AB150: Bill Text

AB150, s. 4924 Section 4924. 186.21 (4) of the statutes is amended to read:

AB150,1638,21 186.21 (4) The office of the commissioner of credit unions shall provide application blanks, model bylaws, and whatever other material may be needful or helpful in the organization, efficient functioning and expansion of credit unions.

AB150, s. 4925 Section 4925. 186.22 (1) (intro.) of the statutes is amended to read:

AB150,1639,3 186.22 (1) Organization. (intro.) When authorized by the commissioner office of credit unions, 10 or more credit unions, the aggregate resources of which shall not be less than $50,000, may form the "Credit Union Finance Corporation". Each of such credit unions shall subscribe, acknowledge and submit to the commissioner office of credit unions an organization certificate in duplicate which shall specifically state:

AB150, s. 4926 Section 4926. 186.22 (2) (intro.) of the statutes is amended to read:

AB150,1639,8 186.22 (2) Proposed bylaws. (intro.) The incorporators shall subscribe and acknowledge and submit to the commissioner office of credit unions proposed bylaws in duplicate, which shall prescribe the manner in which the business of such credit union finance corporation shall be conducted with reference to the following matters:

AB150, s. 4927 Section 4927. 186.22 (3) (intro.) of the statutes is amended to read:

AB150,1639,16 186.22 (3) When corporate existence begins; conditions precedent to commencing business. (intro.) When the commissioner shall have indorsed the commissioner's approval on office of credit unions approves the organization certificate, the corporate existence of the credit union finance corporation shall begin and it shall then have power to elect officers and transact such other business as relates to its organization; but such credit union finance corporation shall transact no other business until:

AB150, s. 4928 Section 4928. 186.22 (3) (a) of the statutes is amended to read:

AB150,1639,22 186.22 (3) (a) Subscriptions to its shares aggregating $2,000 shall have been paid in cash and an affidavit stating that such subscriptions have been so paid, subscribed and sworn to by its 2 principal officers, shall have been filed with the secretary of state department of revenue and a certified copy thereof in the office of the commissioner credit unions.

AB150, s. 4929 Section 4929. 186.22 (3) (b) of the statutes is amended to read:

AB150,1639,25 186.22 (3) (b) The commissioner office of credit unions shall have duly issued to it an authorization certificate.

AB150, s. 4930 Section 4930. 186.22 (4) (d) of the statutes is amended to read:

AB150,1640,15 186.22 (4) (d) To receive by assignment from its members and to deposit in trust with the commissioner office of credit unions to be held by the commissioner office as security for its and their outstanding obligations any first mortgages on real estate and the bonds secured thereby and such other securities as are provided for in s. 186.11 and are legally receivable by credit unions; to empower such credit unions as agents of the credit union finance corporation to collect and immediately pay over to the credit union the dues, interest and other sums payable under the terms, conditions and covenants of the bonds and mortgages or, prior to a default upon any such bond and mortgage so assigned and when adequate security has been given to the credit union finance corporation, by any such credit union, to retain such collections until a payment to the credit union finance corporation from such credit union becomes due; to return to, or permit such credit unions to retain any sums of money so collected in excess of the amount required to meet the obligations of such credit unions respectively.

AB150, s. 4931 Section 4931. 186.22 (4) (g) of the statutes is amended to read:

AB150,1640,22 186.22 (4) (g) With the advice and approval of the commissioner office of credit unions, to become a member of or to subscribe for and purchase notes and debentures issued by any federal finance or credit corporation which may be organized by act of congress for aiding and assisting credit unions to utilize their resources and credit, or to borrow from such finance or credit corporation, in either case, in an amount not exceeding in the aggregate amount two-fifths of the assets on hand.

AB150, s. 4932 Section 4932. 186.22 (5) (c) of the statutes is amended to read:

AB150,1641,3 186.22 (5) (c) Invest more than 25 per centum % of its surplus in real estate occupied, or to be occupied, by it for office purposes, without the written approval of the commissioner office of credit unions.

AB150, s. 4933 Section 4933. 186.22 (6) of the statutes is amended to read:

AB150,1642,10 186.22 (6) Issuing of bonds. Bonds shall be issued in series of not less than $10,000. All bonds issued by the credit union finance corporation may be called on any interest day at 102 1/2% and interest by publishing a class 1 notice, under ch. 985, not less than 60 days prior to said day. Any member credit union which is not indebted for borrowed money to any other bank or trust company which does business exclusively with the credit union finance corporation shall submit a schedule of assets from time to time as the board of directors of such finance corporation shall require. Any member credit union which may have a loan from any other banking institution may borrow money from such credit union finance corporation upon pledging therefor such amount of its mortgages with the bonds secured thereby as collateral security for bonds issued on its behalf as the commissioner office of credit unions and the board of directors of such credit union finance corporation may require; provided that the aggregate of all loans made by such credit union shall not exceed 40% of its assets as provided in s. 186.11. The amortization payments upon all mortgages accepted by the credit union finance corporation as collateral security for bonds shall be sufficient to liquidate the debt in a period not exceeding 40 years. In the event of any default for more than 90 days in the payment of the principal of, or for more than 90 days in the payment of any instalment of interest upon, any of said bonds, the commissioner office of credit unions may, on the commissioner's office's own motion, and shall, upon the request in writing of the holders of said bonds in default to the amount of $10,000, forthwith take possession of and proceed to liquidate the credit union finance corporation. Upon such liquidation it shall be entitled in the name of the credit union finance corporation to enforce all of its rights and securities and to collect and realize upon all of its assets, including all mortgages assigned to said credit union finance corporation by the several member credit unions, and deposited with the state treasurer, up to the amounts advanced by the credit union finance corporation to the several member credit unions thereon. Upon any such liquidation all said bonds then issued and outstanding shall forthwith become due and payable equally and ratably out of all the assets of said credit union finance corporation in advance of any other debts thereof not specifically preferred by law.

AB150, s. 4934 Section 4934. 186.22 (10) of the statutes is amended to read:

AB150,1642,22 186.22 (10) Qualifications and disqualifications of directors; bond. All of the directors of the credit union finance corporation must reside in the state of Wisconsin during their term of office, and all must be citizens of the United States. No person shall be elected a director unless the person is a shareholder of a member credit union and has been nominated by it for that office; and every person elected to be a director who, after such election, shall cease to be a shareholder of a member credit union, shall cease to be a director of the credit union finance corporation, and the person's office shall be vacant. Directors who have the custody or possession of money, securities or property shall give bond to the credit union finance corporation in an amount commensurate with their liability, as approved by the commissioner office of credit unions.

AB150, s. 4935 Section 4935. 186.22 (11) of the statutes is amended to read:

AB150,1643,11 186.22 (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, 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 corporation, and that the director is the owner in good faith and in the director's own right on the books of the 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 not hypothecated, or in any way pledged as security for any loan or debt and, in case of reelection that such share was not hypothecated or in any way pledged as security for any loan or debt during the director's previous term. Such 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 office of credit unions.

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

AB150,1643,21 186.22 (15) Preference of credit. All the property of any bank, trust company or credit union which shall become insolvent shall be applied by the trustees, assignees or receivers thereof or by the commissioner office of credit unions in the first place to the payment in full of any sum or sums of money deposited therewith by the credit union finance corporation or due to the credit union finance corporation for subscriptions, sinking funds, interest and principal of bonds, or guaranty of mortgages, ratably and proportionately but not to an amount exceeding that authorized to be so deposited or contracted by the provisions of this section and in accordance and on an equality with any other preference provided for in this section.

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

AB150,1644,4 186.23 Rules and regulations. The commissioner office of credit unions shall, with the approval of the credit union review board, issue orders prescribing reasonable rules and regulations in conducting the business of credit unions or corporations operating as provided in this chapter and it may in like manner issue orders amending, modifying, repealing or supplementing rules or orders. The violation of any such rule may be cause for the removal of any officer, director or employe of any credit union or corporation.

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

AB150,1645,3 186.24 (1) Whenever the commissioner office of credit unions is of the opinion that the loaning, investing or other policies and practices of any officer, director or committee member of any credit union have been prejudicial to the best interest of such credit union or its investors, or that such policies or practices, if put into operation or continued, will endanger the safety or solvency of said credit union or impair the interest of its investors, the commissioner office of credit unions may request the removal of such officer, director or committee member. Such request shall be served on the credit union and on such officer, director or committee member in the manner provided by law for serving a summons in a court of record, or shall be transmitted to the credit union and the officer, director or committee member by registered mail, with return receipt requested. Such request shall specify the reasons for the removal of such officer, director or committee member, and also shall advise such officer, director or committee member relative to that person's rights to a hearing before the credit union review board as provided in this section. A copy of such request for removal shall be transmitted to each member of the credit union review board at the same time such request is being served upon the credit union and officer, director or committee member involved. If such request for removal is not complied with within a reasonable time fixed by the commissioner office of credit unions, the commissioner office may by order, with approval of the credit union review board, remove such officer, director or committee member, but no order for removal shall be entered until after an opportunity for a hearing before the credit union review board is given such officer, director or committee member upon not less than 30 days' notice. An order for removal shall take effect as of the date issued.

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

AB150,1645,10 186.24 (2) Any removal under this section shall be effective in all respects the same as if made by the board of directors or stockholders of said credit union. Any officer, director or committee member removed from such office under the provisions of this section shall not be reelected as an officer, director or committee member of any credit union without the approval of the commissioner office of credit unions and advisory committee.

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

AB150,1645,17 186.24 (3) If the removal under sub. (1) or the resignation or death of credit union directors prevents a credit union board of directors from securing the quorum required at board meetings and thus prevents continued operation of the credit union, the commissioner office of credit unions may appoint temporary directors to fill the vacancies for up to 120 days or until an election of directors to fill the vacancies has been held at a special meeting of the membership called for such purpose.

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

AB150,1646,13 186.25 Supervision; reports. All credit unions formed under this or other similar law, or authorized to transact in this state a business similar to that authorized to be done by this chapter, shall be under the control and supervision of the commissioner office of credit unions. Every such corporation shall make a full and detailed report of its business as of December 31 for that year, and of its condition on such date, in such form and containing such information as the commissioner office of credit unions may prescribe, and shall file with the commissioner a true and verified copy thereof on or before February 1 thereafter. Accompanying the same shall be attached a copy of the statement of the credit union at the close of its last fiscal year. If any such credit union fails or refuses to furnish the report herein required, it shall be subject, at the discretion of the commissioner office of credit unions, to a forfeiture of $1 to $10 per day for each day of default, and the commissioner office of credit unions may maintain an action in the name of the state to recover such penalty, and the same shall be paid into the state treasury. A credit union shall publish the report as a class 1 notice, under ch. 985, in the municipality, as defined in s. 985.01 (3), where the credit union is located if the credit union has assets of $10,000,000 or more or has a membership as described in s. 186.02 (2) (b) 2. The published report shall be in the condensed form as the commissioner office of credit unions prescribes. Proof of publication shall be furnished to the commissioner office of credit unions within 45 days after the date of the report.

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

AB150,1647,2 186.26 (1) (a) At least once each year, the commissioner office of credit unions shall make or cause to be made an examination of the cash, bills, collaterals, securities, assets, books of account, condition and affairs of each credit union and for that purpose the commissioner or the examiners appointed by the commissioner office of credit unions shall have full access to, and may compel the production of, each credit union's books, papers, securities and moneys, administer oaths to and examine each credit union's officers and agents as to their respective affairs. Special examination shall be made upon written request of 5 or more members, if those members guarantee the expense of the special examination. The refusal of any credit union to submit to an examination ordered or requested shall be reported to the department of justice for the purpose of instituting proceedings to have the charter of the credit union revoked because of the refusal.

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

AB150,1647,11 186.26 (1) (b) In lieu of an annual examination of a credit union under par. (a), the commissioner office of credit unions may accept an audit report of the condition of the credit union made by a certified public accountant not an employe of the credit union in accordance with rules promulgated by the commissioner office of credit unions. The cost of the audit shall be paid by the credit union. A copy of each audit under this paragraph shall be furnished to the Wisconsin credit union savings insurance corporation if the credit union's savings are protected or guaranteed by the Wisconsin credit union savings insurance corporation.

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

AB150,1647,22 186.26 (2) If records are located outside this state, at the option of the commissioner office of credit unions, the credit union shall either make the records available to the commissioner office of credit unions at a convenient location within this state or pay the reasonable and necessary expenses for the commissioner or examiners office to examine the records at the place where they are maintained. The commissioner office of credit unions may designate examiners, including comparable officials of the state in which the records are located, to inspect them on the commissioner's office's behalf. Except as provided in s. 186.113 (1m), the maintenance of any office or branch outside this state is not allowed under this chapter.

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

AB150,1648,2 186.27 Disclosure of information. (intro.) The commissioner, all other officers and employes of the office, Employes of the office of credit unions and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except:

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

AB150,1648,5 186.27 (3) (intro.) The commissioner office of credit unions may do any of the following:

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

AB150,1648,10 186.27 (3) (b) Give access to and disclose to the national board or any official or examiner of it any information possessed by the commissioner office of credit unions about the conditions or affairs of any credit union whose savings are insured by the national board.

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

AB150,1648,12 186.28 (title) Bookkeeping; forfeiture for failure to obey commissioner.

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

AB150,1648,20 186.28 (1) A credit union shall open and keep accurate and convenient records of its transactions and accounts. If the commissioner office of credit unions determines that a credit union does not keep its books and accounts in a manner which enables the commissioner office to readily ascertain the true condition of the credit union, the commissioner office of credit unions may require any officer of the credit union to open and keep such books or accounts as the commissioner office may prescribe in order to remedy the deficiency.

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

AB150,1649,2 186.28 (2) Any credit union that refuses or neglects to maintain books or accounts in the manner prescribed under sub. (1) shall be subject, upon written notification of the commissioner office of credit unions, to a forfeiture not to exceed $10 for each day it is in violation. If any credit union fails or refuses to pay the forfeiture, the commissioner office of credit unions may institute proceedings to enforce its collection.

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

AB150,1649,4 186.29 (title) Possession by commissioner office.

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

AB150,1649,10 186.29 (1) Conditions for taking possession. (intro.) The commissioner office of credit unions may forthwith take possession and control of the business and property of any credit union to which this chapter is applicable whenever the commissioner office of credit unions finds a credit union violating this chapter or that the credit union:

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

AB150,1649,13 186.29 (1) (h) Has neglected or refused to comply with the terms of a duly issued order of the commissioner office of credit unions; or

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

AB150,1649,21 186.29 (1m) (a) The commissioner office of credit unions may suspend, for a period of up to 120 days, the business or an officer, director, committee member or employe of a credit union if the commissioner office finds the existence of any condition under sub. (1) (a) to (k). The commissioner office of credit unions may renew a suspension under this paragraph any number of times and for periods of up to 120 days if the commissioner office finds that the condition or conditions continue to exist.

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

AB150,1650,5 186.29 (1m) (b) The commissioner office of credit unions shall suspend the business of a credit union, other than a corporate central credit union, if the credit union does not comply with s. 186.34 (2) (a). The commissioner office of credit unions shall then liquidate the credit union under this section unless the credit union files a complete application for federal share insurance from the national board within 30 days after the date the suspension under this paragraph commences. The commissioner office of credit unions shall authorize a credit union to resume its business if it files an application within the time period specified in this paragraph.

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

AB150,1650,7 186.29 (1p) (title) Possession by commissioner office of credit unions.

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

AB150,1650,11 186.29 (1p) (a) Discretionary possession. The commissioner office of credit unions may take possession of the business and property of a credit union if the commissioner office finds the existence of any condition under sub. (1) (a) to (k).

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

AB150,1650,17 186.29 (1p) (b) Mandatory possession. The commissioner office of credit unions shall take possession of the business and property of a credit union that violates s. 186.34 (2) (b), unless the commissioner office approves a consolidation under s. 186.31, and of a credit union that the commissioner office of credit unions is required to liquidate under sub. (1m) (b).

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

AB150,1650,21 186.29 (2) Procedure on taking possession. (intro.) Upon taking possession of the business and property of any such credit union the commissioner office of credit unions shall forthwith:

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

AB150,1651,3 186.29 (2) (a) Serve a notice in writing upon the president and secretary of said credit union setting forth therein that the commissioner office of credit unions has taken possession and control of the business and property of said credit union. Said notice shall be executed in duplicate, and immediately after the same has been served, one of the said notices shall be filed with the clerk of the circuit court of the county where said credit union is located together with proof of service.

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

AB150,1651,7 186.29 (2) (b) Give notice to all individuals, partnerships, corporations, limited liability companies and associations known to the commissioner office of credit unions to be holding or in possession of any assets of such credit union.

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

AB150,1652,3 186.29 (2) (c) The commissioner office of credit unions may appoint one or more special deputy commissioners deputies as agent agents to assist in the duty of liquidation and distribution of the assets of one or more credit unions of whose business and property the commissioner office of credit unions shall have taken possession pursuant to the provisions of this chapter. A certificate of such appointment shall be filed in the office of the commissioner credit unions and a certified copy in the office of the clerk of the circuit court for the county in which such credit union is located. The commissioner office of credit unions may employ such counsel and procure such expert assistance and advice as may be necessary in the liquidation and distribution of the assets of such credit union, and may retain such of the officers or employes of such credit union as the commissioner office deems necessary. The special deputy commissioner and assistants shall furnish such security for the faithful discharge of their duties as the commissioner office of credit unions deems proper. Such The special deputy commissioner may execute, acknowledge and deliver any and all deeds, assignments, releases or other instruments necessary and proper to effect any sale and transfer or incumbrance of real estate or personal property and may borrow money for use in the liquidation after the same has been approved by the commissioner office of credit unions and an order obtained from the circuit court of the county in which said credit union is located as hereinafter provided.

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

AB150,1652,16 186.29 (2) (d) Upon taking possession of the property and business of such credit union, the special deputy commissioner is authorized to collect all moneys due to such credit union, and do such other acts as are necessary to conserve its assets and business, and shall proceed to liquidate the affairs thereof as hereinafter provided. The special deputy commissioner shall collect all debts due and claims belonging to it, and upon a petition approved by the commissioner office of credit unions and upon order of the circuit court of the county in which such credit union is located, may sell or compound all bad or doubtful debts, or do any act or execute any other necessary instruments and upon like petition and order may sell all the real and personal property of such credit union on such terms as the court shall approve. Such The special deputy commissioner may, if necessary, enforce individual liability of the stockholders to pay the debts of such corporation.

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

AB150,1653,7 186.29 (3) Notice, allowance and payment of claims. The special deputy commissioner shall cause a class 3 notice, under ch. 985, to be published, calling on all persons who may have claims against such credit union, to present the same to the special deputy commissioner and make legal proof thereof at a place and within a time, not earlier than the last day of publication, to be therein specified. The special deputy commissioner shall mail a similar notice to all persons at their last-known address, whose names appear as creditors upon the books of the credit union. Proof of service of such notice shall be filed with the clerk of said court. The special deputy commissioner may reject any claim. Any party interested may also file written objections to any claim with the special deputy commissioner and after notice by registered mail of such rejection, said claimant shall be barred unless the claimant commences an action thereon within 3 months. Claims presented after the expiration of the time fixed in the notice to creditors shall be entitled to share in the distribution only to the extent of the assets then in the hands of the special deputy commissioner equitably applicable thereto.

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

AB150,1653,20 186.29 (4) Inventory of assets and statement of liabilities. Upon taking possession of the property and assets of such credit union, the special deputy commissioner shall make an inventory of the assets of such credit union, in duplicate, one to be filed in the office of the commissioner credit unions and one in the office of the clerk of circuit court for the county in which such credit union is located. Upon the expiration of the time fixed for the presentation of claims, the special deputy commissioner shall make in duplicate a full and complete list of the claims presented, including and specifying such claims as have been rejected by the special deputy commissioner, one to be filed in the office of the commissioner credit unions, and one in the office of the clerk of circuit court for the county in which such credit union is located. Such inventory and list of claims shall be open at all reasonable times to inspection.

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

AB150,1654,10 186.29 (5) Adjustment of loans and withdrawal value of shares. The value of shares pledged upon a loan to the credit union shall be applied and credited to the loan and the borrower shall be liable only for the balance. The rate of interest charged upon the balance shall be the legal rate. The value shall be determined in such manner as the commissioner office of credit unions prescribes, and shall be made under s. 186.30 (1) and (3), or in such other manner as the commissioner office may prescribe. Upon the approval of the value by the commissioner office of credit unions and the circuit court of the county in which the credit union is located, the book value of each member shall be reduced proportionately. At least 5 days' written notice of the determination of value shall be given to all shareholders of the time and place the value shall be submitted to the circuit court for approval. Approval of the circuit court shall be by an order entered under s. 807.11 (2). Any stockholder or creditor of the credit union aggrieved by the determination of value may appeal to the court of appeals.

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

AB150,1654,25 186.29 (6) Compensation and expenses in connection with liquidation. The compensation of the special deputy commissioners deputies, counsel and other employes and assistants, and all expenses of supervision and liquidation shall be fixed by the commissioner office of credit unions, subject to the approval of the circuit court for the county in which the credit union is located, and shall upon the certificate of the commissioner office of credit unions be paid out of the funds of the credit union. Expenses of supervision and liquidation include the cost of the services rendered by the office of the commissioner credit unions to the credit union being liquidated. The cost of these services shall be determined by the commissioner office of credit unions and paid to the office of the commissioner from the assets of the credit union as other expenses of liquidation are paid. The moneys collected by the special deputy commissioner shall be deposited in one or more central credit unions, and, in case of the suspension or insolvency of a depository, such deposits shall be preferred before all other deposits.