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.
AB150-engrossed,1703,209
186.30
(1) Whenever from an examination or report, it shall appear to the
10commissioner office of credit unions that the capital of any credit union is impaired,
11or may in the near future become impaired, the
commissioner office of credit unions 12may, with the approval of the credit union review board, issue an order to such credit
13union, requiring the directors to forthwith appoint
, subject to the approval of the
14commissioner office of credit unions, 3 competent persons, not members of such
15credit union, who shall appraise such property owned by, or upon which such credit
16union has a loan or judgment, as the
commissioner
office shall designate. The
17appraisers so appointed and approved shall appraise and fix the current market
18value of all such property as aforesaid and report their findings to the
commissioner 19office of credit unions and the directors. The value as found by such appraisers shall
20be the value from which all losses shall be determined.
AB150-engrossed,1704,322
186.30
(2) Whenever the
commissioner
office of credit unions finds that the
23losses existing, or which it may reasonably be anticipated will be sustained in the
24near future, are more than two-thirds of the amount in the regular reserve of the
25credit union, the
commissioner office of credit unions may, with the approval of the
1review board, issue an order to such credit union, which order shall provide that no
2further dividends be credited or paid and no moneys paid out for retiring shares,
3whether noticed for withdrawal, until the
commissioner
office otherwise orders.
AB150-engrossed,1704,125
186.30
(3) After the
commissioner
office of credit unions shall have determined
6the losses existing or which the
commissioner office shall determine may reasonably
7be sustained in the near future, the
commissioner
office of credit unions shall issue
8an order providing that the book value of each share be depreciated as stated in such
9order, the officers shall forthwith proceed to depreciate the book value of all shares
10as ordered. A record shall be made on the books showing the amount by which the
11book value of the shares was depreciated, and a copy of such record shall be filed with
12the
commissioner office of credit unions.
AB150-engrossed,1704,1714
186.30
(5) The directors may, with the approval of the
commissioner office of
15credit unions, make share loans to members upon such terms and conditions as the
16commissioner office may order, but such loans shall be for provident purposes only
17and not more than $100 shall be loaned to any one member in any one month.
AB150-engrossed,1704,2319
186.30
(7) The directors may, with the approval of the
commissioner office of
20credit unions, sell, lease, transfer, exchange and convey any of the property of the
21credit union, and upon their order the proper officers shall execute and deliver such
22deeds, leases, assignments, bills of sale and such other transfers and conveyances as
23are necessary to dispose of such property as herein provided.
AB150-engrossed,1705,4
1186.30
(8) The directors may compromise and settle any claim, demand or
2judgment which is a part of the assets of the credit union, but no compromise of any
3claim, demand or judgment shall be made except upon express consent of the
4commissioner office of credit unions.
AB150-engrossed,1705,86
186.30
(9) The
commissioner office of credit unions shall prescribe reasonable
7rules and regulations not inconsistent with laws for the operation of credit unions
8operating as provided in this section.
AB150-engrossed,1705,1410
186.30
(11) The directors shall make no disbursements or contract to make
11disbursements for salaries, compensation, fees or any other item of expense, nor
12retire shares, nor pay or declare dividends during the time such credit union is
13operating as provided in this section without the approval of the
commissioner office
14of credit unions.