AB150: Bill Text

AB150, s. 5653 Section 5653. 215.32 (13) (c) of the statutes is amended to read:

AB150,1850,16 215.32 (13) (c) The commissioner department recommends that control of the business and property of the association be returned to the directors; and

AB150, s. 5654 Section 5654. 215.32 (13) (d) of the statutes is amended to read:

AB150,1850,20 215.32 (13) (d) The court in which such liquidation is pending, upon application of the commissioner department, finds that the association will be in a safe and sound condition when control is resumed by the directors.

AB150, s. 5655 Section 5655. 215.32 (14) of the statutes is amended to read:

AB150,1851,4 215.32 (14) Reinstatement upon a restricted basis. Such association may resume business upon a restricted basis, and upon limitations and conditions prescribed by the commissioner department when approved by the circuit court, upon application of the commissioner department. Such restrictions and conditions may include a prohibition against the acceptance of payments on new savings accounts, reasonable restrictions upon withdrawals of savings accounts and the payment of other liabilities. Such associations shall thereupon be relieved from the control of the commissioner department.

AB150, s. 5656 Section 5656. 215.32 (15) (a) of the statutes is amended to read:

AB150,1851,21 215.32 (15) (a) The commissioner department may, if the commissioner department takes possession of any association, the savings accounts of which are to any extent insured by the federal savings and loan insurance corporation, tender to said corporation the appointment as statutory liquidator of such association. If the commissioner department does not make such tender, the commissioner department shall tender to said corporation the appointment as statutory co-liquidator to act jointly with the commissioner department, but such co-liquidatorship shall not be for more than one year from the date of such tender, at the expiration of which time the commissioner department shall become the sole liquidator except as herein otherwise provided. The commissioner department shall tender to said corporation the appointment as sole statutory liquidator of such association whenever said corporation has become subrogated to the rights of 90 per cent of the liability of such association on savings accounts. If the corporation becomes subrogated as to all the savings accounts in such association, it may then exercise all the powers and privileges herein conferred upon it without court approval.

AB150, s. 5657 Section 5657. 215.32 (15) (b) of the statutes is amended to read:

AB150,1852,6 215.32 (15) (b) If the corporation accepts the appointment as sole liquidator it shall possess all the powers and privileges of the commissioner department as statutory liquidator of a possessed savings and loan association, and be subject to all the duties of the commissioner department as sole liquidator, except insofar as such powers and privileges or duties are in conflict with federal laws, and except as herein otherwise provided, unless such association resumes business, pursuant to subs. (13) and (14). If the corporation accepts the appointment as co-liquidator, it shall possess such powers and privileges jointly with the commissioner department and shall be subject to such duties jointly with said commissioner department.

AB150, s. 5658 Section 5658. 215.32 (15) (c) of the statutes is amended to read:

AB150,1853,2 215.32 (15) (c) In the event the corporation accepts the appointment as co-liquidator or liquidator, it shall file such acceptance with the commissioner department and the clerk of the circuit court and it may act without bond. Upon the filing by the corporation of its acceptance of the appointment as sole liquidator, the possession of and title to all the assets, business and property of the association shall vest in the corporation without the execution of any conveyance, assignments, transfer or indorsement. Upon the filing by the corporation of its acceptance of the appointment as co-liquidator, such possession and title shall be vested in the commissioner department and the corporation jointly. If the corporation does not qualify as sole liquidator at or before the time herein provided for the expiration of the co-liquidatorship, the corporation shall be wholly divested of and from such joint title and possession and the sole title and possession shall thereupon vest in the commissioner department. The vesting of title and possession of the property of the association, under sub. (8), shall not render such property subject to any claims or demands against the federal corporation, except such as may be incumbered by it with respect to such association and its property. Whether or not it serves as aforesaid, the corporation may make loans on the security of or may purchase with the approval of the court, except as herein otherwise provided, all or any part of the assets of any association, the savings accounts of which are to any extent insured by it, but in the event of such purchase, the corporation shall pay a reasonable price.

AB150, s. 5659 Section 5659. 215.33 (3) (a) 5. of the statutes is amended to read:

AB150,1853,5 215.33 (3) (a) 5. Such other information as the commissioner department may require.

AB150, s. 5660 Section 5660. 215.33 (3) (b) (intro.) of the statutes is amended to read:

AB150,1853,12 215.33 (3) (b) Approval of applications. (intro.) Upon receipt of a completed application and the required fee, the commissioner department may issue a certificate of authority. The certificate of authority may be subject to specific conditions that the commissioner department believes necessary to adequately safeguard the interests of the residents of this state. A certificate of authority to do business in this state shall not be issued unless:

AB150, s. 5661 Section 5661. 215.33 (3) (b) 1. of the statutes is amended to read:

AB150,1853,16 215.33 (3) (b) 1. The association is in sound financial condition and entitled to public confidence, and the commissioner department is satisfied that the association will conduct its business in this state in accordance with the laws of this state.

AB150, s. 5662 Section 5662. 215.33 (3) (b) 2. of the statutes is amended to read:

AB150,1853,22 215.33 (3) (b) 2. The accounts of the association are insured by the federal savings and loan insurance corporation or any other insurer acceptable to the commissioner department, or that adequate and sufficient securities have been deposited with the state treasurer to assure that the association will meet its obligations to the residents of this state.

AB150, s. 5663 Section 5663. 215.33 (3) (c) (intro.) of the statutes is amended to read:

AB150,1853,25 215.33 (3) (c) Revocation. (intro.) The commissioner department may revoke a certificate of authority issued under this section if:

AB150, s. 5664 Section 5664. 215.33 (3) (c) 2. of the statutes is amended to read:

AB150,1854,4 215.33 (3) (c) 2. The association refuses to permit the commissioner department to conduct a complete examination of the association, or fails to pay applicable costs or fees.

AB150, s. 5665 Section 5665. 215.33 (3) (c) 3. of the statutes is amended to read:

AB150,1854,8 215.33 (3) (c) 3. The commissioner department determines that the association is in an unsafe condition or that its continued operation in this state is otherwise inconsistent with the best interests of the residents of this state.

AB150, s. 5666 Section 5666. 215.33 (4) of the statutes is amended to read:

AB150,1854,18 215.33 (4) Examination and audit of foreign associations. Each foreign association doing business in this state shall be examined by the commissioner department as provided under s. 215.03, audited under s. 215.25 and assessed fees and costs as provided under s. 215.02 (16), together with any out-of-state travel expenses incurred in the course of the examination and audit. However, the commissioner department may accept as all or part of the examination or audit, all or any part of an examination or audit made on behalf of the agency responsible for the supervision of the foreign association in the jurisdiction in which the association is organized.

AB150, s. 5667 Section 5667. 215.33 (5) of the statutes is amended to read:

AB150,1855,2 215.33 (5) Designation of registered agent. Each foreign association doing business in this state shall maintain on file with the commissioner department the name and address of an individual in this state who is authorized to receive legal process on behalf of the association. The commissioner department shall maintain a current record of each individual so designated. The record of the commissioner department shall be conclusive evidence of the authority of the person whose name appears therein to receive process on behalf of the association.

AB150, s. 5668 Section 5668. 215.33 (6) of the statutes is amended to read:

AB150,1855,13 215.33 (6) Reciprocity. If the laws of another jurisdiction prohibit an association chartered by this state and insured by the federal savings and loan insurance corporation from doing business in that jurisdiction, no association organized under the laws of that jurisdiction may be authorized to do business in this state. If the laws of another jurisdiction require the posting of securities or impose other additional requirements as a condition of permitting an association chartered by this state to do business in that jurisdiction, the commissioner department may impose similar requirements on an association organized under the laws of that jurisdiction before issuing the association a certificate of authority to do business in this state.

AB150, s. 5669 Section 5669. 215.35 (1) (intro.) of the statutes is amended to read:

AB150,1855,17 215.35 (1) (intro.) The commissioner department may waive any portion of s. 215.53, 215.57, 215.58, 215.73 or 215.77 if the commissioner department makes written findings of both of the following:

AB150, s. 5670 Section 5670. 215.36 (2) (b) of the statutes is amended to read:

AB150,1855,22 215.36 (2) (b) An in-state savings and loan proposing any action under par. (a) shall provide the commissioner department a copy of any original application seeking approval by a federal agency or by an agency of the regional state and of any supplemental material or amendments filed in connection with any application.

AB150, s. 5671 Section 5671. 215.36 (3) (b) of the statutes is amended to read:

AB150,1856,3 215.36 (3) (b) An in-state savings and loan holding company proposing any action under par. (a) shall provide the commissioner department a copy of any original application seeking approval by a federal agency or by an agency of the regional state and of any supplemental material or amendments filed in connection with any application.

AB150, s. 5672 Section 5672. 215.36 (5) (a) (intro.) of the statutes is amended to read:

AB150,1856,7 215.36 (5) (a) (intro.) The commissioner department finds that the statutes of the regional state in which the regional savings and loan or regional savings and loan holding company has its principal place of business permit all of the following:

AB150, s. 5673 Section 5673. 215.36 (5) (b) of the statutes is amended to read:

AB150,1856,11 215.36 (5) (b) The commissioner department has not disapproved the acquisition of the in-state savings and loan or the acquisition or merger with the in-state savings and loan holding company under sub. (7).

AB150, s. 5674 Section 5674. 215.36 (5) (c) of the statutes is amended to read:

AB150,1856,22 215.36 (5) (c) The commissioner department gives a class 3 notice, under ch. 985, in the official state newspaper, of the application to take an action under sub. (4) and of the opportunity for a hearing and, if at least 25 residents of this state petition for a hearing within 30 days of the final notice or if the commissioner department on his or her the department's motion calls for a hearing within 30 days of the final notice, the commissioner department holds a public hearing on the application, except that a hearing is not required if the commissioner department finds that an emergency exists and that the proposed action under sub. (4) is necessary and appropriate to prevent the probable failure of an in-state savings and loan that is closed or in danger of closing.

AB150, s. 5675 Section 5675. 215.36 (5) (d) of the statutes is amended to read:

AB150,1857,3 215.36 (5) (d) The commissioner department is provided a copy of any original application seeking approval by a federal agency of the acquisition of an in-state savings and loan or acquisition of or merger with an in-state savings and loan holding company and of any supplemental material or amendments filed with the application.

AB150, s. 5676 Section 5676. 215.36 (5) (e) of the statutes is amended to read:

AB150,1857,7 215.36 (5) (e) The applicant has paid the commissioner department a fee of $1,000 together with the actual costs incurred by the commissioner department in holding any hearing on the application.

AB150, s. 5677 Section 5677. 215.36 (7) (intro.) of the statutes is amended to read:

AB150,1857,11 215.36 (7) Standards for disapproval. (intro.) The commissioner department may disapprove of any action under sub. (4) if the commissioner department finds any of the following:

AB150, s. 5678 Section 5678. 215.36 (7) (ct) of the statutes is amended to read:

AB150,1857,16 215.36 (7) (ct) The applicant has failed to enter into an agreement prepared by the commissioner department to comply with laws and rules of this state regulating consumer credit finance charges and other charges and related disclosure requirements, except to the extent preempted by federal law or regulation.

AB150, s. 5679 Section 5679. 215.36 (7) (e) of the statutes is amended to read:

AB150,1857,19 215.36 (7) (e) The applicant fails to meet any other standards established by rule of the commissioner department.

AB150, s. 5680 Section 5680. 215.36 (9) (a) of the statutes is amended to read:

AB150,1857,23 215.36 (9) (a) Subsections (1) to (7) do not apply prior to January 1, 1987, except that the commissioner department may promulgate rules under sub. (7) (e) to be applicable no earlier than the date that subs. (1) to (7) apply.

AB150, s. 5681 Section 5681. 215.36 (11) of the statutes is amended to read:

AB150,1858,10 215.36 (11) Divestiture. Any savings and loan holding company that ceases to be an in-state savings and loan holding company or regional savings and loan holding company shall immediately notify the commissioner department of the change in its status and shall, as soon as practical and, in any case, within 2 years after the event causing it to no longer be one of these entities, divest itself of control of all in-state savings and loans and in-state savings and loan holding companies. A savings and loan holding company that fails to immediately notify the commissioner department is liable for a forfeiture of $500 for each day beginning with the day its status changes and ending with the day notification is received by the commissioner department.

AB150, s. 5682 Section 5682. 215.40 (1) (c) of the statutes is amended to read:

AB150,1858,15 215.40 (1) (c) An association shall include the word "savings" in its name if its name includes the word "bank". This paragraph does not apply to an association name if the association obtained approval for use of the name from the commissioner department before February 12, 1992.

AB150, s. 5683 Section 5683. 215.40 (2) (intro.) of the statutes is amended to read:

AB150,1858,18 215.40 (2) Minimum membership and savings accounts. (intro.) The commissioner department shall determine:

AB150, s. 5684 Section 5684. 215.40 (2) (d) of the statutes is amended to read:

AB150,1858,21 215.40 (2) (d) Such other requirements as the commissioner department deems necessary or desirable.

AB150, s. 5685 Section 5685. 215.40 (3) of the statutes is amended to read:

AB150,1859,2 215.40 (3) Who may organize. Adult citizens of this state, hereinafter referred to as incorporators, desiring to organize a mutual association under this section shall make application to the commissioner department as prescribed on forms furnished by the commissioner department.

AB150, s. 5686 Section 5686. 215.40 (4) (e) of the statutes is amended to read:

AB150,1859,5 215.40 (4) (e) Such other information as the commissioner department requires.

AB150, s. 5687 Section 5687. 215.40 (5) of the statutes is amended to read:

AB150,1859,9 215.40 (5) Application fee. The applicants shall pay to the commissioner department $200 to defray the cost of investigation, which sum shall be paid by the commissioner deposited into the general fund to the credit of the office department.

AB150, s. 5688 Section 5688. 215.40 (6) (a) of the statutes is amended to read:

AB150,1859,16 215.40 (6) (a) Along with the application, the incorporators shall file an agreement with the commissioner department that, in addition to their initial savings account subscriptions, they will create an expense fund in an amount not less than one-half of the total minimum required amount of savings accounts. The expense fund is for organization expenses, operating deficits, earnings distributions on savings accounts and losses.

AB150, s. 5689 Section 5689. 215.40 (6) (b) of the statutes is amended to read:

AB150,1859,21 215.40 (6) (b) This expense fund shall become a part of the assets of the proposed association if the commissioner department approves the application and will be reflected on the books as a liability under the caption "Subsidy by incorporators."

AB150, s. 5690 Section 5690. 215.40 (6) (d) of the statutes is amended to read:

AB150,1860,4 215.40 (6) (d) At the end of 3 years of corporate existence, the board of directors may petition the commissioner department for authority to repay the incorporators on a proportional basis, any unused portion remaining in the subsidy by directors. If the commissioner department determines that the operations of the association at that point are of such degree as to enable the association to operate as an independent institution, requiring no further subsidy, the commissioner department may authorize such repayment.

AB150, s. 5691 Section 5691. 215.40 (6) (e) of the statutes is amended to read:

AB150,1860,14 215.40 (6) (e) At the end of the 4th year, and each subsequent year, the board of directors of the association may petition the commissioner department for authority to pay out of current income of any period to the incorporators on a proportional basis the amount remaining after payment of expenses, provision for taxes, and the provision for distribution of earnings as a recovery of previous charges made to the expense fund account by incorporators. The commissioner department may approve or deny the petition for recovery payments. In no event shall refunds of this type exceed the total of the charges made to the expense fund account by incorporators.

AB150, s. 5692 Section 5692. 215.40 (7) (a) of the statutes is amended to read:

AB150,1861,2 215.40 (7) (a) Within 30 days after receiving a completed application the commissioner department shall furnish a notice of application to the applicant and to each association authorized to operate an office within 4 miles of the proposed office if the office is to be located in Milwaukee county, or 20 miles of the proposed office if located elsewhere. The notice shall describe the location and nature of the proposed office and shall solicit written comments on the application. If a hearing on the application has been scheduled the notice shall also indicate the time and place of the hearing. If not, the notice shall notify interested persons of their right to request a hearing under par. (b) 2. The applicant shall publish the notice of application as a class 3 notice under ch. 985 in the city, town or village where the office is to be located and shall provide the commissioner department with proof of its publication.

AB150, s. 5693 Section 5693. 215.40 (7) (b) (intro.) of the statutes is amended to read:

AB150,1861,5 215.40 (7) (b) (intro.) The commissioner department shall conduct a public hearing on the application if any of the following occur:

AB150, s. 5694 Section 5694. 215.40 (7) (b) 2. of the statutes is amended to read:

AB150,1861,9 215.40 (7) (b) 2. Within 3 days after publication of the notice of application any person planning to participate in a hearing on the application files with the commissioner department a request for hearing; or

AB150, s. 5695 Section 5695. 215.40 (7) (b) 3. of the statutes is amended to read:

AB150,1861,12 215.40 (7) (b) 3. The commissioner department determines that a hearing will be necessary or useful.

AB150, s. 5696 Section 5696. 215.40 (7) (c) of the statutes is amended to read:

AB150,1861,17 215.40 (7) (c) If a hearing date was not indicated in the notice of application and a hearing is subsequently required, the commissioner department shall give written notice of the time and place of the hearing to the applicant and to anyone who has requested a hearing, not later than 10 days in advance of the scheduled hearing.

AB150, s. 5697 Section 5697. 215.40 (8) of the statutes is amended to read: