AB150: Bill Text

AB150, s. 5351 Section 5351. 214.43 (1) of the statutes is amended to read:

AB150,1776,7 214.43 (1) A savings bank shall maintain total capital of not less than 6% of total assets. This is the minimum capital level acceptable for a savings bank that is well-managed and whose overall financial condition is fundamentally sound. If the commissioner department determines that the financial condition or history, management or earnings prospects of a savings bank are not adequate, the commissioner department may require a higher minimum capital level for the savings bank.

AB150, s. 5352 Section 5352. 214.435 (3) of the statutes is amended to read:

AB150,1776,17 214.435 (3) The board of directors may quarterly, semiannually or annually declare a dividend on capital stock of so much of the net profits of the savings bank that the board determines to be expedient, except that until the paid-in surplus of the savings bank equals its capital stock, a dividend may not be declared unless there has been transferred to paid-in surplus not less than 10% of the net profits of the preceding half year in the case of quarterly or semiannual dividends, or not less than 10% of the net profits for the preceding year in the case of annual dividends. A stock dividend may be declared out of retained earnings with the written approval of the commissioner department.

AB150, s. 5353 Section 5353. 214.435 (4) of the statutes is amended to read:

AB150,1776,21 214.435 (4) The written approval of the commissioner department is required before any dividends on stock that exceed 50% of the savings bank's net profits of that year may be declared in any calendar year.

AB150, s. 5354 Section 5354. 214.48 (3) of the statutes is amended to read:

AB150,1777,2 214.48 (3) Each loan or investment that a savings bank makes or purchases, in whole or in part, shall be adequately underwritten and reserved against as necessary in accordance with its payment performance, and in accordance with rules of the commissioner department.

AB150, s. 5355 Section 5355. 214.48 (5) of the statutes is amended to read:

AB150,1777,6 214.48 (5) If an appraisal of real estate securing a savings bank's loan is obtained as part of an examination by the commissioner department, the cost of the appraisal shall promptly be paid by the savings bank to the appraiser.

AB150, s. 5356 Section 5356. 214.485 (intro.) of the statutes is amended to read:

AB150,1777,10 214.485 Investment in loans. (intro.) Subject to rules of the commissioner department, a savings bank may lend funds under any of the following conditions or for any of the following purposes:

AB150, s. 5357 Section 5357. 214.485 (8) of the statutes is amended to read:

AB150,1777,15 214.485 (8) Through secured or unsecured loans for business, corporate, commercial or agricultural purposes if the total of all loans granted under this subsection does not exceed 10% of the savings bank's total assets, unless a greater amount is authorized in writing by the commissioner department.

AB150, s. 5358 Section 5358. 214.485 (12) of the statutes is amended to read:

AB150,1777,22 214.485 (12) Through issuance of letters of credit or other similar arrangements as provided for by rules of the commissioner department with regard to aggregate amounts permitted, take-out commitments for stand-by letters of credit, underlying documentation and underwriting, legal limitations on loans of the savings bank, control and subsidiary records and other procedures considered to be necessary by the commissioner department.

AB150, s. 5359 Section 5359. 214.485 (17) of the statutes is amended to read:

AB150,1777,25 214.485 (17) For any other purpose authorized by rule of the commissioner department.

AB150, s. 5360 Section 5360. 214.49 (intro.) of the statutes is amended to read:

AB150,1778,3 214.49 Other investments. (intro.) Subject to rules of the commissioner department, a savings bank may invest funds in any of the following:

AB150, s. 5361 Section 5361. 214.49 (5) (intro.) of the statutes is amended to read:

AB150,1778,19 214.49 (5) (intro.) With the prior written consent of the commissioner department, a savings bank may invest in the initial purchase and development, or the purchase or commitment to purchase after completion, of home sites and housing for sale or rental, including projects for the reconstruction, rehabilitation or rebuilding of residential properties to meet the minimum standards of health and occupancy prescribed by a local governmental unit, the provision of accommodations for retail stores, shops and other community services that are reasonably incident to that housing, or in the stock of a corporation that owns one or more of those projects and that is wholly owned by one or more financial institutions. The total investment in any one project may not exceed 15% of the savings bank's capital, nor may the aggregate investment under this subsection exceed 50% of its capital. A savings bank may not make an investment under this subsection unless it is in compliance with the capital requirements under s. 214.43 and with the capital maintenance requirements of its deposit insurance corporation. The commissioner department may approve the investment only if the savings bank shows all of the following:

AB150, s. 5362 Section 5362. 214.49 (15) of the statutes is amended to read:

AB150,1778,22 214.49 (15) In any other investment authorized by rule of the commissioner department.

AB150, s. 5363 Section 5363. 214.51 (1) of the statutes is amended to read:

AB150,1779,3 214.51 (1) A savings bank may sell a loan or a participating interest in a loan with or without recourse. The commissioner department may by rule adopt limitations on the sale of loans except loans sold to agencies of the United States or this state or to another government-sponsored agency if approved by the commissioner department.

AB150, s. 5364 Section 5364. 214.51 (2) of the statutes is amended to read:

AB150,1779,6 214.51 (2) A savings bank may contract to service a loan or a participating interest in a loan, subject to rules of the commissioner department.

AB150, s. 5365 Section 5365. 214.52 (3) of the statutes is amended to read:

AB150,1779,13 214.52 (3) Unless prior written approval of the commissioner department is obtained, a savings bank may not purchase, lease or acquire a site for an office building or an interest in real estate from an officer, director, employe, from a stockholder holding more than 10% of the stock of the savings bank, or from any firm, corporation, entity, or family in which an officer, director, employe or stockholder holding more than 10% of the stock of a savings bank has a direct or indirect interest.

AB150, s. 5366 Section 5366. 214.525 of the statutes is amended to read:

AB150,1779,18 214.525 Prohibited loans. A savings bank may not make a loan to a person owning 10% or more of its stock, an affiliated person, agent, or attorney of the savings bank, either individually or as an agent or partner of another, except under rules of the commissioner department and regulations of a deposit insurance corporation.

AB150, s. 5367 Section 5367. 214.53 (3) of the statutes is amended to read:

AB150,1780,12 214.53 (3) The commissioner department may require a director or officer of a savings bank who knowingly participates in or assents to, or who knowingly permits an officer, employe or agent of the savings bank to make, an investment that is not authorized by this subchapter to obtain an indemnity bond, insurance, or collateral sufficient to indemnify the savings bank against damages that the savings bank may sustain as a result of the investment. If an unauthorized investment, the amount considered sufficient to indemnify the savings bank shall be the difference between the book value and the market value of the investment at the time the commissioner department determines that the investment is unauthorized. If an unauthorized loan, the amount considered sufficient to indemnify the savings bank shall be the difference between the book value of the loan and the amount of the loan that could have been made under this subchapter. If an unauthorized investment is sold or disposed of without recourse, the commissioner department shall release all or part of the indemnity after deducting any loss. If the balance of an unauthorized loan is reduced to an amount that would permit the loan to be made under this subchapter, the indemnity shall be released. In making a determination under this subsection, the commissioner department may order an independent appraisal at the savings bank's expense.

AB150, s. 5368 Section 5368. 214.54 (1) of the statutes is amended to read:

AB150,1780,17 214.54 (1) Except as provided in sub. (2) and s. 214.49 (4), the total of outstanding loans and extensions of credit, both direct and indirect, made by a savings bank to a single person shall be subject to limits established by rule of the commissioner department, but may not exceed 15% of the savings bank's capital.

AB150, s. 5369 Section 5369. 214.545 of the statutes is amended to read:

AB150,1780,24 214.545 Rules. The commissioner department shall promulgate rules to determine permissible levels of investment and permissible concentrations of assets for savings banks that apply to all lending and investment authority under this subchapter. The rules shall give due regard to capital adequacy, operating income, underwriting standards, risk inherent in the investment or loan, and competitive parity with other financial institutions.

AB150, s. 5370 Section 5370. 214.58 (1) of the statutes is amended to read:

AB150,1781,7 214.58 (1) The board of directors shall determine the rate and amount of interest to be paid on or credited to deposit accounts. The board of directors may establish reasonable classifications of accounts based on the types of accounts, the length of time accounts are continued in effect, the size of initial deposits into accounts, the minimum balances of accounts required for payment of interest, the frequency and extent of the activity on accounts, or on other classifications the commissioner department may approve.

AB150, s. 5371 Section 5371. 214.585 (5) of the statutes is amended to read:

AB150,1781,10 214.585 (5) In any other form receiving the prior written approval of the commissioner department.

AB150, s. 5372 Section 5372. 214.592 of the statutes is amended to read:

AB150,1781,15 214.592 Financially related services tie-ins. In any transaction conducted by a savings bank, a savings bank holding company or a subsidiary of either with a customer who is also a customer of any other subsidiary of any of them, the customer shall be given a notice in 12-point boldface type in substantially the following form:

AB150,1781,16 NOTICE OF RELATIONSHIP

AB150,1781,21 This company, .... (insert name and address of savings bank, savings bank holding company or subsidiary), is related to .... (insert name and address of savings bank, savings bank holding company or subsidiary) of which you are also a customer. You may not be compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction.

AB150,1782,2 If you feel that you have been compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction, you should contact the management of either of the above companies at either of the above addresses or the office of the commissioner department of financial institutions at .... (insert address).

AB150, s. 5373 Section 5373. 214.62 (2) (e) of the statutes is amended to read:

AB150,1782,5 214.62 (2) (e) Other provisions necessary or desirable or that the commissioner department requires.

AB150, s. 5374 Section 5374. 214.62 (3) of the statutes is amended to read:

AB150,1782,13 214.62 (3) After approval by the board of directors of the merging financial institution and of the savings bank, the merger agreement shall be submitted to the commissioner department for approval, together with a certified copy of the authorizing resolution of each board of directors. Before issuing approval, the commissioner department may examine the affairs of each merging financial institution and its affiliates and subsidiaries, the expense of which is to be paid by the merging financial institution.

AB150, s. 5375 Section 5375. 214.62 (4) (intro.) of the statutes is amended to read:

AB150,1782,17 214.62 (4) (intro.) The commissioner department may approve or disapprove the proposed merger agreement. The commissioner department may not approve a merger agreement unless the commissioner department finds all of the following:

AB150, s. 5376 Section 5376. 214.62 (5) of the statutes is amended to read:

AB150,1782,22 214.62 (5) If the commissioner department fails to approve a proposed merger, the commissioner department shall state the objections in writing and give the merging financial institutions a stated period of time in which to amend the plan of merger.

AB150, s. 5377 Section 5377. 214.625 of the statutes is amended to read:

AB150,1783,4 214.625 Merger; vote of approval. If approved by the commissioner department, the plan of merger shall be submitted to the members or stockholders of each merging financial institution for approval. A meeting of the members or stockholders of a savings bank shall be called and held in accordance with ss. 214.305 and 214.31. The plan is approved if it receives the affirmative vote of the majority of the total votes entitled to be cast.

AB150, s. 5378 Section 5378. 214.63 of the statutes is amended to read:

AB150,1783,20 214.63 (title) Merger; commissioner's certificate. The executed merger agreement, together with a certified copy of the minutes of the meeting of members or stockholders of each merging financial institution approving the merger agreement, shall be filed with the commissioner department. The commissioner department shall issue to the resulting savings bank a certificate of merger, setting forth the name of each merging financial institution, the name of the resulting savings bank and the date on which the commissioner department approves the articles of incorporation and bylaws of the resulting savings bank. The merger takes effect on the date of the recording of the certificate or a later date if the certificate provides for a different date. Recording shall be completed in the same manner as required for savings bank articles of incorporation, in each county in which the home office of any of the merging financial institutions was located and in the county in which the home office of the resulting savings bank is located. The certificate shall be conclusive evidence of the merger and of the correctness of the merger proceedings except against this state.

AB150, s. 5379 Section 5379. 214.64 of the statutes is amended to read:

AB150,1783,24 214.64 (title) Merger; commissioner's expenses. The merging financial institutions shall pay the expenses of any examination made by or at the direction of the commissioner department in connection with a proposed merger.

AB150, s. 5380 Section 5380. 214.645 of the statutes is amended to read:

AB150,1784,6 214.645 Sale of assets. Subject to rules of the commissioner department, a savings bank may, in a transaction not in the usual course of business, sell all or substantially all of its assets, with or without its name and goodwill, to another financial institution, in consideration of money, capital or obligations of the purchasing institution. A savings bank may sell an office or facility and equipment subject to rules of the commissioner department.

AB150, s. 5381 Section 5381. 214.65 (2) (a) of the statutes is amended to read:

AB150,1784,12 214.65 (2) (a) The board of directors shall adopt by a two-thirds majority vote of all directors a resolution setting forth the terms of the proposed sale and shall submit the plan to the commissioner department for preliminary approval. Upon receipt of approval by the commissioner department, the plan shall be submitted to a vote of the members or stockholders at a special or annual meeting.

AB150, s. 5382 Section 5382. 214.65 (2) (b) of the statutes is amended to read:

AB150,1784,21 214.65 (2) (b) The proposed sale is approved by the members or stockholders if it receives an affirmative vote from a majority of the total number of votes that are entitled to cast. A proposal for the voluntary liquidation of the savings bank may be submitted to the members or stockholders at the same meeting or at any later meeting called for that purpose. A certified summary of proceedings setting forth the terms of the proposed sale, the form and timing of the notice given, the vote on the proposal and the total number of votes entitled to cast shall be filed with the commissioner department.

AB150, s. 5383 Section 5383. 214.65 (3) of the statutes is amended to read:

AB150,1785,3 214.65 (3) If the commissioner department finds that the deposit insurance corporation has approved the sale, the proposed sale is fair to all members, stockholders, creditors and other persons concerned and provision has been made for the disposition of the remaining assets, if any, of the savings bank, the commissioner department shall issue to the savings bank a certificate of authorization for the sale with a copy of the filed report of proceedings attached to the certificate.

AB150, s. 5384 Section 5384. 214.655 (2) (intro.) of the statutes is amended to read:

AB150,1785,10 214.655 (2) (intro.) A savings bank shall apply to the commissioner department for authority to form an interim institution. The application shall be made on forms prescribed by the commissioner department and shall be accompanied by a nonrefundable $1,000 fee. The commissioner department shall promulgate rules governing the formation of, and the standards and supervisory considerations to be applied to, interim institutions. An application shall contain all of the following:

AB150, s. 5385 Section 5385. 214.66 (1) of the statutes is amended to read:

AB150,1785,13 214.66 (1) Applying to the commissioner department for authority to organize as a savings bank.

AB150, s. 5386 Section 5386. 214.66 (5) of the statutes is amended to read:

AB150,1785,16 214.66 (5) Obtaining the commissioner's department's approval to convert to a savings bank.

AB150, s. 5387 Section 5387. 214.66 (7) of the statutes is amended to read:

AB150,1785,19 214.66 (7) After obtaining the commissioner's department's approval, giving notice to its previous regulatory authority.

AB150, s. 5388 Section 5388. 214.665 (1) of the statutes is amended to read:

AB150,1786,2 214.665 (1) With the prior approval of the commissioner department, which shall state that the proposed merger is necessary for the protection of depositors and other creditors, a savings bank that is in default or in danger of default may, by a majority vote of its board of directors and without a vote of its members or stockholders, merge with another savings bank, a state or federal savings and loan association, a state bank or a federal bank. The other entity shall be the resulting or continuing savings bank, savings and loan association or bank.

AB150, s. 5389 Section 5389. 214.665 (2) of the statutes is amended to read:

AB150,1786,5 214.665 (2) The commissioner department shall by rule establish standards for determining if a savings bank is in default or in danger of default.

AB150, s. 5390 Section 5390. 214.67 (1) of the statutes is amended to read:

AB150,1786,14 214.67 (1) With the prior approval of the commissioner department, which shall state that the proposed sale is necessary for the protection of depositors and other creditors, a savings bank may, by a majority vote of its board of directors and without a vote of its members or stockholders, sell all or any part of its assets to another savings bank, a state or federal savings and loan association, a state bank or a national bank if the savings bank, savings and loan association or bank assumes in writing all of the liabilities of the selling savings bank or to a deposit insurance corporation.

AB150, s. 5391 Section 5391. 214.67 (2) of the statutes is amended to read:

AB150,1786,20 214.67 (2) A savings bank may sell to a savings bank, state or federal savings and loan association, state bank or federal bank an insubstantial portion of its total deposits as described in 12 USC 1815 5 (d) (2) (D). Approval of the sale shall be by a majority vote of the board of directors and, with approval of the commissioner department, may be without a vote of its members or stockholders.

AB150, s. 5392 Section 5392. 214.675 (1) of the statutes is amended to read:

AB150,1786,25 214.675 (1) A person, whether acting directly or indirectly, alone or with one or more persons, shall give the commissioner department 60 days' written notice of intent to acquire control of 10% or more of a savings bank, affiliate, savings bank subsidiary, savings bank holding company or service corporation.

AB150, s. 5393 Section 5393. 214.675 (2) of the statutes is amended to read:

AB150,1787,10 214.675 (2) A person, whether acting directly or indirectly, alone or with one or more persons, shall apply to the commissioner department 60 days before any proposed change in control. A change in control occurs if any change of ownership of stock, or of rights related to stock, would result in a person, whether acting directly or indirectly, alone or with one or more persons, owning, directly or indirectly, 25% or more of the voting shares or rights in a savings bank, affiliate, savings bank subsidiary, savings bank holding company or service corporation or such lesser amount that would entitle the person to elect one member to the board of directors of the entity.