Amendment ASA1-AB569

AB569-ASA1, s. 184 Section 184. 186.21 (2) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

AB569-ASA1,45,22 186.21 (2) Advertising. The office of credit unions shall use advertising that is suitable and effective to acquaint the people of this state with the agencies and organizations dealing with credit unions.

AB569-ASA1, s. 185 Section 185. 186.21 (3) of the statutes is amended to read:

AB569-ASA1,46,2 186.21 (3) (title) Consultations. The office of the commissioner of credit unions shall further offer without charge to any group, either joined in a credit union or considering such an organization, whatever advice and direction on accounting practice practices and managerial problems that may be needful.

AB569-ASA1, s. 186 Section 186. 186.21 (3) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

AB569-ASA1,46,7 186.21 (3) Consultations. The office of credit unions shall offer without charge to any group, either joined in a credit union or considering such an organization, advice and direction on accounting practices and managerial problems.

AB569-ASA1, s. 187 Section 187. 186.21 (4) of the statutes is amended to read:

AB569-ASA1,46,12 186.21 (4) (title) Materials. The office of the commissioner of credit unions shall provide application blanks, model bylaws, and whatever other material may be needful or helpful materials to help in the organization, efficient functioning and expansion of credit unions.

AB569-ASA1, s. 188 Section 188. 186.21 (4) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

AB569-ASA1,46,17 186.21 (4) Materials. The office of credit unions shall provide application blanks, model bylaws and other materials to help in the organization, efficient functioning and expansion of credit unions.

AB569-ASA1, s. 189 Section 189. 186.22 (11) of the statutes is amended to read:

AB569-ASA1,47,7 186.22 (11) Oath of directors. Each director, when appointed or elected, shall take an oath that the director will, so far as the duty devolves upon the director requires, diligently and honestly administer the affairs of the credit union finance corporation, and will not knowingly violate, or willingly permit to be violated, any of the provisions of law applicable to such the corporation, and that the director is the owner, in good faith and in the director's own right on the books of the nominating credit union which nominated the director, of shares in value of not less than $100, or other shares of the withdrawal value of $100, and that the same is shares are not hypothecated, or in any way pledged as security for any loan or debt and, in case of reelection that such share was the shares were not hypothecated or in any way pledged as security for any loan or debt during the director's previous term. Such The oath shall be subscribed by the directors and officers making it, and certified by an officer authorized by law to administer oaths, and immediately transmitted to the commissioner.

AB569-ASA1, s. 190 Section 190. 186.22 (11) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

AB569-ASA1,47,21 186.22 (11) Oath of directors. Each director, when appointed or elected, shall take an oath that the director will, so far as duty requires, diligently and honestly administer the affairs of the credit union finance corporation, and will not knowingly violate, or willingly permit to be violated, any of the provisions of law applicable to the corporation, and that the director is the owner, in good faith and on the books of the nominating credit union, of shares in value of not less than $100, or other shares of the withdrawal value of $100, and that the shares are not hypothecated, or in any way pledged as security for any loan or debt and, in case of reelection that the shares were not hypothecated or in any way pledged as security for any loan or debt during the director's previous term. The oath shall be subscribed by the directors and officers making it, and certified by an officer authorized by law to administer oaths, and immediately transmitted to the office of credit unions.

AB569-ASA1, s. 191 Section 191. 186.23 of the statutes is renumbered 186.235 (8) and amended to read:

AB569-ASA1,48,5 186.235 (8) (title) Rules and regulations. The commissioner shall, with the approval of the credit union review board, issue orders prescribing reasonable promulgate rules and regulations in conducting relating to 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.

AB569-ASA1, s. 192 Section 192. 186.235 (title) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

AB569-ASA1,48,8 186.235 (title) Office of credit unions.

AB569-ASA1, s. 193 Section 193. 186.235 (1) of the statutes is created to read:

AB569-ASA1,48,11 186.235 (1) Supervision. A credit union shall be under the control and supervision of the commissioner.

AB569-ASA1, s. 194 Section 194. 186.235 (1) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,48,15 186.235 (1) Supervision. A credit union shall be under the control and supervision of the commissioner office of credit unions.

AB569-ASA1, s. 195 Section 195. 186.235 (1m) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed.

AB569-ASA1, s. 196 Section 196. 186.235 (2) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

AB569-ASA1,48,21 186.235 (2) Enforcement. The office of credit unions shall enforce this chapter and other laws relating to credit unions.

AB569-ASA1, s. 197 Section 197. 186.235 (3) of the statutes is created to read:

AB569-ASA1,48,24 186.235 (3) Full-time duties. The commissioner and deputy commissioner shall devote full time to their respective positions.

AB569-ASA1, s. 198 Section 198. 186.235 (3) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,49,5 186.235 (3) Full-time duties. The commissioner and deputy commissioner administrator of the office of credit unions shall devote full time to their respective positions his or her position.

AB569-ASA1, s. 199 Section 199. 186.235 (3m) of the statutes is created to read:

AB569-ASA1,49,9 186.235 (3m) Conflicts of interest. The commissioner, or any employe of the office of the commissioner, may not serve as a director or officer of a credit union or any other organization that is under the supervision of the office of the commissioner.

AB569-ASA1, s. 200 Section 200. 186.235 (3m) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,49,15 186.235 (3m) Conflicts of interest. The commissioner, or any No employe of the office of the commissioner, credit unions may not serve as a director or officer of a credit union or any other organization that is under the supervision of the office of the commissioner credit unions.

AB569-ASA1, s. 201 Section 201. 186.235 (4) of the statutes is created to read:

AB569-ASA1,49,19 186.235 (4) Bond required. A person who is appointed to or employed by the office of the commissioner shall furnish a surety bond in an amount authorized by the commissioner.

AB569-ASA1, s. 202 Section 202. 186.235 (4) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,49,24 186.235 (4) Bond required. A person who is appointed to or employed by the office of the commissioner credit unions shall furnish a surety bond in an amount authorized by the commissioner office.

AB569-ASA1, s. 203 Section 203. 186.235 (5) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,50,7 186.235 (5) (title) Immunity of commissioner office of credit unions. The commissioner office of credit unions shall not be subject to any civil liability or penalty, or to any criminal prosecution, for any error in judgment or discretion made in good faith and upon reasonable grounds in any action taken or omitted by the commissioner office of credit unions in an official capacity.

AB569-ASA1, s. 204 Section 204. 186.235 (7) (a) (intro.) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,50,13 186.235 (7) (a) (intro.) The commissioner, all other officers and employes Employes of the office of the commissioner, credit unions and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except in any of the following situations:

AB569-ASA1, s. 205 Section 205. 186.235 (7) (b) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,50,17 186.235 (7) (b) Notwithstanding par. (a) and unless otherwise provided by rule, the commissioner office of credit unions may do any of the following:

AB569-ASA1,50,20 1. Furnish to the national board a copy of any examination made by the commissioner's office of credit unions of any credit union or of any report made by the credit union.

AB569-ASA1,50,23 2. Give access to and disclose to the national board any information possessed by the commissioner office of credit unions about the conditions or affairs of any credit union whose savings are insured by federal share insurance.

AB569-ASA1, s. 206 Section 206. 186.235 (8) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

AB569-ASA1,51,2 186.235 (8) Rules. The office of credit unions shall, with the approval of the credit union review board, promulgate rules relating to the business of credit unions.

AB569-ASA1, s. 207 Section 207. 186.235 (9) of the statutes is created to read:

AB569-ASA1,51,7 186.235 (9) Charter revocation. The commissioner shall report to the department of justice any credit union that conducts its business in violation of this chapter. The department of justice may bring an action to revoke the credit union's articles of incorporation.

AB569-ASA1, s. 208 Section 208. 186.235 (9) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,51,13 186.235 (9) Charter revocation. The commissioner office of credit unions shall report to the department of justice any credit union that conducts its business in violation of this chapter. The department of justice may bring an action to revoke the credit union's articles of incorporation.

AB569-ASA1, s. 209 Section 209. 186.235 (10) of the statutes is created to read:

AB569-ASA1,51,16 186.235 (10) Removal. (a) The commissioner may remove an officer, director, committee member or employe of a credit union if any of the following applies:

AB569-ASA1,51,20 1. The policies or practices of the officer, director, committee member or employe are prejudicial to the best interest of the credit union, endanger or will endanger the safety or solvency of the credit union, or impair the interests of the members.

AB569-ASA1,51,23 2. The officer, director, committee member or employe violates or permits the violation of this chapter, a rule promulgated under this chapter or an order of the commissioner.

AB569-ASA1,52,3 (b) An officer, director, committee member or employe removed by the commissioner under par. (a) shall be given an opportunity for a hearing before the review board within 30 days after the date on which the removal order is issued.

AB569-ASA1,52,12 (c) An order of removal takes effect on the date on which it is issued. A copy of the order shall be served upon the credit union and upon the officer, director, committee member or employe in the manner provided by law or by mailing a copy to the credit union and officer, director, committee member or employe at their last-known post-office addresses. An officer, director, committee member or employe who is removed from office or employment under this subsection may not be elected as an officer or director of, or be employed by, a credit union without the approval of the commissioner and the review board. An order of removal under this subsection is a final order or determination of the review board under s. 186.015.

AB569-ASA1,52,15 (d) The commissioner may appoint any member of the credit union to fill a vacancy caused by a removal under this subsection. The person who is appointed shall hold office until the next annual meeting of the membership.

AB569-ASA1, s. 210 Section 210. 186.235 (10) (a) (intro.) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,52,20 186.235 (10) (a) (intro.) The commissioner office of credit unions may remove an officer, director, committee member or employe of a credit union if any of the following applies:

AB569-ASA1, s. 211 Section 211. 186.235 (10) (a) 2. of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,52,25 186.235 (10) (a) 2. The officer, director, committee member or employe violates or permits the violation of this chapter, a rule promulgated under this chapter or an order of the commissioner office of credit unions.

AB569-ASA1, s. 212 Section 212. 186.235 (10) (b) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,53,6 186.235 (10) (b) An officer, director, committee member or employe removed by the commissioner office of credit unions under par. (a) shall be given an opportunity for a hearing before the review board within 30 days after the date on which the removal order is issued.

AB569-ASA1, s. 213 Section 213. 186.235 (10) (c) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,53,18 186.235 (10) (c) An order of removal takes effect on the date on which it is issued. A copy of the order shall be served upon the credit union and upon the officer, director, committee member or employe in the manner provided by law or by mailing a copy to the credit union and officer, director, committee member or employe at their last-known post-office addresses. An officer, director, committee member or employe who is removed from office or employment under this subsection may not be elected as an officer or director of, or be employed by, a credit union without the approval of the commissioner office of credit unions and the review board. An order of removal under this subsection is a final order or determination of the review board under s. 186.015.

AB569-ASA1, s. 214 Section 214. 186.235 (10) (d) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,53,24 186.235 (10) (d) The commissioner office of credit unions may appoint any member of the credit union to fill a vacancy caused by a removal under this subsection. The person who is appointed shall hold office until the next annual meeting of the membership.

AB569-ASA1, s. 215 Section 215. 186.235 (11) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

AB569-ASA1,54,6 186.235 (11) Possession by office. (a) Conditions for taking possession. The office of credit unions may take possession and control of the business and property of any credit union if the credit union violates this chapter or if the credit union does any of the following:

AB569-ASA1,54,7 1. Conducts its business contrary to law.

AB569-ASA1,54,8 2. Violates its charter, or any law.

AB569-ASA1,54,9 3. Conducts its business in an unauthorized or unsafe manner.

AB569-ASA1,54,10 4. Has an impairment of its capital.

AB569-ASA1,54,11 5. Suspends payment of its obligations.

AB569-ASA1,54,13 6. Neglects or refuses to comply with the terms of an order of the office of credit unions.

AB569-ASA1,54,15 7. Refuses to submit its books, papers, records, accounts or affairs for inspection to a credit union examiner.

AB569-ASA1,54,16 8. Refuses to be examined upon oath regarding its affairs.

AB569-ASA1,54,17 9. Receives notice of intent to terminate insured status by the national board.

AB569-ASA1,54,24 (b) Suspension. 1. The office of credit unions may suspend, for a period of up to 120 days, an officer, director, committee member or employe of a credit union from engaging in credit union business if the office of credit unions finds the existence of any condition under par. (a) 1. to 9. The office of credit unions may renew a suspension under this subdivision any number of times and for periods of up to 120 days if the office of credit unions finds that the condition or conditions continue to exist.

AB569-ASA1,55,3 2. The 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.

AB569-ASA1,55,6 (c) Possession by office of credit unions. 1. The office of credit unions may take possession of the business and property of a credit union if the office finds the existence of any condition under par. (a) 1. to 9.

AB569-ASA1,55,9 2. The office of credit unions shall take possession of the business and property of a credit union that violates s. 186.34, unless the office approves a merger under s. 186.31.

AB569-ASA1,55,11 (d) Procedure on taking possession. Upon taking possession of the business and property of a credit union, the office of credit unions shall:

AB569-ASA1,55,17 1. Serve a notice in writing upon the president and secretary of the credit union stating that the office of credit unions has taken possession and control of the business and property of the credit union. The notice shall be executed in duplicate, and immediately after service, one of the notices shall be filed with the clerk of the circuit court of the county in which the credit union is located together with proof of service.

AB569-ASA1,55,20 2. Give notice to all individuals, partnerships, corporations, limited liability companies and associations known to the office of credit unions to be holding or in possession of any assets of the credit union.

AB569-ASA1,56,11 (dg) Special deputies. The office of credit unions may appoint one or more special deputies as agent to assist in the duty of liquidation and distribution of the assets of one or more credit unions whose business and property the office of credit unions holds. A certificate of appointment shall be filed in the office of credit unions and a certified copy in the office of the clerk of the circuit court for the county in which the credit union is located. The office of credit unions may employ counsel and procure expert assistance and advice as necessary in the liquidation and distribution of the assets of the credit union, and may retain any officers or employes of the credit union that the office of credit unions considers to be necessary. The special deputies and assistants shall furnish security for the faithful discharge of their duties in an amount that the office of credit unions considers to be necessary. The special deputies may execute, acknowledge and deliver any deeds, assignments, releases or other instruments necessary 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 liquidation has been approved by the office of credit unions and an order obtained from the circuit court of the county in which the credit union is located.

AB569-ASA1,56,21 (dr) Special deputy duties. Upon taking possession of the property and business of the credit union, a special deputy is authorized to collect all moneys due to the credit union, and to do other acts necessary to conserve its assets and business, and shall proceed to liquidate the affairs of the credit union. The special deputy shall collect all debts due and claims belonging to the credit union, and upon a petition approved by the office of credit unions and upon order of the circuit court of the county in which the 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 petition and order may sell all the real and personal property of the credit union on such terms as the court shall approve.

AB569-ASA1,57,10 (e) Notice, allowance and payment of claims. The special deputy shall publish a class 3 notice, under ch. 985, calling on all persons who may have a claim against the credit union to present the claim to the special deputy and make legal proof of the claim at a place and within a time, not earlier than the last day of publication, to be specified in the notice. The special deputy 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 the notice shall be filed with the clerk of court. The special deputy may reject any claim. Any party interested may also file written objections to any claim with the special deputy and, after notice by registered mail of the rejection, the claimant shall be barred unless the claimant commences an action on the claim within 3 months. Claims presented after the expiration of the time fixed in the notice shall be entitled to an equitable share from the distribution of any assets remaining in the hands of the special deputy after properly filed claims have been paid.