SB351: Bill Text

SB351,25,18 (c) The director is unable to be bonded for all activities of the credit union.

SB351,25,20 (d) In the judgment of the board of directors, removal of the director is in the best interests of the credit union.

SB351,25,23 (6) Removal notice and appeal. A director who is removed under sub. (5) or s. 186.071 (2) shall be given notice of removal and shall be given an opportunity to appeal before the board of directors.

SB351,26,3 (7) Vacancies. Within 60 days after the date of a removal, the board of directors shall appoint a director to fill the vacancy. The appointee shall serve until a successor is elected at the next annual membership meeting.

SB351, s. 81 Section 81. 186.071 of the statutes is created to read:

SB351,26,7 186.071 Oath of office. (1) Oath. Every director, officer, committee member and employe shall sign an oath of office. The oath shall require the director, officer, committee member and employe to do all of the following:

SB351,26,10 (a) Keep confidential the financial affairs of credit union members, unless state and federal laws, security requirements or sound lending practices require disclosure.

SB351,26,12 (b) Keep confidential the records and accounts of the credit union unless state or federal law requires disclosure.

SB351,26,14 (c) Familiarize themselves with the credit union laws, bylaws, rules and policies.

SB351,26,16 (d) Avoid initiating or participating in any insider dealings using credit union funds or the credit union's power or authority.

SB351,26,18 (e) Avoid initiating or participating in any action that may be in that person's personal pecuniary interest.

SB351,26,22 (2) Removal for violation. If an individual refuses to sign the oath of office or knowingly and wilfully violates the oath of office, the board shall remove that individual as a director, officer or committee member or shall direct that the individual be terminated as an employe.

SB351, s. 82 Section 82. 186.08 (1) (intro.) of the statutes is renumbered 186.08 (1) and amended to read:

SB351,27,14 186.08 (1) (title) Management. At its first meeting following the annual membership meeting, the board of directors shall elect from their its number a chairperson and one or more vice chairpersons, a secretary of the board and a treasurer and shall appoint a president. The board or the president may appoint one or more vice presidents in accordance with the bylaws. The president shall be the operating executive officer. The president and vice presidents may be directors of the board. Any 2 or more offices of the board may be held by the same person, except the offices of president and secretary and the offices of president and vice president chairperson and vice chairperson and the offices of chairperson and secretary. The board of directors shall have the general management of oversight and final decision-making authority over the affairs, funds and records of the credit union, and shall meet as often as may be necessary. It shall be the The president of the credit union shall be the chief executive officer of the credit union and shall be in active charge of managing the credit union's day-to-day operations.

SB351,27,15 (1m) (title) Board duties. The board's duty duties include all of the following:

SB351, s. 83 Section 83. 186.08 (1) (a) to (d) of the statutes are renumbered 186.08 (1m) (a) to (d) and amended to read:

SB351,27,19 186.08 (1m) (a) To act upon Acting on all applications for membership, unless a membership officer is appointed; the board delegates that responsibility.

SB351,27,20 (b) To act upon the expulsion of Expelling members; for cause.

SB351,27,22 (c) To fix Setting the amount of surety bond which shall be required of each officer having custody of funds;.

SB351,27,24 (d) To fill Filling vacancies in on the board of directors or executive offices or in the credit committee in such manner as the bylaws prescribe;.

SB351, s. 84 Section 84. 186.08 (1) (e) of the statutes is repealed.

SB351, s. 85 Section 85. 186.08 (1) (f) of the statutes is renumbered 186.08 (1m) (e) and amended to read:

SB351,28,5 186.08 (1m) (e) To establish Establishing rates of interest on all loans or authorizing an officer or committee of the credit union to establish interest rates on loans.

SB351, s. 86 Section 86. 186.08 (1m) (f) of the statutes is created to read:

SB351,28,7 186.08 (1m) (f) Establishing conditions applicable to deposit accounts.

SB351, s. 87 Section 87. 186.08 (1m) (g) of the statutes is created to read:

SB351,28,11 186.08 (1m) (g) Establishing rates of interest on all deposit accounts or authorizing an officer or committee of the credit union to establish interest rates on deposit accounts.

SB351, s. 88 Section 88. 186.08 (2) of the statutes is repealed.

SB351, s. 89 Section 89. 186.08 (3) of the statutes is amended to read:

SB351,28,20 186.08 (3) (title) Executive committee, meetings. The board of directors may appoint an executive committee consisting of at least 3 directors. If an executive committee is appointed under this subsection, the executive committee shall meet as often as necessary, and the full board of directors shall meet at least semiannually quarterly. The board of directors may delegate all or any part of its authority under this chapter to an executive committee appointed under this subsection, subject to any conditions or limitations the board may impose.

SB351, s. 90 Section 90. 186.083 (1) (title), (2) (title), (3) (title) and (4) (title) of the statutes are created to read:

SB351,28,23 186.083 (1) (title) Indemnification required.

SB351,28,24 (2) (title) Exceptions.

SB351,28,25 (3) (title) Written requests.

SB351,29,1 (4) (title) Indemnification not required.

SB351, s. 91 Section 91. 186.086 (1) (title) of the statutes is created to read:

SB351,29,3 186.086 (1) (title) Limitations.

SB351, s. 92 Section 92. 186.086 (2) (title) of the statutes is created to read:

SB351,29,5 186.086 (2) (title) Limitation applicability.

SB351, s. 93 Section 93. 186.087 (1) (title), (2) (title) and (3) (title) of the statutes are created to read:

SB351,29,8 186.087 (1) (title) Additional rights.

SB351,29,9 (2) (title) Allowance expenses.

SB351,29,10 (3) (title) Other expenses.

SB351, s. 94 Section 94. 186.088 (1) (title) and (2) (title) of the statutes are created to read:

SB351,29,12 186.088 (1) (title) Application.

SB351,29,13 (2) (title) Conditions.

SB351, s. 95 Section 95. 186.095 (1) of the statutes is amended to read:

SB351,29,16 186.095 (1) The effects of the action on employes, suppliers and customers, members of the credit union and the public.

SB351, s. 96 Section 96. 186.096 (1) (title) of the statutes is created to read:

SB351,29,18 186.096 (1) (title) Limited liability.

SB351, s. 97 Section 97. 186.096 (2) (title) of the statutes is created to read:

SB351,29,20 186.096 (2) (title) Exceptions.

SB351, s. 98 Section 98. 186.096 (2) (a) of the statutes is amended to read:

SB351,29,23 186.096 (2) (a) A proceeding brought against a director or officer under s. 186.23, 186.24 (1) or 186.29 (1m) (a) 186.235 (8), (10) or (11) (b) 1.

SB351, s. 99 Section 99. 186.096 (3) (title) of the statutes is created to read:

SB351,29,25 186.096 (3) (title) Applicability to governments.

SB351, s. 100 Section 100. 186.098 (1) of the statutes is amended to read:

SB351,30,4 186.098 (1) (title) Loan approval. The credit union may make loans to members upon terms approved by the credit committee or a, loan officer at rates of interest not to exceed any applicable maximum rate or board of directors.

SB351, s. 101 Section 101. 186.098 (2) of the statutes is amended to read:

SB351,30,9 186.098 (2) (title) Appeals. The credit committee or loan officer shall maintain a record of each loan approved or not approved. The A loan applicant for a loan may appeal in writing the decision of the credit committee or the a loan officer to the president and may appeal in writing the president's decision to the board of directors.

SB351, s. 102 Section 102. 186.098 (3) of the statutes is amended to read:

SB351,30,12 186.098 (3) Every application for a loan shall be in writing documented and acknowledged by the member and shall state the security or collateral offered, if any.

SB351, s. 103 Section 103. 186.098 (4) of the statutes is amended to read:

SB351,30,20 186.098 (4) (title) Board approval. Approval of loans shall be the responsibility of the credit committee or loan officer, except where application for loans are made by members of the credit committee or the loan officers. No loan shall be made unless approved by the majority of the credit committee or by a loan officer, except that the The board of directors or its designee shall act on the applications of credit committee members and loan officers, and on applications appealed to the board in writing by members.

SB351, s. 104 Section 104. 186.098 (5) of the statutes is amended to read:

SB351,31,2 186.098 (5) (title) Limits. No loans shall be made to any member in excess of $100 or 10% of the credit union's assets, whichever is greater; plus the balance of the member's share account pledged as security for such the loan, but these limitations. This subsection shall not apply to loans made to member credit unions by a corporate central credit union.

SB351, s. 105 Section 105. 186.098 (6) (a) (intro.) of the statutes is renumbered 186.098 (6) (intro.) and amended to read:

SB351,31,6 186.098 (6) (title) Policies. (intro.) The board of directors shall determine the policy regarding collateral all of the following:

SB351,31,11 (a) Collateral acceptable for secured loans. Loans to members which in the aggregate exceed the amount shown in the schedule below shall be secured by such collateral having a value which is at least equal to any amount exceeding the limits in the following schedule, except that all loans exceeding $5,000 not subject to collateral shall be supported by a sworn financial statement:

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.