SB351: Bill Text

SB351, s. 106 Section 106. 186.098 (6) (a) 1. to 6. of the statutes are repealed.

SB351, s. 107 Section 107. 186.098 (6) (b) of the statutes is repealed and recreated to read:

SB351,31,14 186.098 (6) (b) Loan limits.

SB351, s. 108 Section 108. 186.098 (6) (c) of the statutes is created to read:

SB351,31,17 186.098 (6) (c) Loan approval if a director, officer, credit committee member or employe provides security as a comaker, guarantor, endorser or other form of surety.

SB351, s. 109 Section 109. 186.098 (7) of the statutes is repealed and recreated to read:

SB351,31,21 186.098 (7) Surety repayment evidence. An endorser, comaker, guarantor or other surety shall provide the credit union with evidence of ability to repay the obligation of the member.

SB351, s. 110 Section 110. 186.098 (8) (title) of the statutes is created to read:

SB351,31,23 186.098 (8) (title) Credit extensions.

SB351, s. 111 Section 111. 186.098 (8) (b) of the statutes is amended to read:

SB351,32,4 186.098 (8) (b) With the approval of the commissioner, credit unions A credit union may utilize credit cards, including point-of-purchase credit, providing if the credit committee or loan officer, upon their own motion or upon application by a member, has predetermined the extent of credit extension.

SB351, s. 112 Section 112. 186.098 (8) (b) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,32,10 186.098 (8) (b) A credit union may utilize credit cards, including point-of-purchase credit, if the credit committee or loan officer, upon its or his or her own motion or upon application by a member, has predetermined the extent of credit extension.

SB351, s. 113 Section 113. 186.098 (9) of the statutes is repealed.

SB351, s. 114 Section 114. 186.098 (9m) of the statutes is created to read:

SB351,32,15 186.098 (9m) Participation loans. Subject to rules prescribed by the commissioner, a credit union may participate with other lenders in a loan of any type that the credit union may otherwise make.

SB351, s. 115 Section 115. 186.098 (9m) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,32,20 186.098 (9m) Participation loans. Subject to rules prescribed by the commissioner office of credit unions, a credit union may participate with other lenders in a loan of any type that the credit union may otherwise make.

SB351, s. 116 Section 116. 186.098 (10) of the statutes is amended to read:

SB351,33,2 186.098 (10) (title) Additional advances. Loans to members secured by mortgages on real estate may be made subject to the rules prescribed by the commissioner. Such loans may provide for additional advances, but any with priority lien status. Any additional advance made to a member, if the mortgage and mortgage note so provide, may not exceed an amount specified in the mortgage.

SB351, s. 117 Section 117. 186.098 (10) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,33,9 186.098 (10) Additional advances. Loans to members secured by mortgages on real estate may be made subject to the rules prescribed by the office of credit unions. Such loans may provide for additional advances with priority lien status. Any additional advance made to a member, if the mortgage and mortgage note so provide, may not exceed an amount specified in the mortgage.

SB351, s. 118 Section 118. 186.098 (11) (title) of the statutes is created to read:

SB351,33,11 186.098 (11) (title) Guaranteed loans.

SB351, s. 119 Section 119. 186.098 (12) (title) of the statutes is created to read:

SB351,33,13 186.098 (12) (title) Loans to members.

SB351, s. 120 Section 120. 186.098 (13) of the statutes is created to read:

SB351,33,25 186.098 (13) Liens. (a) Subject to any limitation on security interests identified in s. 422.417 (3) and if the loan agreement or endorsement permits it, a credit union shall have a lien on the share deposits and deposit accounts and accumulated dividends of a member for any amount owed the credit union by the member and for any loan endorsed by the member. Upon the default of the owner of the account in an obligation owed to the credit union, the credit union shall have a right of immediate setoff for each share deposit and deposit account unless prohibited under 12 CFR 226.12 (d). Sections 425.104 and 425.105 apply to a default under this paragraph. The credit union may also refuse to allow withdrawals from any share deposit or deposit account in an amount not to exceed any delinquent obligation to the credit union.

SB351,34,3 (b) The credit union may waive its rights to a lien, to immediate setoff or to restrict withdrawals or to any combination of these rights for any share deposit or deposit account.

SB351, s. 121 Section 121. 186.10 (1) (title) of the statutes is created to read:

SB351,34,5 186.10 (1) (title) Minors' shares.

SB351, s. 122 Section 122. 186.10 (2) of the statutes is amended to read:

SB351,34,11 186.10 (2) (title) Shares in trust. Shares may be issued in trust, subject to any conditions prescribed in the bylaws. If shares are issued in trust, the name of the beneficiary shall be disclosed to the credit union Share accounts and deposit accounts may be owned by a member in trust for a beneficiary, or owned by a nonmember in trust for a beneficiary who is a member.

SB351, s. 123 Section 123. 186.11 (1) of the statutes is renumbered 186.11 (1) (intro.) and amended to read:

SB351,34,15 186.11 (1) General. (intro.) The board of directors may invest credit union funds in U.S. any of the following:

SB351,34,16 (a) United States government direct and agency obligations, municipal.

SB351,34,17 (b) Municipal bonds issued by municipalities of the state,.

SB351,34,19 (c) A corporate central credit unions, banks union organized under s. 186.32 or under any other state or federal law.

SB351,34,22 (d) Deposits and debt instruments of federally insured banks, credit unions, savings banks and savings and loans loan associations located in Wisconsin and may, with.

SB351,34,24 (e) With the approval of the commissioner, make other investments including investments in credit unions other investment instruments.

SB351, s. 124 Section 124. 186.11 (1) (e) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

SB351,35,4 186.11 (1) (e) With the approval of the office of credit unions, other investment instruments.

SB351, s. 125 Section 125. 186.11 (2) (b) of the statutes is amended to read:

SB351,35,17 186.11 (2) (b) The board of directors may purchase, lease or construct a building for the operation of the credit union, provided if the aggregate cost depreciated value of the building, including any associated remodeling of the building, or land improvements and, land acquisition, office furnishings and equipment, does not exceed the greater of 5% of the credit union's total assets, including the building to be acquired, or 100% of the credit union's regular irrevocable reserve unless prior approval for greater amounts is given by the commissioner. The cost of land acquisition may include vicinal property for future expansion but may not exceed the aggregate cost limitation. Nothing in this subsection authorizes a credit union to lease a building owned by a director or by a corporation, limited liability company, partnership or association controlled by a director. The credit union may rent or lease a portion of its building or property.

SB351, s. 126 Section 126. 186.11 (2) (b) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,36,4 186.11 (2) (b) The board of directors may purchase, lease or construct a building for the operation of the credit union, if the aggregate depreciated value of the building, including any associated remodeling of the building or land improvements, land acquisition, office furnishings and equipment, does not exceed the greater of 5% of the credit union's total assets, including the building to be acquired, or 100% of the credit union's irrevocable reserve unless prior approval for greater amounts is given by the office of credit unions. Nothing in this subsection authorizes a credit union to lease a building owned by a director or by a corporation, limited liability company, partnership or association controlled by a director. The credit union may rent or lease a portion of its building or property.

SB351, s. 127 Section 127. 186.11 (4) (a) of the statutes is amended to read:

SB351,36,10 186.11 (4) (a) A credit union may invest not more than 10% 1.5% of its regular reserve total assets in the capital shares or obligations of a corporation organized primarily to provide goods and services specified in par. (b) to credit unions and, credit union organizations, credit union members and persons who are eligible for membership.

SB351, s. 128 Section 128. 186.11 (4) (b) (intro.), 1., 3. and 4. of the statutes are amended to read:

SB351,36,14 186.11 (4) (b) (intro.) A service corporation under par. (a) may provide goods and services relating to one or more including any of the following functions:

SB351,36,20 1. Credit union operations services, including service centers, credit and debit card services, automated teller and remote terminal services, accounting systems, data processing, management training and support, payment item processing, record retention and storage, locator services, research, debt collection, credit analysis and loan servicing and, coin and currency services and marketing and advertising services.

SB351,36,22 3. Development and administration of individual retirement accounts, Keogh plans and other personnel employe benefit plans.

SB351,36,24 4. Provision of trust services, including service as trustee and in other similar fiduciary capacities.

SB351, s. 129 Section 129. 186.11 (4) (c) of the statutes is created to read:

SB351,37,1 186.11 (4) (c) A service corporation may be subject to audit by the commissioner.

SB351, s. 130 Section 130. 186.112 of the statutes is amended to read:

SB351,37,11 186.112 Credit union borrowing. The board of directors may borrow money from any source if the amount borrowed does not exceed 50% 30% of the credit union's total savings, deposits and reserves and the loan is not for a period longer than 12 months. The limitations of this subsection do not apply to national corporate central credit unions. The 12-month limitation under this subsection does not apply to money borrowed by a credit union to acquire credit union property, buildings, remodeling or equipment. The commissioner may exempt any credit union from the limitations of this subsection. Credit union borrowing may exceed 30% if the commissioner approves.

SB351, s. 131 Section 131. 186.112 of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,37,17 186.112 Credit union borrowing. The board of directors may borrow money from any source if the amount borrowed does not exceed 30% of the credit union's total savings, deposits and reserves. Credit union borrowing may exceed 30% if the office of credit unions approves.

SB351, s. 132 Section 132. 186.113 (title) of the statutes is amended to read:

SB351,37,19 186.113 (title) Credit union services powers.

SB351, s. 133 Section 133. 186.113 (1) of the statutes is amended to read:

SB351,37,24 186.113 (1) (title) Branch offices. If the need and necessity exists, establish subsidiary offices With the approval of the commissioner, establish branch offices inside or outside of this state where permanent records may be maintained within the state with the approval of the commissioner.

SB351, s. 134 Section 134. 186.113 (1) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,38,5 186.113 (1) Branch offices. With the approval of the office of credit unions, establish branch offices inside or outside of this state where permanent records may be maintained.

SB351, s. 135 Section 135. 186.113 (1e) of the statutes is created to read:

SB351,38,8 186.113 (1e) Out-of-state membership. Expand its field of membership to states that border this state.

SB351, s. 136 Section 136. 186.113 (1m) of the statutes is repealed.

SB351, s. 137 Section 137. 186.113 (1s) of the statutes is created to read:

SB351,38,17 186.113 (1s) Service centers. Upon notice to the commissioner, establish and maintain service centers that are reasonably necessary to furnish services to members. A credit union may operate a shared service center with one or more credit unions and may participate in a shared service center network that is operated from inside or outside of this state. This subsection does not prohibit a credit union from referring to a service center as a branch office. A service center shall be under the supervision of the commissioner.

SB351, s. 138 Section 138. 186.113 (1s) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,39,2 186.113 (1s) Service centers. Upon notice to the commissioner office of credit unions, establish and maintain service centers that are reasonably necessary to furnish services to members. A credit union may operate a shared service center with one or more credit unions and may participate in a shared service center network that is operated from inside or outside of this state. This subsection does not prohibit a credit union from referring to a service center as a branch office. A service center shall be under the supervision of the commissioner office of credit unions.

SB351, s. 139 Section 139. 186.113 (2) of the statutes is repealed and recreated to read:

SB351,39,7 186.113 (2) Credit union center corporation. With other credit unions, organize a credit union center corporation that provides facilities, equipment and personnel. A credit union center corporation shall be under the supervision of the commissioner.

SB351, s. 140 Section 140. 186.113 (2) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,39,13 186.113 (2) Credit union center corporation. With other credit unions, organize a credit union center corporation that provides facilities, equipment and personnel. A credit union center corporation shall be under the supervision of the office of credit unions.

SB351, s. 141 Section 141. 186.113 (3) (title) of the statutes is created to read:

SB351,39,15 186.113 (3) (title) Financial counseling.

SB351, s. 142 Section 142. 186.113 (4) (title) of the statutes is created to read:

SB351,39,17 186.113 (4) (title) Fees.

SB351, s. 143 Section 143. 186.113 (5) of the statutes is amended to read:

SB351,39,20 186.113 (5) (title) Third-party checks. Issue third-party checks from an account of a member upon request of the member.

SB351, s. 144 Section 144. 186.113 (6) (title) of the statutes is created to read:

SB351,39,22 186.113 (6) (title) Trust services.

SB351, s. 145 Section 145. 186.113 (6) (intro.) of the statutes is repealed.

SB351, s. 146 Section 146. 186.113 (6) (a) and (b) of the statutes are amended to read:

SB351,40,5 186.113 (6) (a) Contract for the provision of trust services to its members with a trust company or other organization with trust powers authorized to do business in this state. For this purpose, the trust company or other organization with trust powers may serve credit union members at credit union facilities on a full-time or part-time basis to provide trust services to the credit union's members.

SB351,40,7 (b) Act as trustees of member tax deferred funds permitted by federal law to be deposited in a credit union as a deferred compensation or tax-deferral device.

SB351, s. 147 Section 147. 186.113 (6) (c) of the statutes is created to read: