AB150: Bill Text

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.

AB150, s. 5003 Section 5003. 186.35 (3m) (intro.) of the statutes is amended to read:

AB150,1667,2 186.35 (3m) Prohibited use of funds. (intro.) Notwithstanding subs. (2) and (3) (d), none of the corporation's funds may be used to assist member credit unions to meet the eligibility requirements for obtaining a certificate of federal share insurance under s. 186.34, unless the commissioner office of credit unions determines all of the following:

AB150, s. 5004 Section 5004. 186.35 (5) (d) 2. of the statutes is amended to read:

AB150,1667,10 186.35 (5) (d) 2. In the event of the potential impairment of the corporation's capital, special assessments may be levied against all member credit unions by the trustees with the approval of the commissioner office of credit unions. The trustees shall determine the total amount of any special assessment, and each member shall be liable to the corporation for a fraction of the total special assessment. Each member's fractional share of a special assessment shall be determined under sub. (12).

AB150, s. 5005 Section 5005. 186.35 (5) (f) of the statutes is amended to read:

AB150,1667,14 186.35 (5) (f) The trustees may reduce or waive the annual assessment when the total funds in this corporation equal an amount which is mutually agreed upon by the trustees and the commissioner office of credit unions.

AB150, s. 5006 Section 5006. 186.35 (7) of the statutes is amended to read:

AB150,1667,18 186.35 (7) Supervision of corporation. The corporation shall be subject to supervision and an annual examination by the office of the commissioner credit unions. The cost of each examination shall be paid by the corporation.

AB150, s. 5007 Section 5007. 186.35 (8) of the statutes is amended to read:

AB150,1668,7 186.35 (8) Examinations of credit unions. The office of the commissioner credit unions shall promptly forward to the corporation copies of examination reports of all members. The cost of these copies shall be paid by the corporation. If the trustees of the corporation ascertain evidence of carelessness, unsound practices or mismanagement of any member or if the trustees determine that the activities of any member may jeopardize any of the corporation's assets, the trustees or their designees may require the member to disclose its operational policies and procedures, and may recommend appropriate corrective measures to the member. If the trustees determine that the carelessness, unsound practices or mismanagement is not promptly corrected or that the threat to the corporation's assets has not been removed, the trustees may make appropriate recommendations to the commissioner office of credit unions, including the recommendation that the member be liquidated or consolidated.

AB150, s. 5008 Section 5008. 186.35 (9) of the statutes is amended to read:

AB150,1668,13 186.35 (9) Bylaws. The incorporators shall subscribe and submit to the commissioner office of credit unions, for approval, the bylaws and any amendments thereto under which the corporation shall operate. These bylaws may be amended at any regular or special meeting of the trustees or any annual or special meeting of the corporation.

AB150, s. 5009 Section 5009. 186.35 (11) (a) of the statutes is amended to read:

AB150,1669,2 186.35 (11) (a) Within 30 days after receipt of written notice from the commissioner office of credit unions under s. 186.34 (3), the corporation shall publish a class 3 notice, under ch. 985, requiring all persons who have claims against the corporation to file proof of their respective claims at a place and by a date not earlier than 30 days after the last insertion of the notice. Proof of publication shall be filed with the clerk of the circuit court. Notwithstanding any other law, any claim for which no proof of claim is filed by the date fixed in the notice is barred. Within 30 days after the last date for filing claims, the corporation shall give notice by registered or certified mail to each claimant if the corporation denies all or any part of the claimant's claims. Any claim for which notice of complete or partial denial is duly mailed is barred unless the claimant commences an action within 90 days after the date of mailing of the notice.

AB150, s. 5010 Section 5010. 186.35 (11) (b) of the statutes is amended to read:

AB150,1669,13 186.35 (11) (b) Within 30 days after the termination of the period for commencing actions under par. (a), the trustees shall determine the amount reasonably necessary to pay all of the corporation's outstanding, lawful liabilities and to pay the expenses of winding up the corporation's affairs. Upon receiving the approval of the commissioner office of credit unions, the corporation shall set aside the amount approved by the commissioner office and shall immediately distribute all of the remaining assets of the corporation, subject to par. (c). The corporation may make other subsequent distributions, subject to par. (c) if any additional surplus is realized. Any surplus remaining after the corporation has been dissolved shall be distributed, subject to par. (c).

AB150, s. 5011 Section 5011. 186.37 of the statutes is amended to read:

AB150,1669,20 186.37 (title) Immunity of commissioner office. The commissioner An employe of the office of credit unions 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 office of credit unions in the commissioner's office's official capacity under this chapter.

AB150, s. 5012 Section 5012. 186.38 (2) of the statutes is amended to read:

AB150,1670,11 186.38 (2) Organization. The corporation may be organized under this section by the authorized representatives of one or more credit union share or deposit corporations. The articles of incorporation shall require the approval of the commissioner office of credit unions and shall be filed with the commissioner office 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 voting shares represented at an annual meeting or at 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 of credit unions 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 under sub. (9) and the commissioner office shall, with the approval of the credit union review board, fix and assess the corporation a fair amount for such supervision and examination of the corporation.

AB150, s. 5013 Section 5013. 186.38 (5) (c) of the statutes is amended to read:

AB150,1670,16 186.38 (5) (c) The terms of withdrawal from membership and restrictions on sale of capital stock shall be as prescribed in the articles of incorporation as approved by the commissioner office of credit unions, and such terms shall be binding on all members and shareholders.

AB150, s. 5014 Section 5014. 186.38 (7) of the statutes is amended to read:

AB150,1670,21 186.38 (7) Reserves. The corporation shall maintain reserves for its liabilities, including contingent liabilities, and the commissioner office of credit unions shall have authority to order a change in reserves if the commissioner office deems them to be unacceptable.

AB150, s. 5015 Section 5015. 186.38 (9) of the statutes is amended to read:

AB150,1671,2 186.38 (9) Supervision of corporation. The corporation shall be subject to supervision and an annual examination by the office of the commissioner, who credit unions. The office of credit unions may invite participation by credit union supervisory authorities from other states.

AB150, s. 5016 Section 5016. 186.38 (10) of the statutes is amended to read:

AB150,1671,9 186.38 (10) Examinations. The office of the commissioner credit unions shall promptly forward to the corporation a copy of its examination report of the Wisconsin credit union savings insurance corporation, if it becomes a member of the corporation, and shall cooperate with the corporation in obtaining similar examination reports from other state credit union supervisory authorities where member state credit union share or deposit corporations are domiciled.

AB150, s. 5017 Section 5017. 186.38 (11) of the statutes is amended to read:

AB150,1671,15 186.38 (11) Bylaws. The board of directors shall subscribe and submit to the commissioner office of credit unions, for filing and approval, the bylaws and any amendments thereto under which the corporation shall operate. These bylaws may be amended at any regular or special meeting of the board of directors or at any annual or special meeting of the shareholders.

AB150, s. 5018 Section 5018. 186.41 (2) (b) of the statutes is amended to read:

AB150,1671,20 186.41 (2) (b) An in-state credit union proposing any action under par. (a) shall provide the commissioner office of credit unions a copy of any original application seeking approval by a federal agency or by an agency of the regional state and of any supplemental material or amendments filed in connection with any application.