AB150,1804,13
12214.82 (title)
Commissioner's
Department's authority to take custody
13and appoint a conservator or a receiver.
AB150, s. 5466
14Section
5466. 214.82 (1) (intro.) of the statutes is amended to read:
AB150,1804,1815
214.82
(1) (intro.) The
commissioner
department may take custody of and
16appoint a conservator for the property, liabilities, books, records, business and assets
17of a savings bank for any of the purposes under s. 214.825 if any of the following
18conditions exists:
AB150, s. 5467
19Section
5467. 214.82 (1) (a) of the statutes is amended to read:
AB150,1804,2120
214.82
(1) (a) The savings bank fails to produce an annual audited financial
21statement, after receiving one extension from the
commissioner department.
AB150, s. 5468
22Section
5468. 214.82 (1) (b) of the statutes is amended to read:
AB150,1805,323
214.82
(1) (b) The savings bank's books and records, after at least 2 consecutive
24notices from the
commissioner department spanning at least 2 consecutive calendar
25quarters, are in an inaccurate and incomplete condition to the extent that the
1commissioner department is unable to determine the financial condition of the
2savings bank or the details or purpose of any transaction that may materially affect
3the savings bank's financial condition.
AB150, s. 5469
4Section
5469. 214.82 (1) (e) of the statutes is amended to read:
AB150,1805,75
214.82
(1) (e) The savings bank has experienced substantial dissipation of
6assets due to a violation of a state or federal law, regulation, rule or order of the
7commissioner department or due to any unsafe or unsound practice.
AB150, s. 5470
8Section
5470. 214.82 (1) (h) of the statutes is amended to read:
AB150,1805,119
214.82
(1) (h) The savings bank or its officers, directors or employes are
10violating a state or federal law, regulation, rule or supervisory order of the
11commissioner department or of another regulatory authority.
AB150, s. 5471
12Section
5471. 214.82 (1) (j) of the statutes is amended to read:
AB150,1805,1913
214.82
(1) (j) The directors, officers, trustees or liquidators have neglected,
14failed or refused to take any action that the
commissioner department considers
15necessary for the protection of the savings bank, including production of an annual
16audited financial statement after an extension was granted, have continued to
17maintain the savings bank's books and records in an inaccurate and incomplete
18condition for 2 consecutive quarters after 2 notices from the
commissioner 19department or have impeded or obstructed an examination.
AB150, s. 5472
20Section
5472. 214.82 (2) of the statutes is amended to read:
AB150,1805,2521
214.82
(2) The
commissioner department may postpone taking custody of a
22savings bank pending a satisfactory resolution of the condition permitting custody
23as suggested by the deposit insurance corporation, if the savings bank has sufficient
24liquidity and has adopted and implemented an operating plan considered prudent
25by the
commissioner department.
AB150, s. 5473
1Section
5473. 214.82 (3) of the statutes is amended to read:
AB150,1806,52
214.82
(3) The
commissioner department shall promulgate rules to govern the
3determination of a need for a conservator, the selection and appointment of a
4conservator and the conduct of a conservatorship, including allocation of the
5payment of costs.
AB150, s. 5474
6Section
5474. 214.825 of the statutes is amended to read:
AB150,1806,16
7214.825 Purposes of taking custody. The purposes of taking custody of a
8savings bank may include examination; production of an audited financial
9statement; reconstruction of books and records; conservation of assets; restoration
10of impaired capital; the making of any necessary or equitable adjustment, including
11changes in officers and management, considered necessary by the
commissioner 12department under any plan of reorganization or liquidation; restructuring of the
13savings bank through a merger or formation of a interim institution; establishment
14of a conservatorship to operate and manage a savings bank as an ongoing concern
15until the grounds for custody and conservatorship are remedied; or the maturing of
16an obligation of the deposit insurance corporation.
AB150, s. 5475
17Section
5475. 214.83 of the statutes is amended to read:
AB150,1806,24
18214.83 (title)
Commissioner's Department's powers during custody. 19During the period in which the
commissioner department has custody of a savings
20bank, the
commissioner department shall have all powers necessary to accomplish
21the purposes of custody of the savings bank and the authority to call meetings of the
22members, stockholders, former officers and directors, liquidators or trustees to
23consider and act upon matters considered by the
commissioner department to be of
24sufficient importance to obtain the views of those persons.
AB150, s. 5476
25Section
5476. 214.835 (intro.) of the statutes is amended to read:
AB150,1807,3
1214.835 Custody of savings banks. (intro.) If the
commissioner department 2takes custody of a savings bank, in addition to powers conferred under ss. 214.825
3and 214.83, the
commissioner department may do any of the following:
AB150, s. 5477
4Section
5477. 214.835 (1) of the statutes is amended to read:
AB150,1807,85
214.835
(1) Notify the deposit insurance corporation of the custody and the
6reasons for that action, including a copy of the
commissioner's department's report
7of examination and condition of the savings bank, and to appoint the deposit
8insurance corporation or its designee as receiver or conservator for the savings bank.
AB150, s. 5478
9Section
5478. 214.835 (3) of the statutes is amended to read:
AB150,1807,1310
214.835
(3) Determine and declare the savings bank to be in default, find from
11the
commissioner's department's examination and from reports of the savings bank
12the amount of insured deposits and make any necessary orders that may be required
13for the purpose of making deposit insurance available to depositors.
AB150, s. 5479
14Section
5479. 214.84 of the statutes is amended to read:
AB150,1808,3
15214.84 Notice of custody; action to enjoin. On the date the
commissioner 16department takes custody of a savings bank, the
commissioner department shall
17provide by 1st class mail a written notice of that action to the president or secretary
18and to 2 or more directors of the savings bank or to 2 or more of the trustees of any
19trust or to 2 or more of the liquidators if the savings bank is in liquidation. If the
20parties receiving notice believe the
commissioner
department does not have
21authority to take custody, the savings bank, the directors or officers of the savings
22bank or the trustees or liquidators, within 20 days after the mailing of the notice, or
23within further periods of time as the
commissioner
department may extend up to an
24additional 60 days, may file a complaint in the circuit court of the county in which
25the savings bank is located to enjoin custody. The court shall require the
1commissioner department to show cause why custody should not be enjoined. If,
2upon hearing, the court finds that grounds do not exist for the
commissioner's 3department's custody, it may enter an order enjoining further custody.
AB150, s. 5480
4Section
5480. 214.845 of the statutes is amended to read:
AB150,1808,13
5214.845 Segregation of collections during custody. All payments received
6on deposit accounts on depositors' unpledged accounts during custody of the savings
7bank shall be segregated in a separate account until the savings bank is redelivered
8to the directors, trustees or liquidators or delivered to a conservator or receiver. A
9depositor whose payments have been segregated may request the return of those
10payments and the
commissioner department shall repay them without interest or
11dividends. Before delivery of the savings bank or its assets to any trustee, liquidator,
12receiver or conservator, the
commissioner department shall return the money
13segregated in the separate account.
AB150, s. 5481
14Section
5481. 214.85 of the statutes is amended to read:
AB150,1808,20
15214.85 Redelivery of possession. If, after examination of the savings bank
16and consideration of all conditions affecting its affairs, the
commissioner department 17finds that the cause for taking custody has been removed, the
commissioner 18department shall relinquish custody of the savings bank, remove any conservator
19appointed and redeliver the savings bank and all assets, books and records to its
20qualified directors, trustees or liquidators.
AB150, s. 5482
21Section
5482. 214.855 of the statutes is amended to read:
AB150,1808,25
22214.855 Limitations upon custody. The custody of a savings bank by the
23commissioner department, including a conservatorship, may be continued for a
24reasonable period not to exceed 12 months, unless a longer time period is approved
25by a vote of two-thirds of the directors of the savings bank or ordered by a court.
AB150, s. 5483
1Section
5483. 214.90 (intro.) of the statutes is amended to read:
AB150,1809,9
2214.90 Action to correct conditions. (intro.) The
commissioner department 3may issue an order requiring a savings bank, savings bank subsidiary, service
4corporation, affiliate, savings bank holding company or a party affiliated with a
5savings bank to take action to correct any condition resulting from a violation or
6practice identified in the order. The
commissioner
department may by order require
7the savings bank, savings bank subsidiary, service corporation, affiliate, savings
8bank holding company or party affiliated with a savings bank to do any of the
9following:
AB150, s. 5484
10Section
5484. 214.90 (1) (b) of the statutes is amended to read:
AB150,1809,1311
214.90
(1) (b) The violation or practice involved a reckless disregard for
12applicable state or federal laws, regulations, rules or orders of the
commissioner 13department or other appropriate regulator.
AB150, s. 5485
14Section
5485. 214.90 (5) of the statutes is amended to read:
AB150,1809,1615
214.90
(5) Submit candidates for future directors, employes or officers to the
16commissioner department for approval.
AB150, s. 5486
17Section
5486. 214.90 (6) of the statutes is amended to read:
AB150,1809,1918
214.90
(6) Take any other action the
commissioner department considers
19necessary.
AB150, s. 5487
20Section
5487. 214.905 (1) (intro.) of the statutes is amended to read:
AB150,1810,221
214.905
(1) (intro.) If an order under s. 214.90 specifies that the books and
22records of a savings bank are so incomplete and inaccurate that the
commissioner 23department is unable to determine the financial condition of the savings bank or
24unable to determine the nature, details or purpose of any transaction that may have
1a material effect on the savings bank's financial condition, the
commissioner 2department shall issue an order that requires all of the following:
AB150, s. 5488
3Section
5488. 214.905 (1) (c) of the statutes is amended to read:
AB150,1810,54
214.905
(1) (c) Establishment of reserves for any losses that the
commissioner 5department finds were incurred due to the condition of the books and records.
AB150, s. 5489
6Section
5489. 214.905 (2) of the statutes is amended to read:
AB150,1810,97
214.905
(2) An order under sub. (1) shall be effective until the
commissioner 8department determines through an examination that the condition has been
9corrected and rescinds the order.
AB150, s. 5490
10Section
5490. 214.91 (1) (intro.) of the statutes is amended to read:
AB150,1810,1311
214.91
(1) (intro.) The
commissioner
department may remove from a savings
12bank any employe, agent or person affiliated with the savings bank if the
13commissioner department finds that the person has done any of the following:
AB150, s. 5491
14Section
5491. 214.91 (1) (a) of the statutes is amended to read:
AB150,1810,1715
214.91
(1) (a) Directly or indirectly violated any state or federal law, regulation,
16rule or order or any agreement between the savings bank and the
commissioner 17department or between the savings bank and the deposit insurance corporation.
AB150, s. 5492
18Section
5492. 214.91 (2) (intro.) of the statutes is amended to read:
AB150,1811,219
214.91
(2) (intro.) The
commissioner
department may serve upon a savings
20bank employe, agent or person affiliated with the savings bank a written notice of
21the
commissioner's department's intention to remove or suspend the person from
22office in the savings bank or to prohibit any further participation in any manner by
23that person in the conduct of the affairs of a savings bank or of a savings and loan
24association organized under ch. 215, if the
commissioner department finds that,
1because of a violation permitting removal under sub. (1), any of the following
2conditions exists:
AB150, s. 5493
3Section
5493. 214.915 (1) of the statutes is amended to read:
AB150,1811,104
214.915
(1) Except as provided in rules of the
commissioner department, any
5person who has been removed or suspended from office in a savings bank or
6prohibited from participating in the conduct of the affairs of a savings bank under
7s. 214.90 may not, while an order is in effect, hold any office in or participate in any
8manner in the conduct of the affairs of another savings bank, savings bank
9subsidiary, affiliate, service corporation, savings bank holding company or state
10savings and loan association.
AB150, s. 5494
11Section
5494. 214.92 of the statutes is amended to read:
AB150,1811,16
12214.92 Effect of termination or resignation. The resignation, termination
13of employment, or separation of a person affiliated with a savings bank from the
14savings bank does not affect the authority of the
commissioner department to issue
15an order under s. 214.90, 214.91 or 214.915 if the order is issued within 6 years after
16the person ceases to be a person affiliated with the savings bank.
AB150, s. 5495
17Section
5495. 214.925 (1) of the statutes is amended to read:
AB150,1811,2118
214.925
(1) Except with the prior written consent of the
commissioner 19department, a person who has been convicted of a criminal offense involving
20dishonesty or a breach of trust may not participate, directly or indirectly, in any
21manner in the conduct of the affairs of a savings bank.
AB150, s. 5496
22Section
5496. 214.93 of the statutes is amended to read:
AB150,1812,2
23214.93 False statements. A person may not knowingly make, cause, or allow
24another person to make or cause to be made, a false statement, under oath if required
1by this chapter or on any report or statement required by the
commissioner 2department or by this chapter.
AB150, s. 5497
3Section
5497. 214.935 (intro.) of the statutes is amended to read:
AB150,1812,5
4214.935 Civil forfeitures. (intro.) In addition to the enforcement authority
5granted to the
commissioner department, the following forfeiture provisions apply:
AB150, s. 5498
6Section
5498. 214.935 (1) of the statutes is amended to read:
AB150,1812,107
214.935
(1) Except as provided in sub. (2), any person who violates this chapter,
8any rule promulgated under this chapter or an order of the
commissioner 9department may be required to forfeit not more than $10,000. Each day of continued
10violation constitutes a separate offense.
AB150, s. 5499
11Section
5499. 215.01 (6) of the statutes is amended to read:
AB150,1812,1312
215.01
(6) "Commissioner" "
Department" means the
commissioner of savings
13and loan department of financial institutions.
AB150, s. 5500
14Section
5500. 215.01 (19) of the statutes is amended to read:
AB150,1812,1815
215.01
(19) "Net income" means the gross income for a period less the
16aggregate of expenses, determined according to generally accepted accounting
17principles or an accounting standard or practice approved by the
commissioner 18department.
AB150, s. 5501
19Section
5501. 215.01 (20) (a) of the statutes is amended to read:
AB150,1812,2420
215.01
(20) (a) In a stock association, the aggregate of capital stock, additional
21paid-in capital, retained earnings and other accounts designated as components of
22net worth by the
commissioner department, determined according to generally
23accepted accounting principles or an accounting standard or practice approved by
24the
commissioner department.
AB150, s. 5502
25Section
5502. 215.01 (20) (b) of the statutes is amended to read:
AB150,1813,4
1215.01
(20) (b) In a mutual association, the aggregate of retained earnings and
2other accounts designated as components of net worth by the
commissioner 3department, determined according to generally accepted accounting principles or an
4accounting standard or practice approved by the
commissioner department.
AB150, s. 5503
5Section
5503. 215.01 (21) of the statutes is repealed.
AB150, s. 5504
6Section
5504. 215.02 (title) of the statutes is repealed and recreated to read:
AB150,1813,7
7215.02 (title)
Department of financial institutions.
AB150, s. 5505
8Section
5505. 215.02 (1), (2) and (3) of the statutes are repealed.
AB150, s. 5506
9Section
5506. 215.02 (4) of the statutes is amended to read:
AB150,1813,1410
215.02
(4) (title)
Immunity of commissioner. The commissioner Employes of
11the department shall not be subject to any civil liability or penalty, nor to any
12criminal prosecution, for any error in judgment or discretion made in good faith and
13upon reasonable grounds in any action taken or omitted by the
commissioner 14employe in the
commissioner's department's official capacity.
AB150, s. 5507
15Section
5507. 215.02 (5) of the statutes is amended to read:
AB150,1813,2216
215.02
(5) Actions venue. Proceedings by any association to enjoin the
17commissioner department of financial institutions in the discharge of the
18commissioner's department's duties shall be had in the county where the savings and
19loan association is located, or in the state supreme court. All suits and proceedings
20arising out of this chapter, in which the state, or any of its officers or agents are
21parties, shall be conducted under the direction and supervision of the department of
22justice.
AB150, s. 5508
23Section
5508. 215.02 (6) (a) (intro.) of the statutes is amended to read:
AB150,1814,424
215.02
(6) (a) (intro.)
The commissioner and all All employes of the
office 25department and members of the review board shall keep confidential all the facts and
1information obtained in the course of examinations by the office and all examination
2and other confidential information obtained from any state or federal regulatory
3authority, including an authority of this state or another state, for financial
4institutions, mortgage bankers, insurance or securities, except:
AB150, s. 5509
5Section
5509. 215.02 (6) (a) 3. of the statutes is amended to read:
AB150,1814,106
215.02
(6) (a) 3. Under rules prescribed by the
commissioner department, for
7the purpose of comparing notes as to matters affecting an association with an
8examiner of the federal home loan bank board or federal savings and loan insurance
9corporation as to any association whose savings accounts are insured by the federal
10savings and loan insurance corporation.
AB150, s. 5510
11Section
5510. 215.02 (6) (a) 4. (intro.) of the statutes is amended to read:
AB150,1814,1212
215.02
(6) (a) 4. (intro.) The
commissioner department may: