AB150-engrossed,1789,1915
214.72
(1) (b) "Financial regulator" means the
commissioner, department
16secretary and deputy
commissioner, secretary, and an administrator
of examination
17and supervision,
a supervisor of data processing, legal counsel and a
savings bank 18financial institution examiner
employed by the department and includes any
19member of a financial regulator's immediate family, as defined in s. 19.42 (7).
AB150-engrossed,1790,521
214.72
(3) Within 30 days after commencing employment as a financial
22regulator and at least once each year, each financial regulator, for himself or herself
23and covering his or her immediate family, shall complete a written, sworn report
24disclosing the nature of all business relationships with savings banks on forms
25prescribed by the
commissioner department. Each report shall be reviewed by the
1commissioner department, except that the
commissioner's secretary's and deputy
2commissioner's secretary's report shall be reviewed by the review board. The
3reviewers shall determine if any business relationship is or appears improper and,
4if so, may direct the termination of that business relationship within a reasonable,
5prescribed time period.
AB150-engrossed,1790,147
214.725
(1) At least once every 18 months and more often if necessary, the
8commissioner division shall examine the books, records, operations and affairs of a
9savings bank. In the course of the examination, the
commissioner division may also
10examine in the same manner any entity, company or individual that the
11commissioner division determines may have a relationship with the savings bank or
12a savings bank holding company, savings bank subsidiary, service corporation or
13affiliate of the savings bank, if the relationship may adversely affect the affairs,
14activities and safety and soundness of the savings bank.
AB150-engrossed,1790,2116
214.725
(2) The
commissioner division shall consider it to be necessary to
17conduct an examination more often than every 18 months if a required report from
18a savings bank indicates a material change in financial condition or a material
19violation of a state or federal law, of a federal regulation or of a rule of the
20commissioner division. If that condition is grounds for taking custody of the savings
21bank under s. 214.76, the examination shall be initiated within 10 business days.
AB150-engrossed,1790,2423
214.725
(3) (f) Any other matter the
commissioner division considers to be
24appropriate.
AB150-engrossed,1791,7
1214.725
(4) If a savings bank, its savings bank holding company or any of its
2savings bank subsidiaries or service corporations has not been audited at least once
3in the 12 months before the
commissioner's division's examination, the
4commissioner division shall order an audit of the entity's books and records to be
5made by an independent certified public accountant, selected by the
commissioner 6division, who has experience in financial institution audits. The cost of the audit
7shall be paid for by the entity being audited.
AB150-engrossed,1791,129
214.725
(5) The commissioner, employes
Employes of the
office of the
10commissioner division or other designated agents may administer oaths and
11examine and take and preserve testimony under oath as to anything in the affairs
12or ownership of the savings bank or the entity examined.
AB150-engrossed,1791,1614
214.725
(7) If a savings bank fails to submit to an examination, the
15commissioner division shall report that failure to the attorney general, who shall
16institute proceedings to revoke its certificate of incorporation.
AB150-engrossed,1791,23
18214.735 Examination report. Upon completion of an examination, the
19commissioner division shall provide an examination report to the board of directors
20of the savings bank or other entity examined. Each director shall read the report and
21shall sign an affidavit affirming that the director has read and understands the
22report. The affidavits shall be retained by the savings bank or entity examined and
23may be examined by the
commissioner division.
AB150-engrossed,1791,25
25214.74 (title)
Orders of the commissioner division.
AB150-engrossed,1792,82
214.74
(1) If the affairs of the savings bank, savings bank subsidiary, service
3corporation or affiliate or savings bank holding company are not being conducted in
4accordance with this chapter, the
commissioner division may require the directors,
5officers and employes to take necessary corrective action. If the necessary corrective
6action is not taken, the
commissioner division may issue an order to the directors of
7the entity, to be served personally or by certified mail, specifying a date for the
8performance of the corrective action.
AB150-engrossed,1792,1910
214.74
(2) If the order contains a finding that the business of the savings bank
11or savings bank holding company is being conducted in a fraudulent, illegal, unsafe
12or unsound manner or that the violation or the continuance of the practice to be
13corrected may cause insolvency, substantial dissipation of assets or earnings or the
14impairment of capital, the savings bank or savings bank holding company shall
15comply with the order immediately, unless the order is modified or withdrawn by the
16commissioner division or modified or terminated by a court. Notwithstanding sub.
17(3), the
commissioner division may apply to the circuit court in the county in which
18the home office of the savings bank or savings bank holding company is located for
19enforcement of an order.
AB150-engrossed,1793,321
214.74
(3) If a hearing before the review board has not been requested within
2220 days after service of an order, the
commissioner
division may, at any time within
2390 days after the date specified in the order for an action to be taken or discontinued,
24commence an action in the circuit court of the county in which the home office of the
25savings bank or savings bank holding company is located to compel the directors,
1officers or employes to take required corrective action. If a hearing is requested
2pursuant to s. 214.78, the
commissioner division may institute suit within 90 days
3after a determination by the review board.
AB150-engrossed,1793,65
214.74
(4) This section is in addition to the enforcement authority of the
6commissioner division under subch. XII.
AB150-engrossed,1793,14
8214.745 (title)
Commissioner's Division's notice to members or
9stockholders. The
commissioner division may prepare a statement of the condition
10of the savings bank, affiliate, savings bank subsidiary, service corporation or savings
11bank holding company and may mail the statement to the members or stockholders
12or may publish the statement as a class 1 notice under ch. 985. The expense of a
13mailing or publication shall be paid by the savings bank, affiliate, savings bank
14subsidiary, service corporation or savings bank holding company.
AB150-engrossed,1793,2116
214.75
(1) A savings bank shall maintain books and records, as required by the
17commissioner division, in accordance with generally accepted accounting principles
18and the requirements of its deposit insurance corporation. All books and records
19shall be current, complete, organized and accessible to the
commissioner, the
20commissioner's division's agents and examiners and to the savings bank's auditors
21and accountants.
AB150-engrossed,1794,523
214.75
(2) A savings bank employing an outside data processing service shall
24inform the
commissioner division at the initiation, renewal or changing of a contract
25for data processing services with an outside data processing service. The contract
1shall be submitted to the
commissioner
division at least 60 days before its
2implementation. The contract shall provide that the records maintained shall at all
3times be available for examination and audit by the
commissioner division. A
4savings bank shall implement internal control and security measures for its data
5processing activities.
AB150-engrossed,1794,97
214.75
(3) The
commissioner division may examine any data processing center
8that provides data processing or related services to a savings bank as often as the
9commissioner division examines the savings bank it serves.
AB150-engrossed,1794,1811
214.75
(4) The
commissioner division shall by rule prescribe periods of time for
12which savings banks must retain records and after the expiration of which, the
13savings bank may destroy those records. Liability may not accrue against the
14savings bank, the
commissioner division or this state for destruction of records
15according to rules of the
commissioner division promulgated under this subsection.
16In an action in which records of the savings bank may be called in question or
17demanded, a showing of the expiration of the retention period shall be sufficient
18excuse for failure to produce the records.
AB150-engrossed,1795,320
214.75
(5) (a) A savings bank may cause records kept by the savings bank to
21be recorded, copied or reproduced by any photostatic, photographic or miniature
22photographic process or by optical imaging if the process employed correctly,
23accurately and permanently copies, reproduces or forms a medium for copying,
24reproducing or recording the original record on a film or other durable material. A
25savings bank may thereafter dispose of the original record after obtaining the
1written consent of the
commissioner division. This subsection, except that part
2requiring written consent of the
commissioner division, is applicable to federal
3savings banks if it does not contravene federal law.
AB150-engrossed,1795,95
214.755
(1) (intro.)
The commissioner, employes Employes of the
office of the
6commissioner division and members of the review board may not disclose
7information gathered by examination of or obtained through reports from a savings
8bank or from a state or federal financial institution regulatory authority except to
9any of the following:
AB150-engrossed,1795,1611
214.76
(1) At least once in each year and not more than 12 months after its last
12audit, a savings bank shall cause its books, records and accounts to be audited by an
13independent certified public accountant not connected with the savings bank. The
14certified public accountant shall conduct the audit to produce a certified financial
15statement. The
commissioner division may require additional information to be
16included in an audit report.
AB150-engrossed,1795,2418
214.76
(3) A copy of the audit report, including a balance sheet of the savings
19bank on the date of the audit and a statement of income and expenses of the savings
20bank during the year ending with the date of the audit and the written summary
21prepared for the board of directors shall be filed with the
commissioner division 22within 60 days after the date on which the savings bank received the audit report.
23The
commissioner division may, for good cause shown, extend the filing date for up
24to 60 additional days.
AB150-engrossed,1796,8
1214.76
(4) The audit report filed with the
commissioner division shall be
2certified by the accountant conducting the audit. If a savings bank fails to cause an
3audit to be made, the
commissioner division shall order an audit to be made by an
4independent certified public accountant at the savings bank's expense. Instead of
5the audit required under sub. (1), the
commissioner
division may accept an audit or
6portion of an audit made exclusively for a deposit insurance corporation or for a
7financial regulator of another state if the home office of the savings bank is located
8in that state.
AB150-engrossed,1796,1310
214.76
(5) (a) (intro.) Annually, no later than February 1, a savings bank shall
11file with the
commissioner division a report of its activities of the preceding calendar
12year, upon forms prescribed by the
commissioner division. The report shall include
13all of the following:
AB150-engrossed,1796,1615
214.76
(5) (a) 3. Any other information that the
commissioner division 16requires.
AB150-engrossed,1796,2418
214.76
(5) (b) A savings bank shall include with its annual report a copy of a
19statement of condition and operations as of the end of the savings bank's most recent
20fiscal year, which shall be available to the public. The savings bank shall publish a
21printed statement containing such information as the
commissioner division 22requires as a class 1 notice under ch. 985 in each municipality in which the savings
23bank operates an office. Proof of publication shall be furnished to the
commissioner 24division within 60 days after the date of the report.
AB150-engrossed,1797,9
1214.765
(1) A violation of subch. VI or VII or s. 214.34, 214.59 or 214.76, or the
2failure to comply with recommendations of an examination report of the
3commissioner division within 60 days after the date of issuance of the report or
4within any other period the
commissioner division specifies, shall be considered an
5unsafe and unsound practice and creates an unsafe and unsound condition in the
6savings bank. A savings bank or a person affiliated with a savings bank who violates
7these provisions shall be subject to a forfeiture under s. 214.935 and to other
8enforcement powers of the
commissioner division under this subchapter, subch. XII
9and rules of the
commissioner division.
AB150-engrossed,1797,1411
214.765
(2) Continued violation of any provision in sub. (1) after the
12commissioner division issues an order to correct shall subject the members of the
13board of directors of the savings bank to removal from the board and to a permanent
14order of prohibition under s. 214.91.
AB150-engrossed,1797,1716
214.765
(3) The
commissioner division shall promulgate rules to implement
17this section.
AB150-engrossed,1797,1919
214.772
(4) (a) 5. Any other information the
commissioner division requires.
AB150-engrossed,1798,221
214.772
(4) (b) (intro.) Upon receipt of a completed application and the required
22fee, the
commissioner division may issue a certificate of authority. The certificate of
23authority may be subject to specific conditions that the
commissioner division 24believes necessary to adequately safeguard the interests of the residents of this state.
1The
commissioner division may not issue a certificate of authority to do business in
2this state unless all of the following conditions are met:
AB150-engrossed,1798,74
214.772
(4) (b) 1. The foreign savings bank is in sound financial condition and
5entitled to public confidence, and the
commissioner
division is satisfied that the
6foreign savings bank will conduct its business in this state in accordance with the
7laws of this state.
AB150-engrossed,1798,109
214.772
(4) (c) (intro.) The
commissioner division may revoke a certificate of
10authority issued under this section if any of the following occurs:
AB150-engrossed,1798,1312
214.772
(4) (c) 2. The foreign savings bank refuses to permit the
commissioner 13division to conduct an examination, or fails to pay applicable fees.
AB150-engrossed,1798,1715
214.772
(4) (c) 3. The
commissioner
division determines that the foreign
16savings bank is in an unsafe condition or that its continued operation in this state
17is otherwise inconsistent with the best interests of the residents of this state.
AB150-engrossed,1798,2519
214.772
(5) A foreign savings bank doing business in this state shall be
20examined by the
commissioner division as provided under s. 214.725, audited under
21s. 214.76 and assessed fees as provided under s. 214.715 (1) (h), together with any
22out-of-state travel expenses incurred in the course of an examination or audit. The
23commissioner division may accept all or part of an examination or audit prepared on
24behalf of the regulatory authority responsible for the supervision of the foreign
25savings bank in the jurisdiction in which the foreign savings bank is organized.
AB150-engrossed,1799,82
214.772
(6) A foreign savings bank doing business in this state shall maintain
3on file with the
commissioner division the name and address of a person in this state
4who is authorized to receive legal process on behalf of the foreign savings bank. The
5commissioner division shall maintain a current record of each person so designated.
6The record of the
commissioner division shall be conclusive evidence of the authority
7of the person whose name appears in the record to receive process on behalf of the
8foreign savings bank.
AB150-engrossed,1799,1710
214.772
(7) If the laws of another jurisdiction prohibit a savings bank from
11doing business in that jurisdiction, a foreign savings bank organized under the laws
12of that jurisdiction may not be authorized to do business in this state. If the laws of
13another jurisdiction require the posting of securities or impose other additional
14requirements as a condition of permitting a savings bank to do business in that
15jurisdiction, the
commissioner division may impose similar requirements on a
16foreign savings bank organized under the laws of that jurisdiction before issuing the
17foreign savings bank a certificate of authority to do business in this state.
AB150-engrossed,1799,22
19214.775 Procedure upon the impairment of capital. (intro.) If the
20commissioner division finds from a report, examination or other source that a
21savings bank's capital is impaired, the
commissioner
division may do any of the
22following:
AB150-engrossed,1799,2524
214.78
(1) (a) Advise the
commissioner
division on matters related to this
25chapter.
AB150-engrossed,1800,32
214.78
(1) (b) Review the acts, orders and determinations of the
commissioner 3division.
AB150-engrossed,1800,65
214.78
(1) (c) Act on matters pertaining to this chapter that may be submitted
6to it by the
commissioner division.
AB150-engrossed,1800,138
214.78
(3) A person who subpoenaes a witness shall advance the fees and
9mileage of the witness. Witness fees shall be the same as fees under s. 814.67 (1) (b)
10and (c). The fees of witnesses who are called by the review board in the interests of
11the state shall be paid by the state upon presentation of proper vouchers approved
12by the chairperson of the review board and charged to the appropriation under s.
1320.175 20.144 (1) (g).
AB150-engrossed,1801,215
214.785
(1) Any interested person or a savings bank aggrieved by any act, order
16or determination of the
commissioner division, which relates to savings banks may,
17within 20 days after receipt or service of a copy of the act, order or determination, file
18a written notice requesting the review board's review of the
commissioner's division's 19act, order or determination. The sole review of the
commissioner's division's decision
20shall be to determine if the
commissioner division acted within the scope of the
21commissioner's division's authority, has not acted in an arbitrary or capricious
22manner and that the act, order or determination of the
commissioner division is
23supported by substantial evidence in view of the entire record as submitted. The
24review of applications for new savings banks, branch offices or relocation of offices
25shall be based exclusively on the record and new evidence may not be taken by the
1review board. Applications under this subsection shall be considered and disposed
2of as speedily as possible.