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.
AB150-engrossed,1698,2512
186.29
(6) Compensation and expenses in connection with liquidation. The
13compensation of the special
deputy commissioners
deputies, counsel and other
14employes and assistants, and all expenses of supervision and liquidation shall be
15fixed by the
commissioner office of credit unions, subject to the approval of the circuit
16court for the county in which the credit union is located, and shall upon the certificate
17of the
commissioner office of credit unions be paid out of the funds of the credit union.
18Expenses of supervision and liquidation include the cost of the services rendered by
19the office of
the commissioner credit unions to the credit union being liquidated. The
20cost of these services shall be determined by the
commissioner office of credit unions 21and paid to the office
of the commissioner from the assets of the credit union as other
22expenses of liquidation are paid. The moneys collected by the special deputy
23commissioner shall be deposited in one or more central credit unions, and, in case of
24the suspension or insolvency of a depository, such deposits shall be preferred before
25all other deposits.
AB150-engrossed,1699,92
186.29
(7) Liquidating dividends. At any time after the expiration of the date
3fixed for the presentation of claims, the special deputy
commissioner in charge of the
4liquidation of such credit union may, upon a petition approved by the
commissioner 5office of credit unions and an order of the circuit court of the county in which such
6credit union is located, out of the funds remaining, after the payment of expenses and
7debts, declare one or more dividends, and may declare a final dividend, such dividend
8to be paid to such persons, and in such amounts as may be directed by the circuit
9court.
AB150-engrossed,1699,2011
186.29
(8) (title)
Title passes to
commissioner office. Immediately upon filing
12the notice as provided for in sub. (2), the possession of all assets and property of such
13credit union of every kind and nature, wheresoever situated shall be deemed to be
14transferred from such credit union to, and assumed by the
commissioner office of
15credit unions; and filing of the notice mentioned herein, shall of itself, and without
16the execution or delivery of any instruments of conveyance, assignment, transfer or
17indorsement, vest the title to all such assets and property in the
commissioner office
18of credit unions. Such filing shall also operate as a bar to any attachment,
19garnishment, execution or other legal proceedings against such credit union, or its
20assets and property, or its liabilities.
AB150-engrossed,1699,2522
186.29
(9) Effect of possession. No credit union shall have a lien, or charge
23for any payment, advance or clearance made, or liability thereafter incurred, against
24any of the assets of the credit union of whose property and business the
commissioner 25office of credit unions shall have taken possession.
AB150-engrossed,1700,152
186.29
(10) Appeal. Whenever any such credit union, whose property and
3business the
commissioner office of credit unions has taken possession of, as
4aforesaid, deems itself aggrieved thereby, it may, at any time within 10 days after
5such taking, appeal to the credit union review board for relief from such possession
6by the
commissioner office of credit unions. In the event the credit union review
7board sustains the
commissioner office of credit unions, the said credit union may
8then at any time within 10 days after the decision of the credit union review board,
9apply to the circuit court of the county in which such credit union is located to enjoin
10further proceedings; and said court, after citing the
commissioner office of credit
11unions to show cause why further proceedings should not be enjoined and hearing
12all allegations and proofs of the parties and determining the facts, may, upon the
13merits dismiss such application or enjoin the
commissioner office of credit unions 14from further proceedings, and direct it to surrender such business and property to
15such credit union.
AB150-engrossed,1700,1917
186.29
(11) Reinstatement. (intro.) Whenever the
commissioner office of credit
18unions shall have taken over the possession and control of the business and property
19of any credit union the same may resume business when and if:
AB150-engrossed,1700,2321
186.29
(11) (a) The owners of at least two-thirds of such credit union dollar
22value of outstanding shares, execute a petition to such effect, the form of which shall
23be prescribed by the
commissioner office of credit unions, and
AB150-engrossed,1701,3
1186.29
(11) (b) There is submitted to the
commissioner office of credit unions 2by such shareholders or a committee duly selected by them, a plan for the
3reorganization and reinstatement of such credit union, and
AB150-engrossed,1701,75
186.29
(11) (c) The
commissioner
office of credit unions recommends that
6control of the business and property of such credit union be returned to the
7shareholders, and
AB150-engrossed,1701,139
186.29
(11) (d) The court in which such liquidation is pending, upon application
10of the
commissioner office of credit unions, makes an order approving the
11commissioner's office's recommendations, which order shall contain a finding that
12such credit union will be in a safe and sound condition when control is resumed by
13the shareholders.
AB150-engrossed,1701,2515
186.29
(12) Reinstatement upon restricted basis. Such credit union may also
16resume business upon a restricted basis, and upon such limitations and conditions
17as may be prescribed by the
commissioner office of credit unions when approved by
18the circuit court in and for the county in which such credit union is located, upon
19application of the
commissioner office of credit unions. Such restrictions and
20conditions may include, among others, a prohibition against the selling of new
21shares, reasonable restrictions upon withdrawals and the payment of other
22liabilities. Such credit union shall thereupon be relieved from the control and
23supervision of the
commissioner office of credit unions as provided in this section, but
24nothing herein shall, in any manner, prohibit the
commissioner office from again
25proceeding against such credit union as provided herein.
AB150-engrossed,1702,122
186.29
(13) (a) The special deputy
commissioner shall deposit unclaimed
3liquidating dividends and unclaimed funds remaining unpaid in the hands of the
4special deputy
commissioner for 6 months after the order for final distribution in one
5or more central credit unions in the
commissioner's
office of credit unions' name in
6trust for the shareholders and creditors of the liquidated credit union. The
7commissioner office of credit unions shall annually report to the governor and the
8chief clerk of each house of legislature for distribution to the legislature under s.
913.172 (2) the names of credit unions of which the
commissioner office has taken
10possession and liquidated, and the sums of unclaimed and unpaid liquidating
11dividends and unclaimed funds with respect to each of the credit unions respectively,
12including a statement of interest earned upon such funds.
AB150-engrossed,1702,2214
186.29
(13) (b) The
commissioner
office of credit unions may pay over the
15moneys so held by the
commissioner office to the persons respectively entitled
16thereto, upon being furnished satisfactory evidence of their right to the same. In case
17of doubt or conflicting claims, the
commissioner
office of credit unions may require
18an order of the circuit court authorizing and directing the payment thereof. The
19commissioner office of credit unions may apply the interest earned by the moneys so
20held by the
commissioner office towards defraying the expenses in the payment and
21distribution of such unclaimed liquidating dividends and funds to the stockholders
22and creditors entitled to receive the same.
AB150-engrossed,1703,724
186.29
(13) (c) After one year from the time of the order for final distribution,
25the
commissioner office of credit unions shall report and deliver to the state treasurer
1all unclaimed funds as provided in ch. 177. All claims subsequently arising shall be
2presented to the
commissioner office of credit unions. If the
commissioner office of
3credit unions determines that any claim should be allowed,
he or she the office shall
4certify to the department of administration the name and address of the person
5entitled to payment and the amount thereof and shall attach the claim to the
6certificate. The
department secretary of administration shall certify the claim to the
7state treasurer for payment.