AB150: Bill Text Engrossed

AB150-engrossed,1804,13 214.835 (3) Determine and declare the savings bank to be in default, find from the commissioner's division's examination and from reports of the savings bank the amount of insured deposits and make any necessary orders that may be required for the purpose of making deposit insurance available to depositors.

AB150-engrossed, s. 5479 Section 5479. 214.84 of the statutes is amended to read:

AB150-engrossed,1805,3 214.84 Notice of custody; action to enjoin. On the date the commissioner division takes custody of a savings bank, the commissioner division shall provide by 1st class mail a written notice of that action to the president or secretary and to 2 or more directors of the savings bank or to 2 or more of the trustees of any trust or to 2 or more of the liquidators if the savings bank is in liquidation. If the parties receiving notice believe the commissioner division does not have authority to take custody, the savings bank, the directors or officers of the savings bank or the trustees or liquidators, within 20 days after the mailing of the notice, or within further periods of time as the commissioner division may extend up to an additional 60 days, may file a complaint in the circuit court of the county in which the savings bank is located to enjoin custody. The court shall require the commissioner division to show cause why custody should not be enjoined. If, upon hearing, the court finds that grounds do not exist for the commissioner's division's custody, it may enter an order enjoining further custody.

AB150-engrossed, s. 5480 Section 5480. 214.845 of the statutes is amended to read:

AB150-engrossed,1805,13 214.845 Segregation of collections during custody. All payments received on deposit accounts on depositors' unpledged accounts during custody of the savings bank shall be segregated in a separate account until the savings bank is redelivered to the directors, trustees or liquidators or delivered to a conservator or receiver. A depositor whose payments have been segregated may request the return of those payments and the commissioner division shall repay them without interest or dividends. Before delivery of the savings bank or its assets to any trustee, liquidator, receiver or conservator, the commissioner division shall return the money segregated in the separate account.

AB150-engrossed, s. 5481 Section 5481. 214.85 of the statutes is amended to read:

AB150-engrossed,1805,20 214.85 Redelivery of possession. If, after examination of the savings bank and consideration of all conditions affecting its affairs, the commissioner division finds that the cause for taking custody has been removed, the commissioner division shall relinquish custody of the savings bank, remove any conservator appointed and redeliver the savings bank and all assets, books and records to its qualified directors, trustees or liquidators.

AB150-engrossed, s. 5482 Section 5482. 214.855 of the statutes is amended to read:

AB150-engrossed,1805,25 214.855 Limitations upon custody. The custody of a savings bank by the commissioner division, including a conservatorship, may be continued for a reasonable period not to exceed 12 months, unless a longer time period is approved by a vote of two-thirds of the directors of the savings bank or ordered by a court.

AB150-engrossed, s. 5483 Section 5483. 214.90 (intro.) of the statutes is amended to read:

AB150-engrossed,1806,8 214.90 Action to correct conditions. (intro.) The commissioner division may issue an order requiring a savings bank, savings bank subsidiary, service corporation, affiliate, savings bank holding company or a party affiliated with a savings bank to take action to correct any condition resulting from a violation or practice identified in the order. The commissioner division may by order require the savings bank, savings bank subsidiary, service corporation, affiliate, savings bank holding company or party affiliated with a savings bank to do any of the following:

AB150-engrossed, s. 5484 Section 5484. 214.90 (1) (b) of the statutes is amended to read:

AB150-engrossed,1806,12 214.90 (1) (b) The violation or practice involved a reckless disregard for applicable state or federal laws, regulations, rules or orders of the commissioner division or other appropriate regulator.

AB150-engrossed, s. 5485 Section 5485. 214.90 (5) of the statutes is amended to read:

AB150-engrossed,1806,15 214.90 (5) Submit candidates for future directors, employes or officers to the commissioner division for approval.

AB150-engrossed, s. 5486 Section 5486. 214.90 (6) of the statutes is amended to read:

AB150-engrossed,1806,18 214.90 (6) Take any other action the commissioner division considers necessary.

AB150-engrossed, s. 5487 Section 5487. 214.905 (1) (intro.) of the statutes is amended to read:

AB150-engrossed,1806,25 214.905 (1) (intro.) If an order under s. 214.90 specifies that the books and records of a savings bank are so incomplete and inaccurate that the commissioner division is unable to determine the financial condition of the savings bank or unable to determine the nature, details or purpose of any transaction that may have a material effect on the savings bank's financial condition, the commissioner division shall issue an order that requires all of the following:

AB150-engrossed, s. 5488 Section 5488. 214.905 (1) (c) of the statutes is amended to read:

AB150-engrossed,1807,3 214.905 (1) (c) Establishment of reserves for any losses that the commissioner division finds were incurred due to the condition of the books and records.

AB150-engrossed, s. 5489 Section 5489. 214.905 (2) of the statutes is amended to read:

AB150-engrossed,1807,7 214.905 (2) An order under sub. (1) shall be effective until the commissioner division determines through an examination that the condition has been corrected and rescinds the order.

AB150-engrossed, s. 5490 Section 5490. 214.91 (1) (intro.) of the statutes is amended to read:

AB150-engrossed,1807,11 214.91 (1) (intro.) The commissioner division may remove from a savings bank any employe, agent or person affiliated with the savings bank if the commissioner division finds that the person has done any of the following:

AB150-engrossed, s. 5491 Section 5491. 214.91 (1) (a) of the statutes is amended to read:

AB150-engrossed,1807,15 214.91 (1) (a) Directly or indirectly violated any state or federal law, regulation, rule or order or any agreement between the savings bank and the commissioner division or between the savings bank and the deposit insurance corporation.

AB150-engrossed, s. 5492 Section 5492. 214.91 (2) (intro.) of the statutes is amended to read:

AB150-engrossed,1807,23 214.91 (2) (intro.) The commissioner division may serve upon a savings bank employe, agent or person affiliated with the savings bank a written notice of the commissioner's division's intention to remove or suspend the person from office in the savings bank or to prohibit any further participation in any manner by that person in the conduct of the affairs of a savings bank or of a savings and loan association organized under ch. 215, if the commissioner division finds that, because of a violation permitting removal under sub. (1), any of the following conditions exists:

AB150-engrossed, s. 5493 Section 5493. 214.915 (1) of the statutes is amended to read:

AB150-engrossed,1808,7 214.915 (1) Except as provided in rules of the commissioner division, any person who has been removed or suspended from office in a savings bank or prohibited from participating in the conduct of the affairs of a savings bank under s. 214.90 may not, while an order is in effect, hold any office in or participate in any manner in the conduct of the affairs of another savings bank, savings bank subsidiary, affiliate, service corporation, savings bank holding company or state savings and loan association.

AB150-engrossed, s. 5494 Section 5494. 214.92 of the statutes is amended to read:

AB150-engrossed,1808,13 214.92 Effect of termination or resignation. The resignation, termination of employment, or separation of a person affiliated with a savings bank from the savings bank does not affect the authority of the commissioner division to issue an order under s. 214.90, 214.91 or 214.915 if the order is issued within 6 years after the person ceases to be a person affiliated with the savings bank.

AB150-engrossed, s. 5495 Section 5495. 214.925 (1) of the statutes is amended to read:

AB150-engrossed,1808,18 214.925 (1) Except with the prior written consent of the commissioner division, a person who has been convicted of a criminal offense involving dishonesty or a breach of trust may not participate, directly or indirectly, in any manner in the conduct of the affairs of a savings bank.

AB150-engrossed, s. 5496 Section 5496. 214.93 of the statutes is amended to read:

AB150-engrossed,1808,23 214.93 False statements. A person may not knowingly make, cause, or allow another person to make or cause to be made, a false statement, under oath if required by this chapter or on any report or statement required by the commissioner division or by this chapter.

AB150-engrossed, s. 5497 Section 5497. 214.935 (intro.) of the statutes is amended to read:

AB150-engrossed,1809,2 214.935 Civil forfeitures. (intro.) In addition to the enforcement authority granted to the commissioner division, the following forfeiture provisions apply:

AB150-engrossed, s. 5498 Section 5498. 214.935 (1) of the statutes is amended to read:

AB150-engrossed,1809,7 214.935 (1) Except as provided in sub. (2), any person who violates this chapter, any rule promulgated under this chapter or an order of the commissioner division may be required to forfeit not more than $10,000. Each day of continued violation constitutes a separate offense.

AB150-engrossed, s. 5499 Section 5499. 215.01 (6) of the statutes is amended to read:

AB150-engrossed,1809,10 215.01 (6) "Commissioner" " Division" means the commissioner division of savings and loan.

AB150-engrossed, s. 5500 Section 5500. 215.01 (19) of the statutes is amended to read:

AB150-engrossed,1809,15 215.01 (19) "Net income" means the gross income for a period less the aggregate of expenses, determined according to generally accepted accounting principles or an accounting standard or practice approved by the commissioner division.

AB150-engrossed, s. 5501 Section 5501. 215.01 (20) (a) of the statutes is amended to read:

AB150-engrossed,1809,21 215.01 (20) (a) In a stock association, the aggregate of capital stock, additional paid-in capital, retained earnings and other accounts designated as components of net worth by the commissioner division, determined according to generally accepted accounting principles or an accounting standard or practice approved by the commissioner division.

AB150-engrossed, s. 5502 Section 5502. 215.01 (20) (b) of the statutes is amended to read:

AB150-engrossed,1810,2 215.01 (20) (b) In a mutual association, the aggregate of retained earnings and other accounts designated as components of net worth by the commissioner division, determined according to generally accepted accounting principles or an accounting standard or practice approved by the commissioner division.

AB150-engrossed, s. 5503 Section 5503. 215.01 (21) of the statutes is repealed.

AB150-engrossed, s. 5504 Section 5504. 215.02 (title) of the statutes is repealed and recreated to read:

AB150-engrossed,1810,5 215.02 (title) Division of savings and loan.

AB150-engrossed, s. 5505 Section 5505. 215.02 (1), (2) and (3) of the statutes are repealed.

AB150-engrossed, s. 5506 Section 5506. 215.02 (4) of the statutes is amended to read:

AB150-engrossed,1810,12 215.02 (4) (title) Immunity of commissioner. The commissioner Employes of the division shall not be subject to any civil liability or penalty, nor to any criminal prosecution, for any error in judgment or discretion made in good faith and upon reasonable grounds in any action taken or omitted by the commissioner employe in the commissioner's employe's official capacity.

AB150-engrossed, s. 5507 Section 5507. 215.02 (5) of the statutes is amended to read:

AB150-engrossed,1810,19 215.02 (5) Actions venue. Proceedings by any association to enjoin the commissioner division in the discharge of the commissioner's division's duties shall be had in the county where the savings and loan association is located, or in the state supreme court. All suits and proceedings arising out of this chapter, in which the state, or any of its officers or agents are parties, shall be conducted under the direction and supervision of the department of justice.

AB150-engrossed, s. 5508 Section 5508. 215.02 (6) (a) (intro.) of the statutes is amended to read:

AB150-engrossed,1811,2 215.02 (6) (a) (intro.) The commissioner and all All employes of the office division and members of the review board shall keep confidential all the facts and information obtained in the course of examinations by the office and all examination and other confidential information obtained from any state or federal regulatory authority, including an authority of this state or another state, for financial institutions, mortgage bankers, insurance or securities, except:

AB150-engrossed, s. 5509 Section 5509. 215.02 (6) (a) 3. of the statutes is amended to read:

AB150-engrossed,1811,8 215.02 (6) (a) 3. Under rules prescribed by the commissioner division, for the purpose of comparing notes as to matters affecting an association with an examiner of the federal home loan bank board or federal savings and loan insurance corporation as to any association whose savings accounts are insured by the federal savings and loan insurance corporation.

AB150-engrossed, s. 5510 Section 5510. 215.02 (6) (a) 4. (intro.) of the statutes is amended to read:

AB150-engrossed,1811,10 215.02 (6) (a) 4. (intro.) The commissioner division may:

AB150-engrossed, s. 5511 Section 5511. 215.02 (6) (a) 4. a. of the statutes is amended to read:

AB150-engrossed,1811,15 215.02 (6) (a) 4. a. Furnish to the federal home loan bank board or federal savings and loan insurance corporation or to any official or examiner thereof a copy of any examination made by the office division of any association or of any report made by such association and filed with the office division.

AB150-engrossed, s. 5512 Section 5512. 215.02 (6) (a) 4. b. of the statutes is amended to read:

AB150-engrossed,1811,21 215.02 (6) (a) 4. b. Give access to and disclose to the federal home loan bank board, federal savings and loan insurance corporation or to any official or examiner thereof any information possessed by the commissioner division about the conditions or affairs of any association whose savings accounts are insured by the federal savings and loan insurance corporation.

AB150-engrossed, s. 5513 Section 5513. 215.02 (6) (a) 5. of the statutes is amended to read:

AB150-engrossed,1812,2 215.02 (6) (a) 5. The commissioner division may give access to and disclose to an instrumentality insuring the savings accounts of an association, or to the official examiner of the instrumentality, any information possessed by the commissioner division about the conditions or affairs of the association.

AB150-engrossed, s. 5514 Section 5514. 215.02 (6) (a) 6. of the statutes is amended to read:

AB150-engrossed,1812,8 215.02 (6) (a) 6. The commissioner division may disclose to any regulatory authority of this state or another state for financial institutions, mortgage bankers, insurance or securities facts and information obtained in the course of examinations by the office division, if the regulatory authority agrees to keep the facts and information confidential.

AB150-engrossed, s. 5515 Section 5515. 215.02 (7) (title) of the statutes is amended to read:

AB150-engrossed,1812,10 215.02 (7) (title) Commissioner to issue orders; reasonable Orders and rules.

AB150-engrossed, s. 5516 Section 5516. 215.02 (7) (a) of the statutes is amended to read:

AB150-engrossed,1812,15 215.02 (7) (a) In addition to performing the duties prescribed in this chapter, the commissioner division shall, with the approval of the review board, issue orders prescribing reasonable rules for conducting the business of associations, subject to the requirements of ch. 227.

AB150-engrossed, s. 5517 Section 5517. 215.02 (7) (c) of the statutes is amended to read:

AB150-engrossed,1813,8 215.02 (7) (c) If the commissioner division, as a result of any examination or report made to the commissioner division, finds that any association is violating the provisions of the articles or bylaws of the association, or the laws of this state, or the laws of the United States, or any lawful rule or order promulgated by the commissioner division and review board or any order of the commissioner division, the commissioner division shall deliver a formal written order to the board of directors of the association in which the facts known to the commissioner division are set forth, demanding the discontinuance of the violation and, where applicable, order the association to institute corrective action thereon. The association affected by the order may within 10 days after the order has been delivered to the association request a review of the findings and order before the commissioner division, at which time any pertinent evidence may be presented. After review, the commissioner division, on the basis of the evidence presented and any matters of record in the office division's offices, shall continue, modify or set aside the order. The enforcement of any order issued under this paragraph shall be stayed pending review before the commissioner division, and during the period of any subsequent review under s. 215.04 (4).

AB150-engrossed, s. 5518 Section 5518. 215.02 (7) (d) of the statutes is amended to read:

AB150-engrossed,1813,15 215.02 (7) (d) Any association which wilfully violates par. (c) or any order issued thereunder shall, for each violation, forfeit not more than $250 per day for each day the violation continues. Assessment of any forfeiture shall become effective 20 days from the date of delivery of the order, 20 days from the date of review by the commissioner division, if requested, or 20 days from the date of the decision of the review board, if an appeal is taken pursuant to s. 215.04 (4).

AB150-engrossed, s. 5519 Section 5519. 215.02 (8) of the statutes is amended to read:

AB150-engrossed,1813,22 215.02 (8) Revocation of certificate of incorporation or license. Whenever it appears to the commissioner division that any association or corporation which has received a certificate of incorporation or a license to do business in this state is conducting its business in violation of this chapter, the commissioner division shall report the facts to the department of justice which may bring an action to revoke the certificate of incorporation or license of such association or corporation.

AB150-engrossed, s. 5520 Section 5520. 215.02 (9) of the statutes is amended to read:

AB150-engrossed,1814,5 215.02 (9) Approval of acts. Whenever any association requests approval of the commissioner division for any act, which by statute requires such approval, the commissioner division shall have 90 days in which to grant or deny such approval. If the commissioner division fails to act, approval shall be deemed to have been granted. In matters which require the holding of public hearings, the 90-day period shall not commence until the conclusion of the hearing and the date set by the commissioner division for receipt of briefs.

AB150-engrossed, s. 5521 Section 5521. 215.02 (10) (a) 1. (intro.) of the statutes is amended to read:

AB150-engrossed,1814,8 215.02 (10) (a) 1. (intro.) The commissioner division may remove an officer, director or employe of an association if either of the following applies:

AB150-engrossed, s. 5522 Section 5522. 215.02 (10) (a) 1. b. of the statutes is amended to read:

AB150-engrossed,1814,12 215.02 (10) (a) 1. b. The officer, director or employe violates or permits the violation of this chapter, a rule promulgated under this chapter or an order of the commissioner division.

AB150-engrossed, s. 5523 Section 5523. 215.02 (10) (a) 2. of the statutes is amended to read:

AB150-engrossed,1814,17 215.02 (10) (a) 2. The commissioner division may issue an order removing an officer, director or employe under subd. 1. only after the officer, director or employe is afforded a hearing before the review board and the review board approves the order.