AB872,130,107 (b) The action would be detrimental to the safety and soundness of the
8applicant or of the in-state bank or in-state bank holding company, or to the safety
9and soundness of a subsidiary or affiliate of the applicant, the in-state bank or the
10in-state bank holding company.
AB872,130,1611 (c) Because the applicant or its executive officers, directors or principal
12shareholders have not established a record of sound performance, efficient
13management, financial responsibility and integrity, the action would be contrary to
14the best interests of the depositors, other customers, creditors or shareholders of the
15applicant or of the in-state bank or in-state bank holding company or contrary to the
16best interests of the public.
AB872,130,2017 (d) The applicant has received a rating of "needs to improve record of meeting
18community credit needs" under 12 USC 2906 (b) (2) (C) or "substantial
19noncompliance in meeting community credit needs" under 12 USC 2906 (b) (2) (D)
20by the bank supervisory agency.
AB872,130,2421 (f) The applicant has failed to enter into an agreement prepared by the division
22to comply with the laws and rules of this state regulating consumer credit finance
23charges and other charges and related disclosure requirements, except to the extent
24preempted by federal law or regulation.
AB872,131,2
1(g) The applicant fails to meet any other standards established by rule of the
2division.
AB872,131,7 3(7) State concentration limit. The division may not approve any transaction
4under sub. (3) (a) if, upon consummation of the transaction, the applicant would
5control a greater percentage of the total amount of deposits of insured depository
6institutions in the state than the percentage specified under 12 USC 1842 (d) (2) (B)
7(ii).
AB872,131,12 8(8) Age requirement. (a) Except as provided in pars. (b) and (c), the division
9may not approve an application by an out-of-state bank holding company under sub.
10(3) (a) unless the in-state bank to be acquired, or all in-state bank subsidiaries of
11the in-state bank holding company to be acquired, have as of the proposed date of
12acquisition been in existence and in continuous operation for at least 5 years.
AB872,131,1713 (b) The division may approve an application for an acquisition of an in-state
14bank holding company that owns one or more in-state banks that have been in
15existence for less than 5 years, if the out-of-state bank holding company divests
16itself of those in-state banks within 2 years after the date of acquisition of the
17in-state bank holding company by the out-of-state bank holding company.
AB872,131,2218 (c) Paragraphs (a) and (b) do not apply to an in-state bank that is the surviving
19bank of a merger with an in-state bank that had been in existence and continuous
20operation for at least 5 years at the time of the merger or would have been in existence
21and in continuous operation for at least 5 years as of the proposed date of acquisition,
22if the merger had not taken place.
AB872,131,25 23(9) Reports. Each bank holding company that controls an in-state bank or an
24in-state bank holding company shall submit to the division reports under s.
25221.0526.
AB872,132,2
1(10) Penalties. The division may enforce the provisions of this section
2pursuant to s. 220.04 (9).
AB872,132,33 SUBCHAPTER X
AB872,132,54 RECORDS, REPORTS AND
5 LEGAL PROCESS
AB872,132,13 6221.1001 Stock book. Every bank shall keep a stock book. The stock book
7shall be subject to the inspection of officers, directors and shareholders of the bank
8during the usual hours for transacting business. The stock book shall show the
9name, residence and number of shares held by each shareholder. A refusal by the
10officers of such bank to exhibit the stock book to any person rightfully demanding
11inspection of the book, may be required to forfeit not more than $50. In all actions,
12suits and proceedings, the stock book is presumptive evidence of the facts contained
13in the book.
AB872,132,18 14221.1002 Reports; proofs of publication. (1) Reporting requirements. A
15bank shall make to the division not less than 2 reports during each calendar year.
16The reports shall be made at the times required by the division on forms prescribed
17and furnished by the division. The forms shall conform as nearly as practicable to
18that required of national banks, including any schedules.
AB872,132,24 19(2) Attestation. The reports under sub. (1) shall be signed and verified by the
20oath or affirmation of one of the officers of the bank, and shall be attested by at least
212 of the directors. If by reason of absence or other inability it is impracticable to
22obtain the signature of 2 directors, the report shall specify the reason why it is
23impracticable and the attestation by the director so absent or under disability is not
24required.
AB872,133,5
1(3) Resources and liabilities. The report under sub. (1) shall exhibit in detail
2and under the proper headings, the resources and liabilities of the bank at the close
3of the business of any past day specified by the division. The bank shall transmit the
4report to the division within 30 days after the receipt of request for the report from
5the division.
AB872,133,9 6(4) List of shareholders. When requested by the division, any bank shall
7report to the division a list of its shareholders, their residences, and the amount of
8stock held by each. The shareholder list shall be signed and verified by the oath or
9affirmation of one of the officers of the bank.
AB872,133,12 10(5) Special reports. The division may require special reports from a bank, if
11the division determines that the reports are necessary to inform the division fully of
12the bank's condition.
AB872,133,17 13221.1003 Forfeiture. A bank failing to make and transmit to the division a
14report or proof of publication required under this chapter may be required to forfeit
15to the division not more than $100 for each day after the report or proof of publication
16was required. If a bank fails or refuses to pay the forfeiture under this section, the
17division may institute proceedings for the recovery of the forfeiture.
AB872,133,19 18221.1004 False statements. (1) Prohibition. An officer, director or employe
19of a bank may not do any of the following:
AB872,133,2120 (a) Wilfully and knowingly subscribe to or make, or cause to be made, any false
21statement or false entry in the books of the bank.
AB872,133,2322 (b) Knowingly subscribe to or exhibit false papers with the intent to deceive any
23person authorized to examine the affairs of the bank.
AB872,133,2424 (c) Knowingly make, state, or publish any false report or statement of the bank.
AB872,134,3
1(2) Penalties. Any person who violates sub. (1) may be fined not less than
2$1,000 nor more than $5,000, or imprisoned not less than one year nor more than 10
3years, or both.
AB872,134,10 4221.1005 Refusal to permit inspection. If an officer in charge of a bank
5refuses to submit the books, papers and concerns of the bank to the inspection of the
6division, or refuses to be examined under oath touching the concerns of the bank, the
7division may inform the attorney general. The department of justice shall then
8institute an action to procure a judgment dissolving the bank. In order to carry out
9this section, the division may commence and maintain in the division's name any
10action necessary or proper to enforce this section.
AB872,134,14 11221.1006 Fees for certified copies. If a certified copy of a record filed in the
12division is lawfully required to be furnished by the division, the division may assess
13a reasonable fee as determined by the banking review board. These fees shall be
14deposited in the general fund.
AB872,134,17 15221.1007 Legal process; how served. Legal process against a bank may be
16served upon the bank in the manner provided by law for service on other corporations
17organized under the laws of this state.
AB872,135,4 18221.1008 Record search. A bank is entitled to reimbursement for expenses
19and costs incurred in searching for, reproducing and transporting books, papers,
20records and other data required to be produced by legal process, unless otherwise
21prohibited by law from collecting these expenses and costs. The expenses and costs
22shall be paid by persons seeking such production, including governmental units as
23defined in s. 108.02 (17). A bank may not be required to produce books, papers,
24records and other data in response to legal process unless the expenses and costs,
25identified in an itemized invoice to be provided by the bank, are paid or unless

1payment is tendered to the bank in cash or by certified check or draft. This section
2does not require the division to reimburse banks for expenses and costs incurred in
3the exercise by the division of statutory authority to examine banks and enforce the
4banking laws of this state.
AB872,135,55 SUBCHAPTER XI
AB872,135,66 BANK SERVICE CORPORATIONS
AB872,135,7 7221.1101 Bank service corporations. (1) Definitions. In this subchapter:
AB872,135,108 (a) "Bank service corporation" means a corporation organized to perform bank
9services for 2 or more banks, each of which owns part of the capital stock of the
10corporation.
AB872,135,1411 (b) "Bank services" means check and deposit sorting and posting, computation
12and posting of interest and other credits and charges, preparation and mailing of
13checks, statements, notices and similar items, or any other clerical, bookkeeping,
14accounting, statistical or other similar functions performed for a bank.
AB872,135,1815 (c) "Invest" includes any advance of funds to a bank service corporation,
16whether by purchase of stock, the making of a loan, or otherwise, except a payment
17for rent earned, goods sold and delivered, or services rendered prior to the making
18of the payment.
AB872,135,21 19(2) Investments in bank service corporations. (a) Two or more banks may
20invest not more than 10% of the capital of each of the banks in a bank service
21corporation.
AB872,136,222 (b) If stock in a bank service corporation is held by 2 banks, and one of the banks
23ceases to utilize the services of the corporation and ceases to hold stock in it, and
24leaves the other as the sole stock holding bank, the corporation may nevertheless

1continue to function as a bank service corporation and the other bank may continue
2to hold stock in it.
AB872,136,8 3(3) Services to competitive banks. (a) Except as provided in par. (b), if a bank,
4referred to in this subsection as the "applying bank", applies for a type of bank service
5for itself from a bank service corporation that supplies the same type of bank service
6to another bank, and the applying bank is competitive with a bank that holds stock
7in the bank service corporation, the bank service corporation must offer to supply the
8service by doing at least one of the following, at the option of the applying bank:
AB872,136,109 1. Issuing stock to the applying bank and furnishing the bank service to it on
10the same basis as to the other banks holding stock in the bank service corporation.
AB872,136,1311 2. Furnishing the bank service to the applying bank at a rate no higher than
12necessary to fairly reflect the cost of the service, including the reasonable cost of the
13capital provided to the bank service corporation by its shareholders.
AB872,136,2014 (b) The bank service corporation need not offer to supply the bank service to
15the applying bank under par. (a) if the service at competitive overall costs are
16available to the applying bank from another source, or if the furnishing of the bank
17service sought by the applying bank would be beyond the practical capacity of the
18bank service corporation. In any action or proceeding to enforce the duty imposed
19by this subsection, or for damages for the breach of this section, the bank service
20corporation has the burden of showing the applicability of this paragraph.
AB872,136,23 21(4) Permitted activities of bank service corporations. A bank service
22corporation may not engage in any activity other than the performance of bank
23services for banks.
AB872,137,4 24(5) Contracting for bank services. A bank may cause to be performed, by
25contract or otherwise, any bank service for itself, whether on or off its premises, if

1the bank and the party performing the service provide the division with assurances,
2satisfactory to the division, that the performance of the service will be subject to
3regulation and examination by the division to the same extent as if the service was
4being performed by the bank itself on its own premises.
AB872,137,55 SUBCHAPTER XII
AB872,137,66 BANK-OWNED BANKS
AB872,137,10 7221.1201 Stock in bank-owned banks. A bank, or, subject to the limitations
8of s. 221.0901, a bank holding company, may, with the approval of the division,
9acquire and hold stock, in an aggregate amount not exceeding 10% of its capital, in
10one or more of the following:
AB872,137,11 11(1) A bank chartered under s. 221.1202.
AB872,137,12 12(2) A national bank chartered under 12 USC 27 (b).
AB872,137,14 13(3) A bank holding company wholly owning a bank described under sub. (1) or
14(2).
AB872,137,20 15221.1202 Bank-owned banks. (1) Establishment and ownership. The
16division may authorize the establishment of, and issue a charter to, a bank, all of the
17stock of which is owned by 2 or more depository institutions or depository institution
18holding companies. Notwithstanding any other requirement of this section, the
19division may authorize, by rule, up to 10% of the stock to be held by other persons
20to accommodate operational needs of the bank.
AB872,137,23 21(2) Status and powers. A bank established under sub. (1) is a state bank
22chartered under this chapter for all purposes, except that its functions are limited
23solely to doing the following:
AB872,138,224 (a) Providing banking and banking-related services to or for depository
25institutions, subsidiaries of depository institutions, depository institution holding

1companies, subsidiaries of depository institution holding companies and directors,
2officers and employes of other depository institutions.
AB872,138,53 (b) Providing correspondent banking services at the request of other depository
4institutions or depository institution holding companies, and to depository
5institution trade associations.
AB872,138,7 6(3) Stock issuance. A bank established under sub. (1) may authorize and hold
7authorized but not issued stock.
AB872, s. 25 8Section 25. Chapter 223 (title) of the statutes is amended to read:
AB872,138,99 CHAPTER 223
AB872,138,1110 TRUST COMPANY BANKS
11 and other fiduciaries
AB872, s. 26 12Section 26. Subchapter I (title) of chapter 223 [precedes 223.01] of the statutes
13is created to read:
AB872,138,1414 Chapter 223
AB872,138,1515 Subchapter I
AB872,138,1616 Trust company banks
AB872, s. 27 17Section 27. 223.01 of the statutes is amended to read:
AB872,139,2 18223.01 Trust company banks, capital. Trust company banks may be
19organized pursuant to ch. 221, entitled "State Banks," and shall be subject to all the
20provisions, requirements, and liabilities of chs. 220 and 221, so far as applicable,
21except ss. 221.29 and 221.32, that trust company banks may not accept deposits
22other than trust deposits
and except as otherwise hereinafter provided. The capital
23stock of any such corporation shall be fixed and limited by the articles of
24incorporation, and must be at least $100,000, and not to exceed $5,000,000, except
25that in cities of less than 100,000 inhabitants it may be less than $100,000, but it

1shall not be less than $50,000.
The division may, with the approval of the banking
2review board, establish minimum capital requirements for a trust company bank.
AB872, s. 28 3Section 28. 223.02 of the statutes, as affected by 1995 Wisconsin Act 27, is
4repealed and recreated to read:
AB872,139,7 5223.02 Indemnity fund deposit; errors and omissions insurance. Before
6any trust company bank may commence business in this state, the trust company
7bank shall do one of the following:
AB872,139,9 8(1) Indemnity fund deposit. Deposit at least $100,000 with the state treasurer
9or the state treasurer's agent in accordance with the following provisions:
AB872,139,1310 (a) The deposit may be securities eligible for trust investments under ch. 881
11and approved by the division or be cash. The trust company bank may from time to
12time withdraw securities or cash, if the value of the balance of the deposit remains
13at least $100,000.
AB872,139,1814 (b) The state treasurer or the state treasurer's agent shall pay over to the bank
15trust company the interest, dividends or other income on deposit or may authorize
16the bank trust company to collect the interest, dividends or other income. The state
17treasurer shall issue a certificate stating that a deposit has been made with the state
18treasurer or the state treasurer's agent in the manner provided in this section.
AB872,139,2319 (c) The state treasurer or the state treasurer's agent shall hold the deposit as
20security for the faithful execution of any trust which may be lawfully imposed upon
21and accepted by the trust company bank. The cash or securities shall remain in the
22possession of the state treasurer or the state treasurer's agent until otherwise
23ordered by a court of competent jurisdiction, unless released pursuant to par. (d).
AB872,140,224 (d) The securities and cash deposited by a trust company bank may be released
25by the state treasurer or the state treasurer's agent and returned to the bank, if the

1division certifies to the state treasurer that the bank no longer exercises trust powers
2and that the division is satisfied that there are no outstanding trust liabilities.
AB872,140,73 (e) The state treasurer may designate a banking corporation, having an
4authorized capital of $1,000,000 or more, to act as an agent to hold the cash or
5securities in safekeeping. The agent shall furnish to the state treasurer a
6safekeeping receipt for all cash and securities received by it. The agent shall pay the
7cash and securities to the state treasurer on demand without conditions.
AB872,140,12 8(2) Errors and omissions insurance policy. Obtain and maintain adequate
9insurance against loss, expense and liability resulting from errors, omissions or
10neglect in the performance of any trust which may be lawfully imposed upon and
11accepted by the trust company bank. The trust company bank shall file a copy of the
12policy with the division.
AB872, s. 29 13Section 29. 223.025 of the statutes, as affected by 1995 Wisconsin Act 27, is
14repealed.
AB872, s. 30 15Section 30. 223.03 (6) of the statutes is repealed and recreated to read:
AB872,140,1816 223.03 (6) To act as trustee, executor, administrator, registrar of stocks and
17bonds, custodian, agent, guardian of estates, assignee, receiver, and in any other
18fiduciary capacity authorized by the division.
AB872, s. 31 19Section 31. 223.03 (10) of the statutes, as affected by 1995 Wisconsin Act 27,
20is repealed.
AB872, s. 32 21Section 32. 223.03 (11) of the statutes is repealed.
AB872, s. 33 22Section 33. 223.03 (12) of the statutes is repealed.
AB872, s. 34 23Section 34. 223.03 (14) of the statutes, as affected by 1995 Wisconsin Act 27,
24is amended to read:
AB872,141,5
1223.03 (14) To establish and maintain a branch trust company bank with the
2approval of the division. Section 221.04 (1) (jm) 2. to 8., as it applies to bank branch
3offices under that paragraph, applies to trust company bank branch offices under
4this subsection
to the same extent and in the same manner that a state bank may
5establish and maintain a branch bank under s. 221.0302
.
AB872, s. 35 6Section 35. 223.04 of the statutes is repealed.
AB872, s. 36 7Section 36. 223.07 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
8is amended to read:
AB872,141,139 223.07 (1) Any trust company bank may, with the approval of the division,
10establish and maintain a trust service office at any office in this state of a state or
11national bank
depository institution, as defined in s. 221.0901 (2) (i), if the
12establishment of the trust service office has been approved by the board of directors
13of the state or national bank at a meeting called for that purpose.
AB872, s. 37 14Section 37. 223.07 (3) of the statutes, as affected by 1995 Wisconsin Act 27,
15is amended to read:
AB872,142,2316 223.07 (3) If the state or national bank depository institution at which a trust
17service office is to be established has exercised trust powers, the trust company bank
18and the state or national bank depository institution shall enter into an agreement
19respecting those fiduciary powers to which the trust company bank shall succeed and
20shall file the agreement with the division. The trust company bank shall cause a
21notice of the filing, in a form prescribed by the division, to be published as a class 1
22notice, under ch. 985, in the city, village or town where the state or national bank
23depository institution is located. After filing and publication, the trust company
24bank establishing the office shall, as of the date the office first opens for business,
25without further authorization of any kind, succeed to and be substituted for the state

1or national bank
depository institution as to all fiduciary powers, rights, duties,
2privileges and liabilities of the bank depository institution in its capacity as fiduciary
3for all estates, trusts, guardianships and other fiduciary relationships of which the
4bank depository institution is then serving as fiduciary, except as may be otherwise
5specified in the agreement between the trust company bank and the state or national
6bank
depository institution. The trust company bank shall also be deemed named
7as fiduciary in all writings, including, but not limited to, wills, trusts, court orders
8and similar documents and instruments naming the state or national bank
9depository institution as fiduciary, signed before the date the trust office first opens
10for business, unless expressly negated by the writing or otherwise specified in the
11agreement between the trust company bank and the state or national bank
12depository institution. On the effective date of the substitution, the state or national
13bank
depository institution shall be released and absolved from all fiduciary duties
14and obligations under such writings and shall discontinue its exercise of trust powers
15on all matters not specifically retained by the agreement. This subsection does not
16effect a discharge in the manner of s. 701.16 (6) or other applicable statutes and does
17not absolve a state or national bank depository institution exercising trust powers
18from liabilities arising out of any breach of fiduciary duty or obligation occurring
19prior to the date the trust service office first opens for business at the bank depository
20institution
. This subsection does not affect the authority, duties or obligations of a
21bank depository institution with respect to relationships which may be established
22without trust powers, including escrow arrangements, whether the relationships
23arise before or after the establishment of the trust service office.
AB872, s. 38 24Section 38. 223.08 of the statutes is amended to read:
AB872,143,12
1223.08 Name of corporation; penalty. The word "trust" shall form part of
2the name of every corporation organized under this chapter, but the word "bank"
3shall may not be used as a part of the name. All persons, partnerships, associations,
4or corporations not organized under the provisions of this chapter, except state banks
5vested with trust powers under s. 221.04 (6) 221.0316 and nonprofit corporations
6organized for the advancement of historic preservation or for the protection of land
7for public conservation purposes, are prohibited from using the word "trust" in their
8business, or as a portion of the name or title of such the person, partnership,
9association, or corporation. Any A person who violates this section, either
10individually or as an interested party in any partnership, association, or corporation,
11may be fined not less than $300 nor more than $1,000 or imprisoned for not less than
1260 days nor more than one year in the county jail or both.
AB872, s. 39 13Section 39. Subchapter II (title) of chapter 223 [precedes 223.10] of the
14statutes is created to read:
AB872,143,1515 Chapter 223
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