AB898: Bill Text

AB898,28,6 (e) Service corporations. Equity or debt securities or instruments of a service corporation subsidiary of the universal bank.

AB898,28,7 (f) Federal funds. Advances of federal funds.

AB898,28,11 (g) Certain risk management financial products. With the prior written approval of the division, financial futures transactions, financial options transactions, forward commitments or other financial products for the purpose of reducing, hedging or otherwise managing its interest rate risk exposure.

AB898,28,13 (h) Certain fiduciaries. A subsidiary organized to exercise corporate fiduciary powers under ch. 112.

AB898,28,17 (i) Agricultural credit corporations. An agricultural credit corporation. Unless a universal bank owns at least 80% of the stock of the agricultural credit corporation, a universal bank may not invest more than 20% of the universal bank's capital in the agricultural credit corporation.

AB898,28,20 (j) Deposit accounts and insured obligations. Deposit accounts or insured obligations of any financial institution, the accounts of which are insured by a deposit insurance corporation.

AB898,29,2 (k) Certain federal obligations. Obligations of, or obligations that are fully guaranteed by, the United States and stocks or obligations of any federal reserve bank, federal home loan bank, the Student Loan Marketing Association, the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal Deposit Insurance Corporation.

AB898,29,3 (L) Other investments. Any other investment authorized by the division.

AB898,29,6 (8) Investments in other financial institutions. In addition to the authority granted under ss. 222.0307 and 222.0409, and subject to the limitations of sub. (2), a universal bank may invest in other financial institutions.

AB898,29,10 (9) Investments through subsidiaries. A universal bank may make investments under this section, directly or indirectly through a subsidiary, unless the division determines that an investment shall be made through a subsidiary with appropriate safeguards to limit the risk exposure of the universal bank.

AB898,29,13 222.0407 Universal bank purchase of its own stock. (1) In general. A universal bank may hold or purchase not more than 10% of its capital stock, notes or debentures, except as provided in sub. (2) or (3).

AB898,29,15 (2) Division approval. A universal bank may hold or purchase more than 10% of its capital stock, notes or debentures, if approved by the division.

AB898,30,2 (3) Additional authority. A universal bank may hold or purchase more than 10% of its capital stock, notes or debentures if the purchase is necessary to prevent loss upon a debt previously contracted in good faith. Stock, notes or debentures held or purchased under this subsection may not be held by the universal bank for more than 6 months if the stock, notes or debentures can be sold for the amount of the claim of the universal bank against the holder of the debt previously contracted. The universal bank shall either sell the stock, notes or debentures within 12 months of acquisition under this subsection or shall cancel the stock, notes or debentures. Cancellation of the stock, notes or debentures reduces the amount of the universal bank's capital stock, notes or debentures. If the reduction reduces the universal bank's capital below the minimum level required by the division, the universal bank shall increase its capital to the amount required by the division.

AB898,30,8 (4) Loans secured by capital, surplus or deposits. A universal bank may not loan any part of its capital, surplus or deposits on its own capital stock, notes or debentures as collateral security, except that a universal bank may make a loan secured by its own capital stock, notes or debentures to the same extent that the universal bank may make a loan secured by the capital stock, notes and debentures of a holding company for the universal bank.

AB898,30,13 222.0409 Stock in bank-owned banks. With the approval of the division, a universal bank may acquire and hold stock in one or more banks chartered under s. 221.1202 or national banks chartered under 12 USC 27 (b) or in one or more holding companies wholly owning such a bank. Aggregate investments under this section may not exceed 10% of the universal bank's capital.

AB898,30,18 222.0411 General deposit powers. (1) In general. A universal bank may set eligibility requirements for, and establish the types and terms of, deposits that the universal bank solicits and accepts. The terms set under this subsection may include minimum and maximum amounts that the universal bank may accept and the frequency and computation method of paying interest.

AB898,30,21 (2) Pledge of security for deposits. Subject to the limitations of s. 221.0324 that are applicable to banks, a universal bank may pledge its assets as security for deposits.

AB898,30,24 (3) Securitization of assets. With the approval of the division, a universal bank may securitize its assets for sale to the public. The division may establish procedures governing the exercise of authority granted under this subsection.

AB898,31,14 (4) Safe deposit powers. A universal bank may take and receive, from any individual or corporation for safekeeping and storage, gold and silver plate, jewelry, money, stocks, securities, and other valuables or personal property; and rent out the use of safes or other receptacles upon its premises upon such compensation as may be agreed upon. A universal bank has a lien for its charges on any property taken or received by it for safekeeping. If the lien is not paid within 2 years from the date the lien accrues, or if property is not called for by the person depositing the property, or by his or her representative or assignee, within 2 years from the date the lien accrues, the universal bank may sell the property at public auction. A universal bank shall provide the same notice for a sale under this subsection that is required by law for sales of personal property on execution. After retaining from the proceeds of the sale all of the liens and charges due the bank and the reasonable expenses of the sale, the universal bank shall pay the balance to the person depositing the property, or to his or her representative or assignee.

AB898,31,19 222.0413 Other service and incidental activity powers. (1) Necessary or convenient powers. Unless otherwise prohibited or limited by this chapter, a universal bank may exercise all powers necessary or convenient to effect the purposes for which the universal bank is organized or to further the businesses in which the universal bank is lawfully engaged.

AB898,32,4 (2) Reasonably related powers. (a) Subject to any applicable state or federal licensing requirements, a universal bank may engage, directly or indirectly through a subsidiary, in activities reasonably related or incident to the purposes of the universal bank. Activities reasonably related or incident to the purposes of the universal bank are those activities that are part of the business of financial institutions, or closely related to the business of financial institutions, or convenient and useful to the business of financial institutions, or reasonably related or incident to the operation of financial institutions or are financial in nature. Activities that are reasonably related or incident to the purposes of a universal bank include the following:

AB898,32,5 1. Business and professional services.

AB898,32,6 2. Data processing.

AB898,32,7 3. Courier and messenger services.

AB898,32,8 4. Credit-related activities.

AB898,32,9 5. Consumer services.

AB898,32,10 6. Real estate related services, including real estate brokerage services.

AB898,32,11 7. Insurance and related services, other than insurance underwriting.

AB898,32,12 8. Securities brokerage.

AB898,32,13 9. Investment advice.

AB898,32,14 10. Securities and bond underwriting.

AB898,32,15 11. Mutual fund activities.

AB898,32,16 12. Financial consulting.

AB898,32,17 13. Tax planning and preparation.

AB898,32,18 14. Community development and charitable activities.

AB898,32,19 15. Debt cancellation contracts.

AB898,32,21 16. Any activities reasonably related or incident to activities under subds. 1. to 15.

AB898,33,4 (b) An activity that is authorized by statute or regulation for financial institutions to engage in as of the effective date of this paragraph .... [revisor inserts date], is an activity that is reasonably related to or incident to the purposes of a universal bank. An activity permitted under the Bank Holding Company Act is an activity that is reasonably related to or incident to the purposes of a universal bank. The list of activities reasonably related or incident to the purposes of a universal bank may be expanded by the division. Any additional activity approved by the division shall be authorized for all universal banks.

AB898,33,7 (3) Notice requirement. A universal bank shall give 60 days' prior written notice to the division of the universal bank's intention to engage in an activity under this section.

AB898,33,13 (4) Standards for denial. The division may deny the authority of a universal bank to engage in an activity under this section, other than those activities described in sub. (2) (a) 1. to 16., if the division determines that the activity is not an activity reasonably related or incident to the purposes of a universal bank or that the financial institution is not well-capitalized or adequately capitalized or is the subject of an enforcement action.

AB898,33,17 (5) Insurance intermediation. A universal bank, or an officer or salaried employe of a universal bank, may obtain a license as an insurance intermediary, if otherwise qualified. A universal bank may not, directly or indirectly through a subsidiary, engage in the business of underwriting insurance.

AB898,33,19 (6) Other activities approved by the division. A universal bank may engage in any other activity that is approved by the division.

AB898,33,23 (7) Activities provided through a subsidiary. A universal bank may engage in activities under this section, directly or indirectly through a subsidiary, unless the division determines that an activity must be conducted through a subsidiary with appropriate safeguards to limit the risk exposure of the universal bank.

AB898,34,4 (8) Limitations on investments through subsidiaries. The amount of the investment in any one subsidiary that engages in an activity under this section may not exceed 20% of capital or, if approved by the division, a higher percentage authorized by the division. The aggregate investment in all subsidiaries that engage in an activity under this subsection may not exceed 50% of capital or, if approved by the division, a higher percentage authorized by the division.

AB898,34,7 (9) Ownership of subsidiaries. A subsidiary that engages in an activity under this section may be owned jointly, with one or more other financial institutions, individuals or entities.

AB898,34,9 222.0415 Trust powers. Subject to rules of the division, a universal bank may exercise trust powers in accordance with s. 221.0316.

AB898, s. 20 Section 20. 223.105 (3) (a) of the statutes is amended to read:

AB898,34,17 223.105 (3) (a) To assure compliance with such rules as may be established under s. 220.04 (7) the division of banking, the office of credit unions and the division of savings and loan institutions shall, at least once every 18 months, examine the fiduciary operations of each organization which is under its respective jurisdiction and is subject to examination under sub. (2). If a particular organization subject to examination under sub. (2) is not otherwise under the jurisdiction of one of the foregoing agencies, such examination shall be conducted by the division of banking.

AB898, s. 21 Section 21. 223.105 (4) of the statutes, as affected by 1997 Wisconsin Act 35, is amended to read:

AB898,35,4 223.105 (4) Notice of fiduciary operation. Except for those organizations licensed under ch. 221 or this chapter, any organization engaged in fiduciary operations as defined in this section shall, as required by rule, notify the division of banking, the office of credit unions or the division of savings and loan institutions of that fact, directing the notice to the agency then exercising regulatory authority over the organization or, if there is none, to the division of banking. Any organization which intends to engage in fiduciary operations shall, prior to engaging in such operations, notify the appropriate agency of this intention. The notifications required under this subsection shall be on forms and contain information required by the rules promulgated by the division of banking.

AB898, s. 22 Section 22. 223.105 (5) of the statutes is amended to read:

AB898,35,12 223.105 (5) Enforcement remedy. The division of banking or the division of savings and loan institutions or office of credit unions shall upon the failure of such organization to submit notifications or reports required under this section or otherwise to comply with the provisions of this section, or rules established by the division of banking under s. 220.04 (7), upon due notice, order such defaulting organization to cease and desist from engaging in fiduciary activities and may apply to the appropriate court for enforcement of such order.

AB898, s. 23 Section 23. 223.105 (6) of the statutes is amended to read:

AB898,35,20 223.105 (6) Sunset. Except for an organization regulated by the office of credit unions or the division of savings and loan institutions or an organization authorized by the division of banking to operate as a bank or trust company under ch. 221 or this chapter, an organization may not begin activity as a fiduciary operation under this section after May 12, 1992. An organization engaged in fiduciary operations under this section on May 12, 1992, may continue to engage in fiduciary operations after that date.

AB898, s. 24 Section 24. 227.52 (5) of the statutes, as affected by 1997 Wisconsin Act 27, is amended to read:

AB898,35,23 227.52 (5) Decisions of the division of savings and loan institutions.

AB898, s. 25 Section 25. 227.53 (1) (b) 4. of the statutes is amended to read:

AB898,36,4 227.53 (1) (b) 4. The savings and loan review board, the division of savings and loan institutions, except if the petitioner is the division of savings and loan institutions, the prevailing parties before the savings and loan review board shall be the named respondents.

AB898, s. 26 Section 26. 227.53 (1) (b) 5. of the statutes is amended to read:

AB898,36,9 227.53 (1) (b) 5. The savings bank review board, the division of savings and loan institutions, except if the petitioner is the division of savings and loan institutions, the prevailing parties before the savings bank review board shall be the named respondents.

AB898, s. 27 Section 27. 552.23 (1) of the statutes is amended to read:

AB898,36,21 552.23 (1) If the target company is an insurance company subject to regulation by the commissioner of insurance, a banking corporation subject to regulation by the division of banking, a savings bank or savings and loan association subject to regulation by the division of savings and loan institutions, or a company subject to regulation by the public service commission, the department of transportation or the office of the commissioner of railroads, the division of securities shall promptly furnish a copy of the registration statement filed under this chapter to the regulatory agency having supervision of the target company. Any hearing under this chapter involving any such target company shall be held jointly with the regulatory agency having supervision, and any determination following the hearing shall be made jointly with that regulatory agency.

AB898, s. 28 Section 28. 813.16 (7) of the statutes is amended to read:

AB898,37,3 813.16 (7) If the person seeking the appointment of a receiver under sub. (1) is a corporation supervised by the division of savings and loan institutions, home loan bank board, U.S. office of thrift supervision, federal deposit insurance corporation or resolution trust corporation, the court, unless the opposing party objects, shall appoint an officer of such corporation as receiver to act without compensation and to give such bond as the court requires.

AB898, s. 29 Section 29. 992.21 of the statutes is created to read:

AB898,37,9 992.21 Actions by division of savings and loan validated. Any action taken by the division of savings and loan between July 1, 1996, and the effective date of this section .... [revisor inserts date], under the name of the division of savings institutions has the same force and effect in all respects as if the action had been taken under the name of the division of savings and loan.

AB898, s. 30 Section 30. Nonstatutory provisions.

AB898,37,18 (1) Emergency rule-making authority. Using the procedure under section 227.24 of the statutes, the division of banking shall promulgate rules required under chapter 222 of the statutes, as created by this act, for the period before permanent rules become effective, but not to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24 (1) (a) and (2) (b) of the statutes, the division of banking need not provide evidence of the necessity of preservation of the public peace, health, safety or welfare in promulgating rules under this subsection.

AB898, s. 31 Section 31. Effective dates. This act takes effect on the day after publication, except as follows:

AB898,37,23 (1) Universal banking. The treatment of section 220.04 (9) (a) 2. and chapter 222 of the statutes takes effect on the first day of the 3rd month beginning after publication.

AB898,37,24 (End)