AB872, s. 28 3Section 28. 223.02 of the statutes, as affected by 1995 Wisconsin Act 27, is
4repealed and recreated to read:
AB872,139,7 5223.02 Indemnity fund deposit; errors and omissions insurance. Before
6any trust company bank may commence business in this state, the trust company
7bank shall do one of the following:
AB872,139,9 8(1) Indemnity fund deposit. Deposit at least $100,000 with the state treasurer
9or the state treasurer's agent in accordance with the following provisions:
AB872,139,1310 (a) The deposit may be securities eligible for trust investments under ch. 881
11and approved by the division or be cash. The trust company bank may from time to
12time withdraw securities or cash, if the value of the balance of the deposit remains
13at least $100,000.
AB872,139,1814 (b) The state treasurer or the state treasurer's agent shall pay over to the bank
15trust company the interest, dividends or other income on deposit or may authorize
16the bank trust company to collect the interest, dividends or other income. The state
17treasurer shall issue a certificate stating that a deposit has been made with the state
18treasurer or the state treasurer's agent in the manner provided in this section.
AB872,139,2319 (c) The state treasurer or the state treasurer's agent shall hold the deposit as
20security for the faithful execution of any trust which may be lawfully imposed upon
21and accepted by the trust company bank. The cash or securities shall remain in the
22possession of the state treasurer or the state treasurer's agent until otherwise
23ordered by a court of competent jurisdiction, unless released pursuant to par. (d).
AB872,140,224 (d) The securities and cash deposited by a trust company bank may be released
25by the state treasurer or the state treasurer's agent and returned to the bank, if the

1division certifies to the state treasurer that the bank no longer exercises trust powers
2and that the division is satisfied that there are no outstanding trust liabilities.
AB872,140,73 (e) The state treasurer may designate a banking corporation, having an
4authorized capital of $1,000,000 or more, to act as an agent to hold the cash or
5securities in safekeeping. The agent shall furnish to the state treasurer a
6safekeeping receipt for all cash and securities received by it. The agent shall pay the
7cash and securities to the state treasurer on demand without conditions.
AB872,140,12 8(2) Errors and omissions insurance policy. Obtain and maintain adequate
9insurance against loss, expense and liability resulting from errors, omissions or
10neglect in the performance of any trust which may be lawfully imposed upon and
11accepted by the trust company bank. The trust company bank shall file a copy of the
12policy with the division.
AB872, s. 29 13Section 29. 223.025 of the statutes, as affected by 1995 Wisconsin Act 27, is
14repealed.
AB872, s. 30 15Section 30. 223.03 (6) of the statutes is repealed and recreated to read:
AB872,140,1816 223.03 (6) To act as trustee, executor, administrator, registrar of stocks and
17bonds, custodian, agent, guardian of estates, assignee, receiver, and in any other
18fiduciary capacity authorized by the division.
AB872, s. 31 19Section 31. 223.03 (10) of the statutes, as affected by 1995 Wisconsin Act 27,
20is repealed.
AB872, s. 32 21Section 32. 223.03 (11) of the statutes is repealed.
AB872, s. 33 22Section 33. 223.03 (12) of the statutes is repealed.
AB872, s. 34 23Section 34. 223.03 (14) of the statutes, as affected by 1995 Wisconsin Act 27,
24is amended to read:
AB872,141,5
1223.03 (14) To establish and maintain a branch trust company bank with the
2approval of the division. Section 221.04 (1) (jm) 2. to 8., as it applies to bank branch
3offices under that paragraph, applies to trust company bank branch offices under
4this subsection
to the same extent and in the same manner that a state bank may
5establish and maintain a branch bank under s. 221.0302
.
AB872, s. 35 6Section 35. 223.04 of the statutes is repealed.
AB872, s. 36 7Section 36. 223.07 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
8is amended to read:
AB872,141,139 223.07 (1) Any trust company bank may, with the approval of the division,
10establish and maintain a trust service office at any office in this state of a state or
11national bank
depository institution, as defined in s. 221.0901 (2) (i), if the
12establishment of the trust service office has been approved by the board of directors
13of the state or national bank at a meeting called for that purpose.
AB872, s. 37 14Section 37. 223.07 (3) of the statutes, as affected by 1995 Wisconsin Act 27,
15is amended to read:
AB872,142,2316 223.07 (3) If the state or national bank depository institution at which a trust
17service office is to be established has exercised trust powers, the trust company bank
18and the state or national bank depository institution shall enter into an agreement
19respecting those fiduciary powers to which the trust company bank shall succeed and
20shall file the agreement with the division. The trust company bank shall cause a
21notice of the filing, in a form prescribed by the division, to be published as a class 1
22notice, under ch. 985, in the city, village or town where the state or national bank
23depository institution is located. After filing and publication, the trust company
24bank establishing the office shall, as of the date the office first opens for business,
25without further authorization of any kind, succeed to and be substituted for the state

1or national bank
depository institution as to all fiduciary powers, rights, duties,
2privileges and liabilities of the bank depository institution in its capacity as fiduciary
3for all estates, trusts, guardianships and other fiduciary relationships of which the
4bank depository institution is then serving as fiduciary, except as may be otherwise
5specified in the agreement between the trust company bank and the state or national
6bank
depository institution. The trust company bank shall also be deemed named
7as fiduciary in all writings, including, but not limited to, wills, trusts, court orders
8and similar documents and instruments naming the state or national bank
9depository institution as fiduciary, signed before the date the trust office first opens
10for business, unless expressly negated by the writing or otherwise specified in the
11agreement between the trust company bank and the state or national bank
12depository institution. On the effective date of the substitution, the state or national
13bank
depository institution shall be released and absolved from all fiduciary duties
14and obligations under such writings and shall discontinue its exercise of trust powers
15on all matters not specifically retained by the agreement. This subsection does not
16effect a discharge in the manner of s. 701.16 (6) or other applicable statutes and does
17not absolve a state or national bank depository institution exercising trust powers
18from liabilities arising out of any breach of fiduciary duty or obligation occurring
19prior to the date the trust service office first opens for business at the bank depository
20institution
. This subsection does not affect the authority, duties or obligations of a
21bank depository institution with respect to relationships which may be established
22without trust powers, including escrow arrangements, whether the relationships
23arise before or after the establishment of the trust service office.
AB872, s. 38 24Section 38. 223.08 of the statutes is amended to read:
AB872,143,12
1223.08 Name of corporation; penalty. The word "trust" shall form part of
2the name of every corporation organized under this chapter, but the word "bank"
3shall may not be used as a part of the name. All persons, partnerships, associations,
4or corporations not organized under the provisions of this chapter, except state banks
5vested with trust powers under s. 221.04 (6) 221.0316 and nonprofit corporations
6organized for the advancement of historic preservation or for the protection of land
7for public conservation purposes, are prohibited from using the word "trust" in their
8business, or as a portion of the name or title of such the person, partnership,
9association, or corporation. Any A person who violates this section, either
10individually or as an interested party in any partnership, association, or corporation,
11may be fined not less than $300 nor more than $1,000 or imprisoned for not less than
1260 days nor more than one year in the county jail or both.
AB872, s. 39 13Section 39. Subchapter II (title) of chapter 223 [precedes 223.10] of the
14statutes is created to read:
AB872,143,1515 Chapter 223
AB872,143,1616 Subchapter II
AB872,143,1817 Other Organizations
18 acting as fiduciaries
AB872, s. 40 19Section 40. 223.11 of the statutes is renumbered 223.21 and amended to read:
AB872,144,9 20223.21 Consolidation of trust company banks. Any trust company bank
21organized, continued or reorganized under this chapter may consolidate with any
22other similar corporation in the manner provided for the consolidation of banks
23under s. 221.25 221.0702; and in the event of such consolidation the consolidated
24corporation, by whatever name it may assume or be known, shall be a continuation
25of the entity of each and all of the corporations so consolidated for all purposes

1whatsoever, including holding and performing any and all trusts and fiduciary
2relations of whatsoever nature of which the corporations so consolidating, or either
3or any of them, was fiduciary at the time of the consolidation, and also including its
4appointment in any fiduciary capacity by any court or otherwise, and the holding,
5accepting and performing of any and all trusts and fiduciary relations whatsoever
6as to or for which either or any one of the corporations so consolidating may have been
7appointed, nominated or designated by any will or conveyance or otherwise, whether
8or not the trust or fiduciary relation shall have come into being or taken effect at the
9time of the consolidation.
AB872, s. 41 10Section 41. 223.12 (title) of the statutes is amended to read:
AB872,144,12 11223.12 (title) Foreign trust company, companies and banks as executor
12or trustee
here, when in this state.
AB872, s. 42 13Section 42. 223.12 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
14is amended to read:
AB872,144,2015 223.12 (1) Any trust company or bank, incorporated under the laws of any other
16state, named by any resident of this state, as executor or trustee, or both, under that
17person's last will and testament or any codicil thereto, may be appointed and may
18accept appointment and
may act as executor of, or trustee under, the last will and
19testament of any such person in this state, or both, provided trust if all of the
20following conditions are met:
AB872,144,23 211. Trust companies and banks of this state are permitted to act as such executor
22or trustee, or both, in the state where such foreign corporation the foreign trust
23company or bank
has its domicile, and such foreign corporation shall have.
AB872,145,5 242. The foreign trust company or bank has executed and filed with the division
25of banking a written instrument appointing the division its true and lawful attorney

1upon whom all process may be served in any action or proceeding against such
2executor or trustee, affecting or relating to the estate represented or held by such
3executor or trustee, or the acts or defaults of such corporation the foreign trust
4company or bank
in reference to such estate, with the same effect as if it existed in
5this state and had been lawfully served with process therein, and shall also have.
AB872,145,9 63. The foreign trust company or bank has filed with the division a copy of its
7charter, articles of organization and all amendments thereto certified to by the
8secretary of state or other proper officer of said foreign state under the seal of office
9together with the post-office address of its principal office and shall further have.
AB872,145,11 104. The foreign trust company or bank has complied with s. ss. 223.02 and
11701.16
.
AB872, s. 43 12Section 43. 223.12 (2) and (3) of the statutes are amended to read:
AB872,145,2013 223.12 (2) Any A trust company or bank, incorporated under the laws of any
14other state, duly acting and qualified as executor or trustee under any foreign will,
15shall have has the same rights and authority under such the will as to real estate
16within this state which that any natural person who is duly acting as such foreign
17executor or trustee may have under the laws of this state, without such the foreign
18trust company or bank being required to do any act qualifying it to do business within
19this state that is not required of a natural person acting as such foreign executor or
20trustee.
AB872,146,3 21(3) No such foreign corporation A trust company or bank, incorporated under
22the laws of any other state
, having authority to act as executor or trustee under the
23last will and testament of any person, shall may not establish or maintain directly
24or indirectly any branch office or agency in this state or shall and may not in any way
25solicit directly or indirectly any business as executor or trustee therein in this state.

1If any such A foreign corporation trust company or bank that violates this provision,
2such foreign corporation shall
may not thereafter be appointed or act as executor or
3trustee in this state.
AB872, s. 44 4Section 44. 223.12 (4) and (5) of the statutes are repealed.
AB872, s. 45 5Section 45. Subchapter III (title) of chapter 223 [precedes 223.20] of the
6statutes is created to read:
AB872,146,77 Chapter 223
AB872,146,88 Subchapter III
AB872,146,109 Trust company bank
10 consolidation and reorganization
AB872,146,17 11223.20 Reorganization of a trust company bank. (1) Conversion into a
12state bank.
A trust company bank may, by amendment to its articles of
13incorporation, duly adopted by its stockholders and approved by the division, in the
14manner provided under s. 221.0211, convert its corporate organization into that of
15a state bank with all the powers of a state banking corporation under the statutes
16under such name as shall be declared by such amendment and approved by the
17division, which name may include the word "trust".
AB872,147,3 18(2) Powers of a converted trust company bank. The converted trust company
19bank continues to have all the powers previously held by it as a trust company bank
20and shall be a continuation, for all purposes, of the trust company bank so converted
21into a state bank. These powers include holding and performing all trusts and
22fiduciary relations for which the trust company bank was fiduciary at the time of the
23conversion. These powers also include the converted trust company bank acting in
24any fiduciary capacity by any court or otherwise, and the holding, accepting and
25performing of trusts and fiduciary relations as to or for which the trust company bank

1may have been appointed, nominated or designated by any will or conveyance or
2otherwise, whether or not the trust or fiduciary relation came into being and took
3effect at the conversion.
AB872,147,11 4(3) Surrender of trust powers. If a converted trust company bank has been
5fully discharged of all trusts committed to it, it may, by amendment to its articles of
6incorporation, duly adopted by its stockholders and approved by the division,
7surrender its powers to act in a fiduciary capacity. A trust company bank that
8surrenders its trust powers under this subsection shall eliminate from its corporate
9name the word "trust;" and may thereupon withdraw from the state treasurer all
10securities and cash that it has deposited with the state treasurer pursuant to s.
11223.02.
AB872, s. 46 12Section 46. 224.075 of the statutes, as affected by 1995 Wisconsin Act 27, is
13repealed.
AB872, s. 47 14Section 47. 224.08 of the statutes is repealed.
AB872, s. 48 15Section 48. 224.092 of the statutes is renumbered 224.092 (1) and amended
16to read:
AB872,147,2217 224.092 (1) If Except as provided in sub. (2), if requested by an individual who
18is a customer, loan applicant or credit applicant, a financial institution, as defined
19in s. 705.01 (3), shall provide that individual with a copy of any written appraisal
20report which is held by the financial institution, which relates to residential real
21estate that the individual owns or has agreed to purchase and for which a fee is
22imposed.
AB872, s. 49 23Section 49. 224.092 (2) of the statutes is created to read:
AB872,147,2524 224.092 (2) Subsection (1) does not apply to a financial institution that
25complies with 12 CFR 202.5a.
AB872, s. 50
1Section 50. 404.213 (4m) of the statutes is repealed.
AB872, s. 51 2Section 51. 701.19 (2) (d) of the statutes is amended to read:
AB872,148,63 701.19 (2) (d) Except as otherwise provided in s. 223.03 (10), a A trustee may
4not sell individually owned assets to the trust unless the sale is authorized in the
5creating instrument, made with the written consent of all beneficiaries or made with
6the approval of the court upon notice and hearing.
AB872, s. 52 7Section 52. 946.82 (4) of the statutes, as affected by 1995 Wisconsin Act 133,
8is amended to read:
AB872,148,219 946.82 (4) "Racketeering activity" means any activity specified in 18 USC 1961
10(1) in effect as of April 27, 1982 or the attempt, conspiracy to commit, or commission
11of any of the felonies specified in: chs. 161 and 945 and ss. 49.49, 134.05, 139.44 (1),
12180.0129, 181.69, 184.09 (2), 185.825, 215.12, 221.17, 221.31, 221.39, 221.40,
13221.0625, 221.0636, 221.0637, 221.1004, 551.41, 551.42, 551.43, 551.44, 553.41 (3)
14and (4), 553.52 (2), 940.01, 940.19 (3) to (6), 940.20, 940.203, 940.21, 940.30, 940.305,
15940.31, 941.20 (2) and (3), 941.26, 941.28, 941.298, 941.31, 941.32, 943.01 (2) or (2g),
16943.012, 943.013, 943.02, 943.03, 943.04, 943.05, 943.06, 943.10, 943.20 (3) (b) to (d),
17943.23 (1g), (1m), (1r), (2) and (3), 943.24 (2), 943.25, 943.27, 943.28, 943.30, 943.32,
18943.34 (1) (b) and (c), 943.38, 943.39, 943.40, 943.41 (8) (b) and (c), 943.50 (4) (b) and
19(c), 943.60, 943.70, 944.21 (5) (c) and (e), 944.32, 944.33 (2), 944.34, 945.03, 945.04,
20945.05, 945.08, 946.10, 946.11, 946.12, 946.13, 946.31, 946.32 (1), 946.48, 946.49,
21946.61, 946.64, 946.65, 946.72, 946.76, 947.015, 948.05, 948.08, 948.12 and 948.30.
AB872, s. 53 22Section 53. Initial applicability.
AB872,148,25 23(1) Bank names. The treatment of section 221.0403 of the statutes first applies
24to banks that are created or that change their name on the effective date of this
25subsection.
AB872, s. 54
1Section 54. Effective date.
AB872,149,3 2(1) This act takes effect on July 1, 1996, or on the day after publication,
3whichever is later.
AB872,149,44 (End)
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