AB150, s. 4885
22Section
4885. 186.02 (1) of the statutes is amended to read:
AB150,1627,323
186.02
(1) Seven or more residents of this state may organize a credit union by
24filing with the
commissioner office of credit unions the proposed articles of
25incorporation in duplicate and a verified copy of the proposed original bylaws,
1together with a $5 filing fee. The articles of incorporation shall state the name and
2purpose of the credit union, the location of its initial principal office, the par value
3of its shares, and the names, residences and occupations of the incorporators.
AB150, s. 4886
4Section
4886. 186.02 (3) (a) of the statutes is amended to read:
AB150,1627,165
186.02
(3) (a) Subject to par. (b), a credit union may not be organized unless the
6articles and bylaws are approved by the
commissioner
office of credit unions. If the
7commissioner office of credit unions approves the articles and bylaws, the
8commissioner office shall return one duplicate original of the articles of
9incorporation to the incorporators endorsed with
his or her approval, and the
10incorporators shall within 30 days record the articles of incorporation in the office
11of the register of deeds of the county in which the credit union is to be located. The
12legal existence of the credit union commences on the date and time the articles are
13recorded. The register of deeds shall transmit to the
commissioner office of credit
14unions a certificate stating the date and time when the articles were recorded, and
15the
commissioner office of credit unions shall issue a certificate of incorporation to
16the credit union.
AB150, s. 4887
17Section
4887. 186.02 (3) (b) of the statutes is amended to read:
AB150,1627,2118
186.02
(3) (b) If the
commissioner
office of credit unions refuses to approve the
19articles or bylaws, the incorporators may appeal the refusal to the credit union
20review board and the decision of the board is final, subject to judicial review under
21ch. 227.
AB150, s. 4888
22Section
4888. 186.02 (4) (a) of the statutes is amended to read:
AB150,1628,323
186.02
(4) (a) Amendments to the articles of incorporation adopted by a vote
24of two-thirds of the members of the credit union present at an annual meeting or a
25special meeting called for that purpose may be filed with the
commissioner office of
1credit unions upon payment of a $5 fee. If approved by the
commissioner office of
2credit unions, amendments to the articles are effective on recording in the office of
3the register of deeds in the same manner as the original articles.
AB150, s. 4889
4Section
4889. 186.02 (4) (b) of the statutes is amended to read:
AB150,1628,75
186.02
(4) (b) All amendments to the bylaws shall be filed with the
6commissioner office of credit unions and shall take effect only after being approved
7by the
commissioner office.
AB150, s. 4890
8Section
4890. 186.03 of the statutes is amended to read:
AB150,1628,18
9186.03 Use of name exclusive. No person, partnership, limited liability
10company, association or corporation, except corporations formed under this chapter,
11may transact within this state the business authorized by this chapter or any other
12business whatever under any name or title which includes the 2 words "credit" and
13"union", except that any organization whose membership is made up of credit unions
14may use the name, with the consent of the
commissioner
office of credit unions.
15Violations of this section may be enjoined at the instance of the
commissioner office
16of credit unions or of any credit union. A violator of this section may be fined not less
17than $300 nor more than $1,000 or imprisoned for not less than 60 days nor more
18than one year in the county jail or both.
AB150, s. 4891
19Section
4891. 186.04 (1) of the statutes is amended to read:
AB150,1628,2320
186.04
(1) The
commissioner office of credit unions, with the approval of the
21credit union review board, shall fix the amounts to be assessed against credit unions
22for their supervision and the examination under and by virtue of this chapter. Such
23amounts shall be determined and paid as provided in this section.
AB150, s. 4892
24Section
4892. 186.04 (2) of the statutes is amended to read:
AB150,1629,4
1186.04
(2) On or before July 15 of each year, each credit union shall pay to the
2office of
the commissioner credit unions an annual fee to be determined as provided
3in sub. (1), which shall represent as nearly as practicable its fair share of the
4maintenance of the office
of the commissioner.
AB150, s. 4893
5Section
4893. 186.04 (5) of the statutes is amended to read:
AB150,1629,96
186.04
(5) If the amounts collected under this section are in excess of the actual
7amounts necessary for the supervision and examination of credit unions in each year,
8the excess shall be retained by the
commissioner
office of credit unions and applied
9in reducing the amounts chargeable for ensuing years.
AB150, s. 4894
10Section
4894. 186.098 (7) of the statutes is amended to read:
AB150,1629,1211
186.098
(7) The
commissioner office of credit unions may reduce the loan limits
12specified in sub. (6) on an individual basis.
AB150, s. 4895
13Section
4895. 186.098 (8) (b) of the statutes is amended to read:
AB150,1629,1714
186.098
(8) (b) With the approval of the
commissioner office of credit unions,
15credit unions may utilize credit cards, including point-of-purchase credit, providing
16the credit committee or loan officer, upon their own motion or upon application by a
17member, has predetermined the extent of credit extension.
AB150, s. 4896
18Section
4896. 186.098 (10) of the statutes is amended to read:
AB150,1629,2319
186.098
(10) Loans to members secured by mortgages on real estate may be
20made subject to the rules prescribed by the
commissioner office of credit unions.
21Such loans may provide for additional advances, but any additional advance made
22to a member, if the mortgage and mortgage note so provide, may not exceed an
23amount specified in the mortgage.
AB150, s. 4897
24Section
4897. 186.098 (12) of the statutes is amended to read:
AB150,1630,9
1186.098
(12) A credit union may make loans to members secured by
2assignment or transfer of stock certificates or other evidence of the borrower's
3ownership interest in a corporation formed for the cooperative ownership of real
4estate. Sections 846.10 and 846.101, as they apply to a foreclosure of a mortgage
5involving a one-family residence, apply to a proceeding to enforce the lender's rights
6in security given for a loan under this subsection. The
commissioner office of credit
7unions shall promulgate joint rules with the
commissioners of savings and loan and
8banking department of financial institutions that establish procedures for enforcing
9a lender's rights in security given for a loan under this subsection.
AB150, s. 4898
10Section
4898. 186.11 (1) of the statutes is amended to read:
AB150,1630,1611
186.11
(1) General. The board of directors may invest credit union funds in
12U.S. government direct and agency obligations, municipal bonds issued by
13municipalities of the state, central credit unions, banks, savings banks and savings
14and loans associations located in Wisconsin and may, with the approval of the
15commissioner office of credit unions, make other investments including investments
16in credit unions.
AB150, s. 4899
17Section
4899. 186.11 (2) (b) of the statutes is amended to read:
AB150,1631,218
186.11
(2) (b) The board of directors may purchase, lease or construct a building
19for the operation of the credit union, provided the aggregate cost of the building,
20remodeling of the building, land improvements and land acquisition does not exceed
21100% of the credit union's regular reserve unless prior approval for greater amounts
22is given by the
commissioner office of credit unions. The cost of land acquisition may
23include vicinal property for future expansion but may not exceed the aggregate cost
24limitation. Nothing in this subsection authorizes a credit union to lease a building
25owned by a director or by a corporation, limited liability company, partnership or
1association controlled by a director. The credit union may rent or lease a portion of
2its building or property.
AB150, s. 4900
3Section
4900. 186.112 of the statutes is amended to read:
AB150,1631,11
4186.112 Credit union borrowing. The board of directors may borrow money
5from any source if the amount borrowed does not exceed 50% of the credit union's
6total savings, deposits and reserves and the loan is not for a period longer than 12
7months. The limitations of this subsection do not apply to national corporate central
8credit unions. The 12-month limitation under this subsection does not apply to
9money borrowed by a credit union to acquire credit union property, buildings,
10remodeling or equipment. The
commissioner office of credit unions may exempt any
11credit union from the limitations of this subsection.
AB150, s. 4901
12Section
4901. 186.113 (1) of the statutes is amended to read:
AB150,1631,1513
186.113
(1) If the need and necessity exists, establish subsidiary offices where
14permanent records may be maintained within the state with the approval of the
15commissioner office of credit unions.
AB150, s. 4902
16Section
4902. 186.113 (1m) (a) 3. of the statutes is amended to read:
AB150,1631,1817
186.113
(1m) (a) 3. The establishment of such offices has been approved by the
18commissioner office of credit unions.
AB150, s. 4903
19Section
4903. 186.113 (1m) (a) 4. of the statutes is amended to read:
AB150,1631,2120
186.113
(1m) (a) 4. Such offices are established and operated in accordance
21with rules promulgated by the
commissioner office of credit unions.
AB150, s. 4904
22Section
4904. 186.113 (2) of the statutes is amended to read:
AB150,1632,223
186.113
(2) Share office space with one or more credit unions and contract with
24a corporation to provide facilities or personnel. Such service center corporation shall
1be deemed thereby to be under the supervision of the
commissioner office of credit
2unions.
AB150, s. 4905
3Section
4905. 186.113 (15) (a) of the statutes is amended to read:
AB150,1632,254
186.113
(15) (a) Directly or indirectly, acquire, place and operate, or participate
5in the acquisition, placement and operation of, at locations other than its offices,
6remote terminals, in accordance with rules established by the
commissioner office
7of credit unions. The rules
of the commissioner shall provide that any remote
8terminal shall be available for use, on a nondiscriminatory basis, by any state or
9federal credit union which has its principal place of business in this state, by any
10other credit union obtaining the consent of a state or federal credit union which has
11its principal place of business in this state and is using the terminal and by all
12members designated by a credit union using the terminal. This subsection does not
13authorize a credit union which has its principal place of business outside the state
14to conduct business as a credit union in this state. The remote terminals also shall
15be available for use, on a nondiscriminatory basis, by any state or national bank,
16state or federal savings bank or state or federal savings and loan association, whose
17home office is located in this state, if the bank, savings bank or savings and loan
18association requests to share its use, subject to the joint rules established under s.
19221.04 (1) (k). The rules of the
commissioner office of credit unions shall prohibit any
20advertising with regard to a shared remote terminal which suggests or implies
21exclusive ownership or control of the shared terminal by any credit union or group
22of credit unions operating or participating in the operation of the terminal. The
23commissioner office of credit unions by order may authorize the installation and
24operation of a remote terminal in a mobile facility, after notice and hearing upon the
25proposed service stops of the mobile facility.
AB150, s. 4906
1Section
4906. 186.113 (15) (c) of the statutes is amended to read:
AB150,1633,92
186.113
(15) (c) If any person primarily engaged in the retail sale of goods or
3services owns or operates a remote terminal on such person's premises and allows
4access to the unit by any financial institution, group of financial institutions or their
5customers, nothing in this subsection or in rules established by the
commissioner 6office of credit unions shall, or shall be construed or interpreted to, require such
7person to accept any connection to or use of the unit on its premises for any other
8purpose or function or to accept any connection to the unit on its premises by any
9other financial institution.
AB150, s. 4907
10Section
4907. 186.113 (15) (d) of the statutes is amended to read:
AB150,1633,1711
186.113
(15) (d) If a person primarily engaged in the retail sale of goods or
12services owns or operates a remote terminal on such person's premises and allows
13access to the unit by any financial institution, group of financial institutions or their
14customers for any purpose or function, no laws governing such institutions or rules
15established by the
commissioner office of credit unions shall apply to such person
16other than those laws or rules directly related to the particular function performed
17by the unit on such person's premises for a financial institution.
AB150, s. 4908
18Section
4908. 186.115 (1) of the statutes is amended to read:
AB150,1633,2319
186.115
(1) Subject to any regulatory approval required by law and subject to
20sub. (2), a credit union directly or through a subsidiary, may undertake any activity,
21exercise any power or offer any financially related product or service in this state that
22any other provider of financial products or services may undertake, exercise or
23provide or that the
commissioner office of credit unions finds to be financially related.
AB150, s. 4909
24Section
4909. 186.115 (2) of the statutes is amended to read:
AB150,1634,8
1186.115
(2) The activities, powers, products and services that may be
2undertaken, exercised or offered by credit unions under sub. (1) are limited to those
3specified by rule of the
commissioner office of credit unions. The
commissioner office
4of credit unions may direct any credit union to cease any activity, the exercise of any
5power or the offering of any product or service authorized by rule under this
6subsection. Among the factors that the
commissioner
office of credit unions may
7consider in so directing a credit union are the credit union's net worth, assets,
8management rating and liquidity ratio and its ratio of net worth to assets.
AB150, s. 4910
9Section
4910. 186.116 of the statutes is amended to read:
AB150,1634,13
10186.116 Financially related services tie-ins. In any transaction conducted
11by a credit union or a subsidiary of a credit union with a customer who is also a
12customer of any other subsidiary of the credit union, the customer shall be given a
13notice in 12-point boldface type in substantially the following form:
NOTICE OF RELATIONSHIP
AB150,1634,1814
This company, .... (insert name and address of credit union or subsidiary), is
15related to .... (insert name and address of credit union or subsidiary) of which you are
16also a customer. You may not be compelled to buy any product or service from either
17of the above companies or any other related company in order to participate in this
18transaction.
AB150,1634,2319
If you feel that you have been compelled to buy any product or service from
20either of the above companies or any other related company in order to participate
21in this transaction, you should contact the management of either of the above
22companies at either of the above addresses or the office of
the commissioner credit
23unions at .... (insert address).
AB150, s. 4912
1Section
4912. 186.16 (2) of the statutes is amended to read:
AB150,1635,42
186.16
(2) The
commissioner office of credit unions may establish the
3maximum dividend that a credit union and a central credit union may pay in each
4classification of its savings.
AB150, s. 4913
5Section
4913. 186.17 (2) of the statutes is amended to read:
AB150,1635,86
186.17
(2) Special reserves may be required by the
commissioner office of credit
7unions on an individual credit union basis for purchased accounts or when serious
8threat of impairment threatens regular reserve.
AB150, s. 4914
9Section
4914. 186.18 of the statutes is amended to read:
AB150,1636,4
10186.18 Dissolution. Upon the unanimous recommendation of the board of
11directors, the members may vote to dissolve the credit union. If a majority of the total
12membership vote by ballot in person or by letter or other written communication in
13favor of dissolution, and if not more than 15 members or 10% of the total membership,
14whichever is greater, by written notice vote against dissolution, the credit union shall
15be dissolved. If both the number of votes in favor of dissolution and the number of
16votes against dissolution are each less than 50% of the total number of members the
17board of directors may, with the permission of the
commissioner office of credit
18unions, cause written notice to be mailed to each member at the member's
19last-known address which expressly states that the board's proposal to dissolve the
20credit union will be approved or disapproved at a special or annual meeting to be held
21at the time and place specified in the notice. The credit union shall be dissolved only
22if a majority of the members present at the meeting vote in favor of the board's
23proposal to dissolve the credit union. If the members vote to dissolve the credit union,
24a committee of 3 shall be elected by the members to liquidate the assets of the credit
25union. After assets are liquidated and debts paid members shall be paid a
1liquidating dividend in proportion to their savings from remaining assets. The
2committee in charge of liquidation may sell or dispose of the assets in whole or in part
3at a public or private sale subject to confirmation by the board of directors and the
4commissioner office of credit unions.
AB150, s. 4915
5Section
4915. 186.19 (1) of the statutes is amended to read:
AB150,1636,166
186.19
(1) As a condition precedent to qualification or entry upon the discharge
7of his or her duties, every person appointed or elected to any position requiring the
8receipt, payment or custody of money or other personal property owned by a credit
9union or in its custody or control as collateral or otherwise shall give a bond in some
10responsible corporate surety company, licensed to do business in this state, in such
11adequate sum as the directors shall require and approve. In lieu of individual bonds
12the
commissioner office of credit unions may accept a schedule or blanket bond which
13covers all of the officers and employes of any credit union whose duties include the
14receipt, payment or custody of money or other personal property for or on behalf of
15the credit union. All such bonds shall be in the form prescribed by the
commissioner 16office of credit unions.
AB150, s. 4916
17Section
4916. 186.19 (2) of the statutes is amended to read:
AB150,1636,2418
186.19
(2) No officer or employe who is required to give bond shall be deemed
19qualified nor shall be permitted to enter upon the discharge of that officer's or
20employe's duties until that officer's or employe's bond shall have been approved by
21a majority of the board of directors. Such bonds shall be filed with the
commissioner 22office of credit unions within 10 days next after approval thereof by the board of
23directors. The minute books of each credit union shall contain a record of each bond
24executed and approved.
AB150, s. 4917
25Section
4917. 186.19 (3) of the statutes is amended to read:
AB150,1637,6
1186.19
(3) Such bond shall be sufficient in amount to protect the credit union
2from loss by reason of acts of fraud or dishonesty including forgery, theft,
3embezzlement, wrongful abstraction or misapplication on the part of the person,
4directly or through connivance with others. At any time the
commissioner office of
5credit unions may require additional bond or security, when, in the
commissioner's 6office's opinion, the bonds then executed and approved are insufficient.
AB150, s. 4918
7Section
4918. 186.19 (4) (a) of the statutes is amended to read:
AB150,1637,148
186.19
(4) (a) No cancellation or other termination of this bond shall be
9effective unless the surety gives in advance at least 10 days' written notice by
10registered mail to the
commissioner office of credit unions. If this bond is canceled
11or terminated at the request of the insured (employer) this provision nevertheless
12shall apply, it being the duty of the surety to give the required written notice to the
13commissioner office of credit unions, such notice to be given promptly and in any
14event within 10 days after the receipt of such request.
AB150, s. 4919
15Section
4919. 186.19 (4) (b) of the statutes is amended to read:
AB150,1637,1816
186.19
(4) (b) The surety agrees to furnish the
commissioner office of credit
17unions a copy of all riders and indorsements executed subsequently to the effective
18date of this bond.
AB150, s. 4920
19Section
4920. 186.19 (5) of the statutes is amended to read:
AB150,1637,2520
186.19
(5) For reasons which the
commissioner office of credit unions deems
21valid and sufficient the
commissioner office may waive as to the cancellation or
22termination of any such bond the 10-day written notice in advance required by sub.
23(4) (a) and the
commissioner office may give written consent to the termination or
24cancellation being made effective as of a date agreed upon and requested by the
25surety and credit union.
AB150, s. 4921
1Section
4921. 186.21 (1) of the statutes is amended to read:
AB150,1638,62
186.21
(1) It shall be the duty of the office of
the commissioner of credit unions
3to promote the extension of credit at the lowest possible rates and cooperate with
4every group of people who may be or may become interested in the formation and
5development of a credit union in this state for that purpose, and it may do all things
6reasonably necessary for the discharge of this duty.
AB150, s. 4922
7Section
4922. 186.21 (2) of the statutes is amended to read:
AB150,1638,128
186.21
(2) The office of
the commissioner of credit unions shall carry on
9advertising of whatever character is most suitable and effective to acquaint the
10people of this state with the agencies and organizations dealing in consumer credit,
11and of the rates of interest, the condition of loans, the benefits and safeguards and
12the savings features of each such type, agency and organization.
AB150, s. 4923
13Section
4923. 186.21 (3) of the statutes is amended to read:
AB150,1638,1714
186.21
(3) The office of
the commissioner of credit unions shall further offer
15without charge to any group, either joined in a credit union or considering such an
16organization, whatever advice and direction on accounting practice and managerial
17problems that may be needful.
AB150, s. 4924
18Section
4924. 186.21 (4) of the statutes is amended to read:
AB150,1638,2119
186.21
(4) The office of
the commissioner of credit unions shall provide
20application blanks, model bylaws, and whatever other material may be needful or
21helpful in the organization, efficient functioning and expansion of credit unions.
AB150, s. 4925
22Section
4925. 186.22 (1) (intro.) of the statutes is amended to read:
AB150,1639,323
186.22
(1) Organization. (intro.) When authorized by the
commissioner office
24of credit unions, 10 or more credit unions, the aggregate resources of which shall not
25be less than $50,000, may form the "Credit Union Finance Corporation". Each of
1such credit unions shall subscribe, acknowledge and submit to the
commissioner 2office of credit unions an organization certificate in duplicate which shall specifically
3state:
AB150, s. 4926
4Section
4926. 186.22 (2) (intro.) of the statutes is amended to read:
AB150,1639,85
186.22
(2) Proposed bylaws. (intro.) The incorporators shall subscribe and
6acknowledge and submit to the
commissioner office of credit unions proposed bylaws
7in duplicate, which shall prescribe the manner in which the business of such credit
8union finance corporation shall be conducted with reference to the following matters:
AB150, s. 4927
9Section
4927. 186.22 (3) (intro.) of the statutes is amended to read:
AB150,1639,1610
186.22
(3) When corporate existence begins; conditions precedent to
11commencing business. (intro.) When the
commissioner shall have indorsed the
12commissioner's approval on office of credit unions approves the organization
13certificate, the corporate existence of the credit union finance corporation shall begin
14and it shall then have power to elect officers and transact such other business as
15relates to its organization; but such credit union finance corporation shall transact
16no other business until:
AB150, s. 4928
17Section
4928. 186.22 (3) (a) of the statutes is amended to read: