LRB-4399/1
KSH:kmg&skg:kaf
1995 - 1996 LEGISLATURE
October 2, 1995 - Introduced by Representatives Kaufert, Gard, Olsen, Goetsch,
Green, Kreibich, Lehman, Hahn, Vrakas, Seratti, Grothman, Kelso and
Ward, cosponsored by Senator Darling, by request of Commissioner of
Savings and Loan. Referred to Committee on Financial Institutions.
AB597,2,2
1An Act to repeal 215.02 (6) (a) 4. b. and 215.02 (6) (a) 5.;
to consolidate,
2renumber and amend 215.02 (6) (a) 4. (intro.) and a.;
to amend 215.02 (6) (a)
3(intro.), 215.02 (6) (a) 3., 215.02 (16) (a), 215.02 (16) (b), 215.02 (16) (c) 1., 215.02
4(16) (c) 2., 215.02 (16) (c) 3., 215.02 (16) (d), 215.02 (16) (e), 215.03 (2) (b), 215.13
5(26) (c), 215.13 (26) (d), 215.13 (31), 215.21 (16) (a) (intro.), 215.21 (28), 215.26
6(8) (b) 3., 215.32 (15) (title), 215.32 (15) (a), 215.33 (3) (b) 2., 215.33 (6), 215.35
7(2) (b), 215.36 (1) (d), 215.40 (13) (a) 9., 215.57 (1) (d) 1., 215.60 (11) (a) 7., 215.77
8(1) (d) 1. and 551.22 (4);
to repeal and recreate 215.02 (6) (a) (intro.), 215.02
9(6) (a) 3., 215.02 (6) (a) 4., 215.02 (16) (a), 215.02 (16) (b), 215.02 (16) (c) 1.,
10215.02 (16) (c) 2., 215.02 (16) (d), 215.03 (2) (b), 215.13 (26) (d), 215.13 (31),
11215.21 (28), 215.26 (8) (b) 3., 215.32 (15) (a), 215.33 (3) (b) 2., 215.33 (6), 215.40
12(13) (a) 9., 215.57 (1) (d) 1., 215.60 (11) (a) 7. and 215.77 (1) (d) 1.;
to create
13215.01 (6m), 215.01 (7m), 215.02 (16) (am), 215.21 (16) (a) 5. and 215.21 (16) (d)
14of the statutes; and
to affect 1995 Wisconsin Act 27, sections 5512 and 5513
15and
1995 Wisconsin Act 27, section
9459 (7);
relating to: a savings and loan
16association and savings bank securities registration exemption, savings and
1loan association bond investment authority, savings and loan association
2annual fees and references to the federal deposit insurance corporation.
Analysis by the Legislative Reference Bureau
This bill makes several changes to the law relating to savings and loan
associations and to savings banks.
1. Presently, it is unlawful to sell securities in this state unless the securities
are registered with the office of the commissioner of securities (OCS) or are expressly
exempt from registration. This bill exempts the stock of state-chartered savings and
loan associations and savings banks from OCS registration.
2. Under current law, a savings and loan association may invest in obligations
(generally, bonds or notes) of local governmental units if the obligations are assigned
one of the 4 highest grades by a national investment rating service or if the
obligations are issued by a local governmental unit in which the association
maintains an office. Under this bill, an association may also invest in an obligation
of a local governmental unit if the commissioner of savings and loan gives prior
written approval to make the investment.
3. If an out-of-state financial institution converts into a state-chartered
savings and loan association or is absorbed by a state-chartered association, the bill
requires the converting or absorbing institution to pay an initial annual fee to the
office of the commissioner of savings and loan that is calculated using the assets of
the institution becoming subject to state regulation, prorated for the remainder of
the institution's fiscal year.
4. The bill updates references to federal examination and deposit insurance
agencies in the savings and loan chapter of the statutes to refer to the federal deposit
insurance corporation, the entity that is currently responsible for insuring savings
and loan association deposit accounts, and to the federal office of thrift supervision,
the federal agency that is currently responsible for examining savings and loan
associations.
5. Under current law, the fee for late payment of an annual assessments charge
and for payment of examination costs is from $10 per day. The bill eliminates the
$10-per-day charge and instead requires the payment of interest at an annual rate
of 12% on past-due assessments and examination costs.
6. Current law limits the authority of savings and loan associations to make
mortgage loans on the security of vacant land. This bill amends these provisions to
specifically permit savings and loan associations to make mortgage loans to develop
or to acquire and develop land for commercial or industrial use and to specifically
prohibit mortgage loans on the security of, or to finance the purchase of, vacant land
that is acquired or held for speculation.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB597, s. 1
1Section
1. 215.01 (6m) of the statutes is created to read:
AB597,3,52
215.01
(6m) "Deposit insurance corporation" means the federal deposit
3insurance corporation or any other instrumentality of or corporation chartered by
4the United States that insures deposits of an association and is supported by the full
5faith and credit of the federal government.
AB597, s. 2
6Section
2. 215.01 (7m) of the statutes is created to read:
AB597,3,97
215.01
(7m) "Federal regulatory agency" means the federal office of thrift
8supervision or other federal agency or entity which supervises and examines an
9association.
AB597, s. 3
10Section
3. 215.02 (6) (a) (intro.) of the statutes is amended to read:
AB597,3,1711
215.02
(6) (a) (intro.) The commissioner and all employes of the office and
12members of the review board shall keep confidential all the facts and information
13obtained in the course of examinations by the office and all examination and other
14confidential information obtained from
a deposit insurance corporation, a federal
15regulatory agency or any state
or federal regulatory authority, including an
16authority of this state or another state, for financial institutions, mortgage bankers,
17insurance or securities, except:
AB597, s. 4
18Section
4. 215.02 (6) (a) (intro.) of the statutes, as affected by 1995 Wisconsin
19Acts 27 and .... (this act), is repealed and recreated to read:
AB597,4,420
215.02
(6) (a) (intro.) All employes of the division and members of the review
21board shall keep confidential all the facts and information obtained in the course of
1examinations by the office and all examination and other confidential information
2obtained from a deposit insurance corporation, a federal regulatory agency or any
3state regulatory authority, including an authority of this state or another state, for
4financial institutions, mortgage bankers, insurance or securities, except:
AB597, s. 5
5Section
5. 215.02 (6) (a) 3. of the statutes is amended to read:
AB597,4,106
215.02
(6) (a) 3.
Under rules prescribed by the commissioner, for For the
7purpose of comparing notes as to matters affecting an association with an examiner
8of the
federal home loan bank board or federal savings and loan a deposit insurance
9corporation
or a federal regulatory agency as to any association whose savings
10accounts are insured by the
federal savings and loan
deposit insurance corporation.
AB597, s. 6
11Section
6. 215.02 (6) (a) 3. of the statutes, as affected by 1995 Wisconsin Acts
1227 and .... (this act), is repealed and recreated to read:
AB597,4,1613
215.02
(6) (a) 3. For the purpose of comparing notes as to matters affecting an
14association with an examiner of the a deposit insurance corporation or a federal
15regulatory agency as to any association whose savings accounts are insured by the
16deposit insurance corporation.
AB597, s. 7
17Section
7. 215.02 (6) (a) 4. of the statutes, as affected by 1995 Wisconsin Act
18.... (this act), is repealed and recreated to read:
AB597,4,2319
215.02
(6) (a) 4. The division may furnish to the deposit insurance corporation,
20to a federal regulatory agency or to any official or examiner of a deposit insurance
21corporation or a federal regulatory agency a copy of any examination made by the
22division of any association or of any report made by an association and filed with the
23division.
AB597, s. 8
24Section
8. 215.02 (6) (a) 4. (intro.) and a. of the statutes are consolidated,
25renumbered 215.02 (6) (a) 4. and amended to read:
AB597,5,6
1215.02
(6) (a) 4. (intro.) The commissioner may
: a. Furnish furnish to the
2federal home loan bank board or federal savings and loan deposit insurance
3corporation
, to a federal regulatory agency or to any official or examiner
thereof of
4a deposit insurance corporation or a federal regulatory agency a copy of any
5examination made by the office of any association or of any report made by
such an 6association and filed with the office.
AB597, s. 9
7Section
9. 215.02 (6) (a) 4. b. of the statutes is repealed.
AB597, s. 10
8Section
10. 215.02 (6) (a) 5. of the statutes is repealed.
AB597, s. 11
9Section
11. 215.02 (16) (a) of the statutes is amended to read:
AB597,5,1310
215.02
(16) (a)
Annual fee.
Associations organized under this chapter An
11association shall,
on or before July
15 16, pay an annual fee as determined by the
12commissioner and the review board, but not exceeding 12 cents per $1,000 of assets
13or fraction thereof, as of the close of the preceding calendar year.
AB597, s. 12
14Section
12. 215.02 (16) (a) of the statutes, as affected by 1995 Wisconsin Acts
1527 and .... (this act), is repealed and recreated to read:
AB597,5,1816
215.02
(16) (a)
Annual fee. An association shall, before July 16, pay an annual
17fee as determined by the division and the review board, but not exceeding 12 cents
18per $1,000 of assets or fraction thereof, as of the close of the preceding calendar year.
AB597, s. 13
19Section
13. 215.02 (16) (am) of the statutes is created to read:
AB597,5,2520
215.02
(16) (am)
Fees on conversion or absorption. If a depository institution
21that is not a state-chartered association converts to a state-chartered association or
22is absorbed by a state-chartered association, the converted association or the
23absorbing association shall pay an annual fee based on the assets of the converted
24association or the absorbed association at the same rate as other associations for the
25prorated portion of the fiscal year in which the association is subject to this chapter.
AB597, s. 14
1Section
14. 215.02 (16) (b) of the statutes is amended to read:
AB597,6,52
215.02
(16) (b)
Penalty for failure to pay fee. An association failing to pay the
3annual fee to the commissioner
by before July
15 16 of each year shall, if ordered by
4the commissioner,
forfeit $10 for each day it fails to pay the fee pay the fee and pay
5interest at an annual rate of 12% on any portion of the fee that is past due.
AB597, s. 15
6Section
15. 215.02 (16) (b) of the statutes, as affected by 1995 Wisconsin Acts
727 and .... (this act), is repealed and recreated to read:
AB597,6,118
215.02
(16) (b)
Penalty for failure to pay fee. An association failing to pay the
9annual fee to the division before July 16 of each year shall, if ordered by the division,
10pay the fee and pay interest at an annual rate of 12% on any portion of the fee that
11is past due.
AB597, s. 16
12Section
16. 215.02 (16) (c) 1. of the statutes is amended to read:
AB597,6,1813
215.02
(16) (c)
Regular examination costs. 1.
On or before June 30 Before July
141 of each year the commissioner and the review board shall fix a
per-diem per-hour 15charge for the services of each examiner used in the examination of an association,
16for the next 12 months.
Such per diem The per-hour charge shall be the same for
17all associations.
The hours constituting a day shall be that which is fixed for state
18employes by s. 230.35.
AB597, s. 17
19Section
17. 215.02 (16) (c) 1. of the statutes, as affected by 1995 Wisconsin Acts
2027 and .... (this act), is repealed and recreated to read:
AB597,6,2421
215.02
(16) (c) 1. Before July 1 of each year the division and the review board
22shall fix a per-hour charge for the services of each examiner used in the examination
23of an association, for the next 12 months. The per-hour charge shall be the same for
24all associations.
AB597, s. 18
25Section
18. 215.02 (16) (c) 2. of the statutes is amended to read:
AB597,7,4
1215.02
(16) (c) 2. After the
per diem per-hour charge for each examiner has
2been fixed
by the commissioner and review board, each association shall be
3uniformly billed for examinations during the ensuing year on a fixed
per diem 4per-hour basis for each examiner engaged in
such an examination.
AB597, s. 19
5Section
19. 215.02 (16) (c) 2. of the statutes, as affected by 1995 Wisconsin Acts
627 and .... (this act), is repealed and recreated to read:
AB597,7,97
215.02
(16) (c) 2. After the per-hour charge for each examiner has been fixed,
8each association shall be uniformly billed for examinations during the ensuing year
9on a fixed per-hour basis for each examiner engaged in an examination.
AB597, s. 20
10Section
20. 215.02 (16) (c) 3. of the statutes is amended to read:
AB597,7,1311
215.02
(16) (c) 3.
Every charge so made to an association Charges assessed
12under this paragraph shall be paid within 30 days from the
time date on which the
13association receives notice of the assessment.
AB597, s. 21
14Section
21. 215.02 (16) (d) of the statutes is amended to read:
AB597,7,2015
215.02
(16) (d)
The commissioner shall charge any special costs and expenses
16incurred
because of for special work required
by the commissioner, caused by an
17association not having because an association does not have proper or sufficient
18management or
failing fails to keep its books, records and other matters in a
19standard and approved manner. An itemized statement of
such special charges must
20be submitted to the association.
AB597, s. 22
21Section
22. 215.02 (16) (d) of the statutes, as affected by 1995 Wisconsin Acts
2227 and .... (this act), is repealed and recreated to read:
AB597,8,223
215.02
(16) (d)
The division shall charge any special costs and expenses
24incurred for special work required because an association does not have proper or
25sufficient management or fails to keep its books, records and other matters in a
1standard and approved manner. An itemized statement of special charges must be
2submitted to the association.
AB597, s. 23
3Section
23. 215.02 (16) (e) of the statutes is amended to read:
AB597,8,84
215.02
(16) (e)
Penalty for failure to pay examination costs. Any An association
5failing to shall pay the charges and assessments under pars. (c) and (d)
shall be
6subject to the penalty under par. (b) for each day it fails to pay the charge or
7assessment after it becomes due when due and shall pay interest at an annual rate
8of 12% on any portion of the charges and assessments that are past due.
AB597, s. 24
9Section
24. 215.03 (2) (b) of the statutes is amended to read:
AB597,8,1510
215.03
(2) (b) The commissioner may accept an examination-audit made by the
11federal home loan bank board deposit insurance corporation, a federal regulatory
12agency or any other governmental agency authorized to make examination-audits
13of
savings and loan associations pursuant to their rules and regulations. The
14examination-audit must comply with the procedure established by the
15commissioner.
AB597, s. 25
16Section
25. 215.03 (2) (b) of the statutes, as affected by 1995 Wisconsin Acts
1727 and .... (this act), is repealed and recreated to read:
AB597,8,2218
215.03
(2) (b) The division may accept an examination-audit made by the
19deposit insurance corporation, a federal regulatory agency or any other
20governmental agency authorized to make examination-audits of associations
21pursuant to their rules and regulations. The examination-audit must comply with
22the procedure established by the division.
AB597, s. 26
23Section
26. 215.13 (26) (c) of the statutes is amended to read:
AB597,9,3
1215.13
(26) (c) Savings accounts of savings and loan associations
, located
2outside the state,
providing such if those savings accounts are insured by
an
3instrumentality of the United States the deposit insurance corporation;
AB597, s. 27
4Section
27. 215.13 (26) (d) of the statutes is amended to read:
AB597,9,225
215.13
(26) (d) Bonds, notes or other evidences of indebtedness which are
6general obligations supported by the full faith and credit of any state in the United
7States or any city, town, village, county, technical college district or school district in
8any state in the United States if the obligations have been assigned one of the 4
9highest grades by a nationally recognized investment rating service. Before
10purchasing any obligation under this paragraph other than an obligation issued in
11this state, the association shall ascertain whether suitable obligations issued in this
12state are available in the quantity sought by the association at a competitive rate of
13return at the time the investment is intended to be made. If such obligations are
14available, the association shall give preference to obligations issued in this state.
15Notwithstanding any other requirement of this paragraph, an association may
16invest not more than one percent of its assets in the obligations of any city, town,
17village, county, technical college district or school district in this state which are not
18assigned one of the 4 highest grades by a nationally recognized investment rating
19service, if the obligations are issued by a city, town, village, county, technical college
20district or school district in which the association maintains one or more offices
or
21if the commissioner gives the association prior written approval to make the
22investment.
AB597, s. 28
23Section
28. 215.13 (26) (d) of the statutes, as affected by 1995 Wisconsin Act
24.... (this act), is repealed and recreated to read:
AB597,10,17
1215.13
(26) (d) Bonds, notes or other evidences of indebtedness which are
2general obligations supported by the full faith and credit of any state in the United
3States or any city, town, village, county, technical college district or school district in
4any state in the United States if the obligations have been assigned one of the 4
5highest grades by a nationally recognized investment rating service. Before
6purchasing any obligation under this paragraph other than an obligation issued in
7this state, the association shall ascertain whether suitable obligations issued in this
8state are available in the quantity sought by the association at a competitive rate of
9return at the time the investment is intended to be made. If such obligations are
10available, the association shall give preference to obligations issued in this state.
11Notwithstanding any other requirement of this paragraph, an association may
12invest not more than one percent of its assets in the obligations of any city, town,
13village, county, technical college district or school district in this state which are not
14assigned one of the 4 highest grades by a nationally recognized investment rating
15service, if the obligations are issued by a city, town, village, county, technical college
16district or school district in which the association maintains one or more offices or
17if the division gives the association prior written approval to make the investment.