SB407: Bill Text

SB407, s. 5 Section 5. 186.02 (2) (a) 5k. of the statutes is repealed.

SB407, s. 6 Section 6. 186.02 (2) (f) of the statutes is repealed.

SB407, s. 7 Section 7. 186.07 (5) (c) of the statutes is amended to read:

SB407,3,19 186.07 (5) (c) The director is unable to be bonded for all activities of the credit union in accordance with the standards set by the board of directors.

SB407, s. 8 Section 8. 186.07 (6) of the statutes is amended to read:

SB407,4,9 186.07 (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. The removed director may petition the board of directors to reconsider its decision. If the board of directors does not reinstate the director, the director may appeal the decision of the board of directors to the office of credit unions. If the office of credit unions determines that the removal of the director was improper, the office of credit unions shall order the reinstatement of the director and, if the board of directors has already appointed a person to fill the vacancy created by the removal of the director, the removal of such person.

SB407, s. 9 Section 9. 186.071 (1) (a) of the statutes is amended to read:

SB407,4,13 186.071 (1) (a) Keep confidential the financial affairs of credit union members, unless state and federal laws, security requirements or sound lending practices require permit disclosure.

SB407, s. 10 Section 10. 186.071 (1) (b) of the statutes is amended to read:

SB407,4,17 186.071 (1) (b) Keep confidential the records and accounts of the credit union and the deliberations of the board of directors unless state or federal law requires permits disclosure.

SB407, s. 11 Section 11. 186.08 (1m) (c) of the statutes is amended to read:

SB407,4,20 186.08 (1m) (c) Setting the type and amount of surety bond required of each officer having custody of funds for directors, officers and employes.

SB407, s. 12 Section 12. 186.08 (1m) (f) of the statutes is repealed.

SB407, s. 13 Section 13. 186.08 (1m) (g) of the statutes is repealed.

SB407, s. 14 Section 14. 186.098 (13) of the statutes is amended to read:

SB407,5,10 186.098 (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 If the loan is a consumer credit transaction as defined in s. 421.301 (10), ss. 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.

SB407,5,13 (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.

SB407, s. 15 Section 15. 186.10 (2) of the statutes is amended to read:

SB407,5,19 186.10 (2) Shares in trust. Shares may be issued in trust, subject to any conditions prescribed in the bylaws. Share accounts and deposit accounts may be owned held by a member in trust for a beneficiary, or owned held by a nonmember in trust for a beneficiary who is a member or held by a nonmember custodian for a member pursuant to ss. 880.61 to 880.72.

SB407, s. 16 Section 16. 186.113 (1) of the statutes is amended to read:

SB407,5,25 186.113 (1) Branch offices. If the need and necessity exist and with the approval of the office of credit unions, establish branch offices inside this state or no more than 25 miles outside of this state. Permanent records may be maintained at branch offices established under this subsection. In this subsection, the term "branch office" does not include a remote terminal.

SB407, s. 17 Section 17. 186.113 (1m) (title) of the statutes is created to read:

SB407,6,2 186.113 (1m) (title) Limited services offices.

SB407, s. 18 Section 18. 186.113 (11) of the statutes is repealed.

SB407, s. 19 Section 19. 186.113 (23) of the statutes is created to read:

SB407,6,6 186.113 (23) Accept investments. Accept investments made by state or federally chartered credit unions.

SB407, s. 20 Section 20. 186.12 (2) of the statutes is amended to read:

SB407,6,11 186.12 (2) Sureties. A member of the credit committee or a loan officer shall not, directly or indirectly, become surety for any loan or advance made by the credit union, unless the credit committee member or loan officer receives the prior approval of the board of directors to act in such capacity.

SB407, s. 21 Section 21. 186.13 of the statutes is amended to read:

SB407,6,21 186.13 Expulsion. If the board of directors adopts a written policy, a credit union may expel a member if the member neglects or refuses to comply with this chapter or the credit union bylaws or if the board has other just cause. The credit union shall provide notice to the member in writing of the reason for expulsion. The notice shall include a description of the member's right to a hearing and the time period for the member to request a hearing. If a member requests a hearing in writing within 45 days of receipt of the expulsion notice, the board shall give the member an opportunity to be heard on the expulsion within 90 days after the date of the expulsion notice.

SB407, s. 22 Section 22. 186.19 of the statutes is repealed and recreated to read:

SB407,6,25 186.19 Bonding requirements. A credit union shall maintain the necessary bonds for directors, officers and employes according to any standards prescribed by the national board.

SB407, s. 23 Section 23. 220.285 (1) of the statutes is amended to read:

SB407,7,13 220.285 (1) Any state bank, trust company bank, licensee under s. 138.09, 138.12, 218.01, 218.02, 218.04 or 218.05 or ch. 217 or credit union may cause any or all records kept by such bank, licensee or credit union to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. A bank, or licensee or credit union may thereafter dispose of the original record after first obtaining the written consent of the division; a credit union may thereafter dispose of the original record after first obtaining the written consent of the office of credit unions. This section, excepting that part of it which requires written consent of the division, is applicable to national banking associations insofar as it does not contravene federal law.

SB407, s. 24 Section 24. 708.10 (1) (e) 2. of the statutes is amended to read:

SB407,7,15 708.10 (1) (e) 2. Cashier's check or teller's check.

SB407, s. 25 Section 25. 708.10 (1) (e) 3. of the statutes is amended to read:

SB407,7,19 708.10 (1) (e) 3. A check that is negotiable, as defined in s. 403.104 (1), and on which the lender or an affiliate of the lender is the payer drawer, as defined in s. 403.103 (1) (c).

SB407, s. 26 Section 26. Initial applicability.

SB407,7,23 (1) Disposal of applications for review. The treatment of section 186.015 (5) of the statutes first applies to applications for review submitted on the effective date of this subsection.

SB407,8,2 (2) Director removal. The treatment of section 186.07 (6) of the statutes first applies to directors removed on the effective date of this subsection.

SB407,8,3 (End)