SB351: Bill Text

SB351,46,19 (2) Audit committee. The board of directors may appoint an auditing committee of one or more capable persons to annually audit the records, accounts and cash of the credit union and to verify member accounts. Verification procedures shall be conducted according to the credit union's bylaws or the rules of the commissioner.

SB351,46,22 (3) Independent audit. The commissioner may order an independent audit at the credit union's expense if the commissioner finds an annual audit to be unsatisfactory.

SB351,46,24 (4) Audit reports. Audit reports under this section shall be submitted to the board of directors and retained as records of the credit union.

SB351, s. 180 Section 180. 186.15 (2) and (3) of the statutes, as affected by 1995 Wisconsin Act .... (this act), are amended to read:

SB351,47,7 186.15 (2) Audit committee. The board of directors may appoint an auditing committee of one or more capable persons to annually audit the records, accounts and cash of the credit union and to verify member accounts. Verification procedures shall be conducted according to the credit union's bylaws or the rules of the commissioner office of credit unions.

SB351,47,10 (3) Independent audit. The commissioner office of credit unions may order an independent audit at the credit union's expense if the commissioner office of credit unions finds an annual audit to be unsatisfactory.

SB351, s. 181 Section 181. 186.16 (1) (title) of the statutes is created to read:

SB351,47,12 186.16 (1) (title) Board establishes dividends.

SB351, s. 182 Section 182. 186.16 (2) of the statutes is amended to read:

SB351,47,16 186.16 (2) (title) Maximum set by commissioner. The commissioner may establish the maximum dividend that a credit union and a corporate central credit union may pay in each classification of its savings.

SB351, s. 183 Section 183. 186.16 (2) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,47,21 186.16 (2) Maximum set by office of credit unions. The office of credit unions may establish the maximum dividend that a credit union and a corporate central credit union may pay in each classification of its savings.

SB351, s. 184 Section 184. 186.17 (1) of the statutes is repealed and recreated to read:

SB351,47,25 186.17 (1) Regular reserves. Semiannually, a credit union shall determine its gross income. From gross income, the credit union shall transfer to regular reserve amounts required under a schedule set by the national board.

SB351, s. 185 Section 185. 186.17 (2) of the statutes is amended to read:

SB351,48,5 186.17 (2) (title) Special reserves. Special reserves may be required by the commissioner on an individual credit union basis for purchased accounts or when serious threat of impairment threatens regular reserve or for a corporate central credit union.

SB351, s. 186 Section 186. 186.17 (2) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,48,10 186.17 (2) Special reserves. Special reserves may be required by the office of credit unions on an individual credit union basis or for a corporate central credit union.

SB351, s. 187 Section 187. 186.17 (3) of the statutes is repealed.

SB351, s. 188 Section 188. 186.18 of the statutes is amended to read:

SB351,49,7 186.18 Dissolution. Upon the unanimous a two-thirds recommendation of the board of directors, the members may vote to dissolve the credit union. If a majority of the total membership vote by ballot, in person or by letter or other written communication in favor of dissolution, and if not more than the greater of 15 members or 10% of the total membership, whichever is greater, by written notice, vote against dissolution, the credit union shall be dissolved. If both the number of votes in favor of dissolution and the number of votes against dissolution are each less than 50% 25% of the total number of members, the board of directors may, with the permission of the commissioner, cause written notice to be mailed mail to each member at the member's last-known address a written notice which expressly states that the board's proposal to dissolve the credit union will be approved or disapproved at a special or annual meeting to be held at the time and place specified in the notice. The credit union shall be dissolved only if a majority of the members present at the meeting vote in favor of the board's proposal to dissolve the credit union. If the members vote to dissolve the credit union, a committee of 3 shall be elected by the members to liquidate the assets of the credit union. After assets are liquidated and debts paid, members shall be paid a liquidating dividend in proportion to their savings from remaining assets. The committee in charge of liquidation may sell or dispose of the assets in whole or in part at a public or private sale subject to confirmation by the board of directors and the commissioner.

SB351, s. 189 Section 189. 186.18 of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,50,3 186.18 Dissolution. Upon a two-thirds recommendation of the board of directors, the members may vote to dissolve the credit union. If a majority of the total membership vote by ballot, in person or by letter or other written communication in favor of dissolution, and if not more than the greater of 15 members or 10% of the total membership, by written notice, vote against dissolution, the credit union shall be dissolved. If both the number of votes in favor of dissolution and the number of votes against dissolution are each less than 25% of the total number of members, the board of directors may, with the permission of the office of credit unions, mail to each member at the member's last-known address a written notice which states that the board's proposal to dissolve the credit union will be approved or disapproved at a special or annual meeting to be held at the time and place specified in the notice. The credit union shall be dissolved only if a majority of the members present at the meeting vote in favor of the board's proposal to dissolve the credit union. If the members vote to dissolve the credit union, a committee of 3 shall be elected by the members to liquidate the assets of the credit union. After assets are liquidated and debts paid, members shall be paid a liquidating dividend in proportion to their savings from remaining assets. The committee in charge of liquidation may sell or dispose of the assets in whole or in part at a public or private sale subject to confirmation by the board of directors and the office of credit unions.

SB351, s. 190 Section 190. 186.19 of the statutes is repealed and recreated to read:

SB351,50,7 186.19 Bonding requirement. (1) Officer bonds. A credit union shall maintain the necessary bonds for officers according to standards prescribed by the national board.

SB351,50,9 (2) Director bonds. A credit union shall maintain the necessary bonds for directors according to standards prescribed in the bylaws.

SB351, s. 191 Section 191. 186.21 (1) of the statutes is amended to read:

SB351,50,16 186.21 (1) (title) Office to cooperate. It shall be the duty of the office of the commissioner of credit unions to promote the extension of credit at the lowest possible rates and cooperate with every group of people who may be or may become that is interested in the formation and development of, or in an affiliation with, a credit union in this state for that purpose, and it. The commissioner's office may do all things reasonably necessary for the discharge of this duty.

SB351, s. 192 Section 192. 186.21 (1) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,50,22 186.21 (1) Office to cooperate. It shall be the duty of the office of credit unions to cooperate with every group of people that is interested in the formation of, or in an affiliation with, a credit union in this state. The office of credit unions may do all things reasonably necessary for the discharge of this duty.

SB351, s. 193 Section 193. 186.21 (2) of the statutes is amended to read:

SB351,51,4 186.21 (2) (title) Advertising. The office of the commissioner of credit unions shall carry on use advertising of whatever character that is most suitable and effective to acquaint the people of this state with the agencies and organizations dealing in consumer credit, and of the rates of interest, the condition of loans, the benefits and safeguards and the savings features of each such type, agency and organization with credit unions.

SB351, s. 194 Section 194. 186.21 (2) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,51,9 186.21 (2) Advertising. The office of credit unions shall use advertising that is suitable and effective to acquaint the people of this state with the agencies and organizations dealing with credit unions.

SB351, s. 195 Section 195. 186.21 (3) of the statutes is amended to read:

SB351,51,14 186.21 (3) (title) Consultations. The office of the commissioner of credit unions shall further offer without charge to any group, either joined in a credit union or considering such an organization, whatever advice and direction on accounting practice practices and managerial problems that may be needful.

SB351, s. 196 Section 196. 186.21 (3) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,51,19 186.21 (3) Consultations. The office of credit unions shall offer without charge to any group, either joined in a credit union or considering such an organization, advice and direction on accounting practices and managerial problems.

SB351, s. 197 Section 197. 186.21 (4) of the statutes is amended to read:

SB351,51,24 186.21 (4) (title) Materials. The office of the commissioner of credit unions shall provide application blanks, model bylaws, and whatever other material may be needful or helpful materials to help in the organization, efficient functioning and expansion of credit unions.

SB351, s. 198 Section 198. 186.21 (4) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,52,5 186.21 (4) Materials. The office of credit unions shall provide application blanks, model bylaws and other materials to help in the organization, efficient functioning and expansion of credit unions.

SB351, s. 199 Section 199. 186.22 (11) of the statutes is amended to read:

SB351,52,20 186.22 (11) Oath of directors. Each director, when appointed or elected, shall take an oath that the director will, so far as the duty devolves upon the director requires, diligently and honestly administer the affairs of the credit union finance corporation, and will not knowingly violate, or willingly permit to be violated, any of the provisions of law applicable to such the corporation, and that the director is the owner, in good faith and in the director's own right on the books of the nominating credit union which nominated the director, of shares in value of not less than $100, or other shares of the withdrawal value of $100, and that the same is shares are not hypothecated, or in any way pledged as security for any loan or debt and, in case of reelection that such share was the shares were not hypothecated or in any way pledged as security for any loan or debt during the director's previous term. Such The oath shall be subscribed by the directors and officers making it, and certified by an officer authorized by law to administer oaths, and immediately transmitted to the commissioner.

SB351, s. 200 Section 200. 186.22 (11) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,53,9 186.22 (11) Oath of directors. Each director, when appointed or elected, shall take an oath that the director will, so far as duty requires, diligently and honestly administer the affairs of the credit union finance corporation, and will not knowingly violate, or willingly permit to be violated, any of the provisions of law applicable to the corporation, and that the director is the owner, in good faith and on the books of the nominating credit union, of shares in value of not less than $100, or other shares of the withdrawal value of $100, and that the shares are not hypothecated, or in any way pledged as security for any loan or debt and, in case of reelection that the shares were not hypothecated or in any way pledged as security for any loan or debt during the director's previous term. The oath shall be subscribed by the directors and officers making it, and certified by an officer authorized by law to administer oaths, and immediately transmitted to the office of credit unions.

SB351, s. 201 Section 201. 186.23 of the statutes is renumbered 186.235 (8) and amended to read:

SB351,53,18 186.235 (8) (title) Rules and regulations. The commissioner shall, with the approval of the credit union review board, issue orders prescribing reasonable promulgate rules and regulations in conducting relating to the business of credit unions or corporations operating as provided in this chapter and it may in like manner issue orders amending, modifying, repealing or supplementing rules or orders. The violation of any such rule may be cause for the removal of any officer, director or employe of any credit union or corporation.

SB351, s. 202 Section 202. 186.235 (title) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,53,21 186.235 (title) Office of credit unions.

SB351, s. 203 Section 203. 186.235 (1) of the statutes is created to read:

SB351,53,24 186.235 (1) Supervision. A credit union shall be under the control and supervision of the commissioner.

SB351, s. 204 Section 204. 186.235 (1) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,54,4 186.235 (1) Supervision. A credit union shall be under the control and supervision of the commissioner office of credit unions.

SB351, s. 205 Section 205. 186.235 (1m) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed.

SB351, s. 206 Section 206. 186.235 (2) of the statutes, as affected by 1995 Wisconsin Acts 27 and .... (this act), is repealed and recreated to read:

SB351,54,10 186.235 (2) Enforcement. The office of credit unions shall enforce this chapter and other laws relating to credit unions.

SB351, s. 207 Section 207. 186.235 (3) of the statutes is created to read:

SB351,54,13 186.235 (3) Full-time duties. The commissioner and deputy commissioner shall devote full time to their respective positions.

SB351, s. 208 Section 208. 186.235 (3) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,54,18 186.235 (3) Full-time duties. The commissioner and deputy commissioner administrator of the office of credit unions shall devote full time to their respective positions his or her position.

SB351, s. 209 Section 209. 186.235 (3m) of the statutes is created to read:

SB351,54,22 186.235 (3m) Conflicts of interest. The commissioner, or any employe of the office of the commissioner, may not serve as a director or officer of a credit union or any other organization that is under the supervision of the office of the commissioner.

SB351, s. 210 Section 210. 186.235 (3m) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,55,4 186.235 (3m) Conflicts of interest. The commissioner, or any No employe of the office of the commissioner, credit unions may not serve as a director or officer of a credit union or any other organization that is under the supervision of the office of the commissioner credit unions.

SB351, s. 211 Section 211. 186.235 (4) of the statutes is created to read:

SB351,55,8 186.235 (4) Bond required. A person who is appointed to or employed by the office of the commissioner shall furnish a surety bond in an amount authorized by the commissioner.

SB351, s. 212 Section 212. 186.235 (4) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,55,13 186.235 (4) Bond required. A person who is appointed to or employed by the office of the commissioner credit unions shall furnish a surety bond in an amount authorized by the commissioner office.

SB351, s. 213 Section 213. 186.235 (5) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,55,20 186.235 (5) (title) Immunity of commissioner office of credit unions. The commissioner office of credit unions shall 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 office of credit unions in an official capacity.

SB351, s. 214 Section 214. 186.235 (7) (a) (intro.) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,56,2 186.235 (7) (a) (intro.) The commissioner, all other officers and employes Employes of the office of the commissioner, credit unions and members of the review board shall keep secret all the facts and information obtained in the course of examinations, except in any of the following situations:

SB351, s. 215 Section 215. 186.235 (7) (b) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,56,6 186.235 (7) (b) Notwithstanding par. (a) and unless otherwise provided by rule, the commissioner office of credit unions may do any of the following:

SB351,56,9 1. Furnish to the national board a copy of any examination made by the commissioner's office of credit unions of any credit union or of any report made by the credit union.

SB351,56,12 2. Give access to and disclose to the national board any information possessed by the commissioner office of credit unions about the conditions or affairs of any credit union whose savings are insured by federal share insurance.

SB351, s. 216 Section 216. 186.235 (8) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is repealed and recreated to read:

SB351,56,16 186.235 (8) Rules. The office of credit unions shall, with the approval of the credit union review board, promulgate rules relating to the business of credit unions.

SB351, s. 217 Section 217. 186.235 (9) of the statutes is created to read:

SB351,56,21 186.235 (9) Charter revocation. The commissioner shall report to the department of justice any credit union that conducts its business in violation of this chapter. The department of justice may bring an action to revoke the credit union's articles of incorporation.

SB351, s. 218 Section 218. 186.235 (9) of the statutes, as created by 1995 Wisconsin Act .... (this act), is amended to read:

SB351,57,2 186.235 (9) Charter revocation. The commissioner office of credit unions shall report to the department of justice any credit union that conducts its business in violation of this chapter. The department of justice may bring an action to revoke the credit union's articles of incorporation.

SB351, s. 219 Section 219. 186.235 (10) of the statutes is created to read:

SB351,57,5 186.235 (10) Removal. (a) The commissioner may remove an officer, director, committee member or employe of a credit union if any of the following applies:

SB351,57,9 1. The policies or practices of the officer, director, committee member or employe are prejudicial to the best interest of the credit union, endanger or will endanger the safety or solvency of the credit union, or impair the interests of the members.

SB351,57,12 2. The officer, director, committee member or employe violates or permits the violation of this chapter, a rule promulgated under this chapter or an order of the commissioner.

SB351,57,15 (b) An officer, director, committee member or employe removed by the commissioner under par. (a) shall be given an opportunity for a hearing before the review board within 30 days after the date on which the removal order is issued.

SB351,57,24 (c) An order of removal takes effect on the date on which it is issued. A copy of the order shall be served upon the credit union and upon the officer, director, committee member or employe in the manner provided by law or by mailing a copy to the credit union and officer, director, committee member or employe at their last-known post-office addresses. An officer, director, committee member or employe who is removed from office or employment under this subsection may not be elected as an officer or director of, or be employed by, a credit union without the approval of the commissioner and the review board. An order of removal under this subsection is a final order or determination of the review board under s. 186.015.