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:
AB150-engrossed,1692,54
186.27
(3) (intro.) The
commissioner
office of credit unions may do any of the
5following:
AB150-engrossed,1692,107
186.27
(3) (b) Give access to and disclose to the national board or any official
8or examiner of it any information possessed by the
commissioner office of credit
9unions about the conditions or affairs of any credit union whose savings are insured
10by the national board.
AB150-engrossed,1692,12
12186.28 (title)
Bookkeeping; forfeiture for failure to obey commissioner.
AB150-engrossed,1692,2014
186.28
(1) A credit union shall open and keep accurate and convenient records
15of its transactions and accounts. If the
commissioner
office of credit unions 16determines that a credit union does not keep its books and accounts in a manner
17which enables the
commissioner office to readily ascertain the true condition of the
18credit union, the
commissioner office of credit unions may require any officer of the
19credit union to open and keep such books or accounts as the
commissioner office may
20prescribe in order to remedy the deficiency.
AB150-engrossed,1693,222
186.28
(2) Any credit union that refuses or neglects to maintain books or
23accounts in the manner prescribed under sub. (1) shall be subject, upon written
24notification of the
commissioner office of credit unions, to a forfeiture not to exceed
25$10 for each day it is in violation. If any credit union fails or refuses to pay the
1forfeiture, the
commissioner office of credit unions may institute proceedings to
2enforce its collection.
AB150-engrossed,1693,4
4186.29 (title)
Possession by commissioner office.
AB150-engrossed,1693,106
186.29
(1) Conditions for taking possession. (intro.) The
commissioner office
7of credit unions may forthwith take possession and control of the business and
8property of any credit union to which this chapter is applicable whenever the
9commissioner office of credit unions finds a credit union violating this chapter or that
10the credit union:
AB150-engrossed,1693,1312
186.29
(1) (h) Has neglected or refused to comply with the terms of a duly issued
13order of the
commissioner office of credit unions; or
AB150-engrossed,1693,2115
186.29
(1m) (a) The
commissioner
office of credit unions may suspend, for a
16period of up to 120 days, the business or an officer, director, committee member or
17employe of a credit union if the
commissioner office finds the existence of any
18condition under sub. (1) (a) to (k). The
commissioner
office of credit unions may
19renew a suspension under this paragraph any number of times and for periods of up
20to 120 days if the
commissioner office finds that the condition or conditions continue
21to exist.
AB150-engrossed,1694,523
186.29
(1m) (b) The
commissioner
office of credit unions shall suspend the
24business of a credit union, other than a corporate central credit union, if the credit
25union does not comply with s. 186.34 (2) (a). The
commissioner office of credit unions
1shall then liquidate the credit union under this section unless the credit union files
2a complete application for federal share insurance from the national board within 30
3days after the date the suspension under this paragraph commences. The
4commissioner office of credit unions shall authorize a credit union to resume its
5business if it files an application within the time period specified in this paragraph.
AB150-engrossed,1694,77
186.29
(1p) (title)
Possession by commissioner office of credit unions.
AB150-engrossed,1694,119
186.29
(1p) (a)
Discretionary possession. The
commissioner office of credit
10unions may take possession of the business and property of a credit union if the
11commissioner office finds the existence of any condition under sub. (1) (a) to (k).
AB150-engrossed,1694,1713
186.29
(1p) (b)
Mandatory possession. The
commissioner office of credit unions 14shall take possession of the business and property of a credit union that violates s.
15186.34 (2) (b), unless the
commissioner office approves a consolidation under s.
16186.31, and of a credit union that the
commissioner
office of credit unions is required
17to liquidate under sub. (1m) (b).
AB150-engrossed,1694,2119
186.29
(2) Procedure on taking possession. (intro.) Upon taking possession
20of the business and property of any such credit union the
commissioner office of credit
21unions shall forthwith:
AB150-engrossed,1695,323
186.29
(2) (a) Serve a notice in writing upon the president and secretary of said
24credit union setting forth therein that the
commissioner office of credit unions has
25taken possession and control of the business and property of said credit union. Said
1notice shall be executed in duplicate, and immediately after the same has been
2served, one of the said notices shall be filed with the clerk of the circuit court of the
3county where said credit union is located together with proof of service.
AB150-engrossed,1695,75
186.29
(2) (b) Give notice to all individuals, partnerships, corporations, limited
6liability companies and associations known to the
commissioner office of credit
7unions to be holding or in possession of any assets of such credit union.
AB150-engrossed,1696,39
186.29
(2) (c) The
commissioner office of credit unions may appoint one or more
10special
deputy commissioners deputies as
agent agents to assist in the duty of
11liquidation and distribution of the assets of one or more credit unions of whose
12business and property the
commissioner office of credit unions shall have taken
13possession pursuant to the provisions of this chapter. A certificate of such
14appointment shall be filed in the office of
the commissioner credit unions and a
15certified copy in the office of the clerk of the circuit court for the county in which such
16credit union is located. The
commissioner office of credit unions may employ such
17counsel and procure such expert assistance and advice as may be necessary in the
18liquidation and distribution of the assets of such credit union, and may retain such
19of the officers or employes of such credit union as the
commissioner office deems
20necessary. The special deputy
commissioner and assistants shall furnish such
21security for the faithful discharge of their duties as the
commissioner office of credit
22unions deems proper.
Such The special deputy
commissioner may execute,
23acknowledge and deliver any and all deeds, assignments, releases or other
24instruments necessary and proper to effect any sale and transfer or incumbrance of
25real estate or personal property and may borrow money for use in the liquidation
1after the same has been approved by the
commissioner office of credit unions and an
2order obtained from the circuit court of the county in which said credit union is
3located as hereinafter provided.
AB150-engrossed,1696,165
186.29
(2) (d) Upon taking possession of the property and business of such
6credit union, the special deputy
commissioner is authorized to collect all moneys due
7to such credit union, and do such other acts as are necessary to conserve its assets
8and business, and shall proceed to liquidate the affairs thereof as hereinafter
9provided. The special deputy
commissioner shall collect all debts due and claims
10belonging to it, and upon a petition approved by the
commissioner office of credit
11unions and upon order of the circuit court of the county in which such credit union
12is located, may sell or compound all bad or doubtful debts, or do any act or execute
13any other necessary instruments and upon like petition and order may sell all the
14real and personal property of such credit union on such terms as the court shall
15approve.
Such The special deputy
commissioner may, if necessary, enforce individual
16liability of the stockholders to pay the debts of such corporation.
AB150-engrossed,1697,718
186.29
(3) Notice, allowance and payment of claims. The special deputy
19commissioner shall cause a class 3 notice, under ch. 985, to be published, calling on
20all persons who may have claims against such credit union, to present the same to
21the special deputy
commissioner and make legal proof thereof at a place and within
22a time, not earlier than the last day of publication, to be therein specified. The special
23deputy
commissioner shall mail a similar notice to all persons at their last-known
24address, whose names appear as creditors upon the books of the credit union. Proof
25of service of such notice shall be filed with the clerk of said court. The special deputy
1commissioner may reject any claim. Any party interested may also file written
2objections to any claim with the special deputy
commissioner and after notice by
3registered mail of such rejection, said claimant shall be barred unless the claimant
4commences an action thereon within 3 months. Claims presented after the
5expiration of the time fixed in the notice to creditors shall be entitled to share in the
6distribution only to the extent of the assets then in the hands of the special deputy
7commissioner equitably applicable thereto.
AB150-engrossed,1697,209
186.29
(4) Inventory of assets and statement of liabilities. Upon taking
10possession of the property and assets of such credit union, the special deputy
11commissioner shall make an inventory of the assets of such credit union, in duplicate,
12one to be filed in the office of
the commissioner
credit unions and one in the office of
13the clerk of circuit court for the county in which such credit union is located. Upon
14the expiration of the time fixed for the presentation of claims, the special deputy
15commissioner shall make in duplicate a full and complete list of the claims presented,
16including and specifying such claims as have been rejected by the special deputy
17commissioner, one to be filed in the office of
the commissioner credit unions, and one
18in the office of the clerk of circuit court for the county in which such credit union is
19located. Such inventory and list of claims shall be open at all reasonable times to
20inspection.
AB150-engrossed,1698,1022
186.29
(5) Adjustment of loans and withdrawal value of shares. The value
23of shares pledged upon a loan to the credit union shall be applied and credited to the
24loan and the borrower shall be liable only for the balance. The rate of interest
25charged upon the balance shall be the legal rate. The value shall be determined in
1such manner as the
commissioner office of credit unions prescribes, and shall be
2made under s. 186.30 (1) and (3), or in such other manner as the
commissioner office 3may prescribe. Upon the approval of the value by the
commissioner office of credit
4unions and the circuit court of the county in which the credit union is located, the
5book value of each member shall be reduced proportionately. At least 5 days' written
6notice of the determination of value shall be given to all shareholders of the time and
7place the value shall be submitted to the circuit court for approval. Approval of the
8circuit court shall be by an order entered under s. 807.11 (2). Any stockholder or
9creditor of the credit union aggrieved by the determination of value may appeal to
10the court of appeals.