AB150: Bill Text

AB150, s. 4959 Section 4959. 186.29 (2) (intro.) of the statutes is amended to read:

AB150,1650,21 186.29 (2) Procedure on taking possession. (intro.) Upon taking possession of the business and property of any such credit union the commissioner office of credit unions shall forthwith:

AB150, s. 4960 Section 4960. 186.29 (2) (a) of the statutes is amended to read:

AB150,1651,3 186.29 (2) (a) Serve a notice in writing upon the president and secretary of said credit union setting forth therein that the commissioner office of credit unions has taken possession and control of the business and property of said credit union. Said notice shall be executed in duplicate, and immediately after the same has been served, one of the said notices shall be filed with the clerk of the circuit court of the county where said credit union is located together with proof of service.

AB150, s. 4961 Section 4961. 186.29 (2) (b) of the statutes is amended to read:

AB150,1651,7 186.29 (2) (b) Give notice to all individuals, partnerships, corporations, limited liability companies and associations known to the commissioner office of credit unions to be holding or in possession of any assets of such credit union.

AB150, s. 4962 Section 4962. 186.29 (2) (c) of the statutes is amended to read:

AB150,1652,3 186.29 (2) (c) The commissioner office of credit unions may appoint one or more special deputy commissioners deputies as agent agents to assist in the duty of liquidation and distribution of the assets of one or more credit unions of whose business and property the commissioner office of credit unions shall have taken possession pursuant to the provisions of this chapter. A certificate of such appointment shall be filed in the office of the commissioner credit unions and a certified copy in the office of the clerk of the circuit court for the county in which such credit union is located. The commissioner office of credit unions may employ such counsel and procure such expert assistance and advice as may be necessary in the liquidation and distribution of the assets of such credit union, and may retain such of the officers or employes of such credit union as the commissioner office deems necessary. The special deputy commissioner and assistants shall furnish such security for the faithful discharge of their duties as the commissioner office of credit unions deems proper. Such The special deputy commissioner may execute, acknowledge and deliver any and all deeds, assignments, releases or other instruments necessary and proper to effect any sale and transfer or incumbrance of real estate or personal property and may borrow money for use in the liquidation after the same has been approved by the commissioner office of credit unions and an order obtained from the circuit court of the county in which said credit union is located as hereinafter provided.

AB150, s. 4963 Section 4963. 186.29 (2) (d) of the statutes is amended to read:

AB150,1652,16 186.29 (2) (d) Upon taking possession of the property and business of such credit union, the special deputy commissioner is authorized to collect all moneys due to such credit union, and do such other acts as are necessary to conserve its assets and business, and shall proceed to liquidate the affairs thereof as hereinafter provided. The special deputy commissioner shall collect all debts due and claims belonging to it, and upon a petition approved by the commissioner office of credit unions and upon order of the circuit court of the county in which such credit union is located, may sell or compound all bad or doubtful debts, or do any act or execute any other necessary instruments and upon like petition and order may sell all the real and personal property of such credit union on such terms as the court shall approve. Such The special deputy commissioner may, if necessary, enforce individual liability of the stockholders to pay the debts of such corporation.

AB150, s. 4964 Section 4964. 186.29 (3) of the statutes is amended to read:

AB150,1653,7 186.29 (3) Notice, allowance and payment of claims. The special deputy commissioner shall cause a class 3 notice, under ch. 985, to be published, calling on all persons who may have claims against such credit union, to present the same to the special deputy commissioner and make legal proof thereof at a place and within a time, not earlier than the last day of publication, to be therein specified. The special deputy commissioner shall mail a similar notice to all persons at their last-known address, whose names appear as creditors upon the books of the credit union. Proof of service of such notice shall be filed with the clerk of said court. The special deputy commissioner may reject any claim. Any party interested may also file written objections to any claim with the special deputy commissioner and after notice by registered mail of such rejection, said claimant shall be barred unless the claimant commences an action thereon within 3 months. Claims presented after the expiration of the time fixed in the notice to creditors shall be entitled to share in the distribution only to the extent of the assets then in the hands of the special deputy commissioner equitably applicable thereto.

AB150, s. 4965 Section 4965. 186.29 (4) of the statutes is amended to read:

AB150,1653,20 186.29 (4) Inventory of assets and statement of liabilities. Upon taking possession of the property and assets of such credit union, the special deputy commissioner shall make an inventory of the assets of such credit union, in duplicate, one to be filed in the office of the commissioner credit unions and one in the office of the clerk of circuit court for the county in which such credit union is located. Upon the expiration of the time fixed for the presentation of claims, the special deputy commissioner shall make in duplicate a full and complete list of the claims presented, including and specifying such claims as have been rejected by the special deputy commissioner, one to be filed in the office of the commissioner credit unions, and one in the office of the clerk of circuit court for the county in which such credit union is located. Such inventory and list of claims shall be open at all reasonable times to inspection.

AB150, s. 4966 Section 4966. 186.29 (5) of the statutes is amended to read:

AB150,1654,10 186.29 (5) Adjustment of loans and withdrawal value of shares. The value of shares pledged upon a loan to the credit union shall be applied and credited to the loan and the borrower shall be liable only for the balance. The rate of interest charged upon the balance shall be the legal rate. The value shall be determined in such manner as the commissioner office of credit unions prescribes, and shall be made under s. 186.30 (1) and (3), or in such other manner as the commissioner office may prescribe. Upon the approval of the value by the commissioner office of credit unions and the circuit court of the county in which the credit union is located, the book value of each member shall be reduced proportionately. At least 5 days' written notice of the determination of value shall be given to all shareholders of the time and place the value shall be submitted to the circuit court for approval. Approval of the circuit court shall be by an order entered under s. 807.11 (2). Any stockholder or creditor of the credit union aggrieved by the determination of value may appeal to the court of appeals.

AB150, s. 4967 Section 4967. 186.29 (6) of the statutes is amended to read:

AB150,1654,25 186.29 (6) Compensation and expenses in connection with liquidation. The compensation of the special deputy commissioners deputies, counsel and other employes and assistants, and all expenses of supervision and liquidation shall be fixed by the commissioner office of credit unions, subject to the approval of the circuit court for the county in which the credit union is located, and shall upon the certificate of the commissioner office of credit unions be paid out of the funds of the credit union. Expenses of supervision and liquidation include the cost of the services rendered by the office of the commissioner credit unions to the credit union being liquidated. The cost of these services shall be determined by the commissioner office of credit unions and paid to the office of the commissioner from the assets of the credit union as other expenses of liquidation are paid. The moneys collected by the special deputy commissioner shall be deposited in one or more central credit unions, and, in case of the suspension or insolvency of a depository, such deposits shall be preferred before all other deposits.

AB150, s. 4968 Section 4968. 186.29 (7) of the statutes is amended to read:

AB150,1655,9 186.29 (7) Liquidating dividends. At any time after the expiration of the date fixed for the presentation of claims, the special deputy commissioner in charge of the liquidation of such credit union may, upon a petition approved by the commissioner office of credit unions and an order of the circuit court of the county in which such credit union is located, out of the funds remaining, after the payment of expenses and debts, declare one or more dividends, and may declare a final dividend, such dividend to be paid to such persons, and in such amounts as may be directed by the circuit court.

AB150, s. 4969 Section 4969. 186.29 (8) of the statutes is amended to read:

AB150,1655,20 186.29 (8) (title) Title passes to commissioner office. Immediately upon filing the notice as provided for in sub. (2), the possession of all assets and property of such credit union of every kind and nature, wheresoever situated shall be deemed to be transferred from such credit union to, and assumed by the commissioner office of credit unions; and filing of the notice mentioned herein, shall of itself, and without the execution or delivery of any instruments of conveyance, assignment, transfer or indorsement, vest the title to all such assets and property in the commissioner office of credit unions. Such filing shall also operate as a bar to any attachment, garnishment, execution or other legal proceedings against such credit union, or its assets and property, or its liabilities.

AB150, s. 4970 Section 4970. 186.29 (9) of the statutes is amended to read:

AB150,1655,25 186.29 (9) Effect of possession. No credit union shall have a lien, or charge for any payment, advance or clearance made, or liability thereafter incurred, against any of the assets of the credit union of whose property and business the commissioner office of credit unions shall have taken possession.

AB150, s. 4971 Section 4971. 186.29 (10) of the statutes is amended to read:

AB150,1656,15 186.29 (10) Appeal. Whenever any such credit union, whose property and business the commissioner office of credit unions has taken possession of, as aforesaid, deems itself aggrieved thereby, it may, at any time within 10 days after such taking, appeal to the credit union review board for relief from such possession by the commissioner office of credit unions. In the event the credit union review board sustains the commissioner office of credit unions, the said credit union may then at any time within 10 days after the decision of the credit union review board, apply to the circuit court of the county in which such credit union is located to enjoin further proceedings; and said court, after citing the commissioner office of credit unions to show cause why further proceedings should not be enjoined and hearing all allegations and proofs of the parties and determining the facts, may, upon the merits dismiss such application or enjoin the commissioner office of credit unions from further proceedings, and direct it to surrender such business and property to such credit union.

AB150, s. 4972 Section 4972. 186.29 (11) (intro.) of the statutes is amended to read:

AB150,1656,19 186.29 (11) Reinstatement. (intro.) Whenever the commissioner office of credit unions shall have taken over the possession and control of the business and property of any credit union the same may resume business when and if:

AB150, s. 4973 Section 4973. 186.29 (11) (a) of the statutes is amended to read:

AB150,1656,23 186.29 (11) (a) The owners of at least two-thirds of such credit union dollar value of outstanding shares, execute a petition to such effect, the form of which shall be prescribed by the commissioner office of credit unions, and

AB150, s. 4974 Section 4974. 186.29 (11) (b) of the statutes is amended to read:

AB150,1657,3 186.29 (11) (b) There is submitted to the commissioner office of credit unions by such shareholders or a committee duly selected by them, a plan for the reorganization and reinstatement of such credit union, and

AB150, s. 4975 Section 4975. 186.29 (11) (c) of the statutes is amended to read:

AB150,1657,7 186.29 (11) (c) The commissioner office of credit unions recommends that control of the business and property of such credit union be returned to the shareholders, and

AB150, s. 4976 Section 4976. 186.29 (11) (d) of the statutes is amended to read:

AB150,1657,13 186.29 (11) (d) The court in which such liquidation is pending, upon application of the commissioner office of credit unions, makes an order approving the commissioner's office's recommendations, which order shall contain a finding that such credit union will be in a safe and sound condition when control is resumed by the shareholders.

AB150, s. 4977 Section 4977. 186.29 (12) of the statutes is amended to read:

AB150,1657,25 186.29 (12) Reinstatement upon restricted basis. Such credit union may also resume business upon a restricted basis, and upon such limitations and conditions as may be prescribed by the commissioner office of credit unions when approved by the circuit court in and for the county in which such credit union is located, upon application of the commissioner office of credit unions. Such restrictions and conditions may include, among others, a prohibition against the selling of new shares, reasonable restrictions upon withdrawals and the payment of other liabilities. Such credit union shall thereupon be relieved from the control and supervision of the commissioner office of credit unions as provided in this section, but nothing herein shall, in any manner, prohibit the commissioner office from again proceeding against such credit union as provided herein.

AB150, s. 4978 Section 4978. 186.29 (13) (a) of the statutes is amended to read:

AB150,1658,12 186.29 (13) (a) The special deputy commissioner shall deposit unclaimed liquidating dividends and unclaimed funds remaining unpaid in the hands of the special deputy commissioner for 6 months after the order for final distribution in one or more central credit unions in the commissioner's office of credit unions' name in trust for the shareholders and creditors of the liquidated credit union. The commissioner office of credit unions shall annually report to the governor and the chief clerk of each house of legislature for distribution to the legislature under s. 13.172 (2) the names of credit unions of which the commissioner office has taken possession and liquidated, and the sums of unclaimed and unpaid liquidating dividends and unclaimed funds with respect to each of the credit unions respectively, including a statement of interest earned upon such funds.

AB150, s. 4979 Section 4979. 186.29 (13) (b) of the statutes is amended to read:

AB150,1658,22 186.29 (13) (b) The commissioner office of credit unions may pay over the moneys so held by the commissioner office to the persons respectively entitled thereto, upon being furnished satisfactory evidence of their right to the same. In case of doubt or conflicting claims, the commissioner office of credit unions may require an order of the circuit court authorizing and directing the payment thereof. The commissioner office of credit unions may apply the interest earned by the moneys so held by the commissioner office towards defraying the expenses in the payment and distribution of such unclaimed liquidating dividends and funds to the stockholders and creditors entitled to receive the same.

AB150, s. 4980 Section 4980. 186.29 (13) (c) of the statutes is amended to read:

AB150,1659,7 186.29 (13) (c) After one year from the time of the order for final distribution, the commissioner office of credit unions shall report and deliver to the state treasurer all unclaimed funds as provided in ch. 177. All claims subsequently arising shall be presented to the commissioner office of credit unions. If the commissioner office of credit unions determines that any claim should be allowed, he or she the office shall certify to the department of administration the name and address of the person entitled to payment and the amount thereof and shall attach the claim to the certificate. The department secretary of administration shall certify the claim to the state treasurer for payment.

AB150, s. 4981 Section 4981. 186.30 (1) of the statutes is amended to read:

AB150,1659,20 186.30 (1) Whenever from an examination or report, it shall appear to the commissioner office of credit unions that the capital of any credit union is impaired, or may in the near future become impaired, the commissioner office of credit unions may, with the approval of the credit union review board, issue an order to such credit union, requiring the directors to forthwith appoint, subject to the approval of the commissioner office of credit unions, 3 competent persons, not members of such credit union, who shall appraise such property owned by, or upon which such credit union has a loan or judgment, as the commissioner office shall designate. The appraisers so appointed and approved shall appraise and fix the current market value of all such property as aforesaid and report their findings to the commissioner office of credit unions and the directors. The value as found by such appraisers shall be the value from which all losses shall be determined.

AB150, s. 4982 Section 4982. 186.30 (2) of the statutes is amended to read:

AB150,1660,3 186.30 (2) Whenever the commissioner office of credit unions finds that the losses existing, or which it may reasonably be anticipated will be sustained in the near future, are more than two-thirds of the amount in the regular reserve of the credit union, the commissioner office of credit unions may, with the approval of the review board, issue an order to such credit union, which order shall provide that no further dividends be credited or paid and no moneys paid out for retiring shares, whether noticed for withdrawal, until the commissioner office otherwise orders.

AB150, s. 4983 Section 4983. 186.30 (3) of the statutes is amended to read:

AB150,1660,12 186.30 (3) After the commissioner office of credit unions shall have determined the losses existing or which the commissioner office shall determine may reasonably be sustained in the near future, the commissioner office of credit unions shall issue an order providing that the book value of each share be depreciated as stated in such order, the officers shall forthwith proceed to depreciate the book value of all shares as ordered. A record shall be made on the books showing the amount by which the book value of the shares was depreciated, and a copy of such record shall be filed with the commissioner office of credit unions.

AB150, s. 4984 Section 4984. 186.30 (5) of the statutes is amended to read:

AB150,1660,17 186.30 (5) The directors may, with the approval of the commissioner office of credit unions, make share loans to members upon such terms and conditions as the commissioner office may order, but such loans shall be for provident purposes only and not more than $100 shall be loaned to any one member in any one month.

AB150, s. 4985 Section 4985. 186.30 (7) of the statutes is amended to read:

AB150,1660,23 186.30 (7) The directors may, with the approval of the commissioner office of credit unions, sell, lease, transfer, exchange and convey any of the property of the credit union, and upon their order the proper officers shall execute and deliver such deeds, leases, assignments, bills of sale and such other transfers and conveyances as are necessary to dispose of such property as herein provided.

AB150, s. 4986 Section 4986. 186.30 (8) of the statutes is amended to read:

AB150,1661,4 186.30 (8) The directors may compromise and settle any claim, demand or judgment which is a part of the assets of the credit union, but no compromise of any claim, demand or judgment shall be made except upon express consent of the commissioner office of credit unions.

AB150, s. 4987 Section 4987. 186.30 (9) of the statutes is amended to read:

AB150,1661,8 186.30 (9) The commissioner office of credit unions shall prescribe reasonable rules and regulations not inconsistent with laws for the operation of credit unions operating as provided in this section.

AB150, s. 4988 Section 4988. 186.30 (11) of the statutes is amended to read:

AB150,1661,14 186.30 (11) The directors shall make no disbursements or contract to make disbursements for salaries, compensation, fees or any other item of expense, nor retire shares, nor pay or declare dividends during the time such credit union is operating as provided in this section without the approval of the commissioner office of credit unions.

AB150, s. 4989 Section 4989. 186.31 (1) of the statutes is amended to read:

AB150,1661,25 186.31 (1) Any credit union, which is in good faith winding up its business for the purpose of consolidating with some other credit union, may transfer its assets and liabilities to the credit union with which it is in the process of consolidation; but no consolidation may be made without the consent of the commissioner office of credit unions, and not then to defeat or defraud any of its creditors in the collection of debts against such credit union. No consolidation may be carried out without the consent of the Wisconsin credit union savings insurance corporation if it protects or guarantees the accounts of any credit union participating in the consolidation, or the national board if it insures the shares of any credit union participating in the consolidation.

AB150, s. 4990 Section 4990. 186.31 (2) of the statutes is amended to read:

AB150,1662,13 186.31 (2) With the approval of the commissioner office of credit unions, credit unions may consolidate. To effect a consolidation, the board of directors of each consolidating union shall, by resolution, propose a specific plan for consolidation which shall be agreed to by a majority of the board of each credit union joining in the consolidation and directing that the proposed plan of consolidation be submitted to a vote at a meeting of members of the credit unions being absorbed which may be either an annual or a special meeting. Written notice of the meeting setting forth the proposed plan of consolidation or a summary shall be given to each member of the credit unions being absorbed within the time and in the manner provided for the giving of notice of meetings of members of the credit union. The proposed plan shall be adopted upon receiving a majority of the votes entitled to be cast by members present at the meeting.

AB150, s. 4991 Section 4991. 186.314 (2) of the statutes is amended to read:

AB150,1662,17 186.314 (2) A statement of the results of the vote, verified by the affidavits of the president or vice president and the secretary, shall be filed with the office of the commissioner credit unions within 10 days after the vote is taken.

AB150, s. 4992 Section 4992. 186.314 (3) of the statutes is amended to read:

AB150,1662,25 186.314 (3) Promptly after the vote is taken and in no event later than 90 days thereafter, if the proposition for conversion was approved by such vote, the credit union shall take such action as may be necessary under the federal law to make it a federal credit union, and within 10 days after receipt of the federal credit union charter, there shall be filed with the office of the commissioner credit unions a copy of the charter thus issued. Upon such filing, the credit union shall cease to be a state credit union.

AB150, s. 4993 Section 4993. 186.314 (4) of the statutes is amended to read:

AB150,1663,8 186.314 (4) Upon ceasing to be a state credit union, such credit union shall no longer be subject to this chapter. The successor federal credit union shall be vested with all the assets and shall continue to be responsible for all of the obligations of the state credit union, including annual and special assessments levied under s. 186.35 (5) (d) prior to the date a copy of the federal credit union charter is filed with the commissioner office of credit unions, to the same extent as though the conversion had not taken place.

AB150, s. 4994 Section 4994. 186.315 of the statutes is amended to read:

AB150,1664,2 186.315 Charter cancellation. Upon completion of a voluntary liquidation as provided in s. 186.18, or upon completion of the liquidation in cases under s. 186.29, or after the assets and liabilities of a credit union are transferred to another credit union for the purpose of consolidation as provided in s. 186.31 (3), the commissioner office of credit unions shall forthwith cancel the charter of the credit union or credit unions liquidated or absorbed in consolidation without any other or further notice to said credit union or to any person. A certified copy of the order or certificate of the commissioner office of credit unions shall be recorded with the register of deeds of the county where said credit union is located. The register of deeds shall note on the margin of the record of the articles of incorporation of said credit union the volume and page where said order or certificate canceling its charter is recorded and shall be entitled to a fee of 50 cents therefor. In case of voluntary liquidation under s. 186.18 or consolidation under s. 186.31, the credit union shall record the order or certificate of the commissioner office of credit unions and pay the fee therefor. In case of liquidation under s. 186.29, the commissioner office of credit unions or special deputy commissioner as therein provided shall record the order or certificate of the commissioner office and pay the fee therefor out of the assets of the credit union as an expense of liquidation.

AB150, s. 4995 Section 4995. 186.33 of the statutes is amended to read:

AB150,1664,17 186.33 Other powers. Credit unions may engage in the business and functions provided for in s. 218.05 and ch. 217 for their members upon receiving a certificate of authority from the commissioner office of credit unions. The certificate of authority shall be issued by the commissioner office of credit unions upon application of a credit union whenever the commissioner office finds that the credit union has adequate clerical facilities and has provided for the keeping of adequate accounts and for the segregation of funds used in carrying on the business of issuing their own credit union money orders. The applicants shall meet the same requirements as other applicants under ch. 217, but no investigation fee may be charged of credit union applicants. The commissioner office of credit unions may revoke a certificate of authority following a hearing held upon 10 days' notice to the credit union for any reason which would have justified the rejection of an application or on the ground that the continued operation of the business threatens the solvency of the credit union.

AB150, s. 4996 Section 4996. 186.34 (2) (a) of the statutes is amended to read:

AB150,1664,23 186.34 (2) (a) Every credit union organized under this chapter prior to July 20, 1985, except a corporate central credit union, shall file a complete application for federal share insurance from the national board not later than January 18, 1986. The commissioner office of credit unions shall suspend the business of or liquidate any credit union that fails to comply with this paragraph under s. 186.29 (1m) (b).

AB150, s. 4997 Section 4997. 186.34 (2) (b) of the statutes is amended to read:

AB150,1665,10 186.34 (2) (b) Every credit union incorporated under this chapter prior to July 20, 1985, except a corporate central credit union, shall obtain a certificate of insurance issued by the national board within 54 months after July 20, 1985. The commissioner office of credit unions may extend for a period not to exceed 12 months the date by which a credit union must obtain a certificate of insurance upon satisfactory evidence that the credit union has made or is making a substantial effort to satisfy the conditions precedent to issuance of the certificate of insurance. Unless the commissioner office of credit unions approves a consolidation under s. 186.31, the commissioner office shall liquidate under s. 186.29 any credit union that fails to comply with this paragraph.

AB150, s. 4998 Section 4998. 186.34 (3) (intro.) of the statutes is amended to read:

AB150,1665,14 186.34 (3) (intro.) The commissioner office of credit unions shall give the Wisconsin credit union savings insurance corporation written notice of all of the following:

AB150, s. 4999 Section 4999. 186.34 (4) of the statutes is amended to read:

AB150,1665,22 186.34 (4) Every credit union that receives a certificate of insurance from the national board shall file a copy of the certificate with the commissioner office of credit unions within 30 days after the credit union receives the certificate. Every credit union organized under this chapter prior to July 20, 1985, that receives a certificate of insurance from the national board shall also file a copy of the certificate with the Wisconsin credit union savings insurance corporation within 30 days after receipt of the certificate.

AB150, s. 5000 Section 5000. 186.35 (1) of the statutes is amended to read:

AB150,1666,12 186.35 (1) Organization. The Wisconsin credit union savings insurance corporation, a nonprofit corporation, hereinafter referred to as the "corporation", shall be organized within one year after February 14, 1970, by the authorized representatives of not less than 9 credit unions chartered and existing under this chapter. The articles of incorporation shall require the approval of the commissioner office of credit unions, and shall be filed with the commissioner office of credit unions and recorded with the register of deeds of the county in which the principal office of the corporation is located. Amendments to the articles, adopted by a vote of two-thirds of the member credit unions present at an annual meeting or a special meeting called for that purpose, shall be filed with the commissioner office of credit unions upon payment of a fee of $5 and if approved by the commissioner office shall become effective upon being recorded in the office of the register of deeds in the same manner as the original articles. This corporation shall be under the exclusive supervision of the commissioner office of credit unions.

AB150, s. 5001 Section 5001. 186.35 (2) (b) of the statutes is amended to read:

AB150,1666,16 186.35 (2) (b) Cooperate with its member credit unions and the office of the commissioner credit unions for the purpose of improving the general welfare of credit unions in this state.

AB150, s. 5002 Section 5002. 186.35 (3) (n) of the statutes is amended to read:

AB150,1666,20 186.35 (3) (n) As determined by the trustees, declare and pay dividends in cash or property to its members, except that the corporation may not declare or pay a dividend unless the commissioner office of credit unions has approved the dividend.