AB150: Bill Text

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.

AB150, s. 5394 Section 5394. 214.675 (3) of the statutes is amended to read:

AB150,1787,13 214.675 (3) The commissioner department may examine the books and records of a person filing notice of intent under sub. (1) or an application under sub. (2).

AB150, s. 5395 Section 5395. 214.675 (4) of the statutes is amended to read:

AB150,1787,20 214.675 (4) The commissioner's department's decision on a filing under sub. (1) or (2) shall be issued within 30 days after the date of receipt of a complete initial application or the date of receipt of additional information requested by the commissioner department that is necessary for making the decision. The commissioner department shall make a request for additional information within 30 days of the date of the commissioner's department's receipt of an initial filing.

AB150, s. 5396 Section 5396. 214.675 (5) of the statutes is amended to read:

AB150,1787,23 214.675 (5) The commissioner department shall promulgate rules to implement this section.

AB150, s. 5397 Section 5397. 214.68 (1) (b) of the statutes is amended to read:

AB150,1788,5 214.68 (1) (b) At the meeting the members or stockholders may, by affirmative vote of not less than two-thirds of the eligible votes, resolve to convert the savings bank into a federal savings bank, or if a federal institution, into a savings bank. A verified copy of the minutes of the meeting shall be filed with the commissioner department within 10 days after the date of the meeting.

AB150, s. 5398 Section 5398. 214.68 (1) (d) of the statutes is amended to read:

AB150,1788,11 214.68 (1) (d) Within 6 months after the date of the meeting to convert, the savings bank shall take all steps necessary to complete the conversion. Within 10 days after receipt of federal authorization, the savings bank shall file with the commissioner department a copy of its federal authorization. Upon filing, the savings bank shall cease to be a savings bank and shall be a federal savings bank.

AB150, s. 5399 Section 5399. 214.68 (1) (e) of the statutes is amended to read:

AB150,1788,17 214.68 (1) (e) Within 6 months after the date of the federal institution's meeting to convert, the commissioner department shall examine the federal institution and shall determine the action necessary to qualify the federal institution to convert to a savings bank. Upon complying with the necessary requirements, the commissioner department shall approve the conversion.

AB150, s. 5400 Section 5400. 214.68 (3) of the statutes is amended to read:

AB150,1788,20 214.68 (3) Before any conversion under this section is effective, the commissioner department shall issue a certificate of conversion.

AB150, s. 5401 Section 5401. 214.685 (1) of the statutes is amended to read:

AB150,1789,2 214.685 (1) A mutual savings bank may convert to a stock savings bank under this section. The board of directors of the mutual savings bank shall adopt a plan of conversion that complies with this section and the rules of the commissioner department. The plan of conversion is subject to the approval of the commissioner department.

AB150, s. 5402 Section 5402. 214.685 (2) of the statutes is amended to read:

AB150,1789,11 214.685 (2) Conversion of a mutual savings bank shall be effective only if it is accomplished according to a plan of conversion approved by the commissioner department under sub. (1) and if the plan is approved by an affirmative vote of the majority of all votes entitled to be cast by members. Notice of a meeting to vote on the plan of conversion shall be sent to each member at least 10 days before the meeting. The notice shall state the date, time, place and purpose of the meeting, provide a summary of the plan of conversion and include any other information the commissioner department requires.

AB150, s. 5403 Section 5403. 214.685 (3) (intro.) of the statutes is amended to read:

AB150,1789,15 214.685 (3) (intro.) Within 10 days after the date of a meeting at which a plan of conversion is adopted, the board of directors shall submit to the commissioner department all of the following:

AB150, s. 5404 Section 5404. 214.685 (3) (b) of the statutes is amended to read:

AB150,1789,18 214.685 (3) (b) Any additional information pertaining to the plan of conversion that the commissioner department may require.

AB150, s. 5405 Section 5405. 214.685 (4) (intro.) of the statutes is amended to read:

AB150,1789,22 214.685 (4) (intro.) The commissioner department may approve a plan of conversion if the commissioner department finds that the plan meets all of the following conditions:

AB150, s. 5406 Section 5406. 214.685 (4) (c) of the statutes is amended to read:

AB150,1789,25 214.685 (4) (c) Complies with any standard which the commissioner department may promulgate by rule.

AB150, s. 5407 Section 5407. 214.685 (5) of the statutes is amended to read:

AB150,1790,8 214.685 (5) The commissioner department may issue to a mutual savings bank a certificate of conversion to a stock savings bank, if the commissioner department determines the plan of conversion has been implemented as approved and the savings bank has complied with this section and any conditions to the approval. The date specified in the certificate is the effective date of the conversion. The certificate shall be recorded with the register of deeds in the county in which the home office of the savings bank is located.

AB150, s. 5408 Section 5408. 214.685 (8) (intro.) of the statutes is amended to read:

AB150,1790,11 214.685 (8) (intro.) The commissioner department shall issue rules governing the conversion of mutual savings banks, including:

AB150, s. 5409 Section 5409. 214.685 (8) (j) of the statutes is amended to read:

AB150,1790,14 214.685 (8) (j) Any other requirements for converting a mutual savings bank to a stock savings bank that the commissioner department considers to be necessary.

AB150, s. 5410 Section 5410. 214.715 (title) of the statutes is amended to read:

AB150,1790,16 214.715 (title) Powers of commissioner the department.

AB150, s. 5411 Section 5411. 214.715 (1) (intro.) of the statutes is amended to read:

AB150,1790,18 214.715 (1) (intro.) The commissioner department shall do all of the following:

AB150, s. 5412 Section 5412. 214.715 (1) (e) of the statutes is amended to read:

AB150,1790,21 214.715 (1) (e) Submit an annual report to the governor and the legislature regarding the work of the commissioner's office department under this chapter.

AB150, s. 5413 Section 5413. 214.715 (1) (f) of the statutes is amended to read:

AB150,1791,2 214.715 (1) (f) Commence an action in the commissioner's name to enforce any law of this state that applies to savings banks, service corporations, savings bank subsidiaries, affiliates or savings bank holding companies, including the enforcement of any obligation of the officers, directors, agents or employes of these entities.

AB150, s. 5414 Section 5414. 214.715 (1) (h) of the statutes is amended to read:

AB150,1791,12 214.715 (1) (h) Establish a reasonable fee structure, subject to approval of the review board, for savings banks and savings bank holding companies and for their service corporations and subsidiaries. The fees may include annual fees, application fees, regular and special examination fees and other fees that relate to the commissioner's department's responsibilities under this chapter and that are directly attributable to the entities operating under this chapter. The commissioner department may assess, bill and collect fees established under this paragraph. The amounts collected by the commissioner department shall be used for the expenses of the office of the commissioner department.

AB150, s. 5415 Section 5415. 214.715 (2) of the statutes is amended to read:

AB150,1791,17 214.715 (2) The commissioner Employes of the department may not be subject to any civil liability or penalty, or to any criminal prosecution, for any error in judgment or discretion made in good faith and upon reasonable grounds in any action taken or omitted by the commissioner employe in an official capacity.

AB150, s. 5416 Section 5416. 214.715 (3) of the statutes is amended to read:

AB150,1791,23 214.715 (3) If it appears to the commissioner department of financial institutions that a savings bank is conducting its business in violation of this chapter, the commissioner department of financial institutions may report the facts to the department of justice which may bring an action to revoke the certificate of incorporation of the savings bank.

AB150, s. 5417 Section 5417. 214.715 (4) (a) of the statutes is amended to read:

AB150,1792,4 214.715 (4) (a) A savings bank that intends to move its home office or a branch office to some other location not more than one mile from its current location shall make an application to the commissioner department. The commissioner department may approve or deny the application for relocation.

AB150, s. 5418 Section 5418. 214.715 (4) (b) of the statutes is amended to read:

AB150,1792,13 214.715 (4) (b) A savings bank that intends to move its home office or a branch office to some other location more than one mile from its current location shall make an application to the commissioner department. The commissioner department shall give notice and provide an opportunity for hearing as provided in s. 214.26 (3) to (5). In approving or denying the application for relocation, the commissioner department shall determine the need for relocation and determine whether undue harm or injury would be caused to any savings bank doing business in the area or vicinity of the proposed relocation.

AB150, s. 5419 Section 5419. 214.72 (1) (b) of the statutes is amended to read:

AB150,1792,19 214.72 (1) (b) "Financial regulator" means the commissioner, department secretary and deputy commissioner, secretary, and an administrator of examination and supervision, a supervisor of data processing, legal counsel and a savings bank financial institution examiner employed by the department and includes any member of a financial regulator's immediate family, as defined in s. 19.42 (7).

AB150, s. 5420 Section 5420. 214.72 (3) of the statutes is amended to read:

AB150,1793,5 214.72 (3) Within 30 days after commencing employment as a financial regulator and at least once each year, each financial regulator, for himself or herself and covering his or her immediate family, shall complete a written, sworn report disclosing the nature of all business relationships with savings banks on forms prescribed by the commissioner department. Each report shall be reviewed by the commissioner department, except that the commissioner's secretary's and deputy commissioner's secretary's report shall be reviewed by the review board. The reviewers shall determine if any business relationship is or appears improper and, if so, may direct the termination of that business relationship within a reasonable, prescribed time period.

AB150, s. 5421 Section 5421. 214.725 (1) of the statutes is amended to read:

AB150,1793,14 214.725 (1) At least once every 18 months and more often if necessary, the commissioner department shall examine the books, records, operations and affairs of a savings bank. In the course of the examination, the commissioner department may also examine in the same manner any entity, company or individual that the commissioner department determines may have a relationship with the savings bank or a savings bank holding company, savings bank subsidiary, service corporation or affiliate of the savings bank, if the relationship may adversely affect the affairs, activities and safety and soundness of the savings bank.

AB150, s. 5422 Section 5422. 214.725 (2) of the statutes is amended to read:

AB150,1793,22 214.725 (2) The commissioner department shall consider it to be necessary to conduct an examination more often than every 18 months if a required report from a savings bank indicates a material change in financial condition or a material violation of a state or federal law, of a federal regulation or of a rule of the commissioner department. If that condition is grounds for taking custody of the savings bank under s. 214.76, the examination shall be initiated within 10 business days.

AB150, s. 5423 Section 5423. 214.725 (3) (f) of the statutes is amended to read:

AB150,1793,25 214.725 (3) (f) Any other matter the commissioner department considers to be appropriate.

AB150, s. 5424 Section 5424. 214.725 (4) of the statutes is amended to read:

AB150,1794,8 214.725 (4) If a savings bank, its savings bank holding company or any of its savings bank subsidiaries or service corporations has not been audited at least once in the 12 months before the commissioner's department's examination, the commissioner department shall order an audit of the entity's books and records to be made by an independent certified public accountant, selected by the commissioner department, who has experience in financial institution audits. The cost of the audit shall be paid for by the entity being audited.

AB150, s. 5425 Section 5425. 214.725 (5) of the statutes is amended to read:

AB150,1794,13 214.725 (5) The commissioner, employes Employes of the office of the commissioner department or other designated agents may administer oaths and examine and take and preserve testimony under oath as to anything in the affairs or ownership of the savings bank or the entity examined.

AB150, s. 5426 Section 5426. 214.725 (7) of the statutes is amended to read:

AB150,1794,17 214.725 (7) If a savings bank fails to submit to an examination, the commissioner department shall report that failure to the attorney general, who shall institute proceedings to revoke its certificate of incorporation.

AB150, s. 5427 Section 5427. 214.735 of the statutes is amended to read:

AB150,1794,24 214.735 Examination report. Upon completion of an examination, the commissioner department shall provide an examination report to the board of directors of the savings bank or other entity examined. Each director shall read the report and shall sign an affidavit affirming that the director has read and understands the report. The affidavits shall be retained by the savings bank or entity examined and may be examined by the commissioner department.

AB150, s. 5428 Section 5428. 214.74 (title) of the statutes is amended to read:

AB150,1795,1 214.74 (title) Orders of the commissioner department.

AB150, s. 5429 Section 5429. 214.74 (1) of the statutes is amended to read:

AB150,1795,9 214.74 (1) If the affairs of the savings bank, savings bank subsidiary, service corporation or affiliate or savings bank holding company are not being conducted in accordance with this chapter, the commissioner department may require the directors, officers and employes to take necessary corrective action. If the necessary corrective action is not taken, the commissioner department may issue an order to the directors of the entity, to be served personally or by certified mail, specifying a date for the performance of the corrective action.

AB150, s. 5430 Section 5430. 214.74 (2) of the statutes is amended to read:

AB150,1795,20 214.74 (2) If the order contains a finding that the business of the savings bank or savings bank holding company is being conducted in a fraudulent, illegal, unsafe or unsound manner or that the violation or the continuance of the practice to be corrected may cause insolvency, substantial dissipation of assets or earnings or the impairment of capital, the savings bank or savings bank holding company shall comply with the order immediately, unless the order is modified or withdrawn by the commissioner department or modified or terminated by a court. Notwithstanding sub. (3), the commissioner department may apply to the circuit court in the county in which the home office of the savings bank or savings bank holding company is located for enforcement of an order.

AB150, s. 5431 Section 5431. 214.74 (3) of the statutes is amended to read:

AB150,1796,4 214.74 (3) If a hearing before the review board has not been requested within 20 days after service of an order, the commissioner department may, at any time within 90 days after the date specified in the order for an action to be taken or discontinued, commence an action in the circuit court of the county in which the home office of the savings bank or savings bank holding company is located to compel the directors, officers or employes to take required corrective action. If a hearing is requested pursuant to s. 214.78, the commissioner department may institute suit within 90 days after a determination by the review board.

AB150, s. 5432 Section 5432. 214.74 (4) of the statutes is amended to read:

AB150,1796,7 214.74 (4) This section is in addition to the enforcement authority of the commissioner department under subch. XII.

AB150, s. 5433 Section 5433. 214.745 of the statutes is amended to read: