DFI-CU 60.01 (title) Definitions Definition.
277,37
Section
37. DFI-CU 60.01 (1) of the administrative code is repealed.
277,38
Section
38. DFI-CU 60.01 (2) of the administrative code is renumbered DFI-CU 60.01 and amended to read:
DFI-CU 60.01 "Passbook In this chapter, "passbook savings account" means any book, statement of account, or similar record in which a running account of all moneys paid in or withdrawn by a credit union member on a savings account are recorded.
277,39
Section
39. DFI-CU 60.03 (title) and (1) of the administrative code are amended to read:
DFI-CU 60.03 (title) Certificates of deposit Term share accounts. (1) The board of directors shall establish the policy with regard to maturities and minimum denominations for each classification of certificates of deposit term share account. This policy shall be reviewed from time to time as conditions require.
277,39g
Section 39g. DFI-CU 60.03 (2) of the administrative code is repealed.
277,39r
Section 39r. DFI-CU 60.03 (3) and (4) of the administrative code are amended to read:
(3) At the option of the credit union, additional deposits may be permitted to certificate of deposit term share accounts without extending the original maturity of the certificate term share account.
(4) The information contained in s. DFI-CU 60.06 shall be disclosed on all certificates of deposit
term share accounts or accompanying disclosure forms.
277,40
Section
40. DFI-CU 60.05 (1) and (2) of the administrative code are amended to read:
DFI-CU 60.05 (1) The board of directors shall establish the policy with regard to the penalties for early withdrawal from certificate of deposit term share accounts or passbook savings accounts with stated maturities. Early withdrawal penalties may be enforced up to the maximum permitted by the depository institutions deregulation committee for similar types of accounts held in banks and savings and loan associations. If early withdrawal penalties are enforced by a credit union, these penalties shall be applied in a consistent manner to all accounts of a similar classification. This policy shall state the conditions under which penalties may be waived or modified.
(2) Penalties imposed for early withdrawal from certificate of deposit term share accounts or passbook savings accounts with maturities may be deducted from the principal amount of the certificate or account balance.
277,41
Section
41. DFI-CU 60.06 of the administrative code is amended to read:
DFI-CU 60.06 Credit union dissolution. The liability for dividends declared by the board of directors on certificate of deposit term share accounts and passbook savings accounts shall terminate without penalty to the credit union upon the credit union entering an involuntary dissolution procedure, or if the director shall take possession of the credit union under s. 186.235 (11), Stats. Upon dissolution, the director shall determine the priority of payout of the various classifications of savings.
277,42
Section
42. DFI-CU 61 (title) of the administrative code is amended to read:
DFI-CU 61 (title) CREDIT UNION PURCHASE OR ACQUISITION OF CONDITIONAL SALES CONTRACTS OR SIMILAR INSTRUMENTS EXECUTED BY CREDIT UNION MEMBERS INTERESTS IN CREDIT SALES TRANSACTIONS
277,43
Section
43. DFI-CU 61.01 (1) of the administrative code is renumbered DFI-CU 61.01 and amended to read:
DFI-CU 61.01 Limitations. Subject to the following minimum requirements, credit unions with assets of $1,000,000 or more may purchase or acquire conditional sales contracts or similar instruments executed interests in credit sales transactions entered into by their members. Credit unions with assets of less than $1,000,000 may do so subject to the following minimum requirements, only with the prior, written approval of the director.
277,44
Section
44. DFI-CU 61.02 (1) and (2) of the administrative code are amended to read:
DFI-CU 61.02 (1) The maximum interest rate (finance charge) chargeable to the member-borrower by a seller on a conditional sales contract or similar instrument sold to in a credit sales transaction involving a credit union shall not exceed that permitted by s. 422.201, Stats. On such contracts In such transactions, neither the seller nor the credit union, in the aggregate, may directly benefit by interest charges, including "Time Price Differential", processing or service fees by an amount in excess of that permitted by s. 422.201, Stats.
(2) The interest rate or finance charges on conditional sales contracts and similar instruments in credit sales transactions and on all loans shall be calculated and applied on a simple interest basis on the unpaid balance. "Add-on" or "Discount" interest rates on purchased contracts interests in these transactions and on other credit union loans are not permitted.
277,45
Section
45. DFI-CU 61.03 (1), (2) and (3) of the administrative code are amended to read:
DFI-CU 61.03 (1) Subject to the discretion of the board of directors a portion of interest charges (finance charges) on purchased contracts interests in credit sales transactions may be shared by the credit union with the seller subject, however, to s. DFI-CU 61.02.
(2) When interest income (finance charges) is shared with the seller, on contracts interests in credit sales transactions purchased with recourse, the credit union shall establish as a liability on its records, a dealer reserve. This reserve shall be adjusted and negotiated with the seller at least annually on the basis of the interest which has been accrued or earned.
(3) On contracts interests in credit sales transactions purchased without recourse, the shared interest (finance charges) paid to the seller must be set up as a deferred charge and applied at least semi-annually to the income received on those contracts interests.
277,46
Section
46. DFI-CU 61.04 of the administrative code is amended to read:
DFI-CU 61.04 Dealer financial statements. Credit unions purchasing member contracts interests in credit sales transactions made with recourse must secure annual sworn financial statements from each participating seller until the purchased contracts interests have been paid. These sworn financial statements are to be retained by the credit union for review by departmental examiners.
277,47
Section
47. Chapter DFI-CU 65 of the administrative code is repealed.
277,48
Section
48. DFI-CU 66.02 (2) (note) of the administrative code is repealed.
277,49m
Section 49m. Chapter DFI-CU 67 of the administrative code is repealed.
277,55
Section
55. DFI-CU 68.02 (note) of the administrative code is repealed.
277,56
Section
56. DFI-CU 68.03 (2) of the administrative code is amended to read:
DFI-CU 68.03 (2) "Authorized depository financial institution" means any bank insured by the federal deposit insurance corporation or savings and loan association insured by the federal savings and loan deposit insurance corporation.
277,57
Section
57. DFI-CU 68.06 (2) of the administrative code is amended to read:
DFI-CU 68.06 (2) Authorized depository financial institutions. A credit union may invest in deposit accounts of any authorized depository financial institution, provided the aggregate investment per institution shall not exceed the greater of the deposit insurance limit under federal deposit insurance corporation or federal savings and loan insurance corporation or 1/2 the unimpaired balance of the credit union's regular reserve unless the director of credit unions approves investment by the credit union exceeding this amount.
277,58
Section
58. Chapter DFI-CU 70 of the administrative code is repealed.
277,59
Section
59. DFI-CU 72.12 and 72.13 of the administrative code are repealed.
277,60d
Section 60d. Chapter DFI-CU 74 (title) of the administrative code is amended to read:
Chapter DFI-CU 74
INCIDENTAL POWERS ACTIVITY
AUTHORITY PARITY WITH FEDERAL
CREDIT UNIONS - DEBT CANCELLATION
CONTRACTS AND DEBT SUSPENSION
AGREEMENTS
277,60h
Section 60h. DFI-CU 74.01 of the administrative code is repealed.
277,60j
Section 60j. DFI-CU 74.02 (7) of the administrative code is repealed.
277,60p
Section 60p. DFI-CU 74.03 of the administrative code is amended to read:
DFI-CU 74.03 Debt cancelation contracts and debt suspension agreements. A credit union may provide debt cancellation contracts and debt suspension agreements as an incidental powers activity in the same manner and to the same extent that the products are provided by federally-chartered credit unions.
277,60t
Section 60t. DFI-CU 74.09 of the administrative code is amended to read:
DFI-CU 74.09 Safety and soundness. A credit union shall manage the risks associated with debt cancellation contracts and debt suspension agreements in accordance with safety and soundness principles. A credit union shall establish and maintain effective risk management and control processes over its debt cancellation contracts and debt suspension agreements. The processes include appropriate recognition and financial reporting of income, expenses, assets and liabilities, and appropriate treatment of all expected and unexpected losses associated with the products. A credit union shall assess the adequacy of its internal control and risk mitigation activities in view of the nature and scope of its debt cancellation contract and debt suspension agreement programs. The director may limit, restrict or prohibit a credit union from utilizing any incidental power
providing debt cancellation contracts and debt suspension agreements if examination results indicate that the credit union is conducting its business in an unauthorized or unsafe manner or is violating any of the provisions of this chapter.
277,61
Section
61. DFI-SL 6.01 of the administrative code is amended to read:
DFI-SL 6.01 Destruction of records. Except where a longer retention period is required by another state or federal agency having jurisdiction over the association, the division authorizes the destruction of records at the end of the applicable minimum retention period determined under laws, rules, or regulations, an association may destroy its records subject to the considerations set forth in s. DFI-SL 6.03. In the destruction of records, the association shall take reasonable precautions should be taken to assure the confidentiality of members' accounts information in the records.
277,62
Section
62. DFI-SL 6.03 of the administrative code is amended to read:
DFI-SL 6.03 Records retention requirements. Each association shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and the other applicable state or federal laws, rules or, and regulations
of state or federal agencies. Each association shall retain its records for the minimum period specified in the technical publication of the Financial Managers Society, Inc. of Chicago, Illinois, titled "Records Retention Guidelines" and dated July 1986. The record retention system utilized must be able to accurately produce such records.
277,63
Section
63. DFI-SB 6.01 of the administrative code is amended to read:
DFI-SB 6.01 Retention of records. Each savings bank shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and the other applicable
state or federal laws, rules of state agencies, and regulations
of federal agencies. Each savings bank shall retain its records for the minimum period specified in the technical publication of the Financial Managers Society, Inc. of Chicago, Illinois, titled "Records Retention Guidelines" and dated 1992. The record retention system utilized must be able to accurately produce such records.
277,64
Section
64. DFI-SB 6.01 (second note) of the administrative code is repealed.
277,65
Section
65. DFI-SB 6.03 of the administrative code is amended to read:
DFI-SB 6.03 Destruction of records. Except where a longer retention period is required by another state or federal agency having jurisdiction over the savings bank laws, rules, or regulations, a savings bank may destroy its records at the end of the applicable minimum retention period determined under subject to the considerations set forth in s. DFI-SB 6.01. In the destruction of records, the savings bank shall take reasonable precautions to assure the confidentiality of information in the records.
277,66
Section
66. DFI-SB 6.05 (1) of the administrative code is amended to read:
DFI-SB 6.05 (1) Microphotography standards. Microphotography may be used to commit a savings bank's records to microfilm. The film used shall be of a quality which permits it to be legible for at least the retention periods under s. DFI-SB 6.01 as long as the records are retained.
277,67
Section
67.
Effective dates. This act takes effect on the day after publication, except as follows:
(1) The treatment of section 35.93 (2) (b) 4. and (c) 1. and (3) (e) (intro.) and 1. of the statutes takes effect on January 1, 2015.
