SB351,90,1911
186.31
(2) Approval. To effect a merger, the board of directors of each credit
12union shall, by resolution, propose a specific plan for merger which shall be agreed
13to by a majority of the board of each credit union joining in the merger. The proposed
14merger plan shall be submitted to a vote at an annual or special meeting of members
15of the merging credit union. Written notice of the meeting setting forth the proposed
16plan of merger or a summary shall be given to each member of the merging credit
17union within the time and in the manner provided for the giving of notice of meetings
18of members of the credit union. The proposed plan shall be adopted upon receiving
19a majority of the votes entitled to be cast by members present at the meeting.
SB351, s. 279
20Section
279. 186.31 (2m) of the statutes is created to read:
SB351,90,2521
186.31
(2m) Emergency merger. Notwithstanding sub. (2), if the
22commissioner determines that the merging credit union is in danger of insolvency,
23and that the proposed merger would reduce or avoid a threatened loss to federal
24share insurance, the commissioner may permit the merger to become effective
25without an affirmative vote of the membership of the merging credit union.
SB351, s. 280
1Section
280. 186.31 (2m) of the statutes, as created by 1995 Wisconsin Act ....
2(this act), is amended to read:
SB351,91,83
186.31
(2m) Emergency merger. Notwithstanding sub. (2), if the
4commissioner office of credit unions determines that the merging credit union is in
5danger of insolvency, and that the proposed merger would reduce or avoid a
6threatened loss to federal share insurance, the
commissioner office of credit unions 7may permit the merger to become effective without an affirmative vote of the
8membership of the merging credit union.
SB351, s. 281
9Section
281. 186.314 of the statutes is amended to read:
SB351,91,11
10186.314 Conversion. A credit union
chartered under this chapter may
be
11converted convert to a federal credit union by complying with the following:
SB351,91,20
12(1) The proposition for a conversion shall first be approved by unanimous
13recommendation of the directors of the credit union. The directors shall set a date
14for a vote by the members on the conversion. Written notice specifying the reason
15for conversion and the date set for the vote shall be delivered in person or mailed to
16each member at the address
for such member appearing on the records of the credit
17union, not more than
30 45 days nor less than
7 15 days
prior to such date before the
18meeting. A majority of the members voting, in person or in writing, may approve the
19proposition for conversion, provided not more than 15 members or 10% of the total
20membership, whichever is greater,
object by written notice
, object.
SB351,91,24
21(2) A statement of the results of the vote, verified by the affidavits of the
22president or vice president chairperson or the vice chairperson and the secretary,
23shall be filed with the office of the commissioner within 10 days after the vote is
24taken.
SB351,92,8
1(3) Promptly after the vote is taken and in no event later than Within 90 days
2thereafter, if after the date on which the proposition for conversion
was is approved
3by such vote, the credit union shall take
such action as may be the necessary
action 4under
the federal law 12 USC 1771 (b) to make it a federal credit union
, and within.
5Within 10 days after receipt of the federal credit union charter,
there shall be filed 6the credit union shall file a copy of the charter with the office of the commissioner
a
7copy of the charter thus issued. Upon
such filing, the credit union shall cease to be
8a state credit union.
SB351,92,14
9(4) Upon ceasing to be a state credit union,
such the credit union shall no longer
10be subject to this chapter. The successor federal credit union shall be vested with all
11the assets and shall continue to be responsible for all of the obligations of the state
12credit union, including annual and special assessments levied under s. 186.35 (5) (d)
13prior to the date a copy of the federal credit union charter is filed with the
14commissioner, to the same extent as though the conversion had not taken place.
SB351, s. 282
15Section
282. 186.314 (2), (3) and (4) of the statutes, as affected by 1995
16Wisconsin Acts 27 and .... (this act), are repealed and recreated to read:
SB351,92,1917
186.314
(2) A statement of the results of the vote, verified by the affidavits of
18the chairperson or the vice chairperson and the secretary, shall be filed with the office
19of credit unions within 10 days after the vote is taken.
SB351,92,24
20(3) Within 90 days after the date on which the proposition for conversion is
21approved, the credit union shall take the necessary action under
12 USC 1771 (b) to
22make it a federal credit union. Within 10 days after receipt of the federal credit union
23charter, the credit union shall file a copy of the charter with the office of credit
24unions. Upon filing, the credit union shall cease to be a state credit union.
SB351,93,6
1(4) Upon ceasing to be a state credit union, the credit union shall no longer be
2subject to this chapter. The successor federal credit union shall be vested with all
3the assets and shall continue to be responsible for all of the obligations of the state
4credit union, including annual and special assessments levied under s. 186.35 (5) (d)
5prior to the date a copy of the federal credit union charter is filed with the office of
6credit unions, to the same extent as though the conversion had not taken place.
SB351, s. 283
7Section
283. 186.315 of the statutes is amended to read:
SB351,93,25
8186.315 Charter cancellation. Upon completion of a voluntary liquidation
9as provided in s. 186.18, or upon completion of the liquidation in cases under s.
186.29 10186.235 (11), or after the assets and liabilities of a credit union are transferred to
11another credit union for the purpose of
consolidation
merger as provided in s. 186.31
12(3), the commissioner shall
forthwith cancel the charter of the credit union
or credit
13unions liquidated or
absorbed in consolidation
merged without any other or further
14notice to
said the credit union or to any person. A certified copy of the order or
15certificate of the commissioner shall be recorded with the register of deeds of the
16county
where said in which the credit union is located. The register of deeds shall
17note on the margin of the record of the articles of incorporation of
said the credit
18union the volume and page where
said the order or certificate canceling its charter
19is recorded
and shall be entitled to a fee of 50 cents therefor. In case of voluntary
20liquidation under s. 186.18 or
consolidation merger under s. 186.31, the credit union
21shall record the order or certificate of the commissioner and pay the fee
therefor. In
22case of liquidation under s.
186.29 186.235 (11), the commissioner or special deputy
23commissioner
as therein provided shall record the order or certificate of the
24commissioner and pay the fee
therefor out of the assets of the credit union as an
25expense of liquidation.
SB351, s. 284
1Section
284. 186.315 of the statutes, as affected by 1995 Wisconsin Acts 27 and
2.... (this act), is repealed and recreated to read:
SB351,94,18
3186.315 Charter cancellation. Upon completion of a voluntary liquidation
4as provided in s. 186.18, or upon completion of the liquidation in cases under s.
5186.235 (11), or after the assets and liabilities of a credit union are transferred to
6another credit union for the purpose of merger as provided in s. 186.31 (3), the office
7of credit unions shall cancel the charter of the credit union liquidated or merged
8without any other or further notice to the credit union or to any person. A certified
9copy of the order or certificate of the office of credit unions shall be recorded with the
10register of deeds of the county in which the credit union is located. The register of
11deeds shall note on the margin of the record of the articles of incorporation of the
12credit union the volume and page where the order or certificate canceling its charter
13is recorded. In case of voluntary liquidation under s. 186.18 or merger under s.
14186.31, the credit union shall record the order or certificate of the office of credit
15unions and pay the fee. In case of liquidation under s. 186.235 (11), the office of credit
16unions or special deputy shall record the order or certificate of the office of credit
17unions and pay the fee out of the assets of the credit union as an expense of
18liquidation.
SB351, s. 285
19Section
285. 186.32 of the statutes is amended to read:
SB351,95,6
20186.32 (title)
Central Corporate central credit unions union. (1) (title)
21Organization. Central A corporate central credit
unions union may be organized
22and operated under the conditions and provisions of this chapter and subject to all
23of the provisions of this chapter not inconsistent
herewith with this section. It shall
24be lawful for other credit unions located in this state and any other state to become
25members of
a corporate central credit
unions union. Credit unions having
1membership in a
corporate central credit union may be represented at
an annual or
2special
meetings meeting of the
corporate central credit union by one member
duly 3authorized by the board of directors of
such that member credit union and shall be
4entitled to one vote
, and such. The representative
shall may be eligible for office in
5the
corporate central credit union the same as
though if the representative were a
6member of the
corporate central credit union.
SB351,95,13
7(2) (title)
Dividends. A
corporate central credit union may pay to the accounts
8of member credit unions dividends on a basis other than that required by this
section 9subsection for other members of a
corporate central credit union. Dividends paid
10under this
section subsection shall be considered a normal operating expense of the
11corporate central credit union's operation
and rates. Rates of such dividends and
12terms of payment may be established and guaranteed in advance by action of the
13corporate central credit union's board of directors.
SB351, s. 286
14Section
286. 186.325 of the statutes is created to read:
SB351,95,17
15186.325 National corporate central credit union. (1) Criteria. A
16corporate central credit union is a national corporate central credit union if all of the
17following conditions are met:
SB351,95,1818
(a) Its membership consists of any of the following:
SB351,95,2019
1. Central or corporate central credit unions that are organized under the laws
20of this state or another state or under federal law.
SB351,95,2121
2. Officers and directors of the qualifying corporate central credit union.
SB351,95,2322
3. Organizations operated primarily to service and otherwise assist credit
23union operations.
SB351,95,2424
(b) Its membership does not include any of the following:
SB351,95,2525
1. Credit unions other than those under par. (a) 1.
SB351,96,1
12. Individuals other than those under par. (a) 2.
SB351,96,42
(c) At least 75% of its savings and deposits are derived from members under
3par. (a) 1. and the remainder of its savings and deposits are derived from members
4under par. (a) 2. and 3.
SB351,96,6
5(2) Borrowing limits. The borrowing limits under s. 186.112 do not apply to
6a national corporate central credit union.
SB351, s. 287
7Section
287. 186.33 of the statutes is renumbered 186.113 (22) and amended
8to read:
SB351,96,229
186.113
(22) (title)
Other powers Community currency exchange and seller
10of checks. Credit unions may engage
Engage in the business and functions provided
11for in s. 218.05 and ch. 217
for their members upon receiving a certificate of authority
12from the commissioner.
The certificate of authority shall be issued by the
13commissioner upon application of a credit union whenever the commissioner finds
14that the credit union has adequate clerical facilities and has provided for the keeping
15of adequate accounts and for the segregation of funds used in carrying on the
16business of issuing their own credit union money orders. The applicants
. An
17applicant shall meet the same requirements as other applicants under ch. 217, but
18no investigation fee may be charged of credit union applicants. The commissioner
19may revoke a certificate of authority following a hearing held upon 10 days' notice
20to the credit union for any reason which would have justified the rejection of an
21application or on the ground that the continued operation of the business threatens
22the solvency of the credit union.
SB351, s. 288
23Section
288. 186.34 (1) of the statutes is amended to read:
SB351,97,224
186.34
(1) (title)
Insurance required. No credit union
organized under this
25chapter on or after July 20, 1985, may accept any deposit from any person other than
1an incorporator before the credit union has received a certificate of share insurance
2issued by the national board.
SB351, s. 289
3Section
289. 186.34 (2) and (3) of the statutes are repealed.
SB351, s. 290
4Section
290. 186.34 (4) of the statutes is amended to read:
SB351,97,115
186.34
(4) (title)
Certificate filing. Every credit union that receives a
6certificate of insurance from the national board shall file a copy of the certificate with
7the commissioner within 30 days after the credit union receives the certificate.
Every
8credit union organized under this chapter prior to July 20, 1985, that receives a
9certificate of insurance from the national board shall also file a copy of the certificate
10with the Wisconsin credit union savings insurance corporation within 30 days after
11receipt of the certificate.
SB351, s. 291
12Section
291. 186.34 (4) of the statutes, as affected by 1995 Wisconsin Acts 27
13and .... (this act), is repealed and recreated to read:
SB351,97,1614
186.34
(4) Certificate filing. Every credit union that receives a certificate of
15insurance from the national board shall file a copy of the certificate with the office
16of credit unions within 30 days after the credit union receives the certificate.
SB351, s. 292
17Section
292. 186.34 (5) (title) of the statutes is created to read:
SB351,97,1818
186.34
(5) (title)
Insurance to be maintained.
SB351, s. 293
19Section
293. 186.35 (8) of the statutes is amended to read:
SB351,98,720
186.35
(8) Examinations of credit unions. The office of the commissioner shall
21promptly forward to the corporation copies of examination reports of all members.
22The cost of these copies shall be paid by the corporation. If the trustees of the
23corporation ascertain evidence of carelessness, unsound practices or
24mismanagement of any member or if the trustees determine that the activities of any
25member may jeopardize any of the corporation's assets, the trustees or their
1designees may require the member to disclose its operational policies and
2procedures, and may recommend appropriate corrective measures to the member.
3If the trustees determine that the carelessness, unsound practices or
4mismanagement is not promptly corrected or that the threat to the corporation's
5assets has not been removed, the trustees may make appropriate recommendations
6to the commissioner, including the recommendation that the member be liquidated
7or
consolidated merged.
SB351, s. 294
8Section
294. 186.35 (8) of the statutes, as affected by 1995 Wisconsin Acts 27
9and .... (this act), is repealed and recreated to read:
SB351,98,2210
186.35
(8) Examinations of credit unions. The office of credit unions shall
11promptly forward to the corporation copies of examination reports of all members.
12The cost of these copies shall be paid by the corporation. If the trustees of the
13corporation ascertain evidence of carelessness, unsound practices or
14mismanagement of any member or if the trustees determine that the activities of any
15member may jeopardize any of the corporation's assets, the trustees or their
16designees may require the member to disclose its operational policies and
17procedures, and may recommend appropriate corrective measures to the member.
18If the trustees determine that the carelessness, unsound practices or
19mismanagement is not promptly corrected or that the threat to the corporation's
20assets has not been removed, the trustees may make appropriate recommendations
21to the office of credit unions, including the recommendation that the member be
22liquidated or merged.
SB351, s. 295
23Section
295. 186.35 (10) (c) of the statutes is amended to read:
SB351,99,224
186.35
(10) (c) If a credit union which is entitled to a refund of its membership
25fee under par. (b)
consolidates merges under s. 186.31 with another credit union
1before the refund is paid, the corporation shall pay to the surviving credit union the
2membership fee paid by the absorbed credit union.
SB351, s. 296
3Section
296. 186.35 (11) of the statutes is repealed.
SB351, s. 297
4Section
297. 186.35 (12) (a) of the statutes is amended to read:
SB351,99,115
186.35
(12) (a) Except as provided in par. (c), the numerator of the fraction shall
6be the total of all annual and special assessments paid to the corporation by the
7member, reduced by any refund to the member of a prorated portion of an annual
8assessment under sub. (10) (b) and by any amounts paid to the member by the
9corporation as a protection or guaranty of any account in the member credit union,
10other than an account transferred to the member credit union as a result of a
11consolidation merger or liquidation of another credit union.
SB351, s. 298
12Section
298. 186.35 (12m) (intro.) of the statutes is amended to read:
SB351,99,1813
186.35
(12m) (title)
Computation of liquidating distributions if member
14credit unions consolidated merged. (intro.) If a member credit union
consolidates 15merges under s. 186.31 with a credit union which is a member of the corporation and
16operating under this chapter on the date that the corporation authorizes a
17distribution under sub. (11), the surviving credit union's fractional share of
18liquidating distributions under sub. (11) is calculated as follows:
SB351, s. 299
19Section
299. 186.35 (14) of the statutes is created to read:
SB351,99,2220
186.35
(14) Dissolution. Within 30 days after the dissolution of the Wisconsin
21Credit Union Savings Insurance Corporation, the commissioner shall publish a
22notice of the dissolution in the Wisconsin administrative register.
SB351, s. 300
23Section
300. 186.35 (14) of the statutes, as created by 1995 Wisconsin Act ....
24(this act), is amended to read:
SB351,100,4
1186.35
(14) Dissolution. Within 30 days after the dissolution of the Wisconsin
2Credit Union Savings Insurance Corporation, the
commissioner office of credit
3unions shall publish a notice of the dissolution in the Wisconsin administrative
4register.
SB351, s. 301
5Section
301. 186.36 of the statutes is amended to read:
SB351,100,10
6186.36 Sale of insurance in credit unions. Any
agent who is an officer or
7employe of a credit union
may pay the whole or any part of the agent's, when acting
8as an agent for the sale of insurance on behalf of the credit union, shall pay all 9commissions
received from the sale of credit life insurance or credit accident and
10sickness
insurance to the credit union.
SB351, s. 302
11Section
302. 186.37 of the statutes is renumbered 186.235 (5) and amended
12to read:
SB351,100,1713
186.235
(5) Immunity of commissioner. The commissioner
of credit unions 14shall not be subject to any civil liability or penalty,
nor or to any criminal prosecution,
15for any error in judgment or discretion made in good faith and upon reasonable
16grounds in any action taken or omitted by the commissioner in
the commissioner's 17an official capacity
under this chapter.
SB351, s. 304
19Section
304. 186.41 (1) (b) of the statutes is repealed.
SB351, s. 305
20Section
305. 186.41 (2) (a) 3. of the statutes is created to read:
SB351,100,2121
186.41
(2) (a) 3. Expand its field of membership to bordering regional states.
SB351, s. 306
22Section
306. 186.41 (5m) of the statutes is amended to read:
SB351,100,2423
186.41
(5m) Branching not limited. This section does not limit branching
24authority under s. 186.113
(1m) (1).
SB351, s. 307
25Section
307. 186.42 of the statutes is created to read:
SB351,101,5
1186.42 Out-of-state credit union, branch offices. (1) Approval. A credit
2union organized and with its principal office in another state may open an office and
3conduct business as a credit union in this state with the approval of the
4commissioner. To receive approval, the commissioner must find that all of the
5following apply to the out-of-state credit union:
SB351,101,76
(a) It is a credit union organized under laws similar to the credit union laws of
7this state.
SB351,101,88
(b) It is financially solvent based upon national board ratings.
SB351,101,99
(c) It has member savings insured with federal share insurance.
SB351,101,1110
(d) It is effectively examined and supervised by the credit union authorities of
11the state in which it is organized.
SB351,101,1312
(e) It has received approval from the credit union authorities of the state in
13which it is organized.
SB351,101,1514
(f) It has a need to place an office in this state to adequately serve its members
15in this state.
SB351,101,17
16(2) Requirements. An out-of-state credit union shall agree to do all of the
17following:
SB351,101,1918
(a) Grant loans at rates not in excess of the rates permitted for credit unions
19organized in this state.
SB351,101,2020
(b) Comply with this state's consumer protection provisions.
SB351,101,2121
(c) Designate and maintain an agent for the service of process in this state.
SB351,101,25
22(3) Records. As a condition for an out-of-state credit union to do business in
23Wisconsin, the commissioner may require the state in which the credit union has its
24principal office to provide copies of examination reports and other related
25correspondence.
SB351, s. 308
1Section
308. 186.42 (1) (intro.) and (3) of the statutes, as created by 1995
2Wisconsin Act .... (this act), are amended to read:
SB351,102,73
186.42
(1) Approval. (intro.) A credit union organized and with its principal
4office in another state may open an office and conduct business as a credit union in
5this state with the approval of the
commissioner
office of credit unions. To receive
6approval, the
commissioner office of credit unions must find that all of the following
7apply to the out-of-state credit union:
SB351,102,11
8(3) Records. As a condition for an out-of-state credit union to do business in
9Wisconsin, the
commissioner office of credit unions may require the state in which
10the credit union has its principal office to provide copies of examination reports and
11other related correspondence.
SB351, s. 309
12Section
309. 186.60 of the statutes is created to read:
SB351,102,15
13186.60 Venue. An action brought by a credit union to enjoin the commissioner
14in the discharge of the commissioner's duties shall be brought in the county in which
15the credit union is located.
SB351, s. 310
16Section
310. 186.60 of the statutes, as created by 1995 Wisconsin Act .... (this
17act), is amended to read:
SB351,102,20
18186.60 Venue. An action brought by a credit union to enjoin the
commissioner 19office of credit unions in the discharge of the
commissioner's office's duties shall be
20brought in the county in which the credit union is located.