AB299,16,33 (b) Merge with one or more in-state Wisconsin credit unions.
AB299, s. 31 4Section 31. 186.41 (4) (intro.), (a) to (d) and (f) of the statutes are amended to
5read:
AB299,16,76 186.41 (4) Limitations. (intro.) A regional An out-of-state credit union may
7not take any action under sub. (3) until all of the following conditions have been met:
AB299,16,118 (a) The office of credit unions finds that the statutes of the regional state in
9which the regional out-of-state credit union has its principal office permit in-state
10Wisconsin credit unions to both acquire regional out-of-state credit union assets and
11merge with one or more regional out-of-state credit unions in the regional that state.
AB299,16,1412 (b) The office of credit unions has not disapproved the acquisition of in-state
13Wisconsin credit union assets or the merger with the in-state Wisconsin credit union
14under sub. (5).
AB299,16,2315 (c) The office of credit unions gives a class 3 notice, under ch. 985, in the official
16state newspaper, of the application to take an action under sub. (3) and of the
17opportunity for a hearing and, if at least 25 residents of this state petition for a
18hearing within 30 days of the final notice or if the office of credit unions on its own
19motion calls for a hearing within 30 days of the final notice, the office of credit unions
20holds a public hearing on the application, except that a hearing is not required if the
21office of credit unions finds that an emergency exists and that the proposed action
22under sub. (3) is necessary and appropriate to prevent the probable failure of an
23in-state
a Wisconsin credit union that is closed or in danger of closing.
AB299,17,224 (d) The office of credit unions is provided a copy of any original application
25seeking approval by a federal agency of the acquisition of in-state Wisconsin credit

1union assets or of the merger with an in-state a Wisconsin credit union and of any
2supplemental material or amendments filed with the application.
AB299,17,53 (f) With regard to an acquisition of assets of an in-state a Wisconsin credit
4union that is chartered on or after May 9, 1986, the in-state Wisconsin credit union
5has been in existence for at least 5 years before the date of acquisition.
AB299, s. 32 6Section 32. 186.41 (5) (a), (b), (c) and (cr) of the statutes are amended to read:
AB299,17,107 186.41 (5) (a) Considering the financial and managerial resources and future
8prospects of the applicant and of the in-state Wisconsin credit union concerned, the
9action would be contrary to the best interests of the members of the in-state
10Wisconsin credit union.
AB299,17,1311 (b) The action would be detrimental to the safety and soundness of the
12applicant or of the in-state Wisconsin credit union concerned, or to a subsidiary or
13affiliate of the applicant or of the in-state Wisconsin credit union.
AB299,17,1814 (c) Because the applicant, its executive officers, or directors have not
15established a record of sound performance, efficient management, financial
16responsibility, and integrity, the action would be contrary to the best interests of the
17creditors, the members or, the other customers of the applicant or of the in-state , the
18Wisconsin
credit union, or contrary to the best interests of the public.
AB299,17,2219 (cr) The applicant has failed to propose to provide adequate and appropriate
20services of the type contemplated by the community reinvestment act of 1977 in the
21community in which the in-state Wisconsin credit union which the applicant
22proposes to acquire or merge with is located.
AB299, s. 33 23Section 33. 186.41 (6) (a) of the statutes is renumbered 186.41 (6).
AB299, s. 34 24Section 34. 186.41 (6) (b) of the statutes is repealed.
AB299, s. 35 25Section 35. 186.41 (8) of the statutes is repealed.
AB299, s. 36
1Section 36. 186.45 of the statutes is created to read:
AB299,18,3 2186.45 Non-Wisconsin credit union, Wisconsin offices. (1) Definitions.
3In this section:
AB299,18,54 (a) "Non-Wisconsin credit union" means a credit union organized under the
5laws of and with its principal office located in a state other than this state.
AB299,18,66 (b) "Wisconsin credit union" has the meaning given in s. 186.41 (1) (bm).
AB299,18,11 7(2) Approval. A non-Wisconsin credit union may open an office and conduct
8business as a credit union in this state if the office of credit unions finds that
9Wisconsin credit unions are allowed to do business in the other state under
10conditions similar to those contained in this section and that all of the following apply
11to the non-Wisconsin credit union:
AB299,18,1312 (a) It is a credit union organized under laws similar to the credit union laws of
13this state.
AB299,18,1414 (b) It is financially solvent based upon national board ratings.
AB299,18,1515 (c) It has member savings insured with federal share insurance.
AB299,18,1716 (d) It is effectively examined and supervised by the credit union authorities of
17the state in which it is organized.
AB299,18,1918 (e) It has received approval from the credit union authorities of the state in
19which it is organized.
AB299,18,2120 (f) It has a need to place an office in this state to adequately serve its members
21in this state.
AB299,18,2322 (g) It meets all other relevant standards or qualifications established by the
23office of credit unions.
AB299,18,25 24(3) Requirements. A non-Wisconsin credit union shall agree to do all of the
25following:
AB299,19,2
1(a) Grant loans at rates not in excess of the rates permitted for Wisconsin credit
2unions.
AB299,19,33 (b) Comply with this state's laws.
AB299,19,44 (c) Designate and maintain an agent for the service of process in this state.
AB299,19,8 5(4) Records. As a condition of a non-Wisconsin credit union doing business in
6this state under this section, the office of credit unions may require copies of
7examination reports and related correspondence regarding the non-Wisconsin
8credit union.
AB299, s. 37 9Section 37. 186.80 of the statutes is created to read:
AB299,19,11 10186.80 False statements. (a) No officer, director, or employee of a credit
11union may do any of the following:
AB299,19,1312 1. Willfully and knowingly subscribe to or make, or cause to be made, a false
13statement or entry in the books of the credit union.
AB299,19,1514 2. Knowingly subscribe to or exhibit false information with the intent to deceive
15any person authorized to examine the affairs of the credit union.
AB299,19,1716 3. Knowingly make, state, or publish any false report or statement of the credit
17union.
AB299,19,1918 (b) Any person who violates par. (a) may be fined not less than $1,000 nor more
19than $5,000, or imprisoned for not less than one year nor more than 15 years, or both.
AB299, s. 38 20Section 38. 220.04 (9) (a) 2. of the statutes is amended to read:
AB299,19,2321 220.04 (9) (a) 2. "Regulated entity" means a bank, universal bank, trust
22company bank, and any other entity which that is described in s. 220.02 (2) or
23221.0526 as under the supervision and control of the division.
AB299, s. 39 24Section 39. 220.14 (5) of the statutes is created to read:
AB299,20,2
1220.14 (5) Contain a statement of the total number of orders issued by the
2division during the year under s. 222.0203 (2).
AB299, s. 40 3Section 40. Chapter 222 of the statutes is created to read:
AB299,20,54 CHAPTER 222
5 UNIVERSAL BANKS
AB299,20,76 Subchapter I
7 General Provisions
AB299,20,9 8222.0101 Title. This chapter may be cited as the "Wisconsin universal bank
9law."
AB299,20,10 10222.0102 Definitions. In this chapter:
AB299,20,13 11(1) "Capital" of a universal bank means the sum of the following, less the
12amount of intangible assets that is not considered to be qualifying capital by a deposit
13insurance corporation or the division:
AB299,20,1814 (a) For a universal bank organized as a stock organization, the universal bank's
15capital stock, preferred stock, undivided profits, surplus, outstanding notes and
16debentures approved by the division, other forms of capital designated as capital by
17the division, and other forms of capital considered to be qualifying capital of the
18universal bank by a deposit insurance corporation.
AB299,20,2319 (b) For a universal bank organized as a mutual organization, the universal
20bank's net worth, undivided profits, surplus, outstanding notes and debentures
21approved by the division, other forms of capital designated as capital by the division,
22and other forms of capital considered to be qualifying capital by a deposit insurance
23corporation.
AB299,21,2 24(2) "Deposit insurance corporation" means the Federal Deposit Insurance
25Corporation or other instrumentality of, or corporation chartered by, the United

1States that insures deposits of financial institutions and that is supported by the full
2faith and credit of the U.S. government as stated in a congressional resolution.
AB299,21,3 3(3) "Division" means the division of banking.
AB299,21,6 4(4) "Financial institution" means a state savings bank organized under ch. 214,
5state savings and loan association organized under ch. 215, or state bank chartered
6under ch. 221.
AB299,21,8 7(5) "Universal bank" means a financial institution that has been issued a
8certificate of authority under s. 222.0205.
AB299,21,9 9(6) "Well-capitalized" has the meaning given in 12 USC 1831o (b) (1) (A).
AB299,21,14 10222.0103 Applicability. (1) Savings banks. A universal bank that is a savings
11bank organized under ch. 214 remains subject to all of the requirements, duties, and
12liabilities, and may exercise all of the powers, of a savings bank, except that, in the
13event of a conflict between this chapter and those requirements, duties, liabilities,
14or powers, this chapter shall control.
AB299,21,19 15(2) Savings and loan associations. A universal bank that is a savings and loan
16association organized under ch. 215 remains subject to all of the requirements,
17duties, and liabilities, and may exercise all of the powers, of a savings and loan
18association, except that, in the event of a conflict between this chapter and those
19requirements, duties, liabilities, or powers, this chapter shall control.
AB299,21,23 20(3) Banks. A universal bank that is a bank chartered under ch. 221 remains
21subject to all of the requirements, duties, and liabilities, and may exercise all of the
22powers, of a bank, except that, in the event of a conflict between this chapter and
23these requirements, duties, liabilities, or powers, this chapter shall control.
AB299,22,3
1222.0105 Fees. The division may establish such fees as it determines are
2appropriate for documents filed with the division under this chapter and for services
3provided by the division under this chapter.
AB299,22,5 4222.0107 Administration. (1) Powers of division. The division shall
5administer this chapter for all universal banks.
AB299,22,10 6(2) Rule-making authority. The division may promulgate rules to administer
7and carry out this chapter. The division may establish additional limits or
8requirements on universal banks, if the division determines that the limits or
9requirements are necessary for the protection of depositors, members, investors, or
10the public.
AB299,22,1211 SUBCHAPTER II
12 Certification
AB299,22,17 13222.0201 Procedure. (1) Application. A financial institution may apply to
14become certified as a universal bank by filing a written application with the division.
15The application shall include all information required by the division. The
16application shall be on the forms and in accordance with the procedures prescribed
17by the division.
AB299,22,23 18(2) Review by division. An application submitted by a financial institution
19under sub. (1) shall either be approved or disapproved by the division, in writing,
20within 60 days after the date on which application is filed with the division. The
21division and the financial institution may mutually agree to extend the application
22period for an additional period of 60 days. The division shall approve an application
23if all of the applicable requirements under s. 222.0203 (1) are met.
AB299,23,3
1222.0203 Eligibility. (1) Requirements. The division may approve an
2application from a financial institution for certification as a universal bank only if
3all of the following requirements are met:
AB299,23,64 (a) The financial institution is chartered or organized, and regulated, under ch.
5214, 215, or 221 and has been in existence and continuous operation for a minimum
6of 3 years before the date of the application.
AB299,23,77 (b) The financial institution is well-capitalized.
AB299,23,128 (c) The financial institution does not exhibit a combination of financial,
9managerial, operational, and compliance weaknesses that is moderately severe or
10unsatisfactory, as determined by the division based upon the division's assessment
11of the financial institution's capital adequacy, asset quality, management capability,
12earnings quantity and quality, adequacy of liquidity, and sensitivity to market risk.
AB299,23,1613 (d) During the 12-month period before the date of the application, the financial
14institution has not been the subject of an enforcement action, and there is no
15enforcement action pending against the financial institution by any state or federal
16financial institution regulatory agency, including the division.
AB299,23,2117(e) The most current evaluation prepared under 12 USC 2906 that the financial
18institution has received rates the financial institution as "outstanding" or
19"satisfactory" in helping to meet the credit needs of its entire community, including
20low-income and moderate-income neighborhoods, consistent with the safe and
21sound operation of the financial institution.
AB299,24,222 (f) If the financial institution has received from its federal functional regulator,
23as defined in 15 USC 6809 (2), a consumer compliance examination that contains
24information regarding the financial institution's compliance with 15 USC 6801 to
256803 and any applicable regulations prescribed under 15 USC 6804, the most recent

1such examination indicates, in the opinion of the division, that the financial
2institution is in substantial compliance with those statutes or regulations.
AB299,24,9 3(2) Failure to maintain eligibility; limitation of authority and
4decertification.
For any period during which a universal bank fails to meet the
5requirements under sub. (1), the division shall by order limit or restrict the exercise
6of the powers of the universal bank under this chapter. In addition to or lieu of
7limiting or restricting the universal bank's authority under this subsection, the
8division may by order revoke the universal bank's certificate of authority issued
9under s. 222.0205.
AB299,24,13 10222.0205 Certificate of authority. Upon approval of an application for
11certification as a universal bank, the division shall issue to the applicant a certificate
12of authority stating that the financial institution is certified as a universal bank
13under this chapter.
AB299,24,22 14222.0207 Voluntary termination of certification. A financial institution
15that is certified as a universal bank under this chapter may elect to terminate its
16certification by giving 60 days' prior written notice of the termination to the division.
17A termination under this section is effective only with the written approval of the
18division. A financial institution shall, as a condition to a termination under this
19section, terminate its exercise of all powers granted under this chapter before the
20termination of the certification. The division's written approval of a financial
21institution's termination under this section is void if the financial institution fails to
22satisfy the precondition to termination under this section.
AB299,24,2423 SUBCHAPTER III
24 ORGANIZATION
AB299,25,5
1222.0301 Articles of incorporation and bylaws. A universal bank shall
2continue to operate under its articles of incorporation and bylaws as in effect prior
3to certification as a universal bank or as such articles or bylaws may be subsequently
4amended in accordance with the provisions of the chapter under which the universal
5bank was organized or chartered.
AB299,25,12 6222.0303 Name. (1) Use of "bank." Notwithstanding ss. 214.035, 215.40 (1),
7and 215.60 (1) and subject to subs. (2) and (3) (b), a universal bank may use the word
8"bank" in its name, without having to include the word "savings." Notwithstanding
9ss. 215.40 (1) and 215.60 (1) and subject to subs. (2) and (3) (b), a universal bank that
10is organized under ch. 215 and that uses the word "bank" in its name in accordance
11with this section need not include the words "savings and loan association" or
12"savings association" in its name.
AB299,25,15 13(2) Distinguishability. Except as provided in sub. (3), the name of the
14universal bank shall be distinguishable upon the records of the division from all of
15the following names:
AB299,25,1716 (a) The name of every other financial institution organized under the laws of
17this state.
AB299,25,1918 (b) The name of every national bank or foreign bank authorized to transact
19business in this state.
AB299,25,23 20(3) Exceptions. (a) A universal bank may apply to the division for authority
21to use a name that does not meet the requirements under sub. (2). The division may
22authorize the use of the name if any of the conditions under s. 221.0403 (2) (a) or (b)
23is met.
AB299,26,3
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:
AB299,26,44 1. Merged with the other institution.
AB299,26,55 2. Been formed by reorganization of the other institution.
AB299,26,76 3. Acquired all or substantially all of the assets, including the name, of the
7other institution.
AB299,26,10 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.
AB299,26,12 11(2) Certain asset requirements. Section 214.045 does not apply to universal
12banks.
AB299,26,19 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.
Loading...
Loading...