AB150,1788,2019
214.68
(3) Before any conversion under this section is effective, the
20commissioner department shall issue a certificate of conversion.
AB150, s. 5401
21Section
5401. 214.685 (1) of the statutes is amended to read:
AB150,1789,222
214.685
(1) A mutual savings bank may convert to a stock savings bank under
23this section. The board of directors of the mutual savings bank shall adopt a plan of
24conversion that complies with this section and the rules of the
commissioner
1department. The plan of conversion is subject to the approval of the
commissioner 2department.
AB150, s. 5402
3Section
5402. 214.685 (2) of the statutes is amended to read:
AB150,1789,114
214.685
(2) Conversion of a mutual savings bank shall be effective only if it is
5accomplished according to a plan of conversion approved by the
commissioner 6department under sub. (1) and if the plan is approved by an affirmative vote of the
7majority of all votes entitled to be cast by members. Notice of a meeting to vote on
8the plan of conversion shall be sent to each member at least 10 days before the
9meeting. The notice shall state the date, time, place and purpose of the meeting,
10provide a summary of the plan of conversion and include any other information the
11commissioner department requires.
AB150, s. 5403
12Section
5403. 214.685 (3) (intro.) of the statutes is amended to read:
AB150,1789,1513
214.685
(3) (intro.) Within 10 days after the date of a meeting at which a plan
14of conversion is adopted, the board of directors shall submit to the
commissioner 15department all of the following:
AB150, s. 5404
16Section
5404. 214.685 (3) (b) of the statutes is amended to read:
AB150,1789,1817
214.685
(3) (b) Any additional information pertaining to the plan of conversion
18that the
commissioner department may require.
AB150, s. 5405
19Section
5405. 214.685 (4) (intro.) of the statutes is amended to read:
AB150,1789,2220
214.685
(4) (intro.) The
commissioner
department may approve a plan of
21conversion if the
commissioner department finds that the plan meets all of the
22following conditions:
AB150, s. 5406
23Section
5406. 214.685 (4) (c) of the statutes is amended to read:
AB150,1789,2524
214.685
(4) (c) Complies with any standard which the
commissioner 25department may promulgate by rule.
AB150, s. 5407
1Section
5407. 214.685 (5) of the statutes is amended to read:
AB150,1790,82
214.685
(5) The
commissioner department may issue to a mutual savings bank
3a certificate of conversion to a stock savings bank, if the
commissioner department 4determines the plan of conversion has been implemented as approved and the
5savings bank has complied with this section and any conditions to the approval. The
6date specified in the certificate is the effective date of the conversion. The certificate
7shall be recorded with the register of deeds in the county in which the home office of
8the savings bank is located.
AB150, s. 5408
9Section
5408. 214.685 (8) (intro.) of the statutes is amended to read:
AB150,1790,1110
214.685
(8) (intro.) The
commissioner
department shall issue rules governing
11the conversion of mutual savings banks, including:
AB150, s. 5409
12Section
5409. 214.685 (8) (j) of the statutes is amended to read:
AB150,1790,1413
214.685
(8) (j) Any other requirements for converting a mutual savings bank
14to a stock savings bank that the
commissioner department considers to be necessary.
AB150, s. 5410
15Section
5410. 214.715 (title) of the statutes is amended to read:
AB150,1790,16
16214.715 (title)
Powers of commissioner the department.
AB150, s. 5411
17Section
5411. 214.715 (1) (intro.) of the statutes is amended to read:
AB150,1790,1818
214.715
(1) (intro.) The
commissioner
department shall do all of the following:
AB150, s. 5412
19Section
5412. 214.715 (1) (e) of the statutes is amended to read:
AB150,1790,2120
214.715
(1) (e) Submit an annual report to the governor and the legislature
21regarding the work of the
commissioner's office department under this chapter.
AB150, s. 5413
22Section
5413. 214.715 (1) (f) of the statutes is amended to read:
AB150,1791,223
214.715
(1) (f) Commence an action
in the commissioner's name to enforce any
24law of this state that applies to savings banks, service corporations, savings bank
25subsidiaries, affiliates or savings bank holding companies, including the
1enforcement of any obligation of the officers, directors, agents or employes of these
2entities.
AB150, s. 5414
3Section
5414. 214.715 (1) (h) of the statutes is amended to read:
AB150,1791,124
214.715
(1) (h) Establish a reasonable fee structure, subject to approval of the
5review board, for savings banks and savings bank holding companies and for their
6service corporations and subsidiaries. The fees may include annual fees, application
7fees, regular and special examination fees and other fees that relate to the
8commissioner's department's responsibilities under this chapter and that are
9directly attributable to the entities operating under this chapter. The
commissioner 10department may assess, bill and collect fees established under this paragraph. The
11amounts collected by the
commissioner department shall be used for the expenses
12of the
office of the commissioner department.
AB150, s. 5415
13Section
5415. 214.715 (2) of the statutes is amended to read:
AB150,1791,1714
214.715
(2) The commissioner Employes of the department may not be subject
15to any civil liability or penalty, or to any criminal prosecution, for any error in
16judgment or discretion made in good faith and upon reasonable grounds in any action
17taken or omitted by the
commissioner employe in an official capacity.
AB150, s. 5416
18Section
5416. 214.715 (3) of the statutes is amended to read:
AB150,1791,2319
214.715
(3) If it appears to the
commissioner department of financial
20institutions that a savings bank is conducting its business in violation of this chapter,
21the
commissioner department of financial institutions may report the facts to the
22department of justice which may bring an action to revoke the certificate of
23incorporation of the savings bank.
AB150, s. 5417
24Section
5417. 214.715 (4) (a) of the statutes is amended to read:
AB150,1792,4
1214.715
(4) (a) A savings bank that intends to move its home office or a branch
2office to some other location not more than one mile from its current location shall
3make an application to the
commissioner department. The
commissioner 4department may approve or deny the application for relocation.
AB150, s. 5418
5Section
5418. 214.715 (4) (b) of the statutes is amended to read:
AB150,1792,136
214.715
(4) (b) A savings bank that intends to move its home office or a branch
7office to some other location more than one mile from its current location shall make
8an application to the
commissioner department. The
commissioner department 9shall give notice and provide an opportunity for hearing as provided in s. 214.26 (3)
10to (5). In approving or denying the application for relocation, the
commissioner 11department shall determine the need for relocation and determine whether undue
12harm or injury would be caused to any savings bank doing business in the area or
13vicinity of the proposed relocation.
AB150, s. 5419
14Section
5419. 214.72 (1) (b) of the statutes is amended to read:
AB150,1792,1915
214.72
(1) (b) "Financial regulator" means the
commissioner, department
16secretary and deputy
commissioner, secretary, and an administrator
of examination
17and supervision,
a supervisor of data processing, legal counsel and a
savings bank 18financial institution examiner
employed by the department and includes any
19member of a financial regulator's immediate family, as defined in s. 19.42 (7).
AB150, s. 5420
20Section
5420. 214.72 (3) of the statutes is amended to read:
AB150,1793,521
214.72
(3) Within 30 days after commencing employment as a financial
22regulator and at least once each year, each financial regulator, for himself or herself
23and covering his or her immediate family, shall complete a written, sworn report
24disclosing the nature of all business relationships with savings banks on forms
25prescribed by the
commissioner department. Each report shall be reviewed by the
1commissioner department, except that the
commissioner's secretary's and deputy
2commissioner's secretary's report shall be reviewed by the review board. The
3reviewers shall determine if any business relationship is or appears improper and,
4if so, may direct the termination of that business relationship within a reasonable,
5prescribed time period.
AB150, s. 5421
6Section
5421. 214.725 (1) of the statutes is amended to read:
AB150,1793,147
214.725
(1) At least once every 18 months and more often if necessary, the
8commissioner department shall examine the books, records, operations and affairs
9of a savings bank. In the course of the examination, the
commissioner department 10may also examine in the same manner any entity, company or individual that the
11commissioner department determines may have a relationship with the savings
12bank or a savings bank holding company, savings bank subsidiary, service
13corporation or affiliate of the savings bank, if the relationship may adversely affect
14the affairs, activities and safety and soundness of the savings bank.
AB150, s. 5422
15Section
5422. 214.725 (2) of the statutes is amended to read:
AB150,1793,2216
214.725
(2) The
commissioner department shall consider it to be necessary to
17conduct an examination more often than every 18 months if a required report from
18a savings bank indicates a material change in financial condition or a material
19violation of a state or federal law, of a federal regulation or of a rule of the
20commissioner department. If that condition is grounds for taking custody of the
21savings bank under s. 214.76, the examination shall be initiated within 10 business
22days.
AB150, s. 5423
23Section
5423. 214.725 (3) (f) of the statutes is amended to read:
AB150,1793,2524
214.725
(3) (f) Any other matter the
commissioner department considers to be
25appropriate.
AB150, s. 5424
1Section
5424. 214.725 (4) of the statutes is amended to read:
AB150,1794,82
214.725
(4) If a savings bank, its savings bank holding company or any of its
3savings bank subsidiaries or service corporations has not been audited at least once
4in the 12 months before the
commissioner's department's examination, the
5commissioner department shall order an audit of the entity's books and records to be
6made by an independent certified public accountant, selected by the
commissioner 7department, who has experience in financial institution audits. The cost of the audit
8shall be paid for by the entity being audited.
AB150, s. 5425
9Section
5425. 214.725 (5) of the statutes is amended to read:
AB150,1794,1310
214.725
(5) The commissioner, employes
Employes of the
office of the
11commissioner department or other designated agents may administer oaths and
12examine and take and preserve testimony under oath as to anything in the affairs
13or ownership of the savings bank or the entity examined.
AB150, s. 5426
14Section
5426. 214.725 (7) of the statutes is amended to read:
AB150,1794,1715
214.725
(7) If a savings bank fails to submit to an examination, the
16commissioner department shall report that failure to the attorney general, who shall
17institute proceedings to revoke its certificate of incorporation.
AB150, s. 5427
18Section
5427. 214.735 of the statutes is amended to read:
AB150,1794,24
19214.735 Examination report. Upon completion of an examination, the
20commissioner department shall provide an examination report to the board of
21directors of the savings bank or other entity examined. Each director shall read the
22report and shall sign an affidavit affirming that the director has read and
23understands the report. The affidavits shall be retained by the savings bank or
24entity examined and may be examined by the
commissioner department.
AB150, s. 5428
25Section
5428. 214.74 (title) of the statutes is amended to read:
AB150,1795,1
1214.74 (title)
Orders of the
commissioner department.
AB150, s. 5429
2Section
5429. 214.74 (1) of the statutes is amended to read:
AB150,1795,93
214.74
(1) If the affairs of the savings bank, savings bank subsidiary, service
4corporation or affiliate or savings bank holding company are not being conducted in
5accordance with this chapter, the
commissioner department may require the
6directors, officers and employes to take necessary corrective action. If the necessary
7corrective action is not taken, the
commissioner
department may issue an order to
8the directors of the entity, to be served personally or by certified mail, specifying a
9date for the performance of the corrective action.
AB150, s. 5430
10Section
5430. 214.74 (2) of the statutes is amended to read:
AB150,1795,2011
214.74
(2) If the order contains a finding that the business of the savings bank
12or savings bank holding company is being conducted in a fraudulent, illegal, unsafe
13or unsound manner or that the violation or the continuance of the practice to be
14corrected may cause insolvency, substantial dissipation of assets or earnings or the
15impairment of capital, the savings bank or savings bank holding company shall
16comply with the order immediately, unless the order is modified or withdrawn by the
17commissioner department or modified or terminated by a court. Notwithstanding
18sub. (3), the
commissioner department may apply to the circuit court in the county
19in which the home office of the savings bank or savings bank holding company is
20located for enforcement of an order.
AB150, s. 5431
21Section
5431. 214.74 (3) of the statutes is amended to read:
AB150,1796,422
214.74
(3) If a hearing before the review board has not been requested within
2320 days after service of an order, the
commissioner
department may, at any time
24within 90 days after the date specified in the order for an action to be taken or
25discontinued, commence an action in the circuit court of the county in which the
1home office of the savings bank or savings bank holding company is located to compel
2the directors, officers or employes to take required corrective action. If a hearing is
3requested pursuant to s. 214.78, the
commissioner
department may institute suit
4within 90 days after a determination by the review board.
AB150, s. 5432
5Section
5432. 214.74 (4) of the statutes is amended to read:
AB150,1796,76
214.74
(4) This section is in addition to the enforcement authority of the
7commissioner department under subch. XII.
AB150, s. 5433
8Section
5433. 214.745 of the statutes is amended to read:
AB150,1796,15
9214.745 (title)
Commissioner's Department's notice to members or
10stockholders. The
commissioner department may prepare a statement of the
11condition of the savings bank, affiliate, savings bank subsidiary, service corporation
12or savings bank holding company and may mail the statement to the members or
13stockholders or may publish the statement as a class 1 notice under ch. 985. The
14expense of a mailing or publication shall be paid by the savings bank, affiliate,
15savings bank subsidiary, service corporation or savings bank holding company.
AB150, s. 5434
16Section
5434. 214.75 (1) of the statutes is amended to read:
AB150,1796,2217
214.75
(1) A savings bank shall maintain books and records, as required by the
18commissioner department, in accordance with generally accepted accounting
19principles and the requirements of its deposit insurance corporation. All books and
20records shall be current, complete, organized and accessible to the
commissioner, the
21commissioner's department's agents and examiners and to the savings bank's
22auditors and accountants.
AB150, s. 5435
23Section
5435. 214.75 (2) of the statutes is amended to read:
AB150,1797,624
214.75
(2) A savings bank employing an outside data processing service shall
25inform the
commissioner department at the initiation, renewal or changing of a
1contract for data processing services with an outside data processing service. The
2contract shall be submitted to the
commissioner department at least 60 days before
3its implementation. The contract shall provide that the records maintained shall at
4all times be available for examination and audit by the
commissioner department.
5A savings bank shall implement internal control and security measures for its data
6processing activities.
AB150, s. 5436
7Section
5436. 214.75 (3) of the statutes is amended to read:
AB150,1797,108
214.75
(3) The
commissioner department may examine any data processing
9center that provides data processing or related services to a savings bank as often
10as the
commissioner department examines the savings bank it serves.
AB150, s. 5437
11Section
5437. 214.75 (4) of the statutes is amended to read:
AB150,1797,1912
214.75
(4) The
commissioner department shall by rule prescribe periods of time
13for which savings banks must retain records and after the expiration of which, the
14savings bank may destroy those records. Liability may not accrue against the
15savings bank, the
commissioner department or this state for destruction of records
16according to rules of the
commissioner department promulgated under this
17subsection. In an action in which records of the savings bank may be called in
18question or demanded, a showing of the expiration of the retention period shall be
19sufficient excuse for failure to produce the records.
AB150, s. 5438
20Section
5438. 214.75 (5) (a) of the statutes is amended to read:
AB150,1798,421
214.75
(5) (a) A savings bank may cause records kept by the savings bank to
22be recorded, copied or reproduced by any photostatic, photographic or miniature
23photographic process or by optical imaging if the process employed correctly,
24accurately and permanently copies, reproduces or forms a medium for copying,
25reproducing or recording the original record on a film or other durable material. A
1savings bank may thereafter dispose of the original record after obtaining the
2written consent of the
commissioner department. This subsection, except that part
3requiring written consent of the
commissioner department, is applicable to federal
4savings banks if it does not contravene federal law.
AB150, s. 5439
5Section
5439. 214.755 (1) (intro.) of the statutes is amended to read:
AB150,1798,106
214.755
(1) (intro.)
The commissioner, employes Employes of the
office of the
7commissioner department and members of the review board may not disclose
8information gathered by examination of or obtained through reports from a savings
9bank or from a state or federal financial institution regulatory authority except to
10any of the following:
AB150, s. 5440
11Section
5440. 214.76 (1) of the statutes is amended to read:
AB150,1798,1712
214.76
(1) At least once in each year and not more than 12 months after its last
13audit, a savings bank shall cause its books, records and accounts to be audited by an
14independent certified public accountant not connected with the savings bank. The
15certified public accountant shall conduct the audit to produce a certified financial
16statement. The
commissioner department may require additional information to be
17included in an audit report.
AB150, s. 5441
18Section
5441. 214.76 (3) of the statutes is amended to read:
AB150,1798,2519
214.76
(3) A copy of the audit report, including a balance sheet of the savings
20bank on the date of the audit and a statement of income and expenses of the savings
21bank during the year ending with the date of the audit and the written summary
22prepared for the board of directors shall be filed with the
commissioner department 23within 60 days after the date on which the savings bank received the audit report.
24The
commissioner department may, for good cause shown, extend the filing date for
25up to 60 additional days.
AB150, s. 5442
1Section
5442. 214.76 (4) of the statutes is amended to read:
AB150,1799,92
214.76
(4) The audit report filed with the
commissioner department shall be
3certified by the accountant conducting the audit. If a savings bank fails to cause an
4audit to be made, the
commissioner department shall order an audit to be made by
5an independent certified public accountant at the savings bank's expense. Instead
6of the audit required under sub. (1), the
commissioner
department may accept an
7audit or portion of an audit made exclusively for a deposit insurance corporation or
8for a financial regulator of another state if the home office of the savings bank is
9located in that state.
AB150, s. 5443
10Section
5443. 214.76 (5) (a) (intro.) of the statutes is amended to read:
AB150,1799,1411
214.76
(5) (a) (intro.) Annually, no later than February 1, a savings bank shall
12file with the
commissioner department a report of its activities of the preceding
13calendar year, upon forms prescribed by the
commissioner department. The report
14shall include all of the following:
AB150, s. 5444
15Section
5444. 214.76 (5) (a) 3. of the statutes is amended to read:
AB150,1799,1716
214.76
(5) (a) 3. Any other information that the
commissioner department 17requires.