AB2,32,2016 (b) Powers exercised by subsidiary of universal bank. Subject to any applicable
17requirements of sub. (2), a universal bank, through a subsidiary, may exercise any
18power that a federally chartered savings bank, a federally chartered savings and
19loan association, or a federally chartered national bank may exercise through a
20subsidiary.
AB2,33,8 21(2) Approval required for exercise of federal power. Except as otherwise
22provided in this subsection, a universal bank shall file with the division a written
23request to exercise a power under sub. (1). The division shall determine whether the
24requested power is permitted under sub. (1). Within 60 days after receiving a request
25under this subsection, the division shall approve the request, if the power is

1permitted under sub. (1), or shall disapprove the request if the power is not permitted
2under sub. (1). The division and the universal bank may mutually agree to extend
3this 60-day period for an additional period of 60 days. The division shall periodically
4publish, in the Wisconsin administrative register, a list of all powers approved under
5this subsection and, upon publication, shall mail a copy of the list to all universal
6banks. A universal bank need not request the permission of the division under this
7subsection to exercise any power described in the most current list published under
8this subsection.
AB2,33,12 9(3) Exercise of federal powers through a subsidiary. The division may
10require that certain powers exercisable by a universal bank under sub. (1) (a) be
11exercised through a subsidiary of the universal bank with appropriate safeguards to
12limit the risk exposure of the universal bank.
AB2,33,15 13222.0403 Loan powers. (1) Permitted purposes. A universal bank may
14make, sell, purchase, arrange, participate in, invest in, or otherwise deal in loans or
15extensions of credit for any purpose.
AB2,33,19 16(2) In general. (a) Percentage limitation. Except as provided in subs. (3) to
17(8), the total liabilities of any person, other than a municipal corporation, to a
18universal bank for a loan or extension of credit may not exceed 20% of the universal
19bank's capital at any time.
AB2,33,2220 (b) Partnership liabilities. In determining compliance with this section,
21liabilities of a partnership include the liabilities of the general partners, computed
22individually as to each general partner on the basis of his or her direct liability.
AB2,34,2 23(3) Increased limit for certain secured liabilities. The total liabilities of any
24person, other than a municipal corporation, to a universal bank for a loan or

1extension of credit may not exceed 50% of the universal bank's capital at any time,
2if the liabilities consist entirely of any of the following types of liabilities:
AB2,34,63 (a) Warehouse receipts. A liability secured by warehouse receipts issued by
4warehouse keepers who are licensed and bonded in this state under ss. 99.02 and
599.03 or under the federal Bonded Warehouse Act or who are licensed under s.
6126.26, if all of the following requirements are met:
AB2,34,77 1. The receipts cover readily marketable nonperishable staples.
AB2,34,88 2. The staples are insured, if it is customary to insure the staples.
AB2,34,109 3. The market value of the staples is not, at any time, less than 140% of the face
10amount of the obligation.
AB2,34,1211 (b) Certain bonds or notes. A liability in the form of a note or bond that meets
12any of the following qualifications:
AB2,34,1513 1. The note or bond is secured by not less than a like amount of bonds or notes
14of the United States issued since April 24, 1917, or certificates of indebtedness of the
15United States.
AB2,34,2016 2. The note or bond is secured or covered by guarantees or by commitments or
17agreements to take over, or to purchase, the bonds or notes, and the guarantee,
18commitment, or agreement is made by a federal reserve bank, the federal small
19business administration, the federal department of defense, or the federal maritime
20commission.
AB2,34,2221 3. The note or bond is secured by mortgages or trust deeds insured by the
22federal housing administration.
AB2,34,24 23(4) Obligations of local governmental units. (a) Definition. In this
24subsection, "local governmental unit" has the meaning given in s. 22.01 (7).
AB2,35,3
1(b) General limitation. Except as otherwise provided in this subsection, the
2total liabilities of a local governmental unit to a universal bank for money borrowed
3may not, at any time, exceed 25% of the capital of the universal bank.
AB2,35,94 (c) Revenue obligations. Liabilities in the form of revenue obligations of a local
5governmental unit are subject to the limitations provided in par. (b). In addition, a
6universal bank may invest in a general obligation of that local governmental unit in
7an amount that will bring the combined total of the general obligations and revenue
8obligations of a single local governmental unit to a sum not in excess of 50% of the
9capital of the universal bank.
AB2,35,1310 (d) General obligations. If the liabilities of the local governmental unit are in
11the form of bonds, notes, or other evidences of indebtedness that are a general
12obligation of a local governmental unit, the total liability of the local governmental
13unit may not exceed 50% of the capital of the universal bank.
AB2,35,1814 (e) Temporary borrowings. The total amount of temporary borrowings of any
15local governmental unit maturing within one year after the date of issue may not
16exceed 60% of the capital of the universal bank. Temporary borrowings and
17longer-term general obligation borrowings of a single local governmental unit may
18be considered separately in determining compliance with this subsection.
AB2,35,24 19(5) Obligations of certain international organizations; other foreign bonds.
20A universal bank may purchase bonds offered for sale by the International Bank for
21Reconstruction and Development and the Inter-American Development Bank or
22any other foreign bonds approved under rules established by the division. The
23aggregate investment in any of these bonds issued by a single issuer may not exceed
2410% of the capital of the universal bank.
AB2,36,6
1(6) Foreign national government bonds. A universal bank may purchase
2general obligation bonds issued by any foreign national government if the bonds are
3payable in United States funds. The aggregate investment in these foreign bonds
4may not exceed 3% of the capital of the universal bank, except that this limitation
5does not apply to bonds of the Canadian government and Canadian provinces that
6are payable in United States funds.
AB2,36,14 7(7) Limits established by board. (a) When financial statements required. A
8universal bank may not make or renew a loan or loans, the aggregate total of which
9exceeds the level established by the board of directors without being supported by a
10signed financial statement of the borrower, unless the loan is secured by collateral
11having a value in excess of the amount of the loan. A signed financial statement
12furnished by the borrower to a universal bank in compliance with this paragraph
13must be renewed annually as long as the loan or any renewal of the loan remains
14unpaid and is subject to this paragraph.
AB2,36,1915 (b) Treatment of loans complying with limits. A loan or a renewal of a loan made
16by a universal bank in compliance with par. (a), without a signed financial statement,
17may be treated by the universal bank as entirely independent of any secured loan
18made to the same borrower if the loan does not exceed the applicable limitations
19provided in this section.
AB2,36,20 20(8) Exceptions. This section does not apply to any of the following:
AB2,36,2421 (a) Liabilities secured by certain short-term federal obligations. A liability that
22is secured by not less than a like amount of direct obligations of the United States
23which will mature not more than 18 months after the date on which such liabilities
24to the universal bank are entered into.
AB2,37,4
1(b) Certain federal and state obligations or guaranteed obligations. A liability
2that is a direct obligation of the United States or this state, or an obligation of any
3governmental agency of the United States or this state, that is fully and
4unconditionally guaranteed by the United States or this state.
AB2,37,65 (c) Commodity Credit Corporation liabilities. A liability in the form of a note,
6debenture, or certificate of interest of the Commodity Credit Corporation.
AB2,37,107 (d) Discounting bills of exchange or business or commercial paper. A liability
8created by the discounting of bills of exchange drawn in good faith against actually
9existing values or the discounting of commercial or business paper actually owned
10by the person negotiating the same.
AB2,37,1611 (e) Certain other federal or federally guaranteed obligations. Obligations of, or
12obligations that are fully guaranteed by, the United States and obligations of any
13federal reserve bank, federal home loan bank, the Student Loan Marketing
14Association, the Government National Mortgage Association, the Federal National
15Mortgage Association, the Federal Home Loan Mortgage Corporation, the
16Export-Import Bank of Washington, or the Federal Deposit Insurance Corporation.
AB2,38,6 17(9) Additional authority. (a) In general. In addition to the authority
18granted under subs. (1) to (8), and except as provided in par. (b), a universal bank may
19lend under this subsection, through the universal bank or subsidiary of the universal
20bank, to all borrowers from the universal bank and all of its subsidiaries, an
21aggregate amount not to exceed 20% of the universal bank's capital. Except as
22provided in subs. (3) and (4), neither a universal bank nor any subsidiary of the
23universal bank may lend to any borrower, under this subsection or any other law or
24rule, an amount that would result in an aggregate amount for all loans to that
25borrower that exceeds 20% of the universal bank's capital. A universal bank or its

1subsidiary may take an equity position or other form of interest as security in a
2project funded through loans made under this paragraph. Every transaction by a
3universal bank or its subsidiary under this paragraph requires prior approval by the
4governing board of the universal bank or its subsidiary, respectively. Loans made
5under this paragraph are not subject to s. 221.0326 or to classification as losses, for
6a period of 2 years from the date of each loan except as provided in par. (b).
AB2,38,137 (b) Suspension of additional authority. The division may suspend the authority
8established under par. (a) and, in such case, may specify how an outstanding loan
9shall be treated by the universal bank or its subsidiary. Among the factors that the
10division may consider in suspending authority under par. (a) are the universal bank's
11capital adequacy, asset quality, earnings quantity, earnings quality, adequacy of
12liquidity, and sensitivity to market risk and the ability of the universal bank's
13management.
AB2,38,18 14(10) Exercise of loan powers; prohibited considerations. In determining
15whether to make a loan or extension of credit, no universal bank may consider any
16health information obtained from the records of an affiliate of the universal bank
17that is engaged in the business of insurance, unless the person to whom the health
18information relates consents.
AB2,39,2 19222.0405 Investment powers. (1) Investment securities. Except as
20provided in subs. (3) to (8), a universal bank may purchase, sell, underwrite, and hold
21investment securities, consistent with safe and sound banking practices, up to 100%
22of the universal bank's capital. A universal bank may not invest greater than 20%
23of the universal bank's capital in the investment securities of one obligor or issuer.
24In this subsection, "investment securities" includes commercial paper, banker's

1acceptances, marketable securities in the form of bonds, notes, debentures, and
2similar instruments that are regarded as investment securities.
AB2,39,6 3(2) Equity securities. Except as provided in subs. (3) to (8), a universal bank
4may purchase, sell, underwrite, and hold equity securities, consistent with safe and
5sound banking practices, up to 20% of the universal bank's capital or, if approved by
6the division in writing, a greater percentage of the universal bank's capital.
AB2,39,21 7(3) Housing activities. With the prior written consent of the division, a
8universal bank may invest in the initial purchase and development, or the purchase
9or commitment to purchase after completion, of home sites and housing for sale or
10rental, including projects for the reconstruction, rehabilitation, or rebuilding of
11residential properties to meet the minimum standards of health and occupancy
12prescribed for a local governmental unit, the provision of accommodations for retail
13stores, shops, and other community services that are reasonably incident to that
14housing, or the stock of a corporation that owns one or more of those projects and that
15is wholly owned by one or more financial institutions. The total investment in any
16one project may not exceed 15% of the universal bank's capital, nor may the
17aggregate investment under this subsection exceed 50% of the universal bank's
18capital. A universal bank may not make an investment under this subsection unless
19it is in compliance with the capital requirements set by the division under s. 222.0305
20(1) and with the capital maintenance requirements of its deposit insurance
21corporation.
AB2,40,8 22(4) Profit-participation projects. A universal bank may take equity positions
23in profit-participation projects, including projects funded through loans from the
24universal bank, in an aggregate amount not to exceed 20% of the universal bank's
25capital. The division may suspend the investment authority under this subsection.

1If the division suspends the investment authority under this subsection, the division
2may specify how outstanding investments under this subsection shall be treated by
3the universal bank or its subsidiary. Among the factors that the division may
4consider in suspending authority under this subsection are the universal bank's
5capital adequacy, asset quality, earnings quantity, earnings quality, adequacy of
6liquidity, sensitivity to market risk, and the ability of the universal bank's
7management. This subsection does not authorize a universal bank, directly or
8indirectly through a subsidiary, to engage in the business of underwriting insurance.
AB2,40,11 9(5) Debt investments. A universal bank may invest in bonds, notes,
10obligations, and liabilities described under s. 222.0403 (3) to (7), subject to the
11limitations under those subsections.
AB2,40,13 12(6) Certain liabilities. This section does not limit investment in the
13liabilities described in s. 222.0403 (8).
AB2,40,15 14(7) Certain investments. A universal bank may invest without limitation in
15any of the following:
AB2,40,1816 (a) Business development corporations. Stocks or obligations of a corporation
17organized for business development by this state or by the United States or by an
18agency of this state or the United States.
AB2,40,2019 (b) Urban renewal investment corporations. Obligations of an urban renewal
20investment corporation organized under the laws of this state or of the United States.
AB2,40,2521 (c) Certain bank insurance companies. An equity interest in an insurance
22company or an insurance holding company organized to provide insurance for
23universal banks and for persons affiliated with universal banks, solely to the extent
24that this ownership is a prerequisite to obtaining directors' and officers' insurance
25or blanket bond insurance for the universal bank through the company.
AB2,41,4
1(d) Certain remote service unit corporations. Shares of stock, whether
2purchased or otherwise acquired, in a corporation acquiring, placing, and operating
3remote service units under s. 214.04 (21) or 215.13 (46) or bank communications
4terminals under s. 221.0303 (2).
AB2,41,65 (e) Service corporations. Equity or debt securities or instruments of a service
6corporation subsidiary of the universal bank.
AB2,41,77 (f) Federal funds. Advances of federal funds.
AB2,41,118 (g) Certain risk management financial products. With the prior written
9approval of the division, financial futures transactions, financial options
10transactions, forward commitments, or other financial products for the purpose of
11reducing, hedging, or otherwise managing its interest rate risk exposure.
AB2,41,1312 (h) Certain fiduciaries. A subsidiary organized to exercise corporate fiduciary
13powers under ch. 112.
AB2,41,1714 (i) Agricultural credit corporations. An agricultural credit corporation, except
15that if the universal bank owns less than 80% of the stock of the agricultural credit
16corporation, the universal bank may not invest more than 20% of the universal
17bank's capital in the agricultural credit corporation.
AB2,41,2018 (j) Deposit accounts and insured obligations. Deposit accounts or insured
19obligations of any financial institution, the accounts of which are insured by a deposit
20insurance corporation.
AB2,42,221 (k) Certain federal obligations. Obligations of, or obligations that are fully
22guaranteed by, the United States and stocks or obligations of any federal reserve
23bank, federal home loan bank, the Student Loan Marketing Association, the
24Government National Mortgage Association, the Federal National Mortgage

1Association, the Federal Home Loan Mortgage Corporation, or the Federal Deposit
2Insurance Corporation.
AB2,42,33 (L) Other investments. Any other investment authorized by the division.
AB2,42,6 4(8) Investments in other financial institutions. In addition to the authority
5granted under ss. 222.0307 and 222.0409, and subject to the limitations of sub. (2),
6a universal bank may invest in other financial institutions.
AB2,42,10 7(9) Investments through subsidiaries. A universal bank may make
8investments under this section, directly or indirectly through a subsidiary, unless
9the division determines that an investment shall be made through a subsidiary with
10appropriate safeguards to limit the risk exposure of the universal bank.
AB2,42,13 11222.0407 Universal bank purchase of its own stock. (1) In general. A
12universal bank may hold or purchase not more than 10% of its capital stock, notes,
13or debentures, except as provided in sub. (2) or (3).
AB2,42,15 14(2) Division approval. A universal bank may hold or purchase more than 10%
15of its capital stock, notes, or debentures, if approved by the division.
AB2,43,2 16(3) Additional authority. A universal bank may hold or purchase more than
1710% of its capital stock, notes, or debentures if the purchase is necessary to prevent
18loss upon a debt previously contracted in good faith. Stock, notes, or debentures held
19or purchased under this subsection may not be held by the universal bank for more
20than 6 months if the stock, notes, or debentures can be sold for the amount of the
21claim of the universal bank against the holder of the debt previously contracted. The
22universal bank shall either sell the stock, notes, or debentures within 12 months of
23acquisition under this subsection or shall cancel the stock, notes, or debentures.
24Cancellation of the stock, notes, or debentures reduces the amount of the universal
25bank's capital stock, notes, or debentures. If the reduction reduces the universal

1bank's capital below the minimum level required by the division, the universal bank
2shall increase its capital to the amount required by the division.
AB2,43,8 3(4) Loans secured by capital, surplus, or deposits. A universal bank may not
4loan any part of its capital, surplus, or deposits on its own capital stock, notes, or
5debentures as collateral security, except that a universal bank may make a loan
6secured by its own capital stock, notes, or debentures to the same extent that the
7universal bank may make a loan secured by the capital stock, notes, and debentures
8of a holding company for the universal bank.
AB2,43,13 9222.0409 Stock in bank-owned banks. With the approval of the division,
10a universal bank may acquire and hold stock in one or more banks chartered under
11s. 221.1202 or national banks chartered under 12 USC 27 (b) or in one or more
12holding companies wholly owning such a bank. Aggregate investments under this
13section may not exceed 10% of the universal bank's capital.
AB2,43,18 14222.0411 General deposit powers. (1) In general. A universal bank may
15set eligibility requirements for, and establish the types and terms of, deposits that
16the universal bank solicits and accepts. The terms set under this subsection may
17include minimum and maximum amounts that the universal bank may accept and
18the frequency and computation method of paying interest.
AB2,43,21 19(2) Pledge of security for deposits. Subject to the limitations of s. 221.0324
20that are applicable to banks, a universal bank may pledge its assets as security for
21deposits.
AB2,43,24 22(3) Securitization of assets. With the approval of the division, a universal
23bank may securitize its assets for sale to the public. The division may establish
24procedures governing the exercise of authority granted under this subsection.
AB2,44,14
1(4) Safe deposit powers. A universal bank may take and receive, from any
2individual or corporation for safekeeping and storage, gold and silver plate, jewelry,
3money, stocks, securities, and other valuables or personal property, and may rent out
4the use of safes or other receptacles upon its premises for such compensation as may
5be agreed upon. A universal bank has a lien for its charges on any property taken
6or received by it for safekeeping. If the lien is not paid within 2 years from the date
7the lien accrues, or if property is not called for by the person depositing the property,
8or by his or her representative or assignee, within 2 years from the date the lien
9accrues, the universal bank may sell the property at public auction. A universal bank
10shall provide the same notice for a sale under this subsection that is required by law
11for sales of personal property on execution. After retaining from the proceeds of the
12sale all of the liens and charges due the bank and the reasonable expenses of the sale,
13the universal bank shall pay the balance to the person depositing the property, or to
14his or her representative or assignee.
AB2,44,20 15222.0413 Necessary or convenient powers, reasonably related or
16incidental activities, and other approved activities. (1)
Necessary or
17convenient powers.
Unless otherwise prohibited or limited by this chapter, a
18universal bank may exercise all powers necessary or convenient to effect the
19purposes for which the universal bank is organized or to further the businesses in
20which the universal bank is lawfully engaged.
AB2,45,5 21(2) Reasonably related and incidental activities. (a) Subject to any
22applicable state or federal regulatory or licensing requirements, a universal bank
23may engage, directly or indirectly through a subsidiary, in activities reasonably
24related or incident to the purposes of the universal bank. Activities reasonably
25related or incident to the purposes of the universal bank are those activities that are

1part of the business of financial institutions, or closely related to the business of
2financial institutions, or convenient and useful to the business of financial
3institutions, or reasonably related or incident to the operation of financial
4institutions, or financial in nature. Activities that are reasonably related or incident
5to the purposes of a universal bank include the following:
AB2,45,66 1. Business and professional services.
AB2,45,77 2. Data processing.
AB2,45,88 3. Courier and messenger services.
AB2,45,99 4. Credit-related activities.
AB2,45,1010 5. Consumer services.
AB2,45,1111 6. Real estate-related services, including real estate brokerage services.
AB2,45,1212 7. Insurance and related services, other than insurance underwriting.
AB2,45,1313 8. Securities brokerage.
AB2,45,1414 9. Investment advice.
AB2,45,1515 10. Securities and bond underwriting.
AB2,45,1616 11. Mutual fund activities.
AB2,45,1717 12. Financial consulting.
AB2,45,1818 13. Tax planning and preparation.
AB2,45,1919 14. Community development and charitable activities.
AB2,45,2020 15. Debt cancellation contracts.
AB2,45,2221 16. Any activities that are reasonably related or incident to activities under
22subds. 1. to 15., as determined by the division.
AB2,46,623 (b) An activity that is authorized by statute or regulation for financial
24institutions to engage in as of the effective date of this paragraph .... [revisor inserts
25date], is an activity that is reasonably related or incident to the purposes of a

1universal bank. An activity permitted under the Bank Holding Company Act is an
2activity that is reasonably related or incident to the purposes of a universal bank.
3The division may expand the list of activities under par. (a) 1. to 15. that are
4reasonably related or incident to the purposes of a universal bank. Any activity
5approved by the division under this paragraph shall be authorized for all universal
6banks.
AB2,46,9 7(3) Notice requirement. A universal bank shall give 60 days' prior written
8notice to the division of the universal bank's intention to engage in an activity under
9this section.
AB2,46,17 10(4) Standards for denial. The division may deny the authority of a universal
11bank to engage in an activity under this section, other than those activities described
12in sub. (2) (a) 1. to 15., if the division determines that the activity is not an activity
13reasonably related or incident to the purposes of a universal bank. The division may
14deny the authority of a universal bank to engage in an activity under this section if
15the division determines that the universal bank is not well-capitalized, that the
16universal bank is the subject of an enforcement action, or that the universal bank
17does not have satisfactory management expertise for the proposed activity.
AB2,46,21 18(5) Insurance intermediation. A universal bank, or an officer or salaried
19employee of a universal bank, may obtain a license as an insurance intermediary, if
20otherwise qualified. A universal bank may not, directly or indirectly through a
21subsidiary, engage in the business of underwriting insurance.
AB2,46,23 22(6) Other activities approved by the division. A universal bank may engage
23in any other activity that is approved by rule of the division.
AB2,47,2 24(7) Activities provided through a subsidiary. A universal bank may engage
25in an activity under this section, directly or indirectly through a subsidiary, unless

1the division determines that the activity must be conducted through a subsidiary
2with appropriate safeguards to limit the risk exposure of the universal bank.
AB2,47,8 3(8) Limitations on investments through subsidiaries. The amount of the
4investment in any one subsidiary that engages in an activity under this section may
5not exceed 20% of a universal bank's capital or, if approved by the division, a higher
6percentage. The aggregate investment in all subsidiaries that engage in an activity
7under this section may not exceed 50% of a universal bank's capital or, if approved
8by the division, a higher percentage.
AB2,47,11 9(9) Ownership of subsidiaries. A subsidiary that engages in an activity under
10this section may be owned jointly, with one or more other financial institutions,
11individuals, or entities.
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