KSH:kmg&skg:jlb
1995 - 1996 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
To 1995 ASSEMBLY BILL 597
November 8, 1995 - Offered by Committee on Financial Institutions.
AB597-ASA1,2,7 1An Act to repeal 215.02 (6) (a) 4. b., 215.02 (6) (a) 5., 215.53 (1) (a) 2., 215.53 (1)
2(a) 3., 215.73 (1) (a) 1., 215.73 (1) (a) 2. and 215.73 (1) (a) 3.; to renumber and
3amend
215.73 (1) (a) (intro.); to consolidate, renumber and amend 215.02
4(6) (a) 4. (intro.) and a.; to amend 215.02 (6) (a) (intro.), 215.02 (6) (a) 3., 215.02
5(16) (a), 215.02 (16) (b), 215.02 (16) (c) 1., 215.02 (16) (c) 2., 215.02 (16) (c) 3.,
6215.02 (16) (d), 215.02 (16) (e), 215.03 (2) (b), 215.13 (26) (c), 215.13 (31), 215.21
7(16) (a) (intro.), 215.21 (28), 215.26 (8) (b) 3., 215.32 (15) (title), 215.32 (15) (a),
8215.33 (3) (b) 2., 215.33 (6), 215.35 (2) (b), 215.36 (1) (d), 215.40 (13) (a) 9., 215.53
9(title), 215.53 (1) (a) (intro.), 215.53 (1) (a) 1., 215.53 (1) (b), 215.53 (2) (a), 215.53
10(2) (b), 215.53 (3), 215.57 (1) (d) 1., 215.60 (11) (a) 7., 215.73 (title), 215.73 (1)
11(b), 215.73 (2) (a), 215.73 (2) (b), 215.73 (2) (c), 215.73 (3) and 215.77 (1) (d) 1.;
12to repeal and recreate 215.02 (6) (a) (intro.), 215.02 (6) (a) 3., 215.02 (6) (a)
134., 215.02 (16) (a), 215.02 (16) (b), 215.02 (16) (c) 1., 215.02 (16) (c) 2., 215.02 (16)
14(d), 215.03 (2) (b), 215.13 (31), 215.21 (28), 215.26 (8) (b) 3., 215.32 (15) (a),
15215.33 (3) (b) 2., 215.33 (6), 215.40 (13) (a) 9., 215.53 (1) (a) (intro.), 215.53 (3),
16215.57 (1) (d) 1., 215.60 (11) (a) 7., 215.73 (1) (a), 215.73 (3) and 215.77 (1) (d)

11.; to create 215.01 (6m), 215.01 (7m), 215.01 (27s), 215.02 (16) (am), 215.13
2(26) (em), 215.21 (16) (a) 5. and 215.21 (16) (d) of the statutes; and to affect 1995
3Wisconsin Act 27
, sections 5512 and 5513 and 1995 Wisconsin Act 27, section
49459 (7); relating to: savings and loan association investment authority,
5savings and loan association charges and annual fees, absorption involving
6savings and loan associations and references to the federal deposit insurance
7corporation.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB597-ASA1, s. 1 8Section 1. 215.01 (6m) of the statutes is created to read:
AB597-ASA1,2,129 215.01 (6m) "Deposit insurance corporation" means the federal deposit
10insurance corporation or any other instrumentality of or corporation chartered by
11the United States that insures deposits of an association and is supported by the full
12faith and credit of the federal government.
AB597-ASA1, s. 2 13Section 2. 215.01 (7m) of the statutes is created to read:
AB597-ASA1,2,1614 215.01 (7m) "Federal regulatory agency" means the federal office of thrift
15supervision or other federal agency or entity which supervises and examines an
16association.
AB597-ASA1, s. 3 17Section 3. 215.01 (27s) of the statutes is created to read:
AB597-ASA1,2,1918 215.01 (27s) "Thrift institution" means an association, a federal savings and
19loan association or a federal or state savings bank.
AB597-ASA1, s. 4 20Section 4. 215.02 (6) (a) (intro.) of the statutes is amended to read:
AB597-ASA1,3,421 215.02 (6) (a) (intro.) The commissioner and all employes of the office and
22members of the review board shall keep confidential all the facts and information
23obtained in the course of examinations by the office and all examination and other

1confidential information obtained from a deposit insurance corporation, a federal
2regulatory agency or
any state or federal regulatory authority, including an
3authority of this state or another state, for financial institutions, mortgage bankers,
4insurance or securities, except:
AB597-ASA1, s. 5 5Section 5. 215.02 (6) (a) (intro.) of the statutes, as affected by 1995 Wisconsin
6Acts 27 and .... (this act), is repealed and recreated to read:
AB597-ASA1,3,127 215.02 (6) (a) (intro.) All employes of the division and members of the review
8board shall keep confidential all the facts and information obtained in the course of
9examinations by the office and all examination and other confidential information
10obtained from a deposit insurance corporation, a federal regulatory agency or any
11state regulatory authority, including an authority of this state or another state, for
12financial institutions, mortgage bankers, insurance or securities, except:
AB597-ASA1, s. 6 13Section 6. 215.02 (6) (a) 3. of the statutes is amended to read:
AB597-ASA1,3,1814 215.02 (6) (a) 3. Under rules prescribed by the commissioner, for For the
15purpose of comparing notes as to matters affecting an association with an examiner
16of the federal home loan bank board or federal savings and loan a deposit insurance
17corporation or a federal regulatory agency as to any association whose savings
18accounts are insured by the federal savings and loan deposit insurance corporation.
AB597-ASA1, s. 7 19Section 7. 215.02 (6) (a) 3. of the statutes, as affected by 1995 Wisconsin Acts
2027 and .... (this act), is repealed and recreated to read:
AB597-ASA1,3,2421 215.02 (6) (a) 3. For the purpose of comparing notes as to matters affecting an
22association with an examiner of the a deposit insurance corporation or a federal
23regulatory agency as to any association whose savings accounts are insured by the
24deposit insurance corporation.
AB597-ASA1, s. 8
1Section 8. 215.02 (6) (a) 4. of the statutes, as affected by 1995 Wisconsin Act
2.... (this act), is repealed and recreated to read:
AB597-ASA1,4,73 215.02 (6) (a) 4. The division may furnish to the deposit insurance corporation,
4to a federal regulatory agency or to any official or examiner of a deposit insurance
5corporation or a federal regulatory agency a copy of any examination made by the
6division of any association or of any report made by an association and filed with the
7division.
AB597-ASA1, s. 9 8Section 9. 215.02 (6) (a) 4. (intro.) and a. of the statutes are consolidated,
9renumbered 215.02 (6) (a) 4. and amended to read:
AB597-ASA1,4,1510 215.02 (6) (a) 4. (intro.) The commissioner may: a. Furnish furnish to the
11federal home loan bank board or federal savings and loan deposit insurance
12corporation, to a federal regulatory agency or to any official or examiner thereof of
13a deposit insurance corporation or a federal regulatory agency
a copy of any
14examination made by the office of any association or of any report made by such an
15association and filed with the office.
AB597-ASA1, s. 10 16Section 10. 215.02 (6) (a) 4. b. of the statutes is repealed.
AB597-ASA1, s. 11 17Section 11. 215.02 (6) (a) 5. of the statutes is repealed.
AB597-ASA1, s. 12 18Section 12. 215.02 (16) (a) of the statutes is amended to read:
AB597-ASA1,4,2219 215.02 (16) (a) Annual fee. Associations organized under this chapter An
20association
shall, on or before July 15 16, pay an annual fee as determined by the
21commissioner and the review board, but not exceeding 12 cents per $1,000 of assets
22or fraction thereof, as of the close of the preceding calendar year.
AB597-ASA1, s. 13 23Section 13. 215.02 (16) (a) of the statutes, as affected by 1995 Wisconsin Acts
2427 and .... (this act), is repealed and recreated to read:
AB597-ASA1,5,3
1215.02 (16) (a) Annual fee. An association shall, before July 16, pay an annual
2fee as determined by the division and the review board, but not exceeding 12 cents
3per $1,000 of assets or fraction thereof, as of the close of the preceding calendar year.
AB597-ASA1, s. 14 4Section 14. 215.02 (16) (am) of the statutes is created to read:
AB597-ASA1,5,105 215.02 (16) (am) Fees on conversion or absorption. If a depository institution
6that is not a state-chartered association converts to a state-chartered association or
7is absorbed by a state-chartered association, the converted association or the
8absorbing association shall pay an annual fee based on the assets of the converted
9association or the absorbed association at the same rate as other associations for the
10prorated portion of the fiscal year in which the association is subject to this chapter.
AB597-ASA1, s. 15 11Section 15. 215.02 (16) (b) of the statutes is amended to read:
AB597-ASA1,5,1512 215.02 (16) (b) Penalty for failure to pay fee. An association failing to pay the
13annual fee to the commissioner by before July 15 16 of each year shall, if ordered by
14the commissioner, forfeit $10 for each day it fails to pay the fee pay the fee and pay
15interest at an annual rate of 12% on any portion of the fee that is past due
.
AB597-ASA1, s. 16 16Section 16. 215.02 (16) (b) of the statutes, as affected by 1995 Wisconsin Acts
1727 and .... (this act), is repealed and recreated to read:
AB597-ASA1,5,2118 215.02 (16) (b) Penalty for failure to pay fee. An association failing to pay the
19annual fee to the division before July 16 of each year shall, if ordered by the division,
20pay the fee and pay interest at an annual rate of 12% on any portion of the fee that
21is past due.
AB597-ASA1, s. 17 22Section 17. 215.02 (16) (c) 1. of the statutes is amended to read:
AB597-ASA1,6,323 215.02 (16) (c) Regular examination costs. 1. On or before June 30 Before July
241
of each year the commissioner and the review board shall fix a per-diem per-hour
25charge for the services of each examiner used in the examination of an association,

1for the next 12 months. Such per diem The per-hour charge shall be the same for
2all associations. The hours constituting a day shall be that which is fixed for state
3employes by s. 230.35.
AB597-ASA1, s. 18 4Section 18. 215.02 (16) (c) 1. of the statutes, as affected by 1995 Wisconsin Acts
527 and .... (this act), is repealed and recreated to read:
AB597-ASA1,6,96 215.02 (16) (c) 1. Before July 1 of each year the division and the review board
7shall fix a per-hour charge for the services of each examiner used in the examination
8of an association, for the next 12 months. The per-hour charge shall be the same for
9all associations.
AB597-ASA1, s. 19 10Section 19. 215.02 (16) (c) 2. of the statutes is amended to read:
AB597-ASA1,6,1411 215.02 (16) (c) 2. After the per diem per-hour charge for each examiner has
12been fixed by the commissioner and review board, each association shall be
13uniformly billed for examinations during the ensuing year on a fixed per diem
14per-hour basis for each examiner engaged in such an examination.
AB597-ASA1, s. 20 15Section 20. 215.02 (16) (c) 2. of the statutes, as affected by 1995 Wisconsin Acts
1627 and .... (this act), is repealed and recreated to read:
AB597-ASA1,6,1917 215.02 (16) (c) 2. After the per-hour charge for each examiner has been fixed,
18each association shall be uniformly billed for examinations during the ensuing year
19on a fixed per-hour basis for each examiner engaged in an examination.
AB597-ASA1, s. 21 20Section 21. 215.02 (16) (c) 3. of the statutes is amended to read:
AB597-ASA1,6,2321 215.02 (16) (c) 3. Every charge so made to an association Charges assessed
22under this paragraph
shall be paid within 30 days from the time date on which the
23association receives notice of the assessment.
AB597-ASA1, s. 22 24Section 22. 215.02 (16) (d) of the statutes is amended to read:
AB597-ASA1,7,6
1215.02 (16) (d) The commissioner shall charge any special costs and expenses
2incurred because of for special work required by the commissioner, caused by an
3association not having
because an association does not have proper or sufficient
4management or failing fails to keep its books, records and other matters in a
5standard and approved manner. An itemized statement of such special charges must
6be submitted to the association.
AB597-ASA1, s. 23 7Section 23. 215.02 (16) (d) of the statutes, as affected by 1995 Wisconsin Acts
827 and .... (this act), is repealed and recreated to read:
AB597-ASA1,7,139 215.02 (16) (d) The division shall charge any special costs and expenses
10incurred for special work required because an association does not have proper or
11sufficient management or fails to keep its books, records and other matters in a
12standard and approved manner. An itemized statement of special charges must be
13submitted to the association.
AB597-ASA1, s. 24 14Section 24. 215.02 (16) (e) of the statutes is amended to read:
AB597-ASA1,7,1915 215.02 (16) (e) Penalty for failure to pay examination costs. Any An association
16failing to shall pay the charges and assessments under pars. (c) and (d) shall be
17subject to the penalty under par. (b) for each day it fails to pay the charge or
18assessment after it becomes due
when due and shall pay interest at an annual rate
19of 12% on any portion of the charges and assessments that are past due
.
AB597-ASA1, s. 25 20Section 25. 215.03 (2) (b) of the statutes is amended to read:
AB597-ASA1,8,221 215.03 (2) (b) The commissioner may accept an examination-audit made by the
22federal home loan bank board deposit insurance corporation, a federal regulatory
23agency
or any other governmental agency authorized to make examination-audits
24of savings and loan associations pursuant to their rules and regulations. The

1examination-audit must comply with the procedure established by the
2commissioner.
AB597-ASA1, s. 26 3Section 26. 215.03 (2) (b) of the statutes, as affected by 1995 Wisconsin Acts
427 and .... (this act), is repealed and recreated to read:
AB597-ASA1,8,95 215.03 (2) (b) The division may accept an examination-audit made by the
6deposit insurance corporation, a federal regulatory agency or any other
7governmental agency authorized to make examination-audits of associations
8pursuant to their rules and regulations. The examination-audit must comply with
9the procedure established by the division.
AB597-ASA1, s. 27 10Section 27. 215.13 (26) (c) of the statutes is amended to read:
AB597-ASA1,8,1311 215.13 (26) (c) Savings accounts of savings and loan associations, located
12outside the state, providing such if those savings accounts are insured by an
13instrumentality of the United States
the deposit insurance corporation;
AB597-ASA1, s. 28 14Section 28. 215.13 (26) (em) of the statutes is created to read:
AB597-ASA1,8,1615 215.13 (26) (em) Shares of stock, whether purchased or otherwise acquired, in
16a corporation acquiring, placing and operating remote service units under sub. (46).
AB597-ASA1, s. 29 17Section 29. 215.13 (31) of the statutes is amended to read:
AB597-ASA1,8,2018 215.13 (31) Insurance of savings accounts. Insure the savings accounts of
19savers with the federal savings and loan deposit insurance corporation or with
20another instrumentality approved by the commissioner.
AB597-ASA1, s. 30 21Section 30. 215.13 (31) of the statutes, as affected by 1995 Wisconsin Acts 27
22and .... (this act), is repealed and recreated to read:
AB597-ASA1,8,2523 215.13 (31) Insurance of savings accounts. Insure the savings accounts of
24savers with the deposit insurance corporation or with another instrumentality
25approved by the division.
AB597-ASA1, s. 31
1Section 31. 215.21 (16) (a) (intro.) of the statutes is amended to read:
AB597-ASA1,9,32 215.21 (16) (a) (intro.) An association may not make a mortgage loan on the
3security of vacant land, except if the loan is any of the following:
AB597-ASA1, s. 32 4Section 32. 215.21 (16) (a) 5. of the statutes is created to read:
AB597-ASA1,9,75 215.21 (16) (a) 5. A loan that the association reasonably believes will be used
6to develop or to acquire and develop land for commercial or industrial use within 5
7years after the acquisition of the land.
AB597-ASA1, s. 33 8Section 33. 215.21 (16) (d) of the statutes is created to read:
AB597-ASA1,9,109 215.21 (16) (d) An association may not make a mortgage loan on the security
10of or to finance the purchase of vacant land that is acquired or held for speculation.
AB597-ASA1, s. 34 11Section 34. 215.21 (28) of the statutes is amended to read:
AB597-ASA1,9,1912 215.21 (28) (title) Loans outside the lending area. Subject to the rules issued
13by
of the commissioner and without regard to the limitation set forth in sub. (2), an
14association may make or invest its funds in loans, originated and serviced by or
15through an institution, the accounts or deposits of which are insured by the federal
16savings and loan insurance corporation or the federal
deposit insurance corporation
17or by or through an approved federal housing administration mortgagee, in an
18aggregate amount not exceeding 10% of such association's assets on the security of
19real estate or leasehold interests.
AB597-ASA1, s. 35 20Section 35. 215.21 (28) of the statutes, as affected by 1995 Wisconsin Acts 27
21and .... (this act), is repealed and recreated to read:
AB597-ASA1,9,2522 215.21 (28) Loans. Subject to the rules of the division, an association may make
23or invest its funds in loans, originated and serviced by or through an institution, the
24accounts or deposits of which are insured by the deposit insurance corporation or by
25or through an approved federal housing administration mortgagee, in an aggregate

1amount not exceeding 10% of such association's assets on the security of real estate
2or leasehold interests.
AB597-ASA1, s. 36 3Section 36. 215.26 (8) (b) 3. of the statutes is amended to read:
AB597-ASA1,10,64 215.26 (8) (b) 3. Any The deposit insurance corporation or any federal agency
5or other instrumentality approved by the commissioner which is authorized to
6inspect and examine books and records of an insured association.
AB597-ASA1, s. 37 7Section 37. 215.26 (8) (b) 3. of the statutes, as affected by 1995 Wisconsin Acts
827 and .... (this act), is repealed and recreated to read:
AB597-ASA1,10,119 215.26 (8) (b) 3. The deposit insurance corporation or any federal agency or
10other instrumentality approved by the division which is authorized to inspect and
11examine books and records of an insured association.
AB597-ASA1, s. 38 12Section 38. 215.32 (15) (title) of the statutes is amended to read:
AB597-ASA1,10,1513 215.32 (15) (title) Procedure upon taking possession of association whose
14savings accounts are insured by
federal savings and loan deposit insurance
15corporation.
AB597-ASA1, s. 39 16Section 39. 215.32 (15) (a) of the statutes is amended to read:
AB597-ASA1,11,717 215.32 (15) (a) The commissioner may, if the commissioner takes possession
18of any association, the savings accounts of which are to any extent insured by the
19federal savings and loan deposit insurance corporation, tender to said the deposit
20insurance
corporation the appointment as statutory liquidator of such association.
21If the commissioner does not make such tender, the commissioner shall tender to said
22the deposit insurance corporation the appointment as statutory co-liquidator to act
23jointly with the commissioner, but such the co-liquidatorship shall not be for more
24than one year from the date of such tender, at the expiration of which time the
25commissioner shall become the sole liquidator except as herein otherwise provided.

1The commissioner shall tender to said the deposit insurance corporation the
2appointment as sole statutory liquidator of such association whenever said the
3deposit insurance
corporation has become subrogated to the rights of 90 per cent %
4of the liability of such the association on savings accounts. If the deposit insurance
5corporation becomes subrogated as to all the savings accounts in such the
6association, it may then exercise all the powers and privileges herein conferred upon
7it without court approval.
Loading...
Loading...