SB351: Bill Text

SB351,69,20 (e) If the amounts collected under this subsection exceed the actual amounts necessary for the supervision and examination of credit unions in a year, the excess shall be retained by the commissioner office of credit unions and applied in reducing the amounts chargeable for ensuing years.

SB351, s. 232 Section 232. 186.235 (15) of the statutes is created to read:

SB351,69,23 186.235 (15) Testimonial powers. (a) The office of the commissioner may issue subpoenas and take testimony.

SB351,70,5 (b) Witness fees shall be the same as fees under s. 814.67 (1) (b) and (c). The fees of witnesses who are called by the office in the interests of the state shall be paid by the state upon presentation of proper vouchers approved by the commissioner and charged to the appropriation under s. 20.141 (1) (g). A witness subpoenaed by the office at the instance of a party other than the office shall not be entitled to payment of fees by the state unless the office certifies that the testimony was material to the purpose for which the subpoena was issued.

SB351, s. 233 Section 233. 186.235 (15) (a) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,70,9 186.235 (15) (a) The office of the commissioner credit unions may issue subpoenas and take testimony.

SB351, s. 234 Section 234. 186.235 (16) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,70,17 186.235 (16) Annual examination. (a) At least once each year, the commissioner office of credit unions shall examine the records and accounts of each credit union. For that purpose the commissioner or the examiners appointed by the commissioner office of credit unions shall have full access to, and may compel the production of, each credit union's records and accounts. They may administer oaths to and examine each credit union's officers and agents.

SB351,70,23 (b) Instead of an annual examination of a credit union under par. (a), the commissioner office of credit unions may accept an audit report of the condition of the credit union made by a certified public accountant not an employe of the credit union in accordance with rules promulgated by the commissioner office of credit unions or may accept an examination or audit made or approved by the national board.

SB351, s. 235 Section 235. 186.235 (17) of the statutes is created to read:

SB351,71,4 186.235 (17) Refusal to submit to examination. The commissioner shall report to the department of justice any credit union that refuses to submit to an examination. The department of justice shall institute proceedings to revoke the charter of the credit union.

SB351, s. 236 Section 236. 186.235 (17) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,71,10 186.235 (17) Refusal to submit to examination. The commissioner office of credit unions shall report to the department of justice any credit union that refuses to submit to an examination. The department of justice shall institute proceedings to revoke the charter of the credit union.

SB351, s. 237 Section 237. 186.235 (18) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,71,19 186.235 (18) Record-keeping and accounting procedure. (a) A credit union shall keep records and accounts in a manner consistent with generally accepted accounting principles or with standards prescribed by the commissioner office of credit unions. If a credit union does not keep its records and accounts in a manner consistent with generally accepted accounting principles, the commissioner office of credit unions may require the credit union to keep records and accounts under standards prescribed by the commissioner office.

SB351,71,24 (b) The commissioner office of credit unions may require a credit union that fails to open records or maintain prescribed records or accounts to forfeit not more than $100 for each day it is in violation. If the credit union fails to pay the forfeiture, the commissioner office of credit unions may institute proceedings to recover the forfeiture.

SB351, s. 238 Section 238. 186.235 (19) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,72,5 186.235 (19) Financial reports. (a) A credit union shall file with the commissioner office of credit unions a report of its activities for the previous reporting period, on a form furnished by the commissioner office of credit unions.

SB351,72,8 (b) The report shall include a true and verified copy of a condition statement of the credit union as of the close of the previous reporting period and shall include any other information that the commissioner office of credit unions requires.

SB351,72,13 (c) If a credit union fails or refuses to furnish a required report, it shall be subject, at the discretion of the commissioner office of credit unions, to a forfeiture of $10 per day for each day of default, and the commissioner office of credit unions may maintain an action in the name of the state to recover the forfeiture, which shall be paid into the general fund.

SB351,72,21 (d) Annually, a credit union shall publish a report as a class 1 notice, under ch. 985, in the municipality, as defined in s. 985.01 (3), where the credit union is located if the credit union has assets of $10,000,000 or more or has a membership as described in s. 186.02 (2) (b) 2. The published report shall describe the condition of the credit union on December 31 of the previous year and shall be in a form that the commissioner office of credit unions prescribes. Proof of publication shall be furnished to the commissioner office of credit unions within 45 days after the date of the report.

SB351, s. 239 Section 239. 186.235 (20) of the statutes is created to read:

SB351,73,4 186.235 (20) Approval of acts. Whenever any credit union requests approval of the commissioner for any act, which by statute requires approval, the commissioner shall have 90 days in which to grant, deny or defer the approval. A deferral may be for not more than 60 days. If the commissioner fails to act, approval shall be considered to have been granted. In matters which require the holding of public hearings, the 90-day period shall not commence until the conclusion of the hearing and the date set by the commissioner for receipt of briefs.

SB351, s. 240 Section 240. 186.235 (20) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,73,14 186.235 (20) Approval of acts. Whenever any credit union requests approval of the commissioner office of credit unions for any act, which by statute requires approval, the commissioner office of credit unions shall have 90 days in which to grant, deny or defer the approval. A deferral may be for not more than 60 days. If the commissioner office of credit unions fails to act, approval shall be considered to have been granted. In matters which require the holding of public hearings, the 90-day period shall not commence until the conclusion of the hearing and the date set by the commissioner office of credit unions for receipt of briefs.

SB351, s. 241 Section 241. 186.235 (21) (title) of the statutes is created to read:

SB351,73,16 186.235 (21) (title) Parity.

SB351, s. 242 Section 242. 186.24 of the statutes is repealed.

SB351, s. 243 Section 243. 186.25 of the statutes is renumbered 186.235 (19) and amended to read:

SB351,74,2 186.235 (19) (title) Supervision; Financial reports. All credit unions formed under this or other similar law, or authorized to transact in this state a business similar to that authorized to be done by this chapter, shall be under the control and supervision of the commissioner. Every such corporation (a) A credit union shall make a full and detailed file with the commissioner a report of its business as of December 31 for that year, and of its condition on such date, in such form and containing such information as activities for the previous reporting period, on a form furnished by the commissioner may prescribe, and shall file with the commissioner.

SB351,74,7 (b) The report shall include a true and verified copy thereof on or before February 1 thereafter. Accompanying the same shall be attached a copy of the a condition statement of the credit union at as of the close of its last fiscal year the previous reporting period and shall include any other information that the commissioner requires.

SB351,74,12 (c) If any such a credit union fails or refuses to furnish the a required report herein required, it shall be subject, at the discretion of the commissioner, to a forfeiture of $1 to $10 per day for each day of default, and the commissioner may maintain an action in the name of the state to recover such penalty, and the same the forfeiture, which shall be paid into the state treasury. A general fund.

SB351,74,19 (d) Annually, a credit union shall publish the a report as a class 1 notice, under ch. 985, in the municipality, as defined in s. 985.01 (3), where the credit union is located if the credit union has assets of $10,000,000 or more or has a membership as described in s. 186.02 (2) (b) 2. The published report shall be in the condensed form as describe the condition of the credit union on December 31 of the previous year and shall be in a form that the commissioner prescribes. Proof of publication shall be furnished to the commissioner within 45 days after the date of the report.

SB351, s. 244 Section 244. 186.26 (title) of the statutes is repealed.

SB351, s. 245 Section 245. 186.26 (1) of the statutes is renumbered 186.235 (16) and amended to read:

SB351,75,10 186.235 (16) (title) Annual examination. (a) At least once each year, the commissioner shall make or cause to be made an examination of examine the cash, bills, collaterals, securities, assets, books of account, condition and affairs records and accounts of each credit union and for . For that purpose the commissioner or the examiners appointed by the commissioner shall have full access to, and may compel the production of, each credit union's books, papers, securities and moneys, records and accounts. They may administer oaths to and examine each credit union's officers and agents as to their respective affairs. Special examination shall be made upon written request of 5 or more members, if those members guarantee the expense of the special examination. The refusal of any credit union to submit to an examination ordered or requested shall be reported to the department of justice for the purpose of instituting proceedings to have the charter of the credit union revoked because of the refusal.

SB351,75,19 (b) In lieu Instead of an annual examination of a credit union under par. (a), the commissioner may accept an audit report of the condition of the credit union made by a certified public accountant not an employe of the credit union in accordance with rules promulgated by the commissioner. The cost of the audit shall be paid by the credit union. A copy of each audit under this paragraph shall be furnished to the Wisconsin credit union savings insurance corporation if the credit union's savings are protected or guaranteed by the Wisconsin credit union savings insurance corporation or may accept an examination or audit made or approved by the national board.

SB351, s. 246 Section 246. 186.26 (2) of the statutes is repealed.

SB351, s. 247 Section 247. 186.27 (title) of the statutes is renumbered 186.235 (7) (title).

SB351, s. 248 Section 248. 186.27 (intro.), (1) and (2) of the statutes are renumbered 186.235 (7) (a) (intro.), 1. and 2. and amended to read:

SB351,76,2 186.235 (7) (a) (intro.) The commissioner, all other officers and employes of the office of the commissioner, and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except in any of the following situations:

SB351,76,4 1. So far as If the public duty of such the person requires the that person to report upon or take special action regarding the affairs of any credit union; or.

SB351,76,6 2. When If the person is called as a witness in any criminal proceeding or trial in a court of justice; or.

SB351, s. 249 Section 249. 186.27 (3) of the statutes is renumbered 186.235 (7) (b) and amended to read:

SB351,76,10 186.235 (7) (b) The Notwithstanding par. (a) and unless otherwise provided by rule, the commissioner may do any of the following:

SB351,76,13 1. Furnish to the national board or any official or examiner of it a copy of any examination made by the commissioner's office of any credit union or of any report made by the credit union.

SB351,76,17 2. Give access to and disclose to the national board or any official or examiner of it any information possessed by the commissioner about the conditions or affairs of any credit union whose savings are insured by the national board federal share insurance.

SB351, s. 250 Section 250. 186.28 of the statutes is renumbered 186.235 (18) and amended to read:

SB351,77,5 186.235 (18) (title) Bookkeeping; forfeiture for failure to obey commissioner Record-keeping and accounting procedure. (a) A credit union shall open and keep accurate and convenient records of its transactions and accounts in a manner consistent with generally accepted accounting principles or with standards prescribed by the commissioner. If the commissioner determines that a credit union does not keep its books records and accounts in a manner which enables the commissioner to readily ascertain the true condition of the credit union consistent with generally accepted accounting principles, the commissioner may require any officer of the credit union to open and keep such books or records and accounts as under standards prescribed by the commissioner may prescribe in order to remedy the deficiency.

SB351,77,12 (b) Any The commissioner may require a credit union that refuses or neglects fails to open records or maintain books prescribed records or accounts in the manner prescribed under sub. (1) shall be subject, upon written notification of the commissioner, to a forfeiture not to exceed $10 to forfeit not more than $100 for each day it is in violation. If any the credit union fails or refuses to pay the forfeiture, the commissioner may institute proceedings to enforce its collection recover the forfeiture.

SB351, s. 251 Section 251. 186.29 (title) of the statutes is renumbered 186.235 (11) (title).

SB351, s. 252 Section 252. 186.29 (1) (intro.), (a) to (c), (e) and (g) to (k) of the statutes are renumbered 186.235 (11) (a) (intro.) and 1. to 9. and amended to read:

SB351,77,20 186.235 (11) (a) Conditions for taking possession. (intro.) The commissioner may forthwith take possession and control of the business and property of any credit union to which this chapter is applicable whenever the commissioner finds a if the credit union violating violates this chapter or that if the credit union does any of the following:

SB351,77,21 1. Is conducting Conducts its business contrary to law; or.

SB351,77,22 2. Has violated Violates its charter, or any law; or.

SB351,77,24 3. Is conducting Conducts its business in an unauthorized or unsafe manner; or.

SB351,77,25 4. Has an impairment of its capital; or.

SB351,78,1 5. Has suspended Suspends payment of its obligations; or.

SB351,78,3 6. Has neglected or refused Neglects or refuses to comply with the terms of a duly issued an order of the commissioner; or.

SB351,78,5 7. Has refused Refuses to submit its books, papers, records, accounts or affairs for inspection to any a credit union examiner; or.

SB351,78,6 8. Has refused Refuses to be examined upon oath regarding its affairs.

SB351,78,8 9. Has been given Receives notice of intent to terminate insured status by the national board.

SB351, s. 253 Section 253. 186.29 (1) (d) and (f) of the statutes are repealed.

SB351, s. 254 Section 254. 186.29 (1m) of the statutes is renumbered 186.235 (11) (b) and amended to read:

SB351,78,18 186.235 (11) (b) Suspension. 1. The commissioner may suspend, for a period of up to 120 days, the business or an officer, director, committee member or employe of a credit union from engaging in credit union business if the commissioner finds the existence of any condition under sub. (1) (a) to (k) par. (a) 1. to 9. The commissioner may renew a suspension under this paragraph subdivision any number of times and for periods of up to 120 days if the commissioner finds that the condition or conditions continue to exist.

SB351,78,25 2. The commissioner shall suspend the business of a credit union, other than a corporate central credit union, if the credit union does not comply with s. 186.34 (2) (a). The commissioner shall then liquidate the credit union under this section unless the credit union files a complete application for federal share insurance from the national board within 30 days after the date the suspension under this paragraph commences. The commissioner shall authorize a credit union to resume its business if it files an application within the time period specified in this paragraph.

SB351, s. 255 Section 255. 186.29 (1p) (title) of the statutes is renumbered 186.235 (11) (c) (title).

SB351, s. 256 Section 256. 186.29 (1p) (a) (title) of the statutes is repealed.

SB351, s. 257 Section 257. 186.29 (1p) (a) of the statutes is renumbered 186.235 (11) (c) 1. and amended to read:

SB351,79,8 186.235 (11) (c) 1. The commissioner may take possession of the business and property of a credit union if the commissioner finds the existence of any condition under sub. (1) (a) to (k) par. (a) 1. to 9.

SB351, s. 258 Section 258. 186.29 (1p) (b) (title) of the statutes is repealed.

SB351, s. 259 Section 259. 186.29 (1p) (b) of the statutes is renumbered 186.235 (11) (c) 2. and amended to read:

SB351,79,15 186.235 (11) (c) 2. The commissioner shall take possession of the business and property of a credit union that violates s. 186.34 (2) (b), unless the commissioner approves a consolidation merger under s. 186.31, and of a credit union that the commissioner is required to liquidate under sub. (1m) (b).

SB351, s. 260 Section 260. 186.29 (2) (intro.) and (a) of the statutes are renumbered 186.235 (11) (d) (intro.) and 1. and amended to read:

SB351,79,20 186.235 (11) (d) Procedure on taking possession. (intro.) Upon taking possession of the business and property of any such a credit union, the commissioner shall forthwith:

SB351,80,2 1. Serve a notice in writing upon the president and secretary of said the credit union setting forth therein stating that the commissioner has taken possession and control of the business and property of said the credit union. Said The notice shall be executed in duplicate, and immediately after the same has been served service, one of the said notices shall be filed with the clerk of the circuit court of the county where said in which the credit union is located together with proof of service.

SB351, s. 261 Section 261. 186.29 (2) (b) of the statutes is renumbered 186.235 (11) (d) 2. and amended to read:

SB351,80,7 186.235 (11) (d) 2. Give notice to all individuals, partnerships, corporations, limited liability companies and associations known to the commissioner to be holding or in possession of any assets of such the credit union.

SB351, s. 262 Section 262. 186.29 (2) (c) of the statutes is renumbered 186.235 (11) (dg) and amended to read:

SB351,81,3 186.235 (11) (dg) (title) Special deputy commissioners. The commissioner may appoint one or more special deputy commissioners as agent to assist in the duty of liquidation and distribution of the assets of one or more credit unions of whose business and property the commissioner shall have taken possession pursuant to the provisions of this chapter holds. A certificate of such appointment shall be filed in the office of the commissioner and a certified copy in the office of the clerk of the circuit court for the county in which such the credit union is located. The commissioner may employ such counsel and procure such expert assistance and advice as may be necessary in the liquidation and distribution of the assets of such the credit union, and may retain such of the any officers or employes of such the credit union as that the commissioner deems considers to be necessary. The special deputy commissioner and assistants shall furnish such security for the faithful discharge of their duties as in an amount that the commissioner deems proper. Such considers to be necessary. The special deputy commissioner may execute, acknowledge and deliver any and all deeds, assignments, releases or other instruments necessary and proper to effect any sale and transfer or incumbrance of real estate or personal property and may borrow money for use in the liquidation after the same liquidation has been approved by the commissioner and an order obtained from the circuit court of the county in which said the credit union is located as hereinafter provided.

SB351, s. 263 Section 263. 186.29 (2) (d) of the statutes is renumbered 186.235 (11) (dr) and amended to read:

SB351,81,18 186.235 (11) (dr) (title) Special deputy commissioner duties. Upon taking possession of the property and business of such the credit union, the special deputy commissioner is authorized to collect all moneys due to such the credit union, and to do such other acts as are necessary to conserve its assets and business, and shall proceed to liquidate the affairs thereof as hereinafter provided of the credit union. The special deputy commissioner shall collect all debts due and claims belonging to it the credit union, and upon a petition approved by the commissioner and upon order of the circuit court of the county in which such the credit union is located, may sell or compound all bad or doubtful debts, or do any act or execute any other necessary instruments and upon like petition and order may sell all the real and personal property of such the credit union on such terms as the court shall approve. Such special deputy commissioner may, if necessary, enforce individual liability of the stockholders to pay the debts of such corporation.

SB351, s. 264 Section 264. 186.29 (3) of the statutes is renumbered 186.235 (11) (e) and amended to read:

SB351,82,12 186.235 (11) (e) Notice, allowance and payment of claims. The special deputy commissioner shall cause publish a class 3 notice, under ch. 985, to be published, calling on all persons who may have claims a claim against such the credit union, to present the same claim to the special deputy commissioner and make legal proof thereof of the claim at a place and within a time, not earlier than the last day of publication, to be therein specified in the notice. The special deputy commissioner shall mail a similar notice to all persons, at their last-known address, whose names appear as creditors upon the books of the credit union. Proof of service of such the notice shall be filed with the clerk of said court. The special deputy commissioner may reject any claim. Any party interested may also file written objections to any claim with the special deputy commissioner and, after notice by registered mail of such the rejection, said the claimant shall be barred unless the claimant commences an action thereon on the claim within 3 months. Claims presented after the expiration of the time fixed in the notice to creditors shall be entitled to an equitable share in from the distribution only to the extent of the any assets then remaining in the hands of the special deputy commissioner equitably applicable thereto after properly filed claims have been paid.

SB351, s. 265 Section 265. 186.29 (4) of the statutes is renumbered 186.235 (11) (f) and amended to read:

SB351,83,2 186.235 (11) (f) Inventory of assets and statement of liabilities. Upon taking possession of the property and assets of such the credit union, the special deputy commissioner shall make an inventory of the assets of such the credit union, in duplicate, one to be filed in the office of the commissioner and one in the office of the clerk of circuit court for the county in which such the credit union is located. Upon the expiration of the time fixed for the presentation of claims, the special deputy commissioner shall make in duplicate a full and complete list of the claims presented, including and specifying such the claims as have been rejected by the special deputy commissioner, one to be filed in the office of the commissioner, and one in the office of the clerk of circuit court for the county in which such the credit union is located. Such The inventory and list of claims shall be open at all reasonable times to inspection.

SB351, s. 266 Section 266. 186.29 (5) of the statutes is renumbered 186.235 (11) (g) and amended to read:

SB351,83,17 186.235 (11) (g) Adjustment of loans and withdrawal value of shares. The value of shares pledged upon a loan to the credit union shall be applied and credited to the loan and the borrower shall be liable only for the balance. The rate of interest charged upon the balance shall be the legal rate. The value shall be determined in such manner as the commissioner prescribes, and shall be made under s. 186.30 (1) and (3), or in such other manner as the commissioner may prescribe. Upon the approval of the value by the commissioner and the circuit court of the county in which the credit union is located, the book value of each member shall may be reduced proportionately. At least 5 days' written notice of the determination of value shall be given to all shareholders of the time and place the value shall be submitted to the circuit court for approval. Approval of the circuit court shall be by an order entered under s. 807.11 (2). Any stockholder or creditor of the credit union aggrieved by the determination of value may appeal to the court of appeals.

SB351, s. 267 Section 267. 186.29 (6) of the statutes is renumbered 186.235 (11) (h) and amended to read: