AB150: Bill Text

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.

AB150, s. 5632 Section 5632. 215.32 (6) (b) of the statutes is amended to read:

AB150,1845,10 215.32 (6) (b) Inventory of assets and statement of liabilities. The special deputy commissioner appointed under this section shall make an inventory of the assets of the association. One copy of the inventory shall be filed in the office of the commissioner with the department and one in the office of the clerk of circuit court. After the time for filing proof of claims has expired, the special deputy commissioner shall make a complete list of the claims for which proof of claims were filed and specify the claims he or she the special deputy has rejected. One copy shall be filed in the office of the commissioner with the department and one in the office of the clerk of circuit court. The inventory of assets and list of claims shall be open to inspection.

AB150, s. 5633 Section 5633. 215.32 (6) (c) of the statutes is amended to read:

AB150,1845,17 215.32 (6) (c) Execution of legal documents; borrowing of money. A special deputy commissioner appointed under this section may, with the prior approval of the commissioner department and the circuit court, execute, acknowledge and deliver all deeds, assignments, releases or other instruments necessary and proper to effect any sale or transfer or incumbrance of the property of an association subject to this section and may borrow money for use in the liquidation.

AB150, s. 5634 Section 5634. 215.32 (6) (d) of the statutes is amended to read:

AB150,1846,2 215.32 (6) (d) Conservation of assets; collection of claims; sale of assets and performance of any other acts upon order of the court. A special deputy commissioner appointed under this section may take any action necessary to conserve the assets and business of an association subject to this section and shall proceed to liquidate its affairs. The special deputy commissioner shall collect all claims belonging to the association, and, with the prior approval of the commissioner department and the circuit court, may sell or compound all bad or doubtful claims, do any act or execute any necessary instruments, or sell the property of the association.

AB150, s. 5635 Section 5635. 215.32 (6) (e) of the statutes is amended to read:

AB150,1846,7 215.32 (6) (e) Depositing of moneys in one or more financial institutions. The moneys collected by the special deputy commissioner under this section shall be deposited in financial institutions, and in case of the suspension or insolvency of the depository the deposits shall be preferred before all other deposits.

AB150, s. 5636 Section 5636. 215.32 (6) (em) 1. of the statutes is amended to read:

AB150,1846,11 215.32 (6) (em) 1. All costs, expenses and debts of the association incurred on or after the date on which the commissioner department takes possession of the association.

AB150, s. 5637 Section 5637. 215.32 (6) (f) of the statutes is amended to read:

AB150,1846,19 215.32 (6) (f) Liquidating dividends. After the date fixed for filing proof of claims under s. 215.32 (6) (a), the special deputy commissioner may, with the prior approval of the commissioner department and the circuit court, out of the funds remaining after the payment of costs, expenses, debts and claims under par. (em), declare liquidating dividends, and may declare a final liquidating dividend. The liquidating dividends shall be paid to those persons, in those amounts directed by the circuit court.

AB150, s. 5638 Section 5638. 215.32 (6) (g) of the statutes is amended to read:

AB150,1847,7 215.32 (6) (g) Notice prior to order for final distribution. Prior to the order for final distribution under par. (f), the special deputy commissioner shall publish a class 3 notice, under ch. 985, and give such further notice as the circuit court directs, requiring all persons who have claims against the association arising during the liquidation proceedings 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. Proof of publication of the notice shall be filed with the clerk of circuit court. A claim for which no proof of claim is filed by the date fixed in the notice is barred. Any interested party may file written objection to any claim with the special deputy commissioner. The special deputy commissioner may reject any claim. 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 rejection.

AB150, s. 5639 Section 5639. 215.32 (6) (h) of the statutes is amended to read:

AB150,1847,19 215.32 (6) (h) Transfer of residual assets to commissioner. After the order for final distribution has been made under par. (f), the special deputy commissioner shall, with the approval of the commissioner department and the circuit court, assign all assets, claims and demands that have been written off and considered worthless, and all unknown assets, to the commissioner department. The commissioner department may accept and hold the assets, claims and demands, with the power to compound, compromise, settle and assign them and execute and deliver any legal instrument incidental thereto without court approval. Any moneys received shall be paid into the general fund of the state after the commissioner department has deducted the cost of his or her department services, attorney fees and other incidental expenses.

AB150, s. 5640 Section 5640. 215.32 (7) (a) 1. (intro.) of the statutes is amended to read:

AB150,1847,22 215.32 (7) (a) 1. (intro.) The special deputy commissioner shall deliver to the commissioner department:

AB150, s. 5641 Section 5641. 215.32 (7) (a) 1. a. of the statutes is amended to read:

AB150,1848,3 215.32 (7) (a) 1. a. Any unclaimed liquidating dividends and all funds remaining in the hands of the special deputy commissioner at the date of the order for final distribution.

AB150, s. 5642 Section 5642. 215.32 (7) (a) 2. of the statutes is amended to read:

AB150,1848,7 215.32 (7) (a) 2. The commissioner department shall deposit moneys delivered under subd. 1. in a financial institution, to the credit of the commissioner department in trust for the persons entitled to the moneys.

AB150, s. 5643 Section 5643. 215.32 (7) (a) 3. (intro.) of the statutes is amended to read:

AB150,1848,10 215.32 (7) (a) 3. (intro.) The commissioner department shall include in the annual report under s. 215.02 (11):

AB150, s. 5644 Section 5644. 215.32 (7) (c) (intro.) of the statutes is amended to read:

AB150,1848,12 215.32 (7) (c) (intro.) The commissioner department may:

AB150, s. 5645 Section 5645. 215.32 (7) (d) of the statutes is amended to read:

AB150,1848,20 215.32 (7) (d) The commissioner department may make application to the circuit court for an order determining what books or records of an association subject to this section are to be kept or destroyed. All books or records ordered kept shall be kept in a manner and place ordered, subject to the further order of the circuit court. The expense of keeping books or records shall be paid before final distribution. All books or records ordered destroyed shall be delivered to the commissioner department to be destroyed.

AB150, s. 5646 Section 5646. 215.32 (8) of the statutes is amended to read:

AB150,1849,2 215.32 (8) (title) Title passes to commissioner department. The possession of and title to all property of the association is transferred from the association to the commissioner department on the date the notice required by sub. (2) is filed. The filing of the notice bars any attachment, garnishment, execution or other legal proceedings against the association or its property.

AB150, s. 5647 Section 5647. 215.32 (9) of the statutes is amended to read:

AB150,1849,6 215.32 (9) Effect of possession. No association shall have a lien or charge for any payment, advance or clearance made or liability incurred, against any of the assets of the association after the commissioner department has possession.

AB150, s. 5648 Section 5648. 215.32 (10) of the statutes is amended to read:

AB150,1849,14 215.32 (10) Action to enjoin proceedings. An association subject to this section may, within 10 days after the notice required under sub. (2) is filed, apply to the circuit court to enjoin further proceedings. The circuit court, after citing the commissioner department to show cause why further proceedings should not be enjoined and hearing the matter, may enjoin the commissioner department from further proceedings, and direct the commissioner department to surrender the association's business and property to the association.

AB150, s. 5649 Section 5649. 215.32 (11) of the statutes is amended to read:

AB150,1849,24 215.32 (11) 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 department, subject to the approval of the circuit court, and shall upon the certificate of the commissioner department be paid out of the funds of the association. Such expenses include the cost of the service rendered by the commissioner department to the association and shall be determined from time to time by the commissioner department and shall be paid to the commissioner department from the assets of the association.

AB150, s. 5650 Section 5650. 215.32 (13) (intro.) of the statutes is amended to read:

AB150,1850,3 215.32 (13) Reinstatement. (intro.) Whenever the commissioner department has taken possession of the business and property of any association, the association may resume business when:

AB150, s. 5651 Section 5651. 215.32 (13) (a) of the statutes is amended to read:

AB150,1850,9 215.32 (13) (a) In the case of a mutual association, the owners of at least two-thirds of such association's dollar value aggregate of outstanding savings accounts or, in the case of a capital stock association, the owners of at least two-thirds of the association's outstanding shares, execute a petition to such effect, in the form prescribed by the commissioner department;

AB150, s. 5652 Section 5652. 215.32 (13) (b) of the statutes is amended to read:

AB150,1850,13 215.32 (13) (b) Such members, savers or stockholders, or a committee selected by them, submit to the commissioner department a plan for the reorganization and reinstatement of the association;

AB150, s. 5653 Section 5653. 215.32 (13) (c) of the statutes is amended to read:

AB150,1850,16 215.32 (13) (c) The commissioner department recommends that control of the business and property of the association be returned to the directors; and

AB150, s. 5654 Section 5654. 215.32 (13) (d) of the statutes is amended to read:

AB150,1850,20 215.32 (13) (d) The court in which such liquidation is pending, upon application of the commissioner department, finds that the association will be in a safe and sound condition when control is resumed by the directors.

AB150, s. 5655 Section 5655. 215.32 (14) of the statutes is amended to read:

AB150,1851,4 215.32 (14) Reinstatement upon a restricted basis. Such association may resume business upon a restricted basis, and upon limitations and conditions prescribed by the commissioner department when approved by the circuit court, upon application of the commissioner department. Such restrictions and conditions may include a prohibition against the acceptance of payments on new savings accounts, reasonable restrictions upon withdrawals of savings accounts and the payment of other liabilities. Such associations shall thereupon be relieved from the control of the commissioner department.

AB150, s. 5656 Section 5656. 215.32 (15) (a) of the statutes is amended to read:

AB150,1851,21 215.32 (15) (a) The commissioner department may, if the commissioner department takes possession of any association, the savings accounts of which are to any extent insured by the federal savings and loan insurance corporation, tender to said corporation the appointment as statutory liquidator of such association. If the commissioner department does not make such tender, the commissioner department shall tender to said corporation the appointment as statutory co-liquidator to act jointly with the commissioner department, but such co-liquidatorship shall not be for more than one year from the date of such tender, at the expiration of which time the commissioner department shall become the sole liquidator except as herein otherwise provided. The commissioner department shall tender to said corporation the appointment as sole statutory liquidator of such association whenever said corporation has become subrogated to the rights of 90 per cent of the liability of such association on savings accounts. If the corporation becomes subrogated as to all the savings accounts in such association, it may then exercise all the powers and privileges herein conferred upon it without court approval.

AB150, s. 5657 Section 5657. 215.32 (15) (b) of the statutes is amended to read:

AB150,1852,6 215.32 (15) (b) If the corporation accepts the appointment as sole liquidator it shall possess all the powers and privileges of the commissioner department as statutory liquidator of a possessed savings and loan association, and be subject to all the duties of the commissioner department as sole liquidator, except insofar as such powers and privileges or duties are in conflict with federal laws, and except as herein otherwise provided, unless such association resumes business, pursuant to subs. (13) and (14). If the corporation accepts the appointment as co-liquidator, it shall possess such powers and privileges jointly with the commissioner department and shall be subject to such duties jointly with said commissioner department.

AB150, s. 5658 Section 5658. 215.32 (15) (c) of the statutes is amended to read:

AB150,1853,2 215.32 (15) (c) In the event the corporation accepts the appointment as co-liquidator or liquidator, it shall file such acceptance with the commissioner department and the clerk of the circuit court and it may act without bond. Upon the filing by the corporation of its acceptance of the appointment as sole liquidator, the possession of and title to all the assets, business and property of the association shall vest in the corporation without the execution of any conveyance, assignments, transfer or indorsement. Upon the filing by the corporation of its acceptance of the appointment as co-liquidator, such possession and title shall be vested in the commissioner department and the corporation jointly. If the corporation does not qualify as sole liquidator at or before the time herein provided for the expiration of the co-liquidatorship, the corporation shall be wholly divested of and from such joint title and possession and the sole title and possession shall thereupon vest in the commissioner department. The vesting of title and possession of the property of the association, under sub. (8), shall not render such property subject to any claims or demands against the federal corporation, except such as may be incumbered by it with respect to such association and its property. Whether or not it serves as aforesaid, the corporation may make loans on the security of or may purchase with the approval of the court, except as herein otherwise provided, all or any part of the assets of any association, the savings accounts of which are to any extent insured by it, but in the event of such purchase, the corporation shall pay a reasonable price.

AB150, s. 5659 Section 5659. 215.33 (3) (a) 5. of the statutes is amended to read:

AB150,1853,5 215.33 (3) (a) 5. Such other information as the commissioner department may require.

AB150, s. 5660 Section 5660. 215.33 (3) (b) (intro.) of the statutes is amended to read:

AB150,1853,12 215.33 (3) (b) Approval of applications. (intro.) Upon receipt of a completed application and the required fee, the commissioner department may issue a certificate of authority. The certificate of authority may be subject to specific conditions that the commissioner department believes necessary to adequately safeguard the interests of the residents of this state. A certificate of authority to do business in this state shall not be issued unless:

AB150, s. 5661 Section 5661. 215.33 (3) (b) 1. of the statutes is amended to read:

AB150,1853,16 215.33 (3) (b) 1. The association is in sound financial condition and entitled to public confidence, and the commissioner department is satisfied that the association will conduct its business in this state in accordance with the laws of this state.

AB150, s. 5662 Section 5662. 215.33 (3) (b) 2. of the statutes is amended to read:

AB150,1853,22 215.33 (3) (b) 2. The accounts of the association are insured by the federal savings and loan insurance corporation or any other insurer acceptable to the commissioner department, or that adequate and sufficient securities have been deposited with the state treasurer to assure that the association will meet its obligations to the residents of this state.

AB150, s. 5663 Section 5663. 215.33 (3) (c) (intro.) of the statutes is amended to read:

AB150,1853,25 215.33 (3) (c) Revocation. (intro.) The commissioner department may revoke a certificate of authority issued under this section if:

AB150, s. 5664 Section 5664. 215.33 (3) (c) 2. of the statutes is amended to read:

AB150,1854,4 215.33 (3) (c) 2. The association refuses to permit the commissioner department to conduct a complete examination of the association, or fails to pay applicable costs or fees.