SB55-ASA1-AA1,1062,2422
(b) For an agreement that is renewed for a term that is longer than one week,
23no late fee may be assessed for a periodic rental payment that is made within 5 days
24after the date on which the payment is due.
SB55-ASA1-AA1,1063,2
1(3) Collection, recording, and limitation of late fees. Late fees are subject
2to all of the following limitations:
SB55-ASA1-AA1,1063,33
(a) A late fee may not exceed $5 for each past-due periodic rental payment.
SB55-ASA1-AA1,1063,54
(b) A late fee may be collected only once on each periodic rental payment due,
5regardless of how long the payment remains past due.
SB55-ASA1-AA1,1063,76
(c) Payments received shall be applied first to the payment of any rent that is
7due and then to late fees and any other charges.
SB55-ASA1-AA1,1063,98
(d) A late fee may be collected at the time that the late fee accrues or at any time
9afterward.
SB55-ASA1-AA1,1063,12
10(4) Effect of outstanding late fee on transfer of ownership. A
11rental-purchase company may require payment of any outstanding late fees before
12transferring ownership of rental property to a lessee.
SB55-ASA1-AA1,1063,16
13218.654 Reinstatement of terminated rent-to-own agreement. (1) 14Reinstatement, generally. A lessee may reinstate a terminated rent-to-own
15agreement without losing any rights or options previously acquired if all of the
16following conditions apply:
SB55-ASA1-AA1,1063,1817
(a) The lessee returned or surrendered the rental property within 5 days after
18the termination of the rent-to-own agreement.
SB55-ASA1-AA1,1063,2319
(b) Not more than 21 days have passed after the date on which the rental
20property was returned to the rental-purchase company or, if the lessee has paid
21two-thirds or more of the total number of periodic rental payments necessary to
22acquire ownership of the rental property, not more than 45 days have passed since
23the date on which the rental property was returned to the rental-purchase company.
SB55-ASA1-AA1,1064,2
24(2) Authorized conditions on reinstatement. As a condition of reinstatement
25under this section, the rental-purchase company may require the payment of all
1past-due rental charges, any applicable late fees, a reinstatement fee not to exceed
2$5, and the periodic rental payment for the next term.
SB55-ASA1-AA1,1064,8
3(3) Effect of repossession on reinstatement. Nothing in this section prohibits
4a rental-purchase company from attempting to repossess rental property upon
5termination of a rent-to-own agreement, but repossession efforts do not affect the
6lessee's right to reinstate the rent-to-own agreement as long as the rental property
7is voluntarily returned or surrendered within 5 days after the termination of the
8rent-to-own agreement.
SB55-ASA1-AA1,1064,13
9(4) Property available upon reinstatement. Upon reinstatement, the
10rental-purchase company shall provide the lessee with the same rental property, if
11the property is available and is in the same condition as when it was returned to the
12rental-purchase company, or with substitute rental property of comparable quality
13and condition.
SB55-ASA1-AA1,1064,23
14218.656 Reduced periodic rental payment due to reduced income. (1)
15Reduction in amount of periodic rental payments; required evidence. (a)
16Reduction in amount of periodic rental payments. If a lessee's monthly income is
17reduced by 25% or more due to pregnancy, disability, involuntary job loss, or
18involuntary reduction in the amount of hours worked or wages earned, the
19rental-purchase company shall reduce the amount of each periodic rental payment
20due under the rent-to-own agreement by the same percentage that the lessee's
21monthly income is reduced or by 50%, whichever is less, for the period of time during
22which the lessee's income is reduced. This paragraph applies only if all of the
23following conditions are satisfied:
SB55-ASA1-AA1,1065,3
11. The total dollar amount of periodic rental payments made by the lessee
2under the rent-to-own agreement equals more than 50% of the total dollar amount
3of periodic rental payments necessary to acquire ownership of the rental property.
SB55-ASA1-AA1,1065,54
2. The lessee has provided the rental-purchase company with reasonable
5evidence of the amount and cause of the reduction in the lessee's monthly income.
SB55-ASA1-AA1,1065,106
(b)
Evidence of continued reduction in income. At reasonable intervals after
7reducing the amount of a periodic rental payment under par. (a), a rental-purchase
8company may require the lessee to provide evidence of the lessee's monthly income
9and evidence that the cause of the reduction in the lessee's monthly income has not
10abated.
SB55-ASA1-AA1,1065,15
11(2) Increase in number of periodic rental payments. Except as provided in
12sub. (4), if a rental-purchase company reduces the amount of a periodic rental
13payment under sub. (1) (a), the rental-purchase company may increase the total
14number of periodic rental payments necessary to acquire ownership of the rental
15property.
SB55-ASA1-AA1,1065,21
16(3) Increase in amount of periodic rental payments. Except as provided in
17sub. (4), if a rental-purchase company reduces the amount of a periodic rental
18payment under sub. (1) (a) and if, subsequently, the lessee's monthly income is
19increased, the rental-purchase company may increase, by the same percentage that
20the lessee's monthly income is increased, the amount of each periodic rental payment
21due after the date on which the lessee's monthly income is increased.
SB55-ASA1-AA1,1066,3
22(4) Limitation on increases. If a rental-purchase company, under sub. (2) or
23(3), increases the amount or number of periodic rental payments due under a
24rent-to-own agreement, the increase affects only the rights or duties of the lessee
25to the extent authorized in sub. (2) or (3). No rental-purchase company, acting under
1sub. (2) or (3), may increase the total dollar amount of periodic rental payments
2necessary to acquire ownership of the rental property, or the amount of a periodic
3rental payment, to greater than the amount disclosed in the rent-to-own agreement.
SB55-ASA1-AA1,1066,5
4218.658 Default and right to cure. (1) Default; generally. A lessee is in
5default under a rent-to-own agreement if any of the following occurs:
SB55-ASA1-AA1,1066,96
(a) The lessee fails to return the rental property within 7 days after the date
7on which the last term for which a periodic rental payment was made expires, unless
8the lessee has exercised an early-purchase option or has made all periodic rental
9payments necessary to acquire ownership of the rental property.
SB55-ASA1-AA1,1066,1110
(b) The lessee materially breaches any other provision of the rent-to-own
11agreement.
SB55-ASA1-AA1,1066,15
12(2) Default; necessary for lessee liability. No cause of action shall accrue
13against a lessee with respect to the lessee's obligations under a rent-to-own
14agreement except upon default and the expiration of any applicable period of time
15allowed for cure of the default.
SB55-ASA1-AA1,1066,22
16(3) Notice of default; general requirement. Except as provided in sub. (4),
17as a condition precedent to bringing an action against a lessee arising out of the
18lessee's default, a rental-purchase company shall provide a written notice of the
19default and of the right to cure the default to the lessee. The notice shall specify the
20default and the action required to cure the default and shall inform the lessee that,
21if the default is not cured within 15 days after the notice is given, the rental-purchase
22company will have the right to bring an action against the lessee.
SB55-ASA1-AA1,1067,2
23(4) Notice of default; exception. A rental-purchase company is not required
24to provide a notice of default and right to cure as a condition precedent to bringing
25an action against a lessee if each of the following occurred twice during the 12 months
1before the date of the current default with respect to the same rent-to-own
2agreement:
SB55-ASA1-AA1,1067,33
(a) The lessee was in default.
SB55-ASA1-AA1,1067,54
(b) The rental-purchase company gave the lessee written notice of the default
5and of the lessee's right to cure under sub. (3).
SB55-ASA1-AA1,1067,66
(c) The lessee cured the default.
SB55-ASA1-AA1,1067,10
7(5) Request for voluntary surrender of property. A rental-purchase
8company may request the voluntary return or surrender of rental property prior to
9the declaration of a default and the sending of written notice of default and right to
10cure. A request under this subsection is subject to the requirements of s. 218.66.
SB55-ASA1-AA1,1067,14
11218.66 Rental-purchase company collection practices. In attempting to
12recover possession of rental property or to collect past-due periodic rental payments
13or other charges owed under a rent-to-own agreement, a rental-purchase company
14may not do any of the following:
SB55-ASA1-AA1,1067,16
15(1) Use of force. Use or threaten to use force or violence to cause physical harm
16to the lessee or the lessee's property or to a person related to the lessee.
SB55-ASA1-AA1,1067,19
17(2) Criminal prosecution. Threaten criminal prosecution. It is not a violation
18of this subsection for a rental-purchase company to inform a lessee of the existence
19of s. 943.20 (1) (e) and the consequences of violating that section.
SB55-ASA1-AA1,1067,22
20(3) Disclosure of false information. Disclose or threaten to disclose
21information adversely affecting the lessee's reputation for creditworthiness with
22knowledge or reason to know that the information is false.
SB55-ASA1-AA1,1068,4
23(4) Communication with lessee's employer. Initiate or threaten to initiate
24communication with the lessee's employer prior to obtaining final judgment against
25the lessee, except for the purpose of enforcing an assignment of earnings authorized
1under s. 218.68. This subsection does not prohibit a rental-purchase company from
2communicating with a lessee's employer solely to verify employment status or
3earnings or to determine if the employer has an established debt counseling service
4or procedure.
SB55-ASA1-AA1,1068,10
5(5) Disclosure of information relating to lessee's reputation. Disclose or
6threaten to disclose to a person other than the lessee or the lessee's spouse
7information affecting the lessee's reputation, whether or not for creditworthiness,
8with knowledge or reason to know that the other person does not have a legitimate
9business need for the information, except that this subsection does not prohibit any
10of the following:
SB55-ASA1-AA1,1068,1211
(a) The disclosure to another person of information permitted to be disclosed
12to that person by statute.
SB55-ASA1-AA1,1068,1413
(b) An inquiry solely for the purpose of determining the location of the lessee
14or the rental property.
SB55-ASA1-AA1,1068,17
15(6) Disclosure of information regarding a disputed debt. Disclose or threaten
16to disclose information concerning the existence of a debt known to be reasonably
17disputed by the lessee without disclosing the fact that the lessee disputes the debt.
SB55-ASA1-AA1,1068,22
18(7) Harassment. Communicate with the lessee or a person related to the lessee
19with such frequency, at such unusual hours, or in such a manner as can reasonably
20be expected to threaten or harass the lessee or a person related to the lessee, or
21engage in any other conduct that can reasonably be expected to threaten or harass
22the lessee or a person related to the lessee.
SB55-ASA1-AA1,1068,24
23(8) Use of obscene or threatening language. Use obscene or threatening
24language in communicating with the lessee or a person related to the lessee.
SB55-ASA1-AA1,1069,2
1(9) Use of threat to enforce false right. Threaten to enforce a right with
2knowledge that the right does not exist.
SB55-ASA1-AA1,1069,5
3(10) Use of false process. Use a communication that simulates legal or
4judicial process or that gives the appearance of being authorized, issued, or approved
5by a government, government agency, or attorney-at-law when it is not.
SB55-ASA1-AA1,1069,9
6(11) Use of threat to sue. Threaten to file a civil action against the lessee
7unless the civil action is of a type that the rental-purchase company files in the
8regular course of business or unless the rental-purchase company intends to file the
9civil action against the lessee.
SB55-ASA1-AA1,1069,13
10218.68 Assignment of earnings. No rental-purchase company may take or
11arrange for an assignment of earnings of an individual for payment or as security for
12payment of an obligation arising out of a rent-to-own agreement unless the
13assignment is revocable at will by the individual.
SB55-ASA1-AA1,1069,24
14218.682 Penalties. (1)
Failure to pay fees and provide reports, information,
15and notices; generally. A licensee that fails to file its annual report by the date
16specified in s. 218.628 (1), fails to pay the annual license fee by the date specified in
17s. 218.622 (4), fails to provide any required rider or endorsement to increase the
18amount of its bond by the date specified in s. 218.622 (4), fails to provide examination
19records by the date required by the division, fails to notify the division in writing of
20a relocation of the licensee's place of business by the date specified in s. 218.626 (1),
21or fails to provide notice to the division of other changes as required under s. 218.626
22(2) by the date specified in s. 218.626 (2) may be required to forfeit not more than $50.
23Each day that a failure described in this subsection continues constitutes a separate
24offense.
SB55-ASA1-AA1,1070,5
1(2) Failure to provide certain information. A licensee that fails to provide any
2additional information, data, or records requested by the division under s. 218.626
3(2) by the date specified in s. 218.626 (2) may be required to forfeit not more than
4$100. Each day that a failure described in this subsection continues constitutes a
5separate offense.
SB55-ASA1-AA1,1070,8
6(3) Misdemeanors. Any person who violates s. 218.63 (2) or any provision of
7ss. 218.617 to 218.628 other than those provisions described in subs. (1) and (2) may
8be fined not more than $1,000, imprisoned for not more than 6 months, or both.
SB55-ASA1-AA1,1070,13
9218.684 Civil actions and defenses. (1) Liability; generally. Except as
10provided under subs. (2) to (6), a rental-purchase company that violates any
11provision of this subchapter is liable to a lessee damaged as a result of that violation
12for the costs of the action and, notwithstanding s. 814.04 (1), for reasonable attorney
13fees as determined by the court, plus an amount equal to the greater of the following:
SB55-ASA1-AA1,1070,1514
(a) The actual damages, including any incidental and consequential damages,
15sustained by the lessee as a result of the violation.
SB55-ASA1-AA1,1070,1816
(b) An amount equal to 25% of the total amount of payments due in one month
17under the lessee's rent-to-own agreement, except that liability under this
18paragraph may not be less than $100 nor more than $1,000.
SB55-ASA1-AA1,1070,23
19(2) Liability; certain violations. Except as provided in subs. (4) and (5), if a
20rental-purchase company violates s. 218.636, the lessee may retain the rental
21property under the rent-to-own agreement without obligation to pay any amount
22and may recover any amounts paid to the rental-purchase company under the
23rent-to-own agreement.
SB55-ASA1-AA1,1071,10
24(3) Class action. In the case of a class action, a rental-purchase company that
25violates this subchapter is liable to the members of the class in an amount
1determined by the court, except that the total recovery for all lessees whose recovery
2is computed under sub. (1) (b) may not exceed $100,000 plus the costs of the action
3and, notwithstanding s. 814.04 (1), reasonable attorney fees as determined by the
4court. In determining the amount to award under this subsection, the court shall
5consider, among other relevant factors, the amount of actual damages sustained by
6the members of the class, the frequency and persistence of the violations by the
7rental-purchase company, the resources of the rental-purchase company, the
8number of persons damaged by the violation, the presence or absence of good faith
9on the part of the rental-purchase company, and the extent to which the violation
10was intentional.
SB55-ASA1-AA1,1071,15
11(4) Defense; error notification and correction. A rental-purchase company
12is not liable for a violation of this subchapter resulting from an error by the
13rental-purchase company if, within 60 days after discovering the error, the
14rental-purchase company notifies the lessee of the error and makes any adjustments
15necessary to correct the error.
SB55-ASA1-AA1,1071,23
16(5) Defense; unintentional error. A rental-purchase company is not liable
17for a violation of this subchapter if the rental-purchase company shows by a
18preponderance of the evidence that the violation was not intentional, that the
19violation resulted from a bona fide error notwithstanding the maintenance of
20procedures reasonably adopted to avoid the error, and that the rental-purchase
21company has acted to correct the error. A bona fide error under this subsection
22includes a clerical error, an error in making calculations, an error due to computer
23malfunction or to computer programming, or a printing error.
SB55-ASA1-AA1,1072,3
24(6) Liability for multiple violations. Multiple violations of this subchapter
25in connection with the same rent-to-own agreement shall entitle the lessee to only
1a single recovery under sub. (1), except that a violation of s. 218.66 that occurs after
2recovery has been granted with respect to that rent-to-own agreement may entitle
3the lessee to an additional recovery under sub. (1).
SB55-ASA1-AA1,1072,7
4(7) Necessary parties. If more than one lessee is a party to the same
5rent-to-own agreement, all of the lessees that are parties to the rent-to-own
6agreement shall be joined as plaintiffs in any action under sub. (1), and the lessees
7are entitled to only a single recovery under sub. (1).
SB55-ASA1-AA1,1072,12
8218.686 Limitation on actions. An action brought by a lessee under this
9subchapter shall be commenced within one year after the date on which the alleged
10violation occurred, 2 years after the date on which the rent-to-own agreement was
11entered into, or one year after the date on which the last payment was made under
12the rent-to-own agreement, whichever is later.
SB55-ASA1-AA1,1072,14
13218.688 Venue. (1) Generally. The venue for a claim arising out of a
14rent-to-own agreement is any of the following counties:
SB55-ASA1-AA1,1072,1515
(a) Where the lessee resides or is personally served.
SB55-ASA1-AA1,1072,1616
(b) Where the rental property is located.
SB55-ASA1-AA1,1072,1917
(c) Where the lessee sought or acquired the rental property or signed the
18document evidencing his or her obligation under the terms of the rent-to-own
19agreement.
SB55-ASA1-AA1,1072,24
20(2) Change in venue. When it appears from the return of service of a summons
21or otherwise that the county in which an action is pending under sub. (1) is not a
22proper place of trial for the action, unless the defendant appears and waives the
23improper venue, the court shall transfer the action to any county that is a proper
24place of trial.
SB55-ASA1-AA1,1073,3
1(3) Multiple defendants. If there are several defendants in an action arising
2out of a rent-to-own agreement, and if venue is based on residence, venue may be
3in the county of residence of any of the defendants.
SB55-ASA1-AA1,1073,85
220.02
(2) (b) The lending of money under s. 138.09 or those relating to finance
6companies, motor vehicle dealers, adjustment service companies, community
7currency exchanges
, rental-purchase companies, and collection agencies under ch.
8218.
SB55-ASA1-AA1,1073,1710
220.02
(3) It is the intent of sub. (2) to give the division jurisdiction to enforce
11and carry out all laws relating to banks or banking in this state, including those
12relating to state banks, trust company banks, and also all laws relating to small loan
13companies or other loan companies or agencies, finance companies, motor vehicle
14dealers, adjustment service companies, community currency exchanges
,
15rental-purchase companies, and collection agencies
, and those relating to sellers of
16checks under ch. 217, whether doing business as corporations, individuals
, or
17otherwise, but to exclude laws relating to credit unions.".
SB55-ASA1-AA1,1074,920
197.04
(1) (b) If within either of the 90-day periods described in par. (a) a
21petition conforming to the requirements of s. 8.40 is filed with the clerk of the
22municipality as provided in s. 8.37 and the petition has been signed by 5% of the
23electors of a 1st class city or by 10% of the electors of all other municipalities
24requesting that the question of discontinuing the proceeding to acquire the plant or
1equipment of the public utility be submitted to the electors of the municipality, the
2applicable question under par. (c) shall be submitted to the electors at
any general
3or regular municipal the succeeding election
authorized under s. 8.065 (2) or an
4election authorized under s. 8.065 (3) that is held not less than 42 and not more than
547 days from the date of the filing of the petition.
If no general election or regular
6municipal election is to be held within the stated periods, the governing body of the
7municipality shall order the holding of a special election, to be held not less than 42
8days from the date of filing of the petition, for the purpose of submitting the question
9to the electors.
SB55-ASA1-AA1,1074,19
10(2) The governing body of the municipality may provide for notice of, the
11manner of holding, the method of voting on, the method of making returns of, and
12the method of canvassing and determining the result of, the election required under
13sub. (1). Notice of the election to the electors shall be given by a brief notice of that
14fact once a week for 3 weeks in some newspaper of general circulation published in
15the municipality. If no newspaper of general circulation is published in the
16municipality, publication may be made in any newspaper of general circulation in the
17county seat of the county in which the municipality is located.
The notice of holding
18any special election shall be incorporated as a part of the notice given under this
19subsection.
SB55-ASA1-AA1,1075,821
197.10
(2) Such contract when adopted by the common council of said city and
22accepted by the owner or owners of such public utility shall be submitted to the public
23service commission for its approval and upon such approval the same shall be filed
24as provided in s. 8.37 and submitted in such manner as the common council shall
25determine to a vote of the electors of such city at the next
regular municipal election
1or at a special election called for that purpose authorized under s. 8.065 (2) or an
2election authorized under s. 8.065 (3) to be held not sooner than 45 days after
3approval of the commission, and such contract shall not become binding upon such
4city until approved by a majority vote of the qualified electors of such city voting
5thereon. No bonds shall in any case be issued by said city under the contract or
6contracts mentioned in sub. (1), until the proposition of their issue shall have been
7submitted to the people of such city and adopted by a majority of the electors voting
8thereon.
SB55-ASA1-AA1,1075,2410
198.19
(1) Any territory, constituting one or more municipalities contiguous to
11a district may be annexed to and become a part of such district to all intents and
12purposes and with like effect as though originally included therein upon such terms
13and conditions as the board of directors of the district shall fix by ordinance adopted
14by the affirmative vote of two-thirds of the directors-elect, provided that before such
15ordinance becomes effective the same shall be accepted and ratified by the
16affirmative vote of a majority of the qualified electors entitled to vote and voting in
17a
special election referendum called and held for that purpose
, in accordance with
18s. 8.065, in each municipality proposed in such ordinance to be annexed to the
19district. Such ordinance shall be published and such election shall be noticed, held
20and conducted, as nearly as may be, in the manner provided by this chapter for the
21noticing, holding and conduct of elections upon the organization of a municipal power
22district, except that the returns of such election and the ballots therein shall be
23delivered to the clerk of the district. The results of said election shall be canvassed
24publicly by the directors of the district.".
SB55-ASA1-AA1,1076,53
221.0616
(2) Experts. Legal counsel,
certified public accountants
licensed or
4certified under ch. 442, or other persons as to matters that the director or officer
5believes in good faith are within the person's professional or expert competence.".
SB55-ASA1-AA1,1076,98
CHAPTER 222
9
UNIVERSAL BANKS
SB55-ASA1-AA1,1076,1110
Subchapter I
11
General Provisions
SB55-ASA1-AA1,1076,13
12222.0101 Title. This chapter may be cited as the "Wisconsin universal bank
13law."
SB55-ASA1-AA1,1076,14
14222.0102 Definitions. In this chapter:
SB55-ASA1-AA1,1076,17
15(1) "Capital" of a universal bank means the sum of the following, less the
16amount of intangible assets that is not considered to be qualifying capital by a deposit
17insurance corporation or the division:
SB55-ASA1-AA1,1076,2218
(a) For a universal bank organized as a stock organization, the universal bank's
19capital stock, preferred stock, undivided profits, surplus, outstanding notes and
20debentures approved by the division, other forms of capital designated as capital by
21the division, and other forms of capital considered to be qualifying capital of the
22universal bank by a deposit insurance corporation.
SB55-ASA1-AA1,1077,323
(b) For a universal bank organized as a mutual organization, the universal
24bank's net worth, undivided profits, surplus, outstanding notes and debentures
1approved by the division, other forms of capital designated as capital by the division,
2and other forms of capital considered to be qualifying capital by a deposit insurance
3corporation.
SB55-ASA1-AA1,1077,7
4(2) "Deposit insurance corporation" means the Federal Deposit Insurance
5Corporation or other instrumentality of, or corporation chartered by, the United
6States that insures deposits of financial institutions and that is supported by the full
7faith and credit of the U.S. government as stated in a congressional resolution.