SB55-ASA1-AA1,1073,1710
220.02
(3) It is the intent of sub. (2) to give the division jurisdiction to enforce
11and carry out all laws relating to banks or banking in this state, including those
12relating to state banks, trust company banks, and also all laws relating to small loan
13companies or other loan companies or agencies, finance companies, motor vehicle
14dealers, adjustment service companies, community currency exchanges
,
15rental-purchase companies, and collection agencies
, and those relating to sellers of
16checks under ch. 217, whether doing business as corporations, individuals
, or
17otherwise, but to exclude laws relating to credit unions.".
SB55-ASA1-AA1,1074,920
197.04
(1) (b) If within either of the 90-day periods described in par. (a) a
21petition conforming to the requirements of s. 8.40 is filed with the clerk of the
22municipality as provided in s. 8.37 and the petition has been signed by 5% of the
23electors of a 1st class city or by 10% of the electors of all other municipalities
24requesting that the question of discontinuing the proceeding to acquire the plant or
1equipment of the public utility be submitted to the electors of the municipality, the
2applicable question under par. (c) shall be submitted to the electors at
any general
3or regular municipal the succeeding election
authorized under s. 8.065 (2) or an
4election authorized under s. 8.065 (3) that is held not less than 42 and not more than
547 days from the date of the filing of the petition.
If no general election or regular
6municipal election is to be held within the stated periods, the governing body of the
7municipality shall order the holding of a special election, to be held not less than 42
8days from the date of filing of the petition, for the purpose of submitting the question
9to the electors.
SB55-ASA1-AA1,1074,19
10(2) The governing body of the municipality may provide for notice of, the
11manner of holding, the method of voting on, the method of making returns of, and
12the method of canvassing and determining the result of, the election required under
13sub. (1). Notice of the election to the electors shall be given by a brief notice of that
14fact once a week for 3 weeks in some newspaper of general circulation published in
15the municipality. If no newspaper of general circulation is published in the
16municipality, publication may be made in any newspaper of general circulation in the
17county seat of the county in which the municipality is located.
The notice of holding
18any special election shall be incorporated as a part of the notice given under this
19subsection.
SB55-ASA1-AA1,1075,821
197.10
(2) Such contract when adopted by the common council of said city and
22accepted by the owner or owners of such public utility shall be submitted to the public
23service commission for its approval and upon such approval the same shall be filed
24as provided in s. 8.37 and submitted in such manner as the common council shall
25determine to a vote of the electors of such city at the next
regular municipal election
1or at a special election called for that purpose authorized under s. 8.065 (2) or an
2election authorized under s. 8.065 (3) to be held not sooner than 45 days after
3approval of the commission, and such contract shall not become binding upon such
4city until approved by a majority vote of the qualified electors of such city voting
5thereon. No bonds shall in any case be issued by said city under the contract or
6contracts mentioned in sub. (1), until the proposition of their issue shall have been
7submitted to the people of such city and adopted by a majority of the electors voting
8thereon.
SB55-ASA1-AA1,1075,2410
198.19
(1) Any territory, constituting one or more municipalities contiguous to
11a district may be annexed to and become a part of such district to all intents and
12purposes and with like effect as though originally included therein upon such terms
13and conditions as the board of directors of the district shall fix by ordinance adopted
14by the affirmative vote of two-thirds of the directors-elect, provided that before such
15ordinance becomes effective the same shall be accepted and ratified by the
16affirmative vote of a majority of the qualified electors entitled to vote and voting in
17a
special election referendum called and held for that purpose
, in accordance with
18s. 8.065, in each municipality proposed in such ordinance to be annexed to the
19district. Such ordinance shall be published and such election shall be noticed, held
20and conducted, as nearly as may be, in the manner provided by this chapter for the
21noticing, holding and conduct of elections upon the organization of a municipal power
22district, except that the returns of such election and the ballots therein shall be
23delivered to the clerk of the district. The results of said election shall be canvassed
24publicly by the directors of the district.".
SB55-ASA1-AA1,1076,53
221.0616
(2) Experts. Legal counsel,
certified public accountants
licensed or
4certified under ch. 442, or other persons as to matters that the director or officer
5believes in good faith are within the person's professional or expert competence.".
SB55-ASA1-AA1,1076,98
CHAPTER 222
9
UNIVERSAL BANKS
SB55-ASA1-AA1,1076,1110
Subchapter I
11
General Provisions
SB55-ASA1-AA1,1076,13
12222.0101 Title. This chapter may be cited as the "Wisconsin universal bank
13law."
SB55-ASA1-AA1,1076,14
14222.0102 Definitions. In this chapter:
SB55-ASA1-AA1,1076,17
15(1) "Capital" of a universal bank means the sum of the following, less the
16amount of intangible assets that is not considered to be qualifying capital by a deposit
17insurance corporation or the division:
SB55-ASA1-AA1,1076,2218
(a) For a universal bank organized as a stock organization, the universal bank's
19capital stock, preferred stock, undivided profits, surplus, outstanding notes and
20debentures approved by the division, other forms of capital designated as capital by
21the division, and other forms of capital considered to be qualifying capital of the
22universal bank by a deposit insurance corporation.
SB55-ASA1-AA1,1077,323
(b) For a universal bank organized as a mutual organization, the universal
24bank's net worth, undivided profits, surplus, outstanding notes and debentures
1approved by the division, other forms of capital designated as capital by the division,
2and other forms of capital considered to be qualifying capital by a deposit insurance
3corporation.
SB55-ASA1-AA1,1077,7
4(2) "Deposit insurance corporation" means the Federal Deposit Insurance
5Corporation or other instrumentality of, or corporation chartered by, the United
6States that insures deposits of financial institutions and that is supported by the full
7faith and credit of the U.S. government as stated in a congressional resolution.
SB55-ASA1-AA1,1077,8
8(3) "Division" means the division of banking.
SB55-ASA1-AA1,1077,11
9(4) "Financial institution" means a state savings bank organized under ch. 214,
10state savings and loan association organized under ch. 215, or state bank chartered
11under ch. 221.
SB55-ASA1-AA1,1077,13
12(5) "Universal bank" means a financial institution that has been issued a
13certificate of authority under s. 222.0205.
SB55-ASA1-AA1,1077,14
14(6) "Well-capitalized" has the meaning given in
12 USC 1831o (b) (1) (A).
SB55-ASA1-AA1,1077,19
15222.0103 Applicability. (1) Savings banks. A universal bank that is a savings
16bank organized under ch. 214 remains subject to all of the requirements, duties, and
17liabilities, and may exercise all of the powers, of a savings bank, except that, in the
18event of a conflict between this chapter and those requirements, duties, liabilities,
19or powers, this chapter shall control.
SB55-ASA1-AA1,1077,24
20(2) Savings and loan associations. A universal bank that is a savings and loan
21association organized under ch. 215 remains subject to all of the requirements,
22duties, and liabilities, and may exercise all of the powers, of a savings and loan
23association, except that, in the event of a conflict between this chapter and those
24requirements, duties, liabilities, or powers, this chapter shall control.
SB55-ASA1-AA1,1078,4
1(3) Banks. A universal bank that is a bank chartered under ch. 221 remains
2subject to all of the requirements, duties, and liabilities, and may exercise all of the
3powers, of a bank, except that, in the event of a conflict between this chapter and
4these requirements, duties, liabilities, or powers, this chapter shall control.
SB55-ASA1-AA1,1078,7
5222.0105 Fees. The division may establish such fees as it determines are
6appropriate for documents filed with the division under this chapter and for services
7provided by the division under this chapter.
SB55-ASA1-AA1,1078,9
8222.0107 Administration. (1) Powers of division. The division shall
9administer this chapter for all universal banks.
SB55-ASA1-AA1,1078,14
10(2) Rule-making authority. The division may promulgate rules to administer
11and carry out this chapter. The division may establish additional limits or
12requirements on universal banks, if the division determines that the limits or
13requirements are necessary for the protection of depositors, members, investors, or
14the public.
SB55-ASA1-AA1,1078,1615
SUBCHAPTER II
16
Certification
SB55-ASA1-AA1,1078,21
17222.0201 Procedure. (1) Application. A financial institution may apply to
18become certified as a universal bank by filing a written application with the division.
19The application shall include all information required by the division. The
20application shall be on the forms and in accordance with the procedures prescribed
21by the division.
SB55-ASA1-AA1,1079,2
22(2) Review by division. An application submitted by a financial institution
23under sub. (1) shall either be approved or disapproved by the division, in writing,
24within 60 days after the date on which application is filed with the division. The
25division and the financial institution may mutually agree to extend the application
1period for an additional period of 60 days. The division shall approve an application
2if all of the applicable requirements under s. 222.0203 (1) are met.
SB55-ASA1-AA1,1079,5
3222.0203 Eligibility. (1) Requirements. The division may approve an
4application from a financial institution for certification as a universal bank only if
5all of the following requirements are met:
SB55-ASA1-AA1,1079,86
(a)
The financial institution is chartered or organized, and regulated, under ch.
7214, 215, or 221 and has been in existence and continuous operation for a minimum
8of 3 years before the date of the application.
SB55-ASA1-AA1,1079,99
(b) The financial institution is well-capitalized.
SB55-ASA1-AA1,1079,1410
(c) The financial institution does not exhibit a combination of financial,
11managerial, operational, and compliance weaknesses that is moderately severe or
12unsatisfactory, as determined by the division based upon the division's assessment
13of the financial institution's capital adequacy, asset quality, management capability,
14earnings quantity and quality, adequacy of liquidity, and sensitivity to market risk.
SB55-ASA1-AA1,1079,1815
(d) During the 12-month period before the date of the application, the financial
16institution has not been the subject of an enforcement action, and there is no
17enforcement action pending against the financial institution by any state or federal
18financial institution regulatory agency, including the division.
SB55-ASA1-AA1,1079,2319(e) The most current evaluation prepared under
12 USC 2906 that the financial
20institution has received rates the financial institution as "outstanding" or
21"satisfactory" in helping to meet the credit needs of its entire community, including
22low-income and moderate-income neighborhoods, consistent with the safe and
23sound operation of the financial institution.
SB55-ASA1-AA1,1080,424
(f) If the financial institution has received from its federal functional regulator,
25as defined in
15 USC 6809 (2), a consumer compliance examination that contains
1information regarding the financial institution's compliance with
15 USC 6801 to
26803 and any applicable regulations prescribed under
15 USC 6804, the most recent
3such examination indicates, in the opinion of the division, that the financial
4institution is in substantial compliance with those statutes or regulations.
SB55-ASA1-AA1,1080,11
5(2) Failure to maintain eligibility; limitation of authority and
6decertification. For any period during which a universal bank fails to meet the
7requirements under sub. (1), the division shall by order limit or restrict the exercise
8of the powers of the universal bank under this chapter. In addition to or lieu of
9limiting or restricting the universal bank's authority under this subsection, the
10division may by order revoke the universal bank's certificate of authority issued
11under s. 222.0205.
SB55-ASA1-AA1,1080,15
12222.0205 Certificate of authority. Upon approval of an application for
13certification as a universal bank, the division shall issue to the applicant a certificate
14of authority stating that the financial institution is certified as a universal bank
15under this chapter.
SB55-ASA1-AA1,1080,24
16222.0207 Voluntary termination of certification. A financial institution
17that is certified as a universal bank under this chapter may elect to terminate its
18certification by giving 60 days' prior written notice of the termination to the division.
19A termination under this section is effective only with the written approval of the
20division. A financial institution shall, as a condition to a termination under this
21section, terminate its exercise of all powers granted under this chapter before the
22termination of the certification. The division's written approval of a financial
23institution's termination under this section is void if the financial institution fails to
24satisfy the precondition to termination under this section.
SB55-ASA1-AA1,1081,2
1SUBCHAPTER III
2
ORGANIZATION
SB55-ASA1-AA1,1081,7
3222.0301 Articles of incorporation and bylaws. A universal bank shall
4continue to operate under its articles of incorporation and bylaws as in effect prior
5to certification as a universal bank or as such articles or bylaws may be subsequently
6amended in accordance with the provisions of the chapter under which the universal
7bank was organized or chartered.
SB55-ASA1-AA1,1081,14
8222.0303 Name. (1) Use of "bank." Notwithstanding ss. 214.035, 215.40 (1),
9and 215.60 (1) and subject to subs. (2) and (3) (b), a universal bank may use the word
10"bank" in its name, without having to include the word "savings." Notwithstanding
11ss. 215.40 (1) and 215.60 (1) and subject to subs. (2) and (3) (b), a universal bank that
12is organized under ch. 215 and that uses the word "bank" in its name in accordance
13with this section need not include the words "savings and loan association" or
14"savings association" in its name.
SB55-ASA1-AA1,1081,17
15(2) Distinguishability. Except as provided in sub. (3), the name of the
16universal bank shall be distinguishable upon the records of the division from all of
17the following names:
SB55-ASA1-AA1,1081,1918
(a) The name of every other financial institution organized under the laws of
19this state.
SB55-ASA1-AA1,1081,2120
(b) The name of every national bank or foreign bank authorized to transact
21business in this state.
SB55-ASA1-AA1,1081,25
22(3) Exceptions. (a) A universal bank may apply to the division for authority
23to use a name that does not meet the requirements under sub. (2). The division may
24authorize the use of the name if any of the conditions under s. 221.0403 (2) (a) or (b)
25is met.
SB55-ASA1-AA1,1082,3
1(b)
A universal bank may use a name that is used in this state by another
2financial institution or by an institution authorized to transact business in this state,
3if the universal bank has done any of the following:
SB55-ASA1-AA1,1082,44
1. Merged with the other institution.
SB55-ASA1-AA1,1082,55
2. Been formed by reorganization of the other institution.
SB55-ASA1-AA1,1082,76
3. Acquired all or substantially all of the assets, including the name, of the
7other institution.
SB55-ASA1-AA1,1082,10
8222.0305 Capital and assets. (1) Capital requirements. Notwithstanding
9subch. VI of ch. 214 and ss. 215.24 and 221.0205, the division shall determine the
10minimum capital requirements of universal banks.
SB55-ASA1-AA1,1082,12
11(2) Certain asset requirements. Section 214.045 does not apply to universal
12banks.
SB55-ASA1-AA1,1082,19
13222.0307 Acquisitions, mergers, and asset purchases. (1) In general.
14A universal bank may, with the approval of the division, purchase the assets of,
15merge with, acquire, or be acquired by any other financial institution, universal
16bank, national bank, federally chartered savings bank, or savings and loan
17association, or by a holding company of any of these entities. Notwithstanding subch.
18III of ch. 214 and ss. 214.09 and 215.36, the approval of the division of savings and
19loan is not required.
SB55-ASA1-AA1,1082,23
20(2) Applications for approval. An application for approval under sub. (1) shall
21be submitted on a form prescribed by the division and accompanied by a fee
22determined by the division. In processing and acting on applications under this
23section the division shall apply the following standards:
SB55-ASA1-AA1,1082,2524
(a) For universal banks organized under ch. 214, ss. 214.09, 214.62 to 214.64,
25and 214.665, and subch. III of ch. 214.
SB55-ASA1-AA1,1083,2
1(b) For universal banks organized under ch. 215, ss. 215.35, 215.36, 215.53, and
2215.73.
SB55-ASA1-AA1,1083,33
(c) For universal banks chartered under ch. 221, subchs. VII and IX of ch. 221.
SB55-ASA1-AA1,1083,54
SUBCHAPTER IV
5
POWERS
SB55-ASA1-AA1,1083,10
6222.0401 Federal financial institution powers. (1) In general. (a)
7Powers exercised by universal bank. A universal bank, with the approval of the
8division, may exercise any power that may be directly exercised by a federally
9chartered savings bank, a federally chartered savings and loan association, or a
10federally chartered national bank.
SB55-ASA1-AA1,1083,1511
(b)
Powers exercised by subsidiary of universal bank. A universal bank,
12through a subsidiary and with the approval of the division, may exercise any power
13that a federally chartered savings bank, a federally chartered savings and loan
14association, or a federally chartered national bank may exercise through a
15subsidiary.
SB55-ASA1-AA1,1083,23
16(2) Approval required for exercise of federal power. A universal bank shall
17file with the division a written request to exercise a power under sub. (1). The
18division shall determine whether the requested power is permitted under sub. (1).
19Within 60 days after receiving a request under this subsection, the division shall
20approve the request, if the power is permitted under sub. (1), or shall disapprove the
21request if the power is not permitted under sub. (1). The division and the universal
22bank may mutually agree to extend this 60-day period for an additional period of 60
23days.
SB55-ASA1-AA1,1084,2
24(3) Exercise of federal powers through a subsidiary. The division may
25require that certain powers exercisable by a universal bank under sub. (1) (a) be
1exercised through a subsidiary of the universal bank with appropriate safeguards to
2limit the risk exposure of the universal bank.
SB55-ASA1-AA1,1084,5
3222.0403 Loan powers. (1) Permitted purposes. A universal bank may
4make, sell, purchase, arrange, participate in, invest in, or otherwise deal in loans or
5extensions of credit for any purpose.
SB55-ASA1-AA1,1084,11
6(2) In general. Except as provided in subs. (3) to (8), the total liabilities of any
7person, other than a municipal corporation, to a universal bank for a loan or
8extension of credit may not exceed 20% of the capital of the universal bank at any
9time. In determining compliance with this section, liabilities of a partnership
10include the liabilities of the general partners, computed individually as to each
11general partner on the basis of his or her direct liability.
SB55-ASA1-AA1,1084,14
12(3) Certain secured liabilities. The percentage limitation under sub. (2) is
1350% of the universal bank's capital, if the liabilities under sub. (2) are limited to the
14following types of liabilities:
SB55-ASA1-AA1,1084,1815
(a)
Warehouse receipts. A liability secured by warehouse receipts issued by
16warehouse keepers who are licensed and bonded in this state under ss. 99.02 and
1799.03 or under the federal Bonded Warehouse Act or who hold a registration
18certificate under ch. 127, if all of the following requirements are met:
SB55-ASA1-AA1,1084,1919
1. The receipts cover readily marketable nonperishable staples.
SB55-ASA1-AA1,1084,2020
2. The staples are insured, if it is customary to insure the staples.
SB55-ASA1-AA1,1084,2221
3. The market value of the staples is not, at any time, less than 140% of the face
22amount of the obligation.
SB55-ASA1-AA1,1084,2423
(b)
Certain bonds or notes. A liability in the form of a note or bond that meets
24any of the following qualifications:
SB55-ASA1-AA1,1085,3
11. The note or bond is secured by not less than a like amount of bonds or notes
2of the United States issued since April 24, 1917, or certificates of indebtedness of the
3United States.
SB55-ASA1-AA1,1085,84
2. The note or bond is secured or covered by guarantees or by commitments or
5agreements to take over, or to purchase, the bonds or notes, and the guarantee,
6commitment, or agreement is made by a federal reserve bank, the federal small
7business administration, the federal department of defense, or the federal maritime
8commission.
SB55-ASA1-AA1,1085,109
3. The note or bond is secured by mortgages or trust deeds insured by the
10federal housing administration.
SB55-ASA1-AA1,1085,12
11(4) Obligations of local governmental units. (a)
Definition. In this
12subsection, "local governmental unit" has the meaning given in s. 22.01 (7).
SB55-ASA1-AA1,1085,1513
(b)
General limitation. Except as otherwise provided in this subsection, the
14total liabilities of a local governmental unit to a universal bank for money borrowed
15may not, at any time, exceed 25% of the capital of the universal bank.
SB55-ASA1-AA1,1085,2116
(c)
Revenue obligations. Liabilities in the form of revenue obligations of a local
17governmental unit are subject to the limitations provided in par. (b). In addition, a
18universal bank is permitted to invest in a general obligation of that local
19governmental unit in an amount that will bring the combined total of the general
20obligations and revenue obligations of a single local governmental unit to a sum not
21in excess of 50% of the capital of the universal bank.
SB55-ASA1-AA1,1085,2522
(d)
General obligations. If the liabilities of the local governmental unit are in
23the form of bonds, notes, or other evidences of indebtedness that are a general
24obligation of a local governmental unit, the total liability of the local governmental
25unit may not exceed 50% of the capital of the universal bank.
SB55-ASA1-AA1,1086,5
1(e)
Temporary borrowings. The total amount of temporary borrowings of any
2local governmental unit maturing within one year after the date of issue may not
3exceed 60% of the capital of the universal bank. Temporary borrowings and
4longer-term general obligation borrowings of a single local governmental unit may
5be considered separately in determining compliance with this subsection.
SB55-ASA1-AA1,1086,11
6(5) Obligations of certain international organizations; other foreign bonds.
7A universal bank may purchase bonds offered for sale by the International Bank for
8Reconstruction and Development and the Inter-American Development Bank or
9any other foreign bonds approved under rules established by the division. The
10aggregate investment in any of these bonds issued by a single issuer may not exceed
1110% of the capital of the universal bank.
SB55-ASA1-AA1,1086,17
12(6) Foreign national government bonds. A universal bank may purchase
13general obligation bonds issued by any foreign national government if the bonds are
14payable in United States funds. The aggregate investment in these foreign bonds
15may not exceed 3% of the capital of the universal bank, except that this limitation
16does not apply to bonds of the Canadian government and Canadian provinces that
17are payable in United States funds.
SB55-ASA1-AA1,1086,25
18(7) Limits established by board. (a)
When financial statements required. A
19universal bank may not make or renew a loan or loans, the aggregate total of which
20exceeds the level established by the board of directors without being supported by a
21signed financial statement of the borrower, unless the loan is secured by collateral
22having a value in excess of the amount of the loan. A signed financial statement
23furnished by the borrower to a universal bank in compliance with this paragraph
24must be renewed annually as long as the loan or any renewal of the loan remains
25unpaid and is subject to this paragraph.
SB55-ASA1-AA1,1087,5
1(b)
Treatment of loans complying with limits. A loan or a renewal of a loan made
2by a universal bank in compliance with par. (a), without a signed financial statement,
3may be treated by the universal bank as entirely independent of any secured loan
4made to the same borrower if the loan does not exceed the applicable limitations
5provided in this section.
SB55-ASA1-AA1,1087,6
6(8) Exceptions. This section does not apply to any of the following: