(2) Errors and omissions insurance policy. Obtain and maintain adequate insurance against loss, expense and liability resulting from errors, omissions or neglect in the performance of any trust which may be lawfully imposed upon and accepted by the trust company bank. The trust company bank shall file a copy of the policy with the division.
336,29
Section 29
. 223.025 of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.
336,30
Section 30
. 223.03 (6) of the statutes is repealed and recreated to read:
223.03 (6) To act as trustee, executor, administrator, registrar of stocks and bonds, custodian, agent, guardian of estates, assignee, receiver, and in any other fiduciary capacity authorized by the division.
336,31
Section 31
. 223.03 (10) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.
336,32
Section 32
. 223.03 (11) of the statutes is repealed.
336,33
Section 33
. 223.03 (12) of the statutes is repealed.
336,34
Section 34
. 223.03 (14) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
223.03 (14) To establish and maintain a branch trust company bank with the approval of the division. Section 221.04 (1) (jm) 2. to 8., as it applies to bank branch offices under that paragraph, applies to trust company bank branch offices under this subsection to the same extent and in the same manner that a state bank may establish and maintain a branch bank under s. 221.0302.
336,35
Section 35
. 223.04 of the statutes is repealed.
336,36
Section 36
. 223.07 (1) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
223.07 (1) Any trust company bank may, with the approval of the division, establish and maintain a trust service office at any office in this state of a state or national bank depository institution, as defined in s. 221.0901 (2) (i), if the establishment of the trust service office has been approved by the board of directors of the state or national bank at a meeting called for that purpose.
336,37
Section 37
. 223.07 (3) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:
223.07 (3) If the state or national bank depository institution at which a trust service office is to be established has exercised trust powers, the trust company bank and the state or national bank depository institution shall enter into an agreement respecting those fiduciary powers to which the trust company bank shall succeed and shall file the agreement with the division. The trust company bank shall cause a notice of the filing, in a form prescribed by the division, to be published as a class 1 notice, under ch. 985, in the city, village or town where the state or national bank depository institution is located. After filing and publication, the trust company bank establishing the office shall, as of the date the office first opens for business, without further authorization of any kind, succeed to and be substituted for the state or national bank depository institution as to all fiduciary powers, rights, duties, privileges and liabilities of the bank
depository institution in its capacity as fiduciary for all estates, trusts, guardianships and other fiduciary relationships of which the bank depository institution is then serving as fiduciary, except as may be otherwise specified in the agreement between the trust company bank and the state or national bank depository institution. The trust company bank shall also be deemed named as fiduciary in all writings, including, but not limited to, wills, trusts, court orders and similar documents and instruments naming the state or national bank depository institution as fiduciary, signed before the date the trust office first opens for business, unless expressly negated by the writing or otherwise specified in the agreement between the trust company bank and the state or national bank depository institution. On the effective date of the substitution, the
state or national bank depository institution shall be released and absolved from all fiduciary duties and obligations under such writings and shall discontinue its exercise of trust powers on all matters not specifically retained by the agreement. This subsection does not effect a discharge in the manner of s. 701.16 (6) or other applicable statutes and does not absolve a state or national bank
depository institution exercising trust powers from liabilities arising out of any breach of fiduciary duty or obligation occurring prior to the date the trust service office first opens for business at the bank depository institution. This subsection does not affect the authority, duties or obligations of a bank depository institution with respect to relationships which may be established without trust powers, including escrow arrangements, whether the relationships arise before or after the establishment of the trust service office.
336,38
Section 38
. 223.08 of the statutes is amended to read:
223.08 Name of corporation; penalty. The word “trust" shall form part of the name of every corporation organized under this chapter, but the word “bank" shall may not be used as a part of the name. All persons, partnerships, associations, or corporations not organized under the provisions of this chapter, except state banks vested with trust powers under s. 221.04 (6)
221.0316 and nonprofit corporations organized for the advancement of historic preservation or for the protection of land for public conservation purposes, are prohibited from using the word “trust" in their business, or as a portion of the name or title of such the person, partnership, association, or corporation. Any
A person who violates this section, either individually or as an interested party in any partnership, association, or corporation, may be fined not less than $300 nor more than $1,000 or imprisoned for not less than 60 days nor more than one year in the county jail or both.
336,39
Section 39
. Subchapter II (title) of chapter 223 [precedes 223.10] of the statutes is created to read:
Chapter 223
Subchapter II
Other Organizations
acting as fiduciaries
336,40
Section 40
. 223.11 of the statutes is renumbered 223.21 and amended to read:
223.21 Consolidation of trust company banks. Any trust company bank organized, continued or reorganized under this chapter may consolidate with any other similar corporation in the manner provided for the consolidation of banks under s. 221.25 221.0702; and in the event of such consolidation the consolidated corporation, by whatever name it may assume or be known, shall be a continuation of the entity of each and all of the corporations so consolidated for all purposes whatsoever, including holding and performing any and all trusts and fiduciary relations of whatsoever nature of which the corporations so consolidating, or either or any of them, was fiduciary at the time of the consolidation, and also including its appointment in any fiduciary capacity by any court or otherwise, and the holding, accepting and performing of any and all trusts and fiduciary relations whatsoever as to or for which either or any one of the corporations so consolidating may have been appointed, nominated or designated by any will or conveyance or otherwise, whether or not the trust or fiduciary relation shall have come into being or taken effect at the time of the consolidation.
336,45
Section 45
. Subchapter III (title) of chapter 223 [precedes 223.20] of the statutes is created to read:
Chapter 223
Subchapter III
Trust company bank
consolidation and reorganization
223.20 Reorganization of a trust company bank. (1) Conversion into a state bank. A trust company bank may, by amendment to its articles of incorporation, duly adopted by its stockholders and approved by the division, in the manner provided under s. 221.0211, convert its corporate organization into that of a state bank with all the powers of a state banking corporation under the statutes under such name as shall be declared by such amendment and approved by the division, which name may include the word “trust".
(2) Powers of a converted trust company bank. The converted trust company bank continues to have all the powers previously held by it as a trust company bank and shall be a continuation, for all purposes, of the trust company bank so converted into a state bank. These powers include holding and performing all trusts and fiduciary relations for which the trust company bank was fiduciary at the time of the conversion. These powers also include the converted trust company bank acting in any fiduciary capacity by any court or otherwise, and the holding, accepting and performing of trusts and fiduciary relations as to or for which the trust company bank may have been appointed, nominated or designated by any will or conveyance or otherwise, whether or not the trust or fiduciary relation came into being and took effect at the conversion.
(3) Surrender of trust powers. If a converted trust company bank has been fully discharged of all trusts committed to it, it may, by amendment to its articles of incorporation, duly adopted by its stockholders and approved by the division, surrender its powers to act in a fiduciary capacity. A trust company bank that surrenders its trust powers under this subsection shall eliminate from its corporate name the word “trust;" and may thereupon withdraw from the state treasurer all securities and cash that it has deposited with the state treasurer pursuant to s. 223.02.
336,47
Section 47
. 224.08 of the statutes is repealed.
336,50
Section
50. 404.213 (4m) of the statutes is repealed.
336,51
Section 51
. 701.19 (2) (d) of the statutes is amended to read:
701.19 (2) (d) Except as otherwise provided in s. 223.03 (10), a A trustee may not sell individually owned assets to the trust unless the sale is authorized in the creating instrument, made with the written consent of all beneficiaries or made with the approval of the court upon notice and hearing.
336,52
Section 52
. 946.82 (4) of the statutes, as affected by 1995 Wisconsin Act 133, is amended to read:
946.82 (4) “Racketeering activity" means any activity specified in 18 USC 1961 (1) in effect as of April 27, 1982 or the attempt, conspiracy to commit, or commission of any of the felonies specified in: chs. 161 and 945 and ss. 49.49, 134.05, 139.44 (1), 180.0129, 181.69, 184.09 (2), 185.825, 215.12, 221.17, 221.31, 221.39, 221.40, 221.0625, 221.0636, 221.0637, 221.1004, 551.41, 551.42, 551.43, 551.44, 553.41 (3) and (4), 553.52 (2), 940.01, 940.19 (3) to (6), 940.20, 940.203, 940.21, 940.30, 940.305, 940.31, 941.20 (2) and (3), 941.26, 941.28, 941.298, 941.31, 941.32, 943.01 (2) or (2g), 943.012, 943.013, 943.02, 943.03, 943.04, 943.05, 943.06, 943.10, 943.20 (3) (b) to (d), 943.23 (1g), (1m), (1r), (2) and (3), 943.24 (2), 943.25, 943.27, 943.28, 943.30, 943.32, 943.34 (1) (b) and (c), 943.38, 943.39, 943.40, 943.41 (8) (b) and (c), 943.50 (4) (b) and (c), 943.60, 943.70, 944.21 (5) (c) and (e), 944.32, 944.33 (2), 944.34, 945.03, 945.04, 945.05, 945.08, 946.10, 946.11, 946.12, 946.13, 946.31, 946.32 (1), 946.48, 946.49, 946.61, 946.64, 946.65, 946.72, 946.76, 947.015, 948.05, 948.08, 948.12 and 948.30.
336,53
Section 53
.
Initial applicability.
(1) Bank names. The treatment of section 221.0403 of the statutes first applies to banks that are created or that change their name on the effective date of this subsection.
336,54
Section 54
.
Effective date.
(1) This act takes effect on July 1, 1996, or on the day after publication, whichever is later.
