Amendment ASA-AB150

AB150-ASA, s. 4936 Section 4936. 186.22 (15) of the statutes is amended to read:

AB150-ASA,1552,6 186.22 (15) Preference of credit. All the property of any bank, trust company or credit union which shall become insolvent shall be applied by the trustees, assignees or receivers thereof or by the commissioner office of credit unions in the first place to the payment in full of any sum or sums of money deposited therewith by the credit union finance corporation or due to the credit union finance corporation for subscriptions, sinking funds, interest and principal of bonds, or guaranty of mortgages, ratably and proportionately but not to an amount exceeding that authorized to be so deposited or contracted by the provisions of this section and in accordance and on an equality with any other preference provided for in this section.

AB150-ASA, s. 4937 Section 4937. 186.23 of the statutes is amended to read:

AB150-ASA,1552,14 186.23 Rules and regulations. The commissioner office of credit unions shall, with the approval of the credit union review board, issue orders prescribing reasonable rules and regulations in conducting the business of credit unions or corporations operating as provided in this chapter and it may in like manner issue orders amending, modifying, repealing or supplementing rules or orders. The violation of any such rule may be cause for the removal of any officer, director or employe of any credit union or corporation.

AB150-ASA, s. 4938 Section 4938. 186.24 (1) of the statutes is amended to read:

AB150-ASA,1553,13 186.24 (1) Whenever the commissioner office of credit unions is of the opinion that the loaning, investing or other policies and practices of any officer, director or committee member of any credit union have been prejudicial to the best interest of such credit union or its investors, or that such policies or practices, if put into operation or continued, will endanger the safety or solvency of said credit union or impair the interest of its investors, the commissioner office of credit unions may request the removal of such officer, director or committee member. Such request shall be served on the credit union and on such officer, director or committee member in the manner provided by law for serving a summons in a court of record, or shall be transmitted to the credit union and the officer, director or committee member by registered mail, with return receipt requested. Such request shall specify the reasons for the removal of such officer, director or committee member, and also shall advise such officer, director or committee member relative to that person's rights to a hearing before the credit union review board as provided in this section. A copy of such request for removal shall be transmitted to each member of the credit union review board at the same time such request is being served upon the credit union and officer, director or committee member involved. If such request for removal is not complied with within a reasonable time fixed by the commissioner office of credit unions, the commissioner office may by order, with approval of the credit union review board, remove such officer, director or committee member, but no order for removal shall be entered until after an opportunity for a hearing before the credit union review board is given such officer, director or committee member upon not less than 30 days' notice. An order for removal shall take effect as of the date issued.

AB150-ASA, s. 4939 Section 4939. 186.24 (2) of the statutes is amended to read:

AB150-ASA,1553,20 186.24 (2) Any removal under this section shall be effective in all respects the same as if made by the board of directors or stockholders of said credit union. Any officer, director or committee member removed from such office under the provisions of this section shall not be reelected as an officer, director or committee member of any credit union without the approval of the commissioner office of credit unions and advisory committee.

AB150-ASA, s. 4940 Section 4940. 186.24 (3) of the statutes is amended to read:

AB150-ASA,1554,2 186.24 (3) If the removal under sub. (1) or the resignation or death of credit union directors prevents a credit union board of directors from securing the quorum required at board meetings and thus prevents continued operation of the credit union, the commissioner office of credit unions may appoint temporary directors to fill the vacancies for up to 120 days or until an election of directors to fill the vacancies has been held at a special meeting of the membership called for such purpose.

AB150-ASA, s. 4941 Section 4941. 186.25 of the statutes is amended to read:

AB150-ASA,1554,23 186.25 Supervision; reports. All credit unions formed under this or other similar law, or authorized to transact in this state a business similar to that authorized to be done by this chapter, shall be under the control and supervision of the commissioner office of credit unions. Every such corporation shall make a full and detailed report of its business as of December 31 for that year, and of its condition on such date, in such form and containing such information as the commissioner office of credit unions may prescribe, and shall file with the commissioner a true and verified copy thereof on or before February 1 thereafter. Accompanying the same shall be attached a copy of the statement of the credit union at the close of its last fiscal year. If any such credit union fails or refuses to furnish the report herein required, it shall be subject, at the discretion of the commissioner office of credit unions, to a forfeiture of $1 to $10 per day for each day of default, and the commissioner office of credit unions may maintain an action in the name of the state to recover such penalty, and the same shall be paid into the state treasury. A credit union shall publish the report as a class 1 notice, under ch. 985, in the municipality, as defined in s. 985.01 (3), where the credit union is located if the credit union has assets of $10,000,000 or more or has a membership as described in s. 186.02 (2) (b) 2. The published report shall be in the condensed form as the commissioner office of credit unions prescribes. Proof of publication shall be furnished to the commissioner office of credit unions within 45 days after the date of the report.

AB150-ASA, s. 4942 Section 4942. 186.26 (1) (a) of the statutes is amended to read:

AB150-ASA,1555,12 186.26 (1) (a) At least once each year, the commissioner office of credit unions shall make or cause to be made an examination of the cash, bills, collaterals, securities, assets, books of account, condition and affairs of each credit union and for that purpose the commissioner or the examiners appointed by the commissioner office of credit unions shall have full access to, and may compel the production of, each credit union's books, papers, securities and moneys, administer oaths to and examine each credit union's officers and agents as to their respective affairs. Special examination shall be made upon written request of 5 or more members, if those members guarantee the expense of the special examination. The refusal of any credit union to submit to an examination ordered or requested shall be reported to the department of justice for the purpose of instituting proceedings to have the charter of the credit union revoked because of the refusal.

AB150-ASA, s. 4943 Section 4943. 186.26 (1) (b) of the statutes is amended to read:

AB150-ASA,1555,21 186.26 (1) (b) In lieu of an annual examination of a credit union under par. (a), the commissioner office of credit unions may accept an audit report of the condition of the credit union made by a certified public accountant not an employe of the credit union in accordance with rules promulgated by the commissioner office of credit unions. The cost of the audit shall be paid by the credit union. A copy of each audit under this paragraph shall be furnished to the Wisconsin credit union savings insurance corporation if the credit union's savings are protected or guaranteed by the Wisconsin credit union savings insurance corporation.

AB150-ASA, s. 4944 Section 4944. 186.26 (2) of the statutes is amended to read:

AB150-ASA,1556,7 186.26 (2) If records are located outside this state, at the option of the commissioner office of credit unions, the credit union shall either make the records available to the commissioner office of credit unions at a convenient location within this state or pay the reasonable and necessary expenses for the commissioner or examiners office to examine the records at the place where they are maintained. The commissioner office of credit unions may designate examiners, including comparable officials of the state in which the records are located, to inspect them on the commissioner's office's behalf. Except as provided in s. 186.113 (1m), the maintenance of any office or branch outside this state is not allowed under this chapter.

AB150-ASA, s. 4945 Section 4945. 186.27 (intro.) of the statutes is amended to read:

AB150-ASA,1556,12 186.27 Disclosure of information. (intro.) The commissioner, all other officers and employes of the office, Employes of the office of credit unions and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except:

AB150-ASA, s. 4946 Section 4946. 186.27 (3) (intro.) of the statutes is amended to read:

AB150-ASA,1556,15 186.27 (3) (intro.) The commissioner office of credit unions may do any of the following:

AB150-ASA, s. 4947 Section 4947. 186.27 (3) (b) of the statutes is amended to read:

AB150-ASA,1556,20 186.27 (3) (b) Give access to and disclose to the national board or any official or examiner of it any information possessed by the commissioner office of credit unions about the conditions or affairs of any credit union whose savings are insured by the national board.

AB150-ASA, s. 4948 Section 4948. 186.28 (title) of the statutes is amended to read:

AB150-ASA,1556,22 186.28 (title) Bookkeeping; forfeiture for failure to obey commissioner.

AB150-ASA, s. 4949 Section 4949. 186.28 (1) of the statutes is amended to read:

AB150-ASA,1557,5 186.28 (1) A credit union shall open and keep accurate and convenient records of its transactions and accounts. If the commissioner office of credit unions determines that a credit union does not keep its books and accounts in a manner which enables the commissioner office to readily ascertain the true condition of the credit union, the commissioner office of credit unions may require any officer of the credit union to open and keep such books or accounts as the commissioner office may prescribe in order to remedy the deficiency.

AB150-ASA, s. 4950 Section 4950. 186.28 (2) of the statutes is amended to read:

AB150-ASA,1557,12 186.28 (2) Any credit union that refuses or neglects to maintain books or accounts in the manner prescribed under sub. (1) shall be subject, upon written notification of the commissioner office of credit unions, to a forfeiture not to exceed $10 for each day it is in violation. If any credit union fails or refuses to pay the forfeiture, the commissioner office of credit unions may institute proceedings to enforce its collection.

AB150-ASA, s. 4951 Section 4951. 186.29 (title) of the statutes is amended to read:

AB150-ASA,1557,14 186.29 (title) Possession by commissioner office.

AB150-ASA, s. 4952 Section 4952. 186.29 (1) (intro.) of the statutes is amended to read:

AB150-ASA,1557,20 186.29 (1) Conditions for taking possession. (intro.) The commissioner office of credit unions may forthwith take possession and control of the business and property of any credit union to which this chapter is applicable whenever the commissioner office of credit unions finds a credit union violating this chapter or that the credit union:

AB150-ASA, s. 4953 Section 4953. 186.29 (1) (h) of the statutes is amended to read:

AB150-ASA,1557,23 186.29 (1) (h) Has neglected or refused to comply with the terms of a duly issued order of the commissioner office of credit unions; or

AB150-ASA, s. 4954 Section 4954. 186.29 (1m) (a) of the statutes is amended to read:

AB150-ASA,1558,7 186.29 (1m) (a) The commissioner office of credit unions may suspend, for a period of up to 120 days, the business or an officer, director, committee member or employe of a credit union if the commissioner office finds the existence of any condition under sub. (1) (a) to (k). The commissioner office of credit unions may renew a suspension under this paragraph any number of times and for periods of up to 120 days if the commissioner office finds that the condition or conditions continue to exist.

AB150-ASA, s. 4955 Section 4955. 186.29 (1m) (b) of the statutes is amended to read:

AB150-ASA,1558,16 186.29 (1m) (b) The commissioner office of credit unions shall suspend the business of a credit union, other than a corporate central credit union, if the credit union does not comply with s. 186.34 (2) (a). The commissioner office of credit unions shall then liquidate the credit union under this section unless the credit union files a complete application for federal share insurance from the national board within 30 days after the date the suspension under this paragraph commences. The commissioner office of credit unions shall authorize a credit union to resume its business if it files an application within the time period specified in this paragraph.

AB150-ASA, s. 4956 Section 4956. 186.29 (1p) (title) of the statutes is amended to read:

AB150-ASA,1558,18 186.29 (1p) (title) Possession by commissioner office of credit unions.

AB150-ASA, s. 4957 Section 4957. 186.29 (1p) (a) of the statutes is amended to read:

AB150-ASA,1558,22 186.29 (1p) (a) Discretionary possession. The commissioner office of credit unions may take possession of the business and property of a credit union if the commissioner office finds the existence of any condition under sub. (1) (a) to (k).

AB150-ASA, s. 4958 Section 4958. 186.29 (1p) (b) of the statutes is amended to read:

AB150-ASA,1559,3 186.29 (1p) (b) Mandatory possession. The commissioner office of credit unions shall take possession of the business and property of a credit union that violates s. 186.34 (2) (b), unless the commissioner office approves a consolidation under s. 186.31, and of a credit union that the commissioner office of credit unions is required to liquidate under sub. (1m) (b).

AB150-ASA, s. 4959 Section 4959. 186.29 (2) (intro.) of the statutes is amended to read:

AB150-ASA,1559,7 186.29 (2) Procedure on taking possession. (intro.) Upon taking possession of the business and property of any such credit union the commissioner office of credit unions shall forthwith:

AB150-ASA, s. 4960 Section 4960. 186.29 (2) (a) of the statutes is amended to read:

AB150-ASA,1559,14 186.29 (2) (a) Serve a notice in writing upon the president and secretary of said credit union setting forth therein that the commissioner office of credit unions has taken possession and control of the business and property of said credit union. Said notice shall be executed in duplicate, and immediately after the same has been served, one of the said notices shall be filed with the clerk of the circuit court of the county where said credit union is located together with proof of service.

AB150-ASA, s. 4961 Section 4961. 186.29 (2) (b) of the statutes is amended to read:

AB150-ASA,1559,18 186.29 (2) (b) Give notice to all individuals, partnerships, corporations, limited liability companies and associations known to the commissioner office of credit unions to be holding or in possession of any assets of such credit union.

AB150-ASA, s. 4962 Section 4962. 186.29 (2) (c) of the statutes is amended to read:

AB150-ASA,1560,14 186.29 (2) (c) The commissioner office of credit unions may appoint one or more special deputy commissioners deputies as agent agents to assist in the duty of liquidation and distribution of the assets of one or more credit unions of whose business and property the commissioner office of credit unions shall have taken possession pursuant to the provisions of this chapter. A certificate of such appointment shall be filed in the office of the commissioner credit unions and a certified copy in the office of the clerk of the circuit court for the county in which such credit union is located. The commissioner office of credit unions may employ such counsel and procure such expert assistance and advice as may be necessary in the liquidation and distribution of the assets of such credit union, and may retain such of the officers or employes of such credit union as the commissioner office deems necessary. The special deputy commissioner and assistants shall furnish such security for the faithful discharge of their duties as the commissioner office of credit unions deems proper. Such The special deputy commissioner may execute, acknowledge and deliver any and all deeds, assignments, releases or other instruments necessary and proper to effect any sale and transfer or incumbrance of real estate or personal property and may borrow money for use in the liquidation after the same has been approved by the commissioner office of credit unions and an order obtained from the circuit court of the county in which said credit union is located as hereinafter provided.

AB150-ASA, s. 4963 Section 4963. 186.29 (2) (d) of the statutes is amended to read:

AB150-ASA,1561,2 186.29 (2) (d) Upon taking possession of the property and business of such credit union, the special deputy commissioner is authorized to collect all moneys due to such credit union, and do such other acts as are necessary to conserve its assets and business, and shall proceed to liquidate the affairs thereof as hereinafter provided. The special deputy commissioner shall collect all debts due and claims belonging to it, and upon a petition approved by the commissioner office of credit unions and upon order of the circuit court of the county in which such credit union is located, may sell or compound all bad or doubtful debts, or do any act or execute any other necessary instruments and upon like petition and order may sell all the real and personal property of such credit union on such terms as the court shall approve. Such The special deputy commissioner may, if necessary, enforce individual liability of the stockholders to pay the debts of such corporation.

AB150-ASA, s. 4964 Section 4964. 186.29 (3) of the statutes is amended to read:

AB150-ASA,1561,18 186.29 (3) Notice, allowance and payment of claims. The special deputy commissioner shall cause a class 3 notice, under ch. 985, to be published, calling on all persons who may have claims against such credit union, to present the same to the special deputy commissioner and make legal proof thereof at a place and within a time, not earlier than the last day of publication, to be therein specified. The special deputy commissioner shall mail a similar notice to all persons at their last-known address, whose names appear as creditors upon the books of the credit union. Proof of service of such notice shall be filed with the clerk of said court. The special deputy commissioner may reject any claim. Any party interested may also file written objections to any claim with the special deputy commissioner and after notice by registered mail of such rejection, said claimant shall be barred unless the claimant commences an action thereon within 3 months. Claims presented after the expiration of the time fixed in the notice to creditors shall be entitled to share in the distribution only to the extent of the assets then in the hands of the special deputy commissioner equitably applicable thereto.

AB150-ASA, s. 4965 Section 4965. 186.29 (4) of the statutes is amended to read:

AB150-ASA,1562,6 186.29 (4) Inventory of assets and statement of liabilities. Upon taking possession of the property and assets of such credit union, the special deputy commissioner shall make an inventory of the assets of such credit union, in duplicate, one to be filed in the office of the commissioner credit unions and one in the office of the clerk of circuit court for the county in which such credit union is located. Upon the expiration of the time fixed for the presentation of claims, the special deputy commissioner shall make in duplicate a full and complete list of the claims presented, including and specifying such claims as have been rejected by the special deputy commissioner, one to be filed in the office of the commissioner credit unions, and one in the office of the clerk of circuit court for the county in which such credit union is located. Such inventory and list of claims shall be open at all reasonable times to inspection.

AB150-ASA, s. 4966 Section 4966. 186.29 (5) of the statutes is amended to read:

AB150-ASA,1562,21 186.29 (5) Adjustment of loans and withdrawal value of shares. The value of shares pledged upon a loan to the credit union shall be applied and credited to the loan and the borrower shall be liable only for the balance. The rate of interest charged upon the balance shall be the legal rate. The value shall be determined in such manner as the commissioner office of credit unions prescribes, and shall be made under s. 186.30 (1) and (3), or in such other manner as the commissioner office may prescribe. Upon the approval of the value by the commissioner office of credit unions and the circuit court of the county in which the credit union is located, the book value of each member shall be reduced proportionately. At least 5 days' written notice of the determination of value shall be given to all shareholders of the time and place the value shall be submitted to the circuit court for approval. Approval of the circuit court shall be by an order entered under s. 807.11 (2). Any stockholder or creditor of the credit union aggrieved by the determination of value may appeal to the court of appeals.

AB150-ASA, s. 4967 Section 4967. 186.29 (6) of the statutes is amended to read:

AB150-ASA,1563,11 186.29 (6) Compensation and expenses in connection with liquidation. The compensation of the special deputy commissioners deputies, counsel and other employes and assistants, and all expenses of supervision and liquidation shall be fixed by the commissioner office of credit unions, subject to the approval of the circuit court for the county in which the credit union is located, and shall upon the certificate of the commissioner office of credit unions be paid out of the funds of the credit union. Expenses of supervision and liquidation include the cost of the services rendered by the office of the commissioner credit unions to the credit union being liquidated. The cost of these services shall be determined by the commissioner office of credit unions and paid to the office of the commissioner from the assets of the credit union as other expenses of liquidation are paid. The moneys collected by the special deputy commissioner shall be deposited in one or more central credit unions, and, in case of the suspension or insolvency of a depository, such deposits shall be preferred before all other deposits.

AB150-ASA, s. 4968 Section 4968. 186.29 (7) of the statutes is amended to read:

AB150-ASA,1563,20 186.29 (7) Liquidating dividends. At any time after the expiration of the date fixed for the presentation of claims, the special deputy commissioner in charge of the liquidation of such credit union may, upon a petition approved by the commissioner office of credit unions and an order of the circuit court of the county in which such credit union is located, out of the funds remaining, after the payment of expenses and debts, declare one or more dividends, and may declare a final dividend, such dividend to be paid to such persons, and in such amounts as may be directed by the circuit court.

AB150-ASA, s. 4969 Section 4969. 186.29 (8) of the statutes is amended to read:

AB150-ASA,1564,6 186.29 (8) (title) Title passes to commissioner office. Immediately upon filing the notice as provided for in sub. (2), the possession of all assets and property of such credit union of every kind and nature, wheresoever situated shall be deemed to be transferred from such credit union to, and assumed by the commissioner office of credit unions; and filing of the notice mentioned herein, shall of itself, and without the execution or delivery of any instruments of conveyance, assignment, transfer or indorsement, vest the title to all such assets and property in the commissioner office of credit unions. Such filing shall also operate as a bar to any attachment, garnishment, execution or other legal proceedings against such credit union, or its assets and property, or its liabilities.

AB150-ASA, s. 4970 Section 4970. 186.29 (9) of the statutes is amended to read:

AB150-ASA,1564,11 186.29 (9) Effect of possession. No credit union shall have a lien, or charge for any payment, advance or clearance made, or liability thereafter incurred, against any of the assets of the credit union of whose property and business the commissioner office of credit unions shall have taken possession.

AB150-ASA, s. 4971 Section 4971. 186.29 (10) of the statutes is amended to read:

AB150-ASA,1565,2 186.29 (10) Appeal. Whenever any such credit union, whose property and business the commissioner office of credit unions has taken possession of, as aforesaid, deems itself aggrieved thereby, it may, at any time within 10 days after such taking, appeal to the credit union review board for relief from such possession by the commissioner office of credit unions. In the event the credit union review board sustains the commissioner office of credit unions, the said credit union may then at any time within 10 days after the decision of the credit union review board, apply to the circuit court of the county in which such credit union is located to enjoin further proceedings; and said court, after citing the commissioner office of credit unions to show cause why further proceedings should not be enjoined and hearing all allegations and proofs of the parties and determining the facts, may, upon the merits dismiss such application or enjoin the commissioner office of credit unions from further proceedings, and direct it to surrender such business and property to such credit union.

AB150-ASA, s. 4972 Section 4972. 186.29 (11) (intro.) of the statutes is amended to read:

AB150-ASA,1565,6 186.29 (11) Reinstatement. (intro.) Whenever the commissioner office of credit unions shall have taken over the possession and control of the business and property of any credit union the same may resume business when and if:

AB150-ASA, s. 4973 Section 4973. 186.29 (11) (a) of the statutes is amended to read:

AB150-ASA,1565,10 186.29 (11) (a) The owners of at least two-thirds of such credit union dollar value of outstanding shares, execute a petition to such effect, the form of which shall be prescribed by the commissioner office of credit unions, and

AB150-ASA, s. 4974 Section 4974. 186.29 (11) (b) of the statutes is amended to read:

AB150-ASA,1565,14 186.29 (11) (b) There is submitted to the commissioner office of credit unions by such shareholders or a committee duly selected by them, a plan for the reorganization and reinstatement of such credit union, and

AB150-ASA, s. 4975 Section 4975. 186.29 (11) (c) of the statutes is amended to read:

AB150-ASA,1565,18 186.29 (11) (c) The commissioner office of credit unions recommends that control of the business and property of such credit union be returned to the shareholders, and

AB150-ASA, s. 4976 Section 4976. 186.29 (11) (d) of the statutes is amended to read:

AB150-ASA,1565,24 186.29 (11) (d) The court in which such liquidation is pending, upon application of the commissioner office of credit unions, makes an order approving the commissioner's office's recommendations, which order shall contain a finding that such credit union will be in a safe and sound condition when control is resumed by the shareholders.

AB150-ASA, s. 4977 Section 4977. 186.29 (12) of the statutes is amended to read:

AB150-ASA,1566,11 186.29 (12) Reinstatement upon restricted basis. Such credit union may also resume business upon a restricted basis, and upon such limitations and conditions as may be prescribed by the commissioner office of credit unions when approved by the circuit court in and for the county in which such credit union is located, upon application of the commissioner office of credit unions. Such restrictions and conditions may include, among others, a prohibition against the selling of new shares, reasonable restrictions upon withdrawals and the payment of other liabilities. Such credit union shall thereupon be relieved from the control and supervision of the commissioner office of credit unions as provided in this section, but nothing herein shall, in any manner, prohibit the commissioner office from again proceeding against such credit union as provided herein.

AB150-ASA, s. 4978 Section 4978. 186.29 (13) (a) of the statutes is amended to read:

AB150-ASA,1566,23 186.29 (13) (a) The special deputy commissioner shall deposit unclaimed liquidating dividends and unclaimed funds remaining unpaid in the hands of the special deputy commissioner for 6 months after the order for final distribution in one or more central credit unions in the commissioner's office of credit unions' name in trust for the shareholders and creditors of the liquidated credit union. The commissioner office of credit unions shall annually report to the governor and the chief clerk of each house of legislature for distribution to the legislature under s. 13.172 (2) the names of credit unions of which the commissioner office has taken possession and liquidated, and the sums of unclaimed and unpaid liquidating dividends and unclaimed funds with respect to each of the credit unions respectively, including a statement of interest earned upon such funds.

AB150-ASA, s. 4979 Section 4979. 186.29 (13) (b) of the statutes is amended to read:

AB150-ASA,1567,9 186.29 (13) (b) The commissioner office of credit unions may pay over the moneys so held by the commissioner office to the persons respectively entitled thereto, upon being furnished satisfactory evidence of their right to the same. In case of doubt or conflicting claims, the commissioner office of credit unions may require an order of the circuit court authorizing and directing the payment thereof. The commissioner office of credit unions may apply the interest earned by the moneys so held by the commissioner office towards defraying the expenses in the payment and distribution of such unclaimed liquidating dividends and funds to the stockholders and creditors entitled to receive the same.

AB150-ASA, s. 4980 Section 4980. 186.29 (13) (c) of the statutes is amended to read: