share its use, subject to the joint rules established under s.
19221.04 (1) (k). The rules of the
commissioner office of credit unions shall prohibit any
20advertising with regard to a shared remote terminal which suggests or implies
21exclusive ownership or control of the shared terminal by any credit union or group
22of credit unions operating or participating in the operation of the terminal. The
23commissioner office of credit unions by order may authorize the installation and
24operation of a remote terminal in a mobile facility, after notice and hearing upon the
25proposed service stops of the mobile facility.
AB150-engrossed,1677,92
186.113
(15) (c) If any person primarily engaged in the retail sale of goods or
3services owns or operates a remote terminal on such person's premises and allows
4access to the unit by any financial institution, group of financial institutions or their
5customers, nothing in this subsection or in rules established by the
commissioner 6office of credit unions shall, or shall be construed or interpreted to, require such
7person to accept any connection to or use of the unit on its premises for any other
8purpose or function or to accept any connection to the unit on its premises by any
9other financial institution.
AB150-engrossed,1677,1711
186.113
(15) (d) If a person primarily engaged in the retail sale of goods or
12services owns or operates a remote terminal on such person's premises and allows
13access to the unit by any financial institution, group of financial institutions or their
14customers for any purpose or function, no laws governing such institutions or rules
15established by the
commissioner office of credit unions shall apply to such person
16other than those laws or rules directly related to the particular function performed
17by the unit on such person's premises for a financial institution.
AB150-engrossed,1677,2319
186.115
(1) Subject to any regulatory approval required by law and subject to
20sub. (2), a credit union directly or through a subsidiary, may undertake any activity,
21exercise any power or offer any financially related product or service in this state that
22any other provider of financial products or services may undertake, exercise or
23provide or that the
commissioner office of credit unions finds to be financially related.
AB150-engrossed,1678,8
1186.115
(2) The activities, powers, products and services that may be
2undertaken, exercised or offered by credit unions under sub. (1) are limited to those
3specified by rule of the
commissioner office of credit unions. The
commissioner office
4of credit unions may direct any credit union to cease any activity, the exercise of any
5power or the offering of any product or service authorized by rule under this
6subsection. Among the factors that the
commissioner
office of credit unions may
7consider in so directing a credit union are the credit union's net worth, assets,
8management rating and liquidity ratio and its ratio of net worth to assets.
AB150-engrossed,1678,13
10186.116 Financially related services tie-ins. In any transaction conducted
11by a credit union or a subsidiary of a credit union with a customer who is also a
12customer of any other subsidiary of the credit union, the customer shall be given a
13notice in 12-point boldface type in substantially the following form:
AB150-engrossed,1678,1414
NOTICE OF RELATIONSHIP
AB150-engrossed,1678,1915
This company, .... (insert name and address of credit union or subsidiary), is
16related to .... (insert name and address of credit union or subsidiary) of which you are
17also a customer. You may not be compelled to buy any product or service from either
18of the above companies or any other related company in order to participate in this
19transaction.
AB150-engrossed,1678,2420
If you feel that you have been compelled to buy any product or service from
21either of the above companies or any other related company in order to participate
22in this transaction, you should contact the management of either of the above
23companies at either of the above addresses or the office of
the commissioner credit
24unions at .... (insert address).
AB150-engrossed,1679,42
186.16
(2) The
commissioner office of credit unions may establish the
3maximum dividend that a credit union and a central credit union may pay in each
4classification of its savings.
AB150-engrossed,1679,86
186.17
(2) Special reserves may be required by the
commissioner office of credit
7unions on an individual credit union basis for purchased accounts or when serious
8threat of impairment threatens regular reserve.
AB150-engrossed,1680,4
10186.18 Dissolution. Upon the unanimous recommendation of the board of
11directors, the members may vote to dissolve the credit union. If a majority of the total
12membership vote by ballot in person or by letter or other written communication in
13favor of dissolution, and if not more than 15 members or 10% of the total membership,
14whichever is greater, by written notice vote against dissolution, the credit union shall
15be dissolved. If both the number of votes in favor of dissolution and the number of
16votes against dissolution are each less than 50% of the total number of members the
17board of directors may, with the permission of the
commissioner office of credit
18unions, cause written notice to be mailed to each member at the member's
19last-known address which expressly states that the board's proposal to dissolve the
20credit union will be approved or disapproved at a special or annual meeting to be held
21at the time and place specified in the notice. The credit union shall be dissolved only
22if a majority of the members present at the meeting vote in favor of the board's
23proposal to dissolve the credit union. If the members vote to dissolve the credit union,
24a committee of 3 shall be elected by the members to liquidate the assets of the credit
25union. After assets are liquidated and debts paid members shall be paid a
1liquidating dividend in proportion to their savings from remaining assets. The
2committee in charge of liquidation may sell or dispose of the assets in whole or in part
3at a public or private sale subject to confirmation by the board of directors and the
4commissioner office of credit unions.
AB150-engrossed,1680,166
186.19
(1) As a condition precedent to qualification or entry upon the discharge
7of his or her duties, every person appointed or elected to any position requiring the
8receipt, payment or custody of money or other personal property owned by a credit
9union or in its custody or control as collateral or otherwise shall give a bond in some
10responsible corporate surety company, licensed to do business in this state, in such
11adequate sum as the directors shall require and approve. In lieu of individual bonds
12the
commissioner office of credit unions may accept a schedule or blanket bond which
13covers all of the officers and employes of any credit union whose duties include the
14receipt, payment or custody of money or other personal property for or on behalf of
15the credit union. All such bonds shall be in the form prescribed by the
commissioner 16office of credit unions.
AB150-engrossed,1680,2418
186.19
(2) No officer or employe who is required to give bond shall be deemed
19qualified nor shall be permitted to enter upon the discharge of that officer's or
20employe's duties until that officer's or employe's bond shall have been approved by
21a majority of the board of directors. Such bonds shall be filed with the
commissioner 22office of credit unions within 10 days next after approval thereof by the board of
23directors. The minute books of each credit union shall contain a record of each bond
24executed and approved.
AB150-engrossed,1681,6
1186.19
(3) Such bond shall be sufficient in amount to protect the credit union
2from loss by reason of acts of fraud or dishonesty including forgery, theft,
3embezzlement, wrongful abstraction or misapplication on the part of the person,
4directly or through connivance with others. At any time the
commissioner office of
5credit unions may require additional bond or security, when, in the
commissioner's 6office's opinion, the bonds then executed and approved are insufficient.
AB150-engrossed,1681,148
186.19
(4) (a) No cancellation or other termination of this bond shall be
9effective unless the surety gives in advance at least 10 days' written notice by
10registered mail to the
commissioner office of credit unions. If this bond is canceled
11or terminated at the request of the insured (employer) this provision nevertheless
12shall apply, it being the duty of the surety to give the required written notice to the
13commissioner office of credit unions, such notice to be given promptly and in any
14event within 10 days after the receipt of such request.
AB150-engrossed,1681,1816
186.19
(4) (b) The surety agrees to furnish the
commissioner office of credit
17unions a copy of all riders and indorsements executed subsequently to the effective
18date of this bond.
AB150-engrossed,1681,2520
186.19
(5) For reasons which the
commissioner office of credit unions deems
21valid and sufficient the
commissioner office may waive as to the cancellation or
22termination of any such bond the 10-day written notice in advance required by sub.
23(4) (a) and the
commissioner office may give written consent to the termination or
24cancellation being made effective as of a date agreed upon and requested by the
25surety and credit union.
AB150-engrossed,1682,62
186.21
(1) It shall be the duty of the office of
the commissioner of credit unions
3to promote the extension of credit at the lowest possible rates and cooperate with
4every group of people who may be or may become interested in the formation and
5development of a credit union in this state for that purpose, and it may do all things
6reasonably necessary for the discharge of this duty.
AB150-engrossed,1682,128
186.21
(2) The office of
the commissioner of credit unions shall carry on
9advertising of whatever character is most suitable and effective to acquaint the
10people of this state with the agencies and organizations dealing in consumer credit,
11and of the rates of interest, the condition of loans, the benefits and safeguards and
12the savings features of each such type, agency and organization.
AB150-engrossed,1682,1714
186.21
(3) The office of
the commissioner of credit unions shall further offer
15without charge to any group, either joined in a credit union or considering such an
16organization, whatever advice and direction on accounting practice and managerial
17problems that may be needful.
AB150-engrossed,1682,2119
186.21
(4) The office of
the commissioner of credit unions shall provide
20application blanks, model bylaws, and whatever other material may be needful or
21helpful in the organization, efficient functioning and expansion of credit unions.
AB150-engrossed,1683,323
186.22
(1) Organization. (intro.) When authorized by the
commissioner office
24of credit unions, 10 or more credit unions, the aggregate resources of which shall not
25be less than $50,000, may form the "Credit Union Finance Corporation". Each of
1such credit unions shall subscribe, acknowledge and submit to the
commissioner 2office of credit unions an organization certificate in duplicate which shall specifically
3state:
AB150-engrossed,1683,85
186.22
(2) Proposed bylaws. (intro.) The incorporators shall subscribe and
6acknowledge and submit to the
commissioner office of credit unions proposed bylaws
7in duplicate, which shall prescribe the manner in which the business of such credit
8union finance corporation shall be conducted with reference to the following matters:
AB150-engrossed,1683,1610
186.22
(3) When corporate existence begins; conditions precedent to
11commencing business. (intro.) When the
commissioner shall have indorsed the
12commissioner's approval on office of credit unions approves the organization
13certificate, the corporate existence of the credit union finance corporation shall begin
14and it shall then have power to elect officers and transact such other business as
15relates to its organization; but such credit union finance corporation shall transact
16no other business until:
AB150-engrossed,1683,2218
186.22
(3) (a) Subscriptions to its shares aggregating $2,000 shall have been
19paid in cash and an affidavit stating that such subscriptions have been so paid,
20subscribed and sworn to by its 2 principal officers, shall have been filed with the
21secretary of state department of financial institutions and a certified copy thereof in
22the office of
the commissioner credit unions.
AB150-engrossed,1683,2524
186.22
(3) (b) The
commissioner office of credit unions shall have duly issued
25to it an authorization certificate.
AB150-engrossed,1684,152
186.22
(4) (d) To receive by assignment from its members and to deposit in trust
3with the
commissioner office of credit unions to be held by the
commissioner office 4as security for its and their outstanding obligations any first mortgages on real estate
5and the bonds secured thereby and such other securities as are provided for in s.
6186.11 and are legally receivable by credit unions; to empower such credit unions as
7agents of the credit union finance corporation to collect and immediately pay over to
8the credit union the dues, interest and other sums payable under the terms,
9conditions and covenants of the bonds and mortgages or, prior to a default upon any
10such bond and mortgage so assigned and when adequate security has been given to
11the credit union finance corporation, by any such credit union, to retain such
12collections until a payment to the credit union finance corporation from such credit
13union becomes due; to return to, or permit such credit unions to retain any sums of
14money so collected in excess of the amount required to meet the obligations of such
15credit unions respectively.
AB150-engrossed,1684,2217
186.22
(4) (g) With the advice and approval of the
commissioner office of credit
18unions, to become a member of or to subscribe for and purchase notes and debentures
19issued by any federal finance or credit corporation which may be organized by act of
20congress for aiding and assisting credit unions to utilize their resources and credit,
21or to borrow from such finance or credit corporation, in either case, in an amount not
22exceeding in the aggregate amount two-fifths of the assets on hand.
AB150-engrossed,1685,3
1186.22
(5) (c) Invest more than 25
per centum % of its surplus in real estate
2occupied, or to be occupied, by it for office purposes, without the written approval of
3the
commissioner office of credit unions.
AB150-engrossed,1686,105
186.22
(6) Issuing of bonds. Bonds shall be issued in series of not less than
6$10,000. All bonds issued by the credit union finance corporation may be called on
7any interest day at 102 1/2% and interest by publishing a class 1 notice, under ch.
8985, not less than 60 days prior to said day. Any member credit union which is not
9indebted for borrowed money to any other bank or trust company which does
10business exclusively with the credit union finance corporation shall submit a
11schedule of assets from time to time as the board of directors of such finance
12corporation shall require. Any member credit union which may have a loan from any
13other banking institution may borrow money from such credit union finance
14corporation upon pledging therefor such amount of its mortgages with the bonds
15secured thereby as collateral security for bonds issued on its behalf as the
16commissioner office of credit unions and the board of directors of such credit union
17finance corporation may require; provided that the aggregate of all loans made by
18such credit union shall not exceed 40% of its assets as provided in s. 186.11. The
19amortization payments upon all mortgages accepted by the credit union finance
20corporation as collateral security for bonds shall be sufficient to liquidate the debt
21in a period not exceeding 40 years. In the event of any default for more than 90 days
22in the payment of the principal of, or for more than 90 days in the payment of any
23instalment of interest upon, any of said bonds, the
commissioner office of credit
24unions may, on the
commissioner's office's own motion, and shall, upon the request
25in writing of the holders of said bonds in default to the amount of $10,000, forthwith
1take possession of and proceed to liquidate the credit union finance corporation.
2Upon such liquidation it shall be entitled in the name of the credit union finance
3corporation to enforce all of its rights and securities and to collect and realize upon
4all of its assets, including all mortgages assigned to said credit union finance
5corporation by the several member credit unions, and deposited with the state
6treasurer, up to the amounts advanced by the credit union finance corporation to the
7several member credit unions thereon. Upon any such liquidation all said bonds
8then issued and outstanding shall forthwith become due and payable equally and
9ratably out of all the assets of said credit union finance corporation in advance of any
10other debts thereof not specifically preferred by law.
AB150-engrossed,1686,2212
186.22
(10) Qualifications and disqualifications of directors; bond. All of
13the directors of the credit union finance corporation must reside in the state of
14Wisconsin during their term of office, and all must be citizens of the United States.
15No person shall be elected a director unless the person is a shareholder of a member
16credit union and has been nominated by it for that office; and every person elected
17to be a director who, after such election, shall cease to be a shareholder of a member
18credit union, shall cease to be a director of the credit union finance corporation, and
19the person's office shall be vacant. Directors who have the custody or possession of
20money, securities or property shall give bond to the credit union finance corporation
21in an amount commensurate with their liability, as approved by the
commissioner 22office of credit unions.
AB150-engrossed,1687,1124
186.22
(11) Oath of directors. Each director, when appointed or elected, shall
25take an oath that the director will, so far as the duty devolves upon the director,
1diligently and honestly administer the affairs of the credit union finance corporation,
2and will not knowingly violate, or willingly permit to be violated, any of the
3provisions of law applicable to such corporation, and that the director is the owner
4in good faith and in the director's own right on the books of the credit union which
5nominated the director of shares in value of not less than $100, or other shares of the
6withdrawal value of $100, and that the same is not hypothecated, or in any way
7pledged as security for any loan or debt and, in case of reelection that such share was
8not hypothecated or in any way pledged as security for any loan or debt during the
9director's previous term. Such oath shall be subscribed by the directors and officers
10making it, and certified by an officer authorized by law to administer oaths, and
11immediately transmitted to the
commissioner office of credit unions.
AB150-engrossed,1687,2113
186.22
(15) Preference of credit. All the property of any bank, trust company
14or credit union which shall become insolvent shall be applied by the trustees,
15assignees or receivers thereof or by the
commissioner
office of credit unions in the
16first place to the payment in full of any sum or sums of money deposited therewith
17by the credit union finance corporation or due to the credit union finance corporation
18for subscriptions, sinking funds, interest and principal of bonds, or guaranty of
19mortgages, ratably and proportionately but not to an amount exceeding that
20authorized to be so deposited or contracted by the provisions of this section and in
21accordance and on an equality with any other preference provided for in this section.
AB150-engrossed,1688,4
23186.23 Rules and regulations. The
commissioner office of credit unions 24shall, with the approval of the credit union review board, issue orders prescribing
25reasonable rules and regulations in conducting the business of credit unions or
1corporations operating as provided in this chapter and it may in like manner issue
2orders amending, modifying, repealing or supplementing rules or orders. The
3violation of any such rule may be cause for the removal of any officer, director or
4employe of any credit union or corporation.
AB150-engrossed,1689,36
186.24
(1) Whenever the
commissioner
office of credit unions is of the opinion
7that the loaning, investing or other policies and practices of any officer, director or
8committee member of any credit union have been prejudicial to the best interest of
9such credit union or its investors, or that such policies or practices, if put into
10operation or continued, will endanger the safety or solvency of said credit union or
11impair the interest of its investors, the
commissioner
office of credit unions may
12request the removal of such officer, director or committee member. Such request
13shall be served on the credit union and on such officer, director or committee member
14in the manner provided by law for serving a summons in a court of record, or shall
15be transmitted to the credit union and the officer, director or committee member by
16registered mail, with return receipt requested. Such request shall specify the
17reasons for the removal of such officer, director or committee member, and also shall
18advise such officer, director or committee member relative to that person's rights to
19a hearing before the credit union review board as provided in this section. A copy of
20such request for removal shall be transmitted to each member of the credit union
21review board at the same time such request is being served upon the credit union and
22officer, director or committee member involved. If such request for removal is not
23complied with within a reasonable time fixed by the
commissioner office of credit
24unions, the
commissioner office may by order, with approval of the credit union
25review board, remove such officer, director or committee member, but no order for
1removal shall be entered until after an opportunity for a hearing before the credit
2union review board is given such officer, director or committee member upon not less
3than 30 days' notice. An order for removal shall take effect as of the date issued.
AB150-engrossed,1689,105
186.24
(2) Any removal under this section shall be effective in all respects the
6same as if made by the board of directors or stockholders of said credit union. Any
7officer, director or committee member removed from such office under the provisions
8of this section shall not be reelected as an officer, director or committee member of
9any credit union without the approval of the
commissioner office of credit unions and
10advisory committee.
AB150-engrossed,1689,1712
186.24
(3) If the removal under sub. (1) or the resignation or death of credit
13union directors prevents a credit union board of directors from securing the quorum
14required at board meetings and thus prevents continued operation of the credit
15union, the
commissioner office of credit unions may appoint temporary directors to
16fill the vacancies for up to 120 days or until an election of directors to fill the vacancies
17has been held at a special meeting of the membership called for such purpose.
AB150-engrossed,1690,13
19186.25 Supervision; reports. All credit unions formed under this or other
20similar law, or authorized to transact in this state a business similar to that
21authorized to be done by this chapter, shall be under the control and supervision of
22the
commissioner office of credit unions. Every such corporation shall make a full
23and detailed report of its business as of December 31 for that year, and of its condition
24on such date, in such form and containing such information as the
commissioner 25office of credit unions may prescribe, and shall file with the
commissioner
a true and
1verified copy thereof on or before February 1 thereafter. Accompanying the same
2shall be attached a copy of the statement of the credit union at the close of its last
3fiscal year. If any such credit union fails or refuses to furnish the report herein
4required, it shall be subject, at the discretion of the
commissioner office of credit
5unions, to a forfeiture of $1 to $10 per day for each day of default, and the
6commissioner office of credit unions may maintain an action in the name of the state
7to recover such penalty, and the same shall be paid into the state treasury. A credit
8union shall publish the report as a class 1 notice, under ch. 985, in the municipality,
9as defined in s. 985.01 (3), where the credit union is located if the credit union has
10assets of $10,000,000 or more or has a membership as described in s. 186.02 (2) (b)
112. The published report shall be in the condensed form as the
commissioner office
12of credit unions prescribes. Proof of publication shall be furnished to the
13commissioner office of credit unions within 45 days after the date of the report.
AB150-engrossed,1691,215
186.26
(1) (a) At least once each year, the
commissioner office of credit unions 16shall make or cause to be made an examination of the cash, bills, collaterals,
17securities, assets, books of account, condition and affairs of each credit union and for
18that purpose the
commissioner or the examiners appointed by the commissioner 19office of credit unions shall have full access to, and may compel the production of,
20each credit union's books, papers, securities and moneys, administer oaths to and
21examine each credit union's officers and agents as to their respective affairs. Special
22examination shall be made upon written request of 5 or more members, if those
23members guarantee the expense of the special examination. The refusal of any credit
24union to submit to an examination ordered or requested shall be reported to the
1department of justice for the purpose of instituting proceedings to have the charter
2of the credit union revoked because of the refusal.
AB150-engrossed,1691,114
186.26
(1) (b) In lieu of an annual examination of a credit union under par. (a),
5the
commissioner office of credit unions may accept an audit report of the condition
6of the credit union made by a certified public accountant not an employe of the credit
7union in accordance with rules promulgated by the
commissioner office of credit
8unions. The cost of the audit shall be paid by the credit union. A copy of each audit
9under this paragraph shall be furnished to the Wisconsin credit union savings
10insurance corporation if the credit union's savings are protected or guaranteed by the
11Wisconsin credit union savings insurance corporation.
AB150-engrossed,1691,2213
186.26
(2) If records are located outside this state, at the option of the
14commissioner office of credit unions, the credit union shall either make the records
15available to the
commissioner office of credit unions at a convenient location within
16this state or pay the reasonable and necessary expenses for the
commissioner or
17examiners office to examine the records at the place where they are maintained. The
18commissioner office of credit unions may designate examiners, including comparable
19officials of the state in which the records are located, to inspect them on the
20commissioner's office's behalf. Except as provided in s. 186.113 (1m), the
21maintenance of any office or branch outside this state is not allowed under this
22chapter.
AB150-engrossed,1692,2
24186.27 Disclosure of information. (intro.)
The commissioner, all other
25officers and employes of the office, Employes of the office of credit unions and
1members of the review board shall keep secret all the facts and information obtained
2in the course of examinations, except: