AB892,19,2016
(c) Because the applicant, its executive officers
, or directors have not
17established a record of sound performance, efficient management, financial
18responsibility
, and integrity, the action would be contrary to the best interests of the
19creditors,
the members
or, the other customers of the applicant
or of the in-state
, the
20Wisconsin credit union
, or
contrary to the best interests of the public.
AB892,19,2421
(cr) The applicant has failed to propose to provide adequate and appropriate
22services of the type contemplated by the community reinvestment act of 1977 in the
23community in which the
in-state Wisconsin credit union which the applicant
24proposes to acquire or merge with is located.
AB892, s. 36
25Section
36. 186.41 (6) (a) of the statutes is renumbered 186.41 (6).
AB892, s. 37
1Section
37. 186.41 (6) (b) of the statutes is repealed.
AB892, s. 38
2Section
38. 186.41 (8) of the statutes is repealed.
AB892, s. 39
3Section
39. 186.45 of the statutes is created to read:
AB892,20,5
4186.45 Non-Wisconsin credit union, Wisconsin offices. (1) Definitions. 5In this section:
AB892,20,76
(a) "Non-Wisconsin credit union" means a credit union organized under the
7laws of and with its principal office located in a state other than this state.
AB892,20,88
(b) "Wisconsin credit union" has the meaning given in s. 186.41 (1) (bm).
AB892,20,13
9(2) Approval. A non-Wisconsin credit union may open an office and conduct
10business as a credit union in this state if the office of credit unions finds that
11Wisconsin credit unions are allowed to do business in the other state under
12conditions similar to those contained in this section and that all of the following apply
13to the non-Wisconsin credit union:
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(a) It is a credit union organized under laws similar to the credit union laws of
15this state.
AB892,20,1616
(b) It is financially solvent based upon national board ratings.
AB892,20,1717
(c) It has member savings insured with federal share insurance.
AB892,20,1918
(d) It is effectively examined and supervised by the credit union authorities of
19the state in which it is organized.
AB892,20,2120
(e) It has received approval from the credit union authorities of the state in
21which it is organized.
AB892,20,2322
(f) It has a need to place an office in this state to adequately serve its members
23in this state.
AB892,20,2524
(g) It meets all other relevant standards or qualifications established by the
25office of credit unions.
AB892,21,2
1(3) Requirements. A non-Wisconsin credit union shall agree to do all of the
2following:
AB892,21,43
(a) Grant loans at rates not in excess of the rates permitted for Wisconsin credit
4unions.
AB892,21,55
(b) Comply with this state's laws.
AB892,21,66
(c) Designate and maintain an agent for the service of process in this state.
AB892,21,10
7(4) Records. As a condition of a non-Wisconsin credit union doing business in
8this state under this section, the office of credit unions may require copies of
9examination reports and related correspondence regarding the non-Wisconsin
10credit union.
AB892, s. 40
11Section
40. 186.80 of the statutes is created to read:
AB892,21,13
12186.80 False statements. (a) No officer, director, or employee of a credit
13union may do any of the following:
AB892,21,1514
1. Willfully and knowingly subscribe to or make, or cause to be made, a false
15statement or entry in the books of the credit union.
AB892,21,1716
2. Knowingly subscribe to or exhibit false information with the intent to deceive
17any person authorized to examine the affairs of the credit union.
AB892,21,1918
3. Knowingly make, state, or publish any false report or statement of the credit
19union.
AB892,21,2120
(b) Any person who violates par. (a) may be fined not less than $1,000 nor more
21than $5,000, or imprisoned for not less than one year nor more than 15 years, or both.
AB892, s. 41
22Section
41. 220.04 (9) (a) 2. of the statutes is amended to read:
AB892,21,2523
220.04
(9) (a) 2. "Regulated entity" means a bank,
universal bank, trust
24company bank
, and any other entity
which that is described in s. 220.02 (2) or
25221.0526 as under the supervision and control of the division.
AB892, s. 42
1Section
42. 220.14 (5) of the statutes is created to read:
AB892,22,32
220.14
(5) Contain a statement of the total number of orders issued by the
3division during the year under s. 222.0203 (2).
AB892, s. 43
4Section
43. Chapter 222 of the statutes is created to read:
AB892,22,65
CHAPTER 222
6
UNIVERSAL BANKS
AB892,22,87
Subchapter I
8
General Provisions
AB892,22,10
9222.0101 Title. This chapter may be cited as the "Wisconsin universal bank
10law."
AB892,22,11
11222.0102 Definitions. In this chapter:
AB892,22,14
12(1) "Capital" of a universal bank means the sum of the following, less the
13amount of intangible assets that is not considered to be qualifying capital by a deposit
14insurance corporation or the division:
AB892,22,1915
(a) For a universal bank organized as a stock organization, the universal bank's
16capital stock, preferred stock, undivided profits, surplus, outstanding notes and
17debentures approved by the division, other forms of capital designated as capital by
18the division, and other forms of capital considered to be qualifying capital of the
19universal bank by a deposit insurance corporation.
AB892,22,2420
(b) For a universal bank organized as a mutual organization, the universal
21bank's net worth, undivided profits, surplus, outstanding notes and debentures
22approved by the division, other forms of capital designated as capital by the division,
23and other forms of capital considered to be qualifying capital by a deposit insurance
24corporation.
AB892,23,4
1(2) "Deposit insurance corporation" means the Federal Deposit Insurance
2Corporation or other instrumentality of, or corporation chartered by, the United
3States that insures deposits of financial institutions and that is supported by the full
4faith and credit of the U.S. government as stated in a congressional resolution.
AB892,23,5
5(3) "Division" means the division of banking.
AB892,23,8
6(4) "Financial institution" means a state savings bank organized under ch. 214,
7state savings and loan association organized under ch. 215, or state bank chartered
8under ch. 221.
AB892,23,10
9(5) "Universal bank" means a financial institution that has been issued a
10certificate of authority under s. 222.0205.
AB892,23,11
11(6) "Well-capitalized" has the meaning given in
12 USC 1831o (b) (1) (A).
AB892,23,16
12222.0103 Applicability. (1) Savings banks. A universal bank that is a savings
13bank organized under ch. 214 remains subject to all of the requirements, duties, and
14liabilities, and may exercise all of the powers, of a savings bank, except that, in the
15event of a conflict between this chapter and those requirements, duties, liabilities,
16or powers, this chapter shall control.
AB892,23,21
17(2) Savings and loan associations. A universal bank that is a savings and loan
18association organized under ch. 215 remains subject to all of the requirements,
19duties, and liabilities, and may exercise all of the powers, of a savings and loan
20association, except that, in the event of a conflict between this chapter and those
21requirements, duties, liabilities, or powers, this chapter shall control.
AB892,23,25
22(3) Banks. A universal bank that is a bank chartered under ch. 221 remains
23subject to all of the requirements, duties, and liabilities, and may exercise all of the
24powers, of a bank, except that, in the event of a conflict between this chapter and
25these requirements, duties, liabilities, or powers, this chapter shall control.
AB892,24,3
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.
AB892,24,5
4222.0107 Administration. (1) Powers of division. The division shall
5administer this chapter for all universal banks.
AB892,24,10
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.
AB892,24,1211
SUBCHAPTER II
12
Certification
AB892,24,17
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.
AB892,24,23
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.
AB892,25,3
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:
AB892,25,64
(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.
AB892,25,77
(b) The financial institution is well-capitalized.
AB892,25,128
(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.
AB892,25,1613
(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.
AB892,25,2117(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.
AB892,26,222
(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.
AB892,26,9
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.
AB892,26,13
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.
AB892,26,22
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.
AB892,26,2423
SUBCHAPTER III
24
ORGANIZATION
AB892,27,5
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.
AB892,27,12
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.
AB892,27,15
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:
AB892,27,1716
(a) The name of every other financial institution organized under the laws of
17this state.
AB892,27,1918
(b) The name of every national bank or foreign bank authorized to transact
19business in this state.
AB892,27,23
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.
AB892,28,3
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:
AB892,28,44
1. Merged with the other institution.
AB892,28,55
2. Been formed by reorganization of the other institution.
AB892,28,76
3. Acquired all or substantially all of the assets, including the name, of the
7other institution.
AB892,28,10
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.
AB892,28,12
11(2) Certain asset requirements. Section 214.045 does not apply to universal
12banks.
AB892,28,19
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.
AB892,28,23
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:
AB892,28,2524
(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.
AB892,29,2
1(b) For universal banks organized under ch. 215, ss. 215.35, 215.36, 215.53, and
2215.73.
AB892,29,33
(c) For universal banks chartered under ch. 221, subchs. VII and IX of ch. 221.
AB892,29,54
SUBCHAPTER IV
5
POWERS
AB892,29,10
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.
AB892,29,1511
(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.
AB892,29,23
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.
AB892,30,2
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.
AB892,30,5
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.
AB892,30,11
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.