AB150,1836,2119
215.18
(3) An association may agree in writing not to close a savings account.
20The
commissioner department may promulgate rules restricting the authority of an
21association to close savings accounts.
AB150, s. 5596
22Section
5596. 215.20 (2) of the statutes is amended to read:
AB150,1836,2523
215.20
(2) An association may make, buy, sell and hold property improvement
24loans to such persons, for such purposes, in such individual and aggregate amounts,
25and upon such terms as the
commissioner department by rule prescribes.
AB150, s. 5597
1Section
5597. 215.205 (intro.) of the statutes is amended to read:
AB150,1837,4
2215.205 Other loans and investments. (intro.) Subject to such rules as the
3commissioner department prescribes, an association may make, buy, sell and hold
4the following loans and investments:
AB150, s. 5598
5Section
5598. 215.205 (4) of the statutes is amended to read:
AB150,1837,116
215.205
(4) Loans or interests in loans to financial institutions with respect to
7which the United States, or any agency or instrumentality thereof, has any function
8of examination or supervision, or to any broker or dealer registered with the
9securities and exchange commission, secured by loans, obligations or investments in
10which it has any statutory authority to invest directly, subject to such rules as the
11commissioner department may issue.
AB150, s. 5599
12Section
5599. 215.21 (1) (intro.) of the statutes is amended to read:
AB150,1837,1513
215.21
(1) Basic security required. (intro.) Subject to such additional
14limitations as the
commissioner department may prescribe, associations may make
15loans on the security of any of the following:
AB150, s. 5600
16Section
5600. 215.21 (1) (c) of the statutes is amended to read:
AB150,1837,2417
215.21
(1) (c) An assignment or transfer of stock certificates or other evidence
18of the borrower's ownership interest in a corporation formed for the cooperative
19ownership of real estate. Sections 846.10 and 846.101, as they apply to a foreclosure
20of a mortgage involving a one-family residence, apply to a proceeding to enforce the
21lender's rights in security given for a loan under this paragraph. The
commissioner 22department shall promulgate joint rules with the
commissioners office of credit
23unions
and banking that establish procedures for enforcing a lender's rights in
24security given for a loan under this paragraph.
AB150, s. 5601
25Section
5601. 215.21 (5) (a) of the statutes is amended to read:
AB150,1838,4
1215.21
(5) (a) The aggregate of loans that an association may make to any one
2borrower is subject to such limits as determined and prescribed by the
commissioner 3department and review board, but not exceeding 10% of the aggregate savings
4accounts or the net worth of the association, whichever is less.
AB150, s. 5602
5Section
5602. 215.21 (6) (a) of the statutes is amended to read:
AB150,1838,116
215.21
(6) (a)
Direct reduction mortgage loans. The total monthly contractual
7payment on a direct reduction mortgage shall appear in the mortgage note. The
8commissioner department shall by regulation establish the maximum terms for the
9various types of direct reduction mortgages. The interest charges on loans of this
10type may be adjusted monthly or semiannually in accordance with the terms of the
11mortgage note.
AB150, s. 5603
12Section
5603. 215.21 (7) (intro.) of the statutes is amended to read:
AB150,1838,1513
215.21
(7) Types of real estate security. (intro.) An association may make
14loans on the following types of real estate security as defined by the
commissioner 15department:
AB150, s. 5604
16Section
5604. 215.21 (7) (c) of the statutes is amended to read:
AB150,1838,1817
215.21
(7) (c) Commercial type properties, the aggregate of which shall be fixed
18by the
commissioner department;
AB150, s. 5605
19Section
5605. 215.21 (14) of the statutes is amended to read:
AB150,1838,2420
215.21
(14) Selling loans. Except as otherwise prescribed in s. 215.13 (22) an
21association may sell mortgage loans, without recourse, to any person, and service
22such loans for the purchaser in accordance with a duly executed servicing agreement.
23The aggregate of loans sold in any calendar year shall not exceed such limits as may
24be set by the
commissioner department and review board.
AB150, s. 5606
25Section
5606. 215.21 (15) of the statutes is amended to read:
AB150,1839,7
1215.21
(15) Participation loans. Any association may participate with other
2lenders in mortgage loans of any type that such association may otherwise make,
3subject to such rules as the
commissioner department issues, including the interest
4in participation loans to be retained by the originator. The normal lending area,
5prescribed in sub. (2), shall not apply to any association purchasing a participating
6interest in such loan, provided the real estate securing such loan is located within
7the United States.
AB150, s. 5607
8Section
5607. 215.21 (17) (b) (intro.) of the statutes is amended to read:
AB150,1839,109
215.21
(17) (b) (intro.) Without the prior written approval of the
commissioner 10department, no association may directly or indirectly make a mortgage loan to:
AB150, s. 5608
11Section
5608. 215.21 (17) (b) 2. of the statutes is amended to read:
AB150,1839,1412
215.21
(17) (b) 2. Such other persons as the
commissioner department may by
13rule designate to avoid conflicts between the best interests of the association and the
14interests of its officers, directors or employes.
AB150, s. 5609
15Section
5609. 215.21 (17) (d) 2. of the statutes is amended to read:
AB150,1839,1816
215.21
(17) (d) 2. To a nonprofit, religious, charitable or fraternal organization
17or a corporation in which the association has been authorized to invest by the
18commissioner department.
AB150, s. 5610
19Section
5610. 215.21 (28) of the statutes is amended to read:
AB150,1840,220
215.21
(28) Loans outside the lending area. Subject to the rules issued by the
21commissioner department and without regard to the limitation set forth in sub. (2),
22an association may make or invest its funds in loans, originated and serviced by or
23through an institution, the accounts or deposits of which are insured by the federal
24savings and loan insurance corporation or the federal deposit insurance corporation
25or by or through an approved federal housing administration mortgagee, in an
1aggregate amount not exceeding 10% of such association's assets on the security of
2real estate or leasehold interests.
AB150, s. 5611
3Section
5611. 215.22 (2) of the statutes is amended to read:
AB150,1840,64
215.22
(2) All real estate acquired pursuant to this section shall be sold within
510 years from acquiring title thereto, unless the
commissioner department grants
6extensions of time within which such real estate shall be sold.
AB150, s. 5612
7Section
5612. 215.23 (intro.) of the statutes is amended to read:
AB150,1840,11
8215.23 Limitations on investments in office buildings and related
9facilities. (intro.) An association's aggregate investment in the following may not
10exceed the association's net worth without the prior written approval of the
11commissioner department:
AB150, s. 5613
12Section
5613. 215.24 of the statutes is amended to read:
AB150,1840,18
13215.24 Minimum net worth. An association shall maintain net worth at an
14amount not less than the minimum amount established by the
commissioner 15department. If an association fails to maintain the minimum net worth required
16under this section, the
commissioner department may take appropriate action,
17including but not limited to ordering the association to take corrective action or to
18restrict payment of dividends.
AB150, s. 5614
19Section
5614. 215.25 of the statutes is amended to read:
AB150,1841,8
20215.25 Audit requirements. Each association shall be audited at least once
21in each fiscal year by auditors and in a manner satisfactory to the
commissioner 22department in accordance with the policies established by the
commissioner 23department. The auditors are to be designated by the board of directors and must
24be independent, certified public accountants certified in this state. In lieu of audits
25by independent, certified public accountants, the board of directors may request an
1audit of the books and accounts to be made by the
commissioner department to check
2the assets of the association and to determine losses, which request the
3commissioner department may refuse. The
commissioner department may at any
4time make or cause to be made an audit of any association, with appraisals, when
5deemed advisable. Associations shall promptly file with the
commissioner 6department a copy of the report of each audit, other than audits made by the
7commissioner department. The cost of any audit made pursuant to this section shall
8be paid by the association audited.
AB150, s. 5615
9Section
5615. 215.26 (3) of the statutes is amended to read:
AB150,1841,1210
215.26
(3) Obsolete records. Any association may destroy or dispose of such
11of its records as may become obsolete after first obtaining the written consent of the
12commissioner department.
AB150, s. 5616
13Section
5616. 215.26 (4) (a) of the statutes is amended to read:
AB150,1841,2314
215.26
(4) (a) Any association may cause any or all records kept by such
15association to be recorded, copied or reproduced by any photostatic, photographic or
16miniature photographic process or by optical imaging if the process employed
17correctly, accurately and permanently copies, reproduces or forms a medium for
18copying, reproducing or recording the original record on a film or other durable
19material. An association may thereafter dispose of the original record after first
20obtaining the written consent of the
commissioner
department. This section,
21excepting the part of it which requires written consent of the
commissioner 22department, is applicable to federal associations insofar as it does not contravene
23federal law.
AB150, s. 5617
24Section
5617. 215.26 (5) of the statutes is amended to read:
AB150,1842,5
1215.26
(5) Legal holidays. The
commissioner department shall designate
2such of the legal holidays listed in s. 895.20 as days on which no association may
3transact business or be open for the purpose of transacting business. For purposes
4of this subsection, operation of a remote service unit as defined in s. 215.13 (46) (a)
51. or an unstaffed facility does not constitute the transaction of business.
AB150, s. 5618
6Section
5618. 215.26 (8) (b) 1. of the statutes is amended to read:
AB150,1842,87
215.26
(8) (b) 1. The
commissioner
department or
duly its authorized
8representatives.
AB150, s. 5619
9Section
5619. 215.26 (8) (b) 3. of the statutes is amended to read:
AB150,1842,1210
215.26
(8) (b) 3. Any federal agency or other instrumentality approved by the
11commissioner department which is authorized to inspect and examine books and
12records of an insured association.
AB150, s. 5620
13Section
5620. 215.26 (9) of the statutes is amended to read:
AB150,1842,1714
215.26
(9) Closing books. Each association shall close its books at least once
15annually and at such other times as the
commissioner
department requires. The
16date of the annual fiscal closing may be March 31, June 30, September 30 or
17December 31, unless rules of the
commissioner department otherwise direct.
AB150, s. 5621
18Section
5621. 215.32 (title) of the statutes is amended to read:
AB150,1842,20
19215.32 (title)
Possession by commissioner department; involuntary
20liquidation.
AB150, s. 5622
21Section
5622. 215.32 (1m) (intro.) of the statutes is amended to read:
AB150,1842,2522
215.32
(1m) Conditions for taking possession. (intro.) The
commissioner 23department may take possession of the business and property of any association to
24which this chapter applies if the
commissioner department finds that the
25association:
AB150, s. 5623
1Section
5623. 215.32 (1m) (h) of the statutes is amended to read:
AB150,1843,32
215.32
(1m) (h) Has failed to comply with an order of the
commissioner 3department; or
AB150, s. 5624
4Section
5624. 215.32 (2) (intro.) of the statutes is amended to read:
AB150,1843,75
215.32
(2) Procedure after taking possession. (intro.) After taking
6possession of the business and property of an association, the
commissioner 7department shall immediately:
AB150, s. 5625
8Section
5625. 215.32 (2) (a) of the statutes is amended to read:
AB150,1843,129
215.32
(2) (a) Serve written notice on an officer of the association stating that
10the
commissioner department has taken possession and control of the business and
11property of the association. A copy of the notice and proof of service thereof shall be
12filed with the clerk of circuit court.
AB150, s. 5626
13Section
5626. 215.32 (2) (b) of the statutes is amended to read:
AB150,1843,1514
215.32
(2) (b) Mail notice to the last-known address of any person known to
15the
commissioner department to be in possession of assets of the association.
AB150, s. 5627
16Section
5627. 215.32 (3) of the statutes is amended to read:
AB150,1843,2017
215.32
(3) Employment of counsel; retention of officers and employes of
18association. The
commissioner department may employ necessary counsel and
19experts in a liquidation under this section and may retain any officer or employe of
20the association.
AB150, s. 5628
21Section
5628. 215.32 (4) of the statutes is amended to read:
AB150,1844,222
215.32
(4) (title)
Appointment of special deputy commissioners. The
23commissioner department may appoint special
deputy commissioners deputies as
24agents to assist in the liquidation and distribution of the assets of associations whose
25business and property the
commissioner department has taken possession of. A
1certificate of the appointment shall be filed
in the office of the commissioner with the
2department and a certified copy
shall be filed in the office of the clerk of circuit court.
AB150, s. 5629
3Section
5629. 215.32 (5) of the statutes is amended to read:
AB150,1844,64
215.32
(5) (title)
Surety bonds of special deputy commissioners
deputies and
5assistants. Special
deputy commissioners deputies and assistants shall furnish
6surety bonds in accordance with s. 215.11.
AB150, s. 5630
7Section
5630. 215.32 (6) (title) of the statutes is amended to read:
AB150,1844,88
215.32
(6) (title)
Duties of special
deputy commissioners deputies.
AB150, s. 5631
9Section
5631. 215.32 (6) (a) of the statutes is amended to read:
AB150,1844,2510
215.32
(6) (a)
Notice, allowance and payment of claims. The special deputy
11commissioner shall publish a class 3 notice, under ch. 985, requiring all persons who
12have claims against the association, other than savers whose claims are shown in the
13records of the association, to file proof of their claims at a place and by a date not
14earlier than 30 days after the last insertion of the notice. The special deputy
15commissioner shall mail a copy of the notice to all persons, at their last-known
16addresses, who appear as creditors upon the books of the association. Proof of
17publication and service of the notice shall be filed with the clerk of circuit court. A
18claim, other than that of a saver whose claim is shown on the records of the
19association, for which no proof of claim is filed by the date fixed in the notice is barred.
20Savers whose claims are shown in the records of the association need not file proof
21of their claims. Any interested party may file written objections to any claim with
22the special deputy
commissioner. The special deputy
commissioner may reject any
23claim, including a claim of a saver. After notice by registered mail of rejection, the
24claim is barred unless the claimant commences an action within 90 days after the
25date of mailing of the notice of rejection.
AB150, s. 5632
1Section
5632. 215.32 (6) (b) of the statutes is amended to read:
AB150,1845,102
215.32
(6) (b)
Inventory of assets and statement of liabilities. The special
3deputy
commissioner appointed under this section shall make an inventory of the
4assets of the association. One copy of the inventory shall be filed
in the office of the
5commissioner with the department and one in the office of the clerk of circuit court.
6After the time for filing proof of claims has expired, the special deputy
commissioner 7shall make a complete list of the claims for which proof of claims were filed and
8specify the claims
he or she the special deputy has rejected. One copy shall be filed
9in the office of the commissioner with the department and one in the office of the clerk
10of circuit court. The inventory of assets and list of claims shall be open to inspection.
AB150, s. 5633
11Section
5633. 215.32 (6) (c) of the statutes is amended to read:
AB150,1845,1712
215.32
(6) (c)
Execution of legal documents; borrowing of money. A special
13deputy
commissioner appointed under this section may, with the prior approval of
14the
commissioner department and the circuit court, execute, acknowledge and
15deliver all deeds, assignments, releases or other instruments necessary and proper
16to effect any sale or transfer or incumbrance of the property of an association subject
17to this section and may borrow money for use in the liquidation.
AB150, s. 5634
18Section
5634. 215.32 (6) (d) of the statutes is amended to read:
AB150,1846,219
215.32
(6) (d)
Conservation of assets; collection of claims; sale of assets and
20performance of any other acts upon order of the court. A special deputy
commissioner 21appointed under this section may take any action necessary to conserve the assets
22and business of an association subject to this section and shall proceed to liquidate
23its affairs. The special deputy
commissioner shall collect all claims belonging to the
24association, and, with the prior approval of the
commissioner department and the
1circuit court, may sell or compound all bad or doubtful claims, do any act or execute
2any necessary instruments, or sell the property of the association.
AB150, s. 5635
3Section
5635. 215.32 (6) (e) of the statutes is amended to read:
AB150,1846,74
215.32
(6) (e)
Depositing of moneys in one or more financial institutions. The
5moneys collected by the special deputy
commissioner under this section shall be
6deposited in financial institutions, and in case of the suspension or insolvency of the
7depository the deposits shall be preferred before all other deposits.
AB150, s. 5636
8Section
5636. 215.32 (6) (em) 1. of the statutes is amended to read:
AB150,1846,119
215.32
(6) (em) 1. All costs, expenses and debts of the association incurred on
10or after the date on which the
commissioner department takes possession of the
11association.
AB150, s. 5637
12Section
5637. 215.32 (6) (f) of the statutes is amended to read:
AB150,1846,1913
215.32
(6) (f)
Liquidating dividends. After the date fixed for filing proof of
14claims under s. 215.32 (6) (a), the special deputy
commissioner may, with the prior
15approval of the
commissioner department and the circuit court, out of the funds
16remaining after the payment of costs, expenses, debts and claims under par. (em),
17declare liquidating dividends, and may declare a final liquidating dividend. The
18liquidating dividends shall be paid to those persons, in those amounts directed by the
19circuit court.
AB150, s. 5638
20Section
5638. 215.32 (6) (g) of the statutes is amended to read:
AB150,1847,721
215.32
(6) (g)
Notice prior to order for final distribution. Prior to the order for
22final distribution under par. (f), the special deputy
commissioner shall publish a class
233 notice, under ch. 985, and give such further notice as the circuit court directs,
24requiring all persons who have claims against the association arising during the
25liquidation proceedings to file proof of their claims at a place and by a date not earlier
1than 30 days after the last insertion of the notice. Proof of publication of the notice
2shall be filed with the clerk of circuit court. A claim for which no proof of claim is filed
3by the date fixed in the notice is barred. Any interested party may file written
4objection to any claim with the special deputy
commissioner. The special deputy
5commissioner may reject any claim. After notice by registered mail of rejection, the
6claim is barred unless the claimant commences an action within 90 days after the
7date of mailing of the rejection.
AB150, s. 5639
8Section
5639. 215.32 (6) (h) of the statutes is amended to read:
AB150,1847,199
215.32
(6) (h)
Transfer of residual assets to commissioner. After the order for
10final distribution has been made under par. (f), the special deputy
commissioner 11shall, with the approval of the
commissioner department and the circuit court, assign
12all assets, claims and demands that have been written off and considered worthless,
13and all unknown assets, to the
commissioner department. The
commissioner 14department may accept and hold the assets, claims and demands, with the power to
15compound, compromise, settle and assign them and execute and deliver any legal
16instrument incidental thereto without court approval. Any moneys received shall be
17paid into the general fund of the state after the
commissioner department has
18deducted the cost of
his or her department services, attorney fees and other
19incidental expenses.