Amendment ASA1-AB569

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.

AB569-ASA1,57,20 (f) Inventory of assets and statement of liabilities. Upon taking possession of the property and assets of the credit union, the special deputy shall make an inventory of the assets of the credit union, in duplicate, one to be filed in the office of credit unions and one in the office of the clerk of circuit court for the county in which the credit union is located. Upon the expiration of the time fixed for the presentation of claims, the special deputy shall make in duplicate a full and complete list of the claims presented, including and specifying the claims rejected by the special deputy, one to be filed in the office of credit unions, and one in the office of the clerk of circuit court for the county in which the credit union is located. The inventory and list of claims shall be open at all reasonable times to inspection.

AB569-ASA1,58,6 (g) 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. Upon the approval of the value by the office of credit unions and the circuit court of the county in which the credit union is located, the book value of each member may 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.

AB569-ASA1,58,18 (h) Compensation and expenses in connection with liquidation. The compensation of the special deputies, counsel and other employes and assistants, and all expenses of supervision and liquidation shall be fixed by the 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 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 credit unions to the credit union being liquidated. The cost of these services shall be determined by the office of credit unions and paid to the office from the assets of the credit union as other expenses of liquidation are paid. The moneys collected by the special deputy shall be deposited in a corporate central credit union, and, in case of the suspension or insolvency of a depository, such deposits shall be preferred before all other deposits.

AB569-ASA1,58,25 (i) Liquidating dividends. At any time after the expiration of the date fixed for the presentation of claims, the special deputy in charge of the liquidation of the credit union may, upon a petition approved by the office of credit unions and an order of the circuit court of the county in which the 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 to be paid to such persons, and in such amounts as may be directed by the circuit court.

AB569-ASA1,59,8 (j) Title passes to office of credit unions. Immediately upon filing the notice under par. (d), the possession of all assets and property of the credit union shall be considered to be transferred from the credit union to and assumed by the office of credit unions. The filing of the notice shall of itself, and without the execution or delivery of any instruments of conveyance, assignment, transfer or endorsement, vest the title to all such assets and property in the office of credit unions. The filing shall also operate as a bar to any attachment, garnishment, execution or other legal proceedings against the credit union, or its assets and property, or its liabilities.

AB569-ASA1,59,12 (k) 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 office of credit unions shall have taken possession.

AB569-ASA1,59,24 (L) Appeal. If a credit union whose property and business the office of credit unions has taken possession of considers itself aggrieved by the office's action, it may, at any time within 30 days after the date of the taking, appeal to the credit union review board for relief from the possession by the office of credit unions. If the credit union review board sustains the office of credit unions, the credit union may, at any time within 30 days after the decision of the credit union review board, apply to the circuit court of the county in which the credit union is located to enjoin further proceedings. The court, after citing the office of credit unions to show cause why further proceedings should not be enjoined and after hearing all allegations and proofs of the parties and determining the facts, may upon the merits dismiss the application or enjoin the office of credit unions from further proceedings, and may direct the office to surrender the business and property to the credit union.

AB569-ASA1,60,3 (m) Reinstatement. After the office of credit unions takes over the possession and control of the business and property of a credit union, the credit union may resume business if all of the following apply:

AB569-ASA1,60,6 1. The owners of at least two-thirds of the credit union dollar value of outstanding shares execute a petition to resume business, the form of which petition shall be prescribed by the office of credit unions.

AB569-ASA1,60,9 2. There is submitted to the office of credit unions by the shareholders, or a committee selected by them, a plan for the reorganization and reinstatement of the credit union.

AB569-ASA1,60,11 3. A request for continuation of federal share insurance has been submitted and accepted.

AB569-ASA1,60,13 4. The office of credit unions recommends that control of the business and property of the credit union be returned to the shareholders.

AB569-ASA1,60,17 5. The court in which the liquidation is pending, upon application of the office of credit unions, makes an order approving the office's recommendations, which order shall contain a finding that the credit union will be in a safe and sound condition when control is resumed by the shareholders.

AB569-ASA1,61,2 (n) Reinstatement upon restricted basis. In addition to the procedure under par. (m), a credit union may resume business upon a restricted basis, and upon such limitations and conditions as may be prescribed by the office of credit unions when approved by the circuit court for the county in which the credit union is located, upon application of the office of credit unions. The restrictions and conditions may include a prohibition against the selling of new shares, reasonable restrictions upon withdrawals and the payment of other liabilities. On approval, the credit union shall be relieved from the control and supervision of the office of credit unions, but the approval does not prohibit the office from again proceeding against the credit union if conditions warrant the office's action.

AB569-ASA1,61,13 (p) Liquidating dividends and unclaimed funds. 1. The special deputy shall deposit unclaimed liquidating dividends and unclaimed funds remaining unpaid in the hands of the special deputy for 6 months after the order for final distribution in a corporate central credit union in the name of the office of credit unions in trust for the shareholders and creditors of the liquidated credit union. The 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 office of credit unions 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 and include a statement of interest earned upon those funds.

AB569-ASA1,61,21 2. The office of credit unions may pay over the funds held by the office of credit unions under subd. 1. to the persons entitled to the funds, upon being furnished satisfactory evidence of their right to the funds. In case of doubt or conflicting claims, the office of credit unions may require an order of the circuit court authorizing payment. The office of credit unions may apply the interest earned by the funds toward defraying the expenses in the payment and distribution of unclaimed liquidating dividends and unclaimed funds to the stockholders and creditors entitled to receive the dividends and funds.

AB569-ASA1,62,4 3. One year after the date of the order for final distribution, the office of credit unions shall report and deliver to the state treasurer all unclaimed funds as provided in ch. 177. All claims subsequently arising shall be presented to the office of credit unions. If the office of credit unions determines that any claim should be allowed, the office shall certify to the department of administration the name and address of the person entitled to payment and the amount of the payment and shall attach the claim to the certificate. The department of administration shall certify the claim to the state treasurer for payment.

AB569-ASA1, s. 216 Section 216. 186.235 (11) (m) 3. of the statutes is created to read:

AB569-ASA1,62,7 186.235 (11) (m) 3. A request for continuation of federal share insurance has been submitted and accepted.

AB569-ASA1, s. 217 Section 217. 186.235 (12) of the statutes is created to read:

AB569-ASA1,62,12 186.235 (12) Annual report. (a) The commissioner shall submit to the governor, and to the legislature under s. 13.172 (2), an annual report on the general conduct and condition of credit unions doing business in this state. The report shall be based upon the individual annual reports filed with the commissioner.

AB569-ASA1,62,14 (b) The commissioner shall designate the number of copies of the report to be made available for general distribution. Each credit union is entitled to one copy.

AB569-ASA1, s. 218 Section 218. 186.235 (12) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,62,21 186.235 (12) Annual report. (a) The commissioner office of credit unions shall submit to the governor, and to the legislature under s. 13.172 (2), an annual report on the general conduct and condition of credit unions doing business in this state. The report shall be based upon the individual annual reports filed with the commissioner office of credit unions.

AB569-ASA1,62,24 (b) The commissioner office of credit unions shall designate the number of copies of the report to be made available for general distribution. Each credit union is entitled to one copy.

AB569-ASA1, s. 219 Section 219. 186.235 (13) of the statutes is created to read:

AB569-ASA1,63,4 186.235 (13) Fees for office publications. (a) Whenever copies of reprints of this chapter, the annual report of credit unions or any other publication published by the office of the commissioner are requested, copies shall be furnished upon payment of any fee established by the commissioner.

AB569-ASA1,63,8 (b) Upon request, the commissioner may distribute copies of materials described under par. (a) free to agencies or legislators of this state or any other state, county clerks, the courts of this state, trade organizations and any agencies of the United States.

AB569-ASA1, s. 220 Section 220. 186.235 (13) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,63,15 186.235 (13) Fees for office publications. (a) Whenever copies of reprints of this chapter, the annual report of credit unions or any other publication published by the office of the commissioner credit unions are requested, copies shall be furnished upon payment of any fee established by the commissioner office of credit unions.

AB569-ASA1,63,19 (b) Upon request, the commissioner office of credit unions may distribute copies of materials described under par. (a) free to agencies or legislators of this state or any other state, county clerks, the courts of this state, trade organizations and any agencies of the United States.

AB569-ASA1, s. 221 Section 221. 186.235 (14) (a), (b) and (e) of the statutes, as affected by 1995 Wisconsin Act .... (this act), are amended to read:

AB569-ASA1,63,25 186.235 (14) (a) The commissioner office of credit unions, with the approval of the credit union review board, shall fix the amounts to be assessed against credit unions for their supervision and examinations under this chapter. Amounts shall be determined and paid as provided in this subsection.

AB569-ASA1,64,4 (b) On or before July 15 of each year, each credit union shall pay to the office of the commissioner credit unions an annual assessment, which shall represent as nearly as practicable its fair share of the maintenance of the office of the commissioner credit unions.

AB569-ASA1,64,8 (e) If the amounts collected under this subsection exceed the actual amounts necessary for the supervision and examination of credit unions in a year, the excess shall be retained by the commissioner office of credit unions and applied in reducing the amounts chargeable for ensuing years.

AB569-ASA1, s. 222 Section 222. 186.235 (15) of the statutes is created to read:

AB569-ASA1,64,11 186.235 (15) Testimonial powers. (a) The office of the commissioner may issue subpoenas and take testimony.

AB569-ASA1,64,18 (b) Witness fees shall be the same as fees under s. 814.67 (1) (b) and (c). The fees of witnesses who are called by the office in the interests of the state shall be paid by the state upon presentation of proper vouchers approved by the commissioner and charged to the appropriation under s. 20.141 (1) (g). A witness subpoenaed by the office at the instance of a party other than the office shall not be entitled to payment of fees by the state unless the office certifies that the testimony was material to the purpose for which the subpoena was issued.

AB569-ASA1, s. 223 Section 223. 186.235 (15) (a) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,64,22 186.235 (15) (a) The office of the commissioner credit unions may issue subpoenas and take testimony.

AB569-ASA1, s. 224 Section 224. 186.235 (16) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,65,6 186.235 (16) Annual examination. (a) At least once each year, the commissioner office of credit unions shall examine the records and accounts of each credit union. 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 records and accounts. They may administer oaths to and examine each credit union's officers and agents.

AB569-ASA1,65,12 (b) Instead 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 or may accept an examination or audit made or approved by the national board.

AB569-ASA1, s. 225 Section 225. 186.235 (17) of the statutes is created to read:

AB569-ASA1,65,17 186.235 (17) Refusal to submit to examination. The commissioner shall report to the department of justice any credit union that refuses to submit to an examination. The department of justice shall institute proceedings to revoke the charter of the credit union.

AB569-ASA1, s. 226 Section 226. 186.235 (17) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,65,23 186.235 (17) Refusal to submit to examination. The commissioner office of credit unions shall report to the department of justice any credit union that refuses to submit to an examination. The department of justice shall institute proceedings to revoke the charter of the credit union.

AB569-ASA1, s. 227 Section 227. 186.235 (18) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,66,7 186.235 (18) Record-keeping and accounting procedure. (a) A credit union shall keep records and accounts in a manner consistent with generally accepted accounting principles or with standards prescribed by the commissioner office of credit unions. If a credit union does not keep its records and accounts in a manner consistent with generally accepted accounting principles, the commissioner office of credit unions may require the credit union to keep records and accounts under standards prescribed by the commissioner office.

AB569-ASA1,66,12 (b) The commissioner office of credit unions may require a credit union that fails to open records or maintain prescribed records or accounts to forfeit not more than $100 for each day it is in violation. If the credit union fails to pay the forfeiture, the commissioner office of credit unions may institute proceedings to recover the forfeiture.

AB569-ASA1, s. 228 Section 228. 186.235 (19) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,66,17 186.235 (19) Financial reports. (a) A credit union shall file with the commissioner office of credit unions a report of its activities for the previous reporting period, on a form furnished by the commissioner office of credit unions.

AB569-ASA1,66,20 (b) The report shall include a true and verified copy of a condition statement of the credit union as of the close of the previous reporting period and shall include any other information that the commissioner office of credit unions requires.

AB569-ASA1,66,25 (c) If a credit union fails or refuses to furnish a required report, it shall be subject, at the discretion of the commissioner office of credit unions, to a forfeiture of $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 the forfeiture, which shall be paid into the general fund.

AB569-ASA1,67,8 (d) Annually, a credit union shall publish a 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 describe the condition of the credit union on December 31 of the previous year and shall be in a form that 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.

AB569-ASA1, s. 229 Section 229. 186.235 (20) of the statutes is created to read:

AB569-ASA1,67,16 186.235 (20) Approval of acts. Whenever any credit union requests approval of the commissioner for any act, which by statute requires approval, the commissioner shall have 90 days in which to grant, deny or defer the approval. A deferral may be for not more than 60 days. If the commissioner fails to act, approval shall be considered to have been granted. In matters which require the holding of public hearings, the 90-day period shall not commence until the conclusion of the hearing and the date set by the commissioner for receipt of briefs.

AB569-ASA1, s. 230 Section 230. 186.235 (20) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

AB569-ASA1,68,2 186.235 (20) Approval of acts. Whenever any credit union requests approval of the commissioner office of credit unions for any act, which by statute requires approval, the commissioner office of credit unions shall have 90 days in which to grant, deny or defer the approval. A deferral may be for not more than 60 days. If the commissioner office of credit unions fails to act, approval shall be considered to have been granted. In matters which require the holding of public hearings, the 90-day period shall not commence until the conclusion of the hearing and the date set by the commissioner office of credit unions for receipt of briefs.

AB569-ASA1, s. 231 Section 231. 186.235 (21) (title) of the statutes is created to read:

AB569-ASA1,68,4 186.235 (21) (title) Parity.

AB569-ASA1, s. 232 Section 232. 186.24 of the statutes is repealed.

AB569-ASA1, s. 233 Section 233. 186.25 of the statutes is renumbered 186.235 (19) and amended to read:

AB569-ASA1,68,15 186.235 (19) (title) Supervision; Financial 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. Every such corporation (a) A credit union shall make a full and detailed file with the commissioner a 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 activities for the previous reporting period, on a form furnished by the commissioner may prescribe, and shall file with the commissioner.

AB569-ASA1,68,20 (b) The report shall include a true and verified copy thereof on or before February 1 thereafter. Accompanying the same shall be attached a copy of the a condition statement of the credit union at as of the close of its last fiscal year the previous reporting period and shall include any other information that the commissioner requires.

AB569-ASA1,68,25 (c) If any such a credit union fails or refuses to furnish the a required report herein required, it shall be subject, at the discretion of the commissioner, to a forfeiture of $1 to $10 per day for each day of default, and the commissioner may maintain an action in the name of the state to recover such penalty, and the same the forfeiture, which shall be paid into the state treasury. A general fund.

AB569-ASA1,69,7 (d) Annually, a credit union shall publish the a 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 describe the condition of the credit union on December 31 of the previous year and shall be in a form that the commissioner prescribes. Proof of publication shall be furnished to the commissioner within 45 days after the date of the report.

AB569-ASA1, s. 234 Section 234. 186.26 (title) of the statutes is repealed.

AB569-ASA1, s. 235 Section 235. 186.26 (1) of the statutes is renumbered 186.235 (16) and amended to read:

AB569-ASA1,69,23 186.235 (16) (title) Annual examination. (a) At least once each year, the commissioner shall make or cause to be made an examination of examine the cash, bills, collaterals, securities, assets, books of account, condition and affairs records and accounts of each credit union and for. For that purpose the commissioner or the examiners appointed by the commissioner shall have full access to, and may compel the production of, each credit union's books, papers, securities and moneys, records and accounts. They may 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.