AB150: Bill Text

AB150,1804,4 214.785 (1) Any interested person or a savings bank aggrieved by any act, order or determination of the commissioner department, which relates to savings banks may, within 20 days after receipt or service of a copy of the act, order or determination, file a written notice requesting the review board's review of the commissioner's department's act, order or determination. The sole review of the commissioner's department's decision shall be to determine if the commissioner department acted within the scope of the commissioner's department's authority, has not acted in an arbitrary or capricious manner and that the act, order or determination of the commissioner department is supported by substantial evidence in view of the entire record as submitted. The review of applications for new savings banks, branch offices or relocation of offices shall be based exclusively on the record and new evidence may not be taken by the review board. Applications under this subsection shall be considered and disposed of as speedily as possible.

AB150, s. 5464 Section 5464. 214.785 (2) of the statutes is amended to read:

AB150,1804,10 214.785 (2) A determination of the review board shall be subject to review under ch. 227. If an act, order or determination of the commissioner department is reversed or modified by the review board, the commissioner department shall be considered to be a person aggrieved and directly affected by the decision under s. 227.53 (1).

AB150, s. 5465 Section 5465. 214.82 (title) of the statutes is amended to read:

AB150,1804,13 214.82 (title) Commissioner's Department's authority to take custody and appoint a conservator or a receiver.

AB150, s. 5466 Section 5466. 214.82 (1) (intro.) of the statutes is amended to read:

AB150,1804,18 214.82 (1) (intro.) The commissioner department may take custody of and appoint a conservator for the property, liabilities, books, records, business and assets of a savings bank for any of the purposes under s. 214.825 if any of the following conditions exists:

AB150, s. 5467 Section 5467. 214.82 (1) (a) of the statutes is amended to read:

AB150,1804,21 214.82 (1) (a) The savings bank fails to produce an annual audited financial statement, after receiving one extension from the commissioner department.

AB150, s. 5468 Section 5468. 214.82 (1) (b) of the statutes is amended to read:

AB150,1805,3 214.82 (1) (b) The savings bank's books and records, after at least 2 consecutive notices from the commissioner department spanning at least 2 consecutive calendar quarters, are in an inaccurate and incomplete condition to the extent that the commissioner department is unable to determine the financial condition of the savings bank or the details or purpose of any transaction that may materially affect the savings bank's financial condition.

AB150, s. 5469 Section 5469. 214.82 (1) (e) of the statutes is amended to read:

AB150,1805,7 214.82 (1) (e) The savings bank has experienced substantial dissipation of assets due to a violation of a state or federal law, regulation, rule or order of the commissioner department or due to any unsafe or unsound practice.

AB150, s. 5470 Section 5470. 214.82 (1) (h) of the statutes is amended to read:

AB150,1805,11 214.82 (1) (h) The savings bank or its officers, directors or employes are violating a state or federal law, regulation, rule or supervisory order of the commissioner department or of another regulatory authority.

AB150, s. 5471 Section 5471. 214.82 (1) (j) of the statutes is amended to read:

AB150,1805,19 214.82 (1) (j) The directors, officers, trustees or liquidators have neglected, failed or refused to take any action that the commissioner department considers necessary for the protection of the savings bank, including production of an annual audited financial statement after an extension was granted, have continued to maintain the savings bank's books and records in an inaccurate and incomplete condition for 2 consecutive quarters after 2 notices from the commissioner department or have impeded or obstructed an examination.

AB150, s. 5472 Section 5472. 214.82 (2) of the statutes is amended to read:

AB150,1805,25 214.82 (2) The commissioner department may postpone taking custody of a savings bank pending a satisfactory resolution of the condition permitting custody as suggested by the deposit insurance corporation, if the savings bank has sufficient liquidity and has adopted and implemented an operating plan considered prudent by the commissioner department.

AB150, s. 5473 Section 5473. 214.82 (3) of the statutes is amended to read:

AB150,1806,5 214.82 (3) The commissioner department shall promulgate rules to govern the determination of a need for a conservator, the selection and appointment of a conservator and the conduct of a conservatorship, including allocation of the payment of costs.

AB150, s. 5474 Section 5474. 214.825 of the statutes is amended to read:

AB150,1806,16 214.825 Purposes of taking custody. The purposes of taking custody of a savings bank may include examination; production of an audited financial statement; reconstruction of books and records; conservation of assets; restoration of impaired capital; the making of any necessary or equitable adjustment, including changes in officers and management, considered necessary by the commissioner department under any plan of reorganization or liquidation; restructuring of the savings bank through a merger or formation of a interim institution; establishment of a conservatorship to operate and manage a savings bank as an ongoing concern until the grounds for custody and conservatorship are remedied; or the maturing of an obligation of the deposit insurance corporation.

AB150, s. 5475 Section 5475. 214.83 of the statutes is amended to read:

AB150,1806,24 214.83 (title) Commissioner's Department's powers during custody. During the period in which the commissioner department has custody of a savings bank, the commissioner department shall have all powers necessary to accomplish the purposes of custody of the savings bank and the authority to call meetings of the members, stockholders, former officers and directors, liquidators or trustees to consider and act upon matters considered by the commissioner department to be of sufficient importance to obtain the views of those persons.

AB150, s. 5476 Section 5476. 214.835 (intro.) of the statutes is amended to read:

AB150,1807,3 214.835 Custody of savings banks. (intro.) If the commissioner department takes custody of a savings bank, in addition to powers conferred under ss. 214.825 and 214.83, the commissioner department may do any of the following:

AB150, s. 5477 Section 5477. 214.835 (1) of the statutes is amended to read:

AB150,1807,8 214.835 (1) Notify the deposit insurance corporation of the custody and the reasons for that action, including a copy of the commissioner's department's report of examination and condition of the savings bank, and to appoint the deposit insurance corporation or its designee as receiver or conservator for the savings bank.

AB150, s. 5478 Section 5478. 214.835 (3) of the statutes is amended to read:

AB150,1807,13 214.835 (3) Determine and declare the savings bank to be in default, find from the commissioner's department'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, s. 5479 Section 5479. 214.84 of the statutes is amended to read:

AB150,1808,3 214.84 Notice of custody; action to enjoin. On the date the commissioner department takes custody of a savings bank, the commissioner department 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 department 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 department 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 department to show cause why custody should not be enjoined. If, upon hearing, the court finds that grounds do not exist for the commissioner's department's custody, it may enter an order enjoining further custody.

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

AB150,1808,13 214.845 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 department 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 department shall return the money segregated in the separate account.

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

AB150,1808,20 214.85 Redelivery of possession. If, after examination of the savings bank and consideration of all conditions affecting its affairs, the commissioner department finds that the cause for taking custody has been removed, the commissioner department 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, s. 5482 Section 5482. 214.855 of the statutes is amended to read:

AB150,1808,25 214.855 Limitations upon custody. The custody of a savings bank by the commissioner department, 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, s. 5483 Section 5483. 214.90 (intro.) of the statutes is amended to read:

AB150,1809,9 214.90 Action to correct conditions. (intro.) The commissioner department 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 department 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, s. 5484 Section 5484. 214.90 (1) (b) of the statutes is amended to read:

AB150,1809,13 214.90 (1) (b) The violation or practice involved a reckless disregard for applicable state or federal laws, regulations, rules or orders of the commissioner department or other appropriate regulator.

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

AB150,1809,16 214.90 (5) Submit candidates for future directors, employes or officers to the commissioner department for approval.

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

AB150,1809,19 214.90 (6) Take any other action the commissioner department considers necessary.

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

AB150,1810,2 214.905 (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 department 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 department shall issue an order that requires all of the following:

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

AB150,1810,5 214.905 (1) (c) Establishment of reserves for any losses that the commissioner department finds were incurred due to the condition of the books and records.

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

AB150,1810,9 214.905 (2) An order under sub. (1) shall be effective until the commissioner department determines through an examination that the condition has been corrected and rescinds the order.

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

AB150,1810,13 214.91 (1) (intro.) The commissioner department may remove from a savings bank any employe, agent or person affiliated with the savings bank if the commissioner department finds that the person has done any of the following:

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

AB150,1810,17 214.91 (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 department or between the savings bank and the deposit insurance corporation.

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

AB150,1811,2 214.91 (2) (intro.) The commissioner department may serve upon a savings bank employe, agent or person affiliated with the savings bank a written notice of the commissioner's department'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 department finds that, because of a violation permitting removal under sub. (1), any of the following conditions exists:

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

AB150,1811,10 214.915 (1) Except as provided in rules of the commissioner department, 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, s. 5494 Section 5494. 214.92 of the statutes is amended to read:

AB150,1811,16 214.92 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 department 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, s. 5495 Section 5495. 214.925 (1) of the statutes is amended to read:

AB150,1811,21 214.925 (1) Except with the prior written consent of the commissioner department, 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, s. 5496 Section 5496. 214.93 of the statutes is amended to read:

AB150,1812,2 214.93 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 department or by this chapter.

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

AB150,1812,5 214.935 Civil forfeitures. (intro.) In addition to the enforcement authority granted to the commissioner department, the following forfeiture provisions apply:

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

AB150,1812,10 214.935 (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 department may be required to forfeit not more than $10,000. Each day of continued violation constitutes a separate offense.

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

AB150,1812,13 215.01 (6) "Commissioner" " Department" means the commissioner of savings and loan department of financial institutions.

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

AB150,1812,18 215.01 (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 department.

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

AB150,1812,24 215.01 (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 department, determined according to generally accepted accounting principles or an accounting standard or practice approved by the commissioner department.

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

AB150,1813,4 215.01 (20) (b) In a mutual association, the aggregate of retained earnings and other accounts designated as components of net worth by the commissioner department, determined according to generally accepted accounting principles or an accounting standard or practice approved by the commissioner department.

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

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

AB150,1813,7 215.02 (title) Department of financial institutions.

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

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

AB150,1813,14 215.02 (4) (title) Immunity of commissioner. The commissioner Employes of the department 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 department's official capacity.

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

AB150,1813,22 215.02 (5) Actions venue. Proceedings by any association to enjoin the commissioner department of financial institutions in the discharge of the commissioner's department'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, s. 5508 Section 5508. 215.02 (6) (a) (intro.) of the statutes is amended to read:

AB150,1814,4 215.02 (6) (a) (intro.) The commissioner and all All employes of the office department 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: