AB150: Bill Text

AB150, s. 5589 Section 5589. 215.141 of the statutes is amended to read:

AB150,1835,8 215.141 Financially related services tie-ins. In any transaction conducted by an association, a savings and loan holding company or a subsidiary of either with a customer who is also a customer of any other subsidiary of any of them, the customer shall be given a notice in 12-point boldface type in substantially the following form:

AB150,1835,9 NOTICE OF RELATIONSHIP

AB150,1835,15 This company, .... (insert name and address of association, savings and loan holding company or subsidiary), is related to .... (insert name and address of association, savings and loan holding company or subsidiary) of which you are also a customer. You may not be compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction.

AB150,1835,20 If you feel that you have been compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction, you should contact the management of either of the above companies at either of the above addresses or the office of the commissioner department of financial institutions at .... (insert address).

AB150, s. 5590 Section 5590. 215.15 (1) of the statutes is amended to read:

AB150,1836,2 215.15 (1) Savings account forms. The association shall issue to each saver a written summary of the terms of the saver's account or, if permitted by the commissioner department, a receipt. The commissioner department may promulgate rules prescribing the form of or otherwise regulating issuance and use of evidences of savings accounts, summaries of savings accounts and receipts.

AB150, s. 5591 Section 5591. 215.15 (3) (a) (intro.) of the statutes is amended to read:

AB150,1836,5 215.15 (3) (a) (intro.) The board of directors may, subject to the rules of the commissioner department and par. (b), provide for the following:

AB150, s. 5592 Section 5592. 215.15 (3) (b) of the statutes is amended to read:

AB150,1836,10 215.15 (3) (b) Unless the commissioner department approves, a mutual association may not issue negotiable certificates of deposit which are not in registered form in an aggregate amount exceeding 20% of the total amount in savings accounts.

AB150, s. 5593 Section 5593. 215.15 (3) (c) of the statutes is amended to read:

AB150,1836,14 215.15 (3) (c) The commissioner department may promulgate rules governing the transfer of savings accounts or the replacement of lost or destroyed evidences of savings accounts.

AB150, s. 5594 Section 5594. 215.16 (intro.) of the statutes is amended to read:

AB150,1836,17 215.16 Savings account earnings. (intro.) Subject to the rules of the commissioner department, the board of directors of an association may:

AB150, s. 5595 Section 5595. 215.18 (3) of the statutes is amended to read:

AB150,1836,21 215.18 (3) An association may agree in writing not to close a savings account. The commissioner department may promulgate rules restricting the authority of an association to close savings accounts.

AB150, s. 5596 Section 5596. 215.20 (2) of the statutes is amended to read:

AB150,1836,25 215.20 (2) An association may make, buy, sell and hold property improvement loans to such persons, for such purposes, in such individual and aggregate amounts, and upon such terms as the commissioner department by rule prescribes.

AB150, s. 5597 Section 5597. 215.205 (intro.) of the statutes is amended to read:

AB150,1837,4 215.205 Other loans and investments. (intro.) Subject to such rules as the commissioner department prescribes, an association may make, buy, sell and hold the following loans and investments:

AB150, s. 5598 Section 5598. 215.205 (4) of the statutes is amended to read:

AB150,1837,11 215.205 (4) Loans or interests in loans to financial institutions with respect to which the United States, or any agency or instrumentality thereof, has any function of examination or supervision, or to any broker or dealer registered with the securities and exchange commission, secured by loans, obligations or investments in which it has any statutory authority to invest directly, subject to such rules as the commissioner department may issue.

AB150, s. 5599 Section 5599. 215.21 (1) (intro.) of the statutes is amended to read:

AB150,1837,15 215.21 (1) Basic security required. (intro.) Subject to such additional limitations as the commissioner department may prescribe, associations may make loans on the security of any of the following:

AB150, s. 5600 Section 5600. 215.21 (1) (c) of the statutes is amended to read:

AB150,1837,24 215.21 (1) (c) An assignment or transfer of stock certificates or other evidence of the borrower's ownership interest in a corporation formed for the cooperative ownership of real estate. Sections 846.10 and 846.101, as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender's rights in security given for a loan under this paragraph. The commissioner department shall promulgate joint rules with the commissioners office of credit unions and banking that establish procedures for enforcing a lender's rights in security given for a loan under this paragraph.

AB150, s. 5601 Section 5601. 215.21 (5) (a) of the statutes is amended to read:

AB150,1838,4 215.21 (5) (a) The aggregate of loans that an association may make to any one borrower is subject to such limits as determined and prescribed by the commissioner department and review board, but not exceeding 10% of the aggregate savings accounts or the net worth of the association, whichever is less.

AB150, s. 5602 Section 5602. 215.21 (6) (a) of the statutes is amended to read:

AB150,1838,11 215.21 (6) (a) Direct reduction mortgage loans. The total monthly contractual payment on a direct reduction mortgage shall appear in the mortgage note. The commissioner department shall by regulation establish the maximum terms for the various types of direct reduction mortgages. The interest charges on loans of this type may be adjusted monthly or semiannually in accordance with the terms of the mortgage note.

AB150, s. 5603 Section 5603. 215.21 (7) (intro.) of the statutes is amended to read:

AB150,1838,15 215.21 (7) Types of real estate security. (intro.) An association may make loans on the following types of real estate security as defined by the commissioner department:

AB150, s. 5604 Section 5604. 215.21 (7) (c) of the statutes is amended to read:

AB150,1838,18 215.21 (7) (c) Commercial type properties, the aggregate of which shall be fixed by the commissioner department;

AB150, s. 5605 Section 5605. 215.21 (14) of the statutes is amended to read:

AB150,1838,24 215.21 (14) Selling loans. Except as otherwise prescribed in s. 215.13 (22) an association may sell mortgage loans, without recourse, to any person, and service such loans for the purchaser in accordance with a duly executed servicing agreement. The aggregate of loans sold in any calendar year shall not exceed such limits as may be set by the commissioner department and review board.

AB150, s. 5606 Section 5606. 215.21 (15) of the statutes is amended to read:

AB150,1839,7 215.21 (15) Participation loans. Any association may participate with other lenders in mortgage loans of any type that such association may otherwise make, subject to such rules as the commissioner department issues, including the interest in participation loans to be retained by the originator. The normal lending area, prescribed in sub. (2), shall not apply to any association purchasing a participating interest in such loan, provided the real estate securing such loan is located within the United States.

AB150, s. 5607 Section 5607. 215.21 (17) (b) (intro.) of the statutes is amended to read:

AB150,1839,10 215.21 (17) (b) (intro.) Without the prior written approval of the commissioner department, no association may directly or indirectly make a mortgage loan to:

AB150, s. 5608 Section 5608. 215.21 (17) (b) 2. of the statutes is amended to read:

AB150,1839,14 215.21 (17) (b) 2. Such other persons as the commissioner department may by rule designate to avoid conflicts between the best interests of the association and the interests of its officers, directors or employes.

AB150, s. 5609 Section 5609. 215.21 (17) (d) 2. of the statutes is amended to read:

AB150,1839,18 215.21 (17) (d) 2. To a nonprofit, religious, charitable or fraternal organization or a corporation in which the association has been authorized to invest by the commissioner department.

AB150, s. 5610 Section 5610. 215.21 (28) of the statutes is amended to read:

AB150,1840,2 215.21 (28) Loans outside the lending area. Subject to the rules issued by the commissioner department and without regard to the limitation set forth in sub. (2), an association may make or invest its funds in loans, originated and serviced by or through an institution, the accounts or deposits of which are insured by the federal savings and loan insurance corporation or the federal deposit insurance corporation or by or through an approved federal housing administration mortgagee, in an aggregate amount not exceeding 10% of such association's assets on the security of real estate or leasehold interests.

AB150, s. 5611 Section 5611. 215.22 (2) of the statutes is amended to read:

AB150,1840,6 215.22 (2) All real estate acquired pursuant to this section shall be sold within 10 years from acquiring title thereto, unless the commissioner department grants extensions of time within which such real estate shall be sold.

AB150, s. 5612 Section 5612. 215.23 (intro.) of the statutes is amended to read:

AB150,1840,11 215.23 Limitations on investments in office buildings and related facilities. (intro.) An association's aggregate investment in the following may not exceed the association's net worth without the prior written approval of the commissioner department:

AB150, s. 5613 Section 5613. 215.24 of the statutes is amended to read:

AB150,1840,18 215.24 Minimum net worth. An association shall maintain net worth at an amount not less than the minimum amount established by the commissioner department. If an association fails to maintain the minimum net worth required under this section, the commissioner department may take appropriate action, including but not limited to ordering the association to take corrective action or to restrict payment of dividends.

AB150, s. 5614 Section 5614. 215.25 of the statutes is amended to read:

AB150,1841,8 215.25 Audit requirements. Each association shall be audited at least once in each fiscal year by auditors and in a manner satisfactory to the commissioner department in accordance with the policies established by the commissioner department. The auditors are to be designated by the board of directors and must be independent, certified public accountants certified in this state. In lieu of audits by independent, certified public accountants, the board of directors may request an audit of the books and accounts to be made by the commissioner department to check the assets of the association and to determine losses, which request the commissioner department may refuse. The commissioner department may at any time make or cause to be made an audit of any association, with appraisals, when deemed advisable. Associations shall promptly file with the commissioner department a copy of the report of each audit, other than audits made by the commissioner department. The cost of any audit made pursuant to this section shall be paid by the association audited.

AB150, s. 5615 Section 5615. 215.26 (3) of the statutes is amended to read:

AB150,1841,12 215.26 (3) Obsolete records. Any association may destroy or dispose of such of its records as may become obsolete after first obtaining the written consent of the commissioner department.

AB150, s. 5616 Section 5616. 215.26 (4) (a) of the statutes is amended to read:

AB150,1841,23 215.26 (4) (a) Any association may cause any or all records kept by such association to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. An association may thereafter dispose of the original record after first obtaining the written consent of the commissioner department. This section, excepting the part of it which requires written consent of the commissioner department, is applicable to federal associations insofar as it does not contravene federal law.

AB150, s. 5617 Section 5617. 215.26 (5) of the statutes is amended to read:

AB150,1842,5 215.26 (5) Legal holidays. The commissioner department shall designate such of the legal holidays listed in s. 895.20 as days on which no association may transact business or be open for the purpose of transacting business. For purposes of this subsection, operation of a remote service unit as defined in s. 215.13 (46) (a) 1. or an unstaffed facility does not constitute the transaction of business.

AB150, s. 5618 Section 5618. 215.26 (8) (b) 1. of the statutes is amended to read:

AB150,1842,8 215.26 (8) (b) 1. The commissioner department or duly its authorized representatives.

AB150, s. 5619 Section 5619. 215.26 (8) (b) 3. of the statutes is amended to read:

AB150,1842,12 215.26 (8) (b) 3. Any federal agency or other instrumentality approved by the commissioner department which is authorized to inspect and examine books and records of an insured association.

AB150, s. 5620 Section 5620. 215.26 (9) of the statutes is amended to read:

AB150,1842,17 215.26 (9) Closing books. Each association shall close its books at least once annually and at such other times as the commissioner department requires. The date of the annual fiscal closing may be March 31, June 30, September 30 or December 31, unless rules of the commissioner department otherwise direct.

AB150, s. 5621 Section 5621. 215.32 (title) of the statutes is amended to read:

AB150,1842,20 215.32 (title) Possession by commissioner department; involuntary liquidation.

AB150, s. 5622 Section 5622. 215.32 (1m) (intro.) of the statutes is amended to read:

AB150,1842,25 215.32 (1m) Conditions for taking possession. (intro.) The commissioner department may take possession of the business and property of any association to which this chapter applies if the commissioner department finds that the association:

AB150, s. 5623 Section 5623. 215.32 (1m) (h) of the statutes is amended to read:

AB150,1843,3 215.32 (1m) (h) Has failed to comply with an order of the commissioner department; or

AB150, s. 5624 Section 5624. 215.32 (2) (intro.) of the statutes is amended to read:

AB150,1843,7 215.32 (2) Procedure after taking possession. (intro.) After taking possession of the business and property of an association, the commissioner department shall immediately:

AB150, s. 5625 Section 5625. 215.32 (2) (a) of the statutes is amended to read:

AB150,1843,12 215.32 (2) (a) Serve written notice on an officer of the association stating that the commissioner department has taken possession and control of the business and property of the association. A copy of the notice and proof of service thereof shall be filed with the clerk of circuit court.

AB150, s. 5626 Section 5626. 215.32 (2) (b) of the statutes is amended to read:

AB150,1843,15 215.32 (2) (b) Mail notice to the last-known address of any person known to the commissioner department to be in possession of assets of the association.

AB150, s. 5627 Section 5627. 215.32 (3) of the statutes is amended to read:

AB150,1843,20 215.32 (3) Employment of counsel; retention of officers and employes of association. The commissioner department may employ necessary counsel and experts in a liquidation under this section and may retain any officer or employe of the association.

AB150, s. 5628 Section 5628. 215.32 (4) of the statutes is amended to read:

AB150,1844,2 215.32 (4) (title) Appointment of special deputy commissioners. The commissioner department may appoint special deputy commissioners deputies as agents to assist in the liquidation and distribution of the assets of associations whose business and property the commissioner department has taken possession of. A certificate of the appointment shall be filed in the office of the commissioner with the department and a certified copy shall be filed in the office of the clerk of circuit court.

AB150, s. 5629 Section 5629. 215.32 (5) of the statutes is amended to read:

AB150,1844,6 215.32 (5) (title) Surety bonds of special deputy commissioners deputies and assistants. Special deputy commissioners deputies and assistants shall furnish surety bonds in accordance with s. 215.11.

AB150, s. 5630 Section 5630. 215.32 (6) (title) of the statutes is amended to read:

AB150,1844,8 215.32 (6) (title) Duties of special deputy commissioners deputies.

AB150, s. 5631 Section 5631. 215.32 (6) (a) of the statutes is amended to read:

AB150,1844,25 215.32 (6) (a) Notice, allowance and payment of claims. The special deputy commissioner shall publish a class 3 notice, under ch. 985, requiring all persons who have claims against the association, other than savers whose claims are shown in the records of the association, to file proof of their claims at a place and by a date not earlier than 30 days after the last insertion of the notice. The special deputy commissioner shall mail a copy of the notice to all persons, at their last-known addresses, who appear as creditors upon the books of the association. Proof of publication and service of the notice shall be filed with the clerk of circuit court. A claim, other than that of a saver whose claim is shown on the records of the association, for which no proof of claim is filed by the date fixed in the notice is barred. Savers whose claims are shown in the records of the association need not file proof of their claims. Any interested party may file written objections to any claim with the special deputy commissioner. The special deputy commissioner may reject any claim, including a claim of a saver. After notice by registered mail of rejection, the claim is barred unless the claimant commences an action within 90 days after the date of mailing of the notice of rejection.