SB494,112,3 19221.0701 Share exchange. A bank or other corporation may acquire all of the
20outstanding shares of one or more classes or series of a bank organized under this
21chapter, with the approval of the division, if the board of directors of the bank, by
22resolution adopted by the board, approves a plan of share exchange and its
23shareholders also approve a plan of share exchange pursuant to ss. 180.1102 to
24180.1106. This section does not limit the power of a corporation or bank to acquire
25all or part of the shares of one or more classes or series of a bank through a voluntary

1exchange or otherwise. Application for approval of a share exchange shall be made
2to the division on a form prescribed by the division. The application shall be
3accompanied by a fee established by the division.
SB494,112,22 4221.0702 Consolidation or merger of banks. (1) In general. Any 2 or more
5banks may, with the approval of the division, consolidate or merge into one bank
6under the charter of either existing bank. The consolidation or merger shall be done
7on such terms and conditions as may be lawfully agreed upon by a majority of the
8board of directors of each bank proposing to consolidate or merge and as may be
9ratified and confirmed by the affirmative vote of the shareholders of each of the
10banks. The affirmative vote of the shareholders must be by shareholders owning a
11majority of the outstanding capital stock entitled to vote of each bank, or any greater
12percentage specified in the articles of incorporation or the bylaws, and by at least a
13majority of any outstanding preferred stock entitled to vote of each bank, or any
14greater percentage specified in the articles of incorporation or the bylaws. The vote
15must be at a meeting called by the directors, after sending notice of the time, place
16and object of the meeting to each shareholder of record in accordance with s.
17221.0103. The capital stock of the consolidated or merged bank may not be less than
18that required under existing law for the organization of a state bank in the place in
19which it is located. If the consolidation or merger is approved by the division, a
20shareholder of either of the banks who did not vote for the consolidation or merger
21shall be given notice of the approval by the bank in which the shareholder holds an
22interest.
SB494,113,7 23(2) Assets and liabilities of the consolidating or merging bank. The bank
24or banks consolidating or merging with another bank under sub. (1) may not be
25required to go into liquidation but their assets and liabilities shall be reported by the

1bank with which they have consolidated or merged. The rights, franchises and
2interests of the banks so consolidated or merged in and the property, personal and
3mixed, and choses in action belonging to the banks, are transferred to and vested in
4the consolidated or merged bank without any deed or other transfer. The
5consolidated or merged bank holds all rights of property, franchises and interests in
6the same manner and to the same extent as was held by the bank or banks so
7consolidated or merged.
SB494,113,19 8(3) Role of division. After consultation with the banking review board, the
9division may make recommendations to any bank within this state as to the
10advisability of consolidation or merger with other banks and may make
11recommendations as to terms for consolidation or merger of banks in order to avoid
12a condition of oversupply of banks in any community or area of the state. The division
13may also, if requested so to do, act as mediator or arbitrator to fix any of the terms
14of any such consolidation or merger. The board of directors of any bank organized
15under the laws of this state may use a reasonable amount of the assets of the bank
16toward assisting in bringing about a consolidation or merger of banks or to aid in
17reorganization or in avoiding the closing of a bank, if the board considers it to be in
18the interests of safe banking and the maintenance of credit and banking facilities in
19the county in which the bank is located.
SB494,113,25 20(4) Transfer of resources and liabilities. A bank, which is in good faith
21winding up its business, for the purpose of consolidating or merging with another
22bank, may transfer its resources and liabilities to the bank with which it is in process
23of consolidation or merger. A consolidation or merger may not be made without the
24consent of the division, and may not defeat or defraud any of the creditors in the
25collection of their debts against the banks.
SB494,114,3
1(5) Application for consolidation or merger. The banks shall apply for
2approval of a consolidation or merger under sub. (1) on a form prescribed by the
3division. The application shall be accompanied by a fee determined by the division.
SB494,114,6 4221.0703 Cancellation of charter of merged bank. If a bank has merged
5or consolidated with or been absorbed by another bank, the division shall cancel the
6charter of the bank.
SB494,114,13 7221.0704 Interim banks. Subject to the approval of the division, one or more
8banks may consolidate or merge into or with an interim bank organized under this
9chapter under the charter of either the existing bank or banks or the interim bank
10in accordance with the provisions of this chapter for consolidation or merger of a
11bank. The division shall promulgate rules providing for a simple process for the
12organization of interim banks under this chapter. The rules shall permit the
13organization of an interim bank with a minimum of one director.
SB494,114,14 14221.0705 Definitions. In ss. 221.0705 to 221.0718:
SB494,114,18 15(1) "Bank" means the issuer bank or, if a corporate action giving rise to
16dissenters' rights under s. 221.0706 is a merger or share exchange that has been
17effectuated, the surviving bank of the merger or the acquiring corporation or bank
18of the share exchange.
SB494,114,20 19(2) "Beneficial shareholder" means a person who is a beneficial owner of shares
20held by a nominee as the shareholder.
SB494,114,23 21(3) "Dissenter" means a shareholder or beneficial shareholder who is entitled
22to dissent from corporate action under s. 221.0706 and who exercises that right when
23and in the manner required by ss. 221.0709 to 221.0716.
SB494,115,2 24(4) "Fair value", with respect to a dissenter's shares, means the value of the
25shares immediately before the effectuation of the corporate action to which the

1dissenter objects, excluding any appreciation or depreciation in anticipation of the
2corporate action unless the exclusion would be inequitable.
SB494,115,5 3(5) "Interest" means interest from the effectuation date of the corporate action
4until the date of payment, at a rate that is fair and equitable under all of the
5circumstances.
SB494,115,7 6(6) "Issuer bank" means a bank that is the issuer of the shares held by a
7dissenter before the corporate action.
SB494,115,10 8221.0706 Right to dissent. (1) Mandatory dissenters' rights. A shareholder
9or beneficial shareholder may dissent from, and obtain payment of the fair value of
10his or her shares in the event of, any of the following corporate actions:
SB494,115,1111 (a) Consummation of a plan of merger to which the issuer bank is a party.
SB494,115,1412 (b) Consummation of a plan of share exchange if the issuer bank's shares will
13be acquired, and the shareholder or the shareholder holding shares on behalf of the
14beneficial shareholder is entitled to vote on the plan.
SB494,115,1915 (c) Except as provided in sub. (2), any other corporate action taken pursuant
16to a shareholder vote to the extent that the articles of incorporation, the bylaws or
17a resolution of the board of directors provides that the voting or nonvoting
18shareholder or beneficial shareholder may dissent and obtain payment for his or her
19shares.
SB494,115,24 20(2) Permissive dissenters' rights. The articles of incorporation may allow a
21shareholder or beneficial shareholder to dissent from an amendment of the articles
22of incorporation and obtain payment of the fair value of his or her shares if the
23amendment materially and adversely affects rights in respect of a dissenter's shares
24because it does any of the following:
SB494,115,2525 (a) Alters or abolishes a preferential right of the shares.
SB494,116,2
1(b) Creates, alters or abolishes a right in respect of redemption, including a
2provision respecting a sinking fund for the redemption or repurchase, of the shares.
SB494,116,43 (c) Alters or abolishes a preemptive right of the holder of shares to acquire
4shares or other securities.
SB494,116,75 (d) Excludes or limits the right of the shares to vote on any matter or to
6cumulate votes, other than a limitation by dilution through issuance of shares or
7other securities with similar voting rights.
SB494,116,108 (e) Reduces the number of shares owned by the shareholder or beneficial
9shareholder to a fraction of a share if the fractional share so created is to be acquired
10for cash under s. 221.0506.
SB494,116,15 11(3) Rights of dissenter. A shareholder or beneficial shareholder entitled to
12dissent and obtain payment for his or her shares under ss. 221.0701 to 221.0718 may
13not challenge the corporate action creating his or her entitlement unless the action
14is unlawful or fraudulent with respect to the shareholder, beneficial shareholder or
15issuer bank.
SB494,116,24 16221.0707 Dissent by shareholders and beneficial shareholders. (1)
17Partial exercise of dissenters' rights. A shareholder may assert dissenters' rights
18as to fewer than all of the shares registered in his or her name only if the shareholder
19dissents with respect to all shares beneficially owned by any one person and notifies
20the bank in writing of the name and address of each person on whose behalf he or she
21asserts dissenters' rights. The rights of a shareholder, who asserts dissenters' rights
22under this subsection as to fewer than all of the shares registered in his or her name,
23are determined as if the shares as to which he or she dissents and his or her other
24shares were registered in the names of different shareholders.
SB494,117,3
1(2) Rights of beneficial shareholders. A beneficial shareholder may assert
2dissenters' rights as to shares held on his or her behalf only if the beneficial
3shareholder does all of the following:
SB494,117,54 (a) Submits to the bank the shareholder's written consent to the dissent not
5later than the time that the beneficial shareholder asserts dissenters' rights.
SB494,117,76 (b) Submits the consent under par. (a) with respect to all shares of which he or
7she is the beneficial shareholder.
SB494,117,13 8221.0708 Notice of dissenters' rights. (1) Action at shareholder meeting.
9If proposed corporate action creating dissenters' rights under s. 221.0706 is
10submitted to a vote at a shareholders' meeting, the meeting notice shall state that
11shareholders and beneficial shareholders are or may be entitled to assert dissenters'
12rights under ss. 221.0701 to 221.0718 and shall be accompanied by a copy of those
13sections.
SB494,117,18 14(2) Action without shareholder vote. If corporate action creating dissenters'
15rights under s. 221.0706 is authorized without a vote of shareholders, the bank shall
16notify, in writing and in accordance with s. 221.0103, all shareholders entitled to
17assert dissenters' rights that the action was authorized and send them the
18dissenters' notice described in s. 221.0710.
SB494,117,23 19221.0709 Notice of intent to demand payment. (1) Method of asserting
20dissenters' rights.
If proposed corporate action creating dissenters' rights under s.
21221.0706 is submitted to a vote at a shareholders' meeting, a shareholder or
22beneficial shareholder who wishes to assert dissenters' rights shall do all of the
23following:
SB494,118,3
1(a) Deliver to the issuer bank before the vote is taken written notice that
2complies with s. 221.0103 of the shareholder's or beneficial shareholder's intent to
3demand payment for his or her shares if the proposed action is effectuated.
SB494,118,44 (b) Refrain from voting his or her shares in favor of the proposed action.
SB494,118,7 5(2) Failure to comply. A shareholder or beneficial shareholder who fails to
6comply with sub. (1) is not entitled to payment for his or her shares under ss.
7221.0701 to 221.0718.
SB494,118,11 8221.0710 Dissenters' notice. (1) When required. If a proposed corporate
9action creating dissenters' rights under s. 221.0706 is authorized at a shareholders'
10meeting, the bank shall deliver a written dissenters' notice to all shareholders and
11beneficial shareholders who satisfied s. 221.0709 (1).
SB494,118,16 12(2) Timing and content of notice. The dissenters' notice shall be sent no later
13than 10 days after the corporate action is authorized at a shareholders' meeting or
14without a vote of shareholders, whichever is applicable, and all necessary regulatory
15approvals are obtained. The dissenters' notice shall comply with s. 221.0103 and
16shall include or have attached all of the following:
SB494,118,1917 (a) A statement indicating where the shareholder or beneficial shareholder
18must send the payment demand and where and when certificates for certificated
19shares must be deposited.
SB494,118,2120 (b) For holders of uncertificated shares, an explanation of the extent to which
21transfer of the shares will be restricted after the payment demand is received.
SB494,119,222 (c) A form for demanding payment that includes the date of the first
23announcement to news media or to shareholders of the terms of the proposed
24corporate action and that requires the shareholder or beneficial shareholder

1asserting dissenters' rights to certify whether he or she acquired beneficial
2ownership of the shares before that date.
SB494,119,53 (d) A date by which the bank must receive the payment demand, which may
4not be fewer than 30 days nor more than 60 days after the date on which the
5dissenters' notice is delivered.
SB494,119,66 (e) A copy of ss. 221.0701 to 221.0718.
SB494,119,14 7221.0711 Duty to demand payment. (1) Manner of demanding payment. A
8shareholder or beneficial shareholder who is sent a dissenters' notice described in s.
9221.0710, or a beneficial shareholder whose shares are held by a nominee who is sent
10a dissenters' notice described in s. 221.0710, must demand payment in writing and
11certify whether he or she acquired beneficial ownership of the shares before the date
12specified in the dissenters' notice under s. 221.0710 (2) (c). A shareholder or
13beneficial shareholder with certificated shares must also deposit his or her
14certificates in accordance with the terms of the notice.
SB494,119,19 15(2) Effect of demand on holders of certificated shares. A shareholder or
16beneficial shareholder with certificated shares who demands payment and deposits
17his or her share certificates under sub. (1) retains all other rights of a shareholder
18or beneficial shareholder until these rights are canceled or modified by the
19effectuation of the corporate action.
SB494,119,25 20(3) Effect of failure to demand. A shareholder or beneficial shareholder with
21certificated or uncertificated shares who does not demand payment by the date set
22in the dissenters' notice, or a shareholder or beneficial shareholder with certificated
23shares who does not deposit his or her share certificates where required and by the
24date set in the dissenters' notice, is not entitled to payment for his or her shares under
25ss. 221.0701 to 221.0718.
SB494,120,4
1221.0712 Restriction on uncertificated shares. (1) When transfer
2restrictions permitted.
The issuer bank may restrict the transfer of uncertificated
3shares from the date that the demand for payment for those shares is received until
4the corporate action is effectuated or the restrictions released under s. 221.0714.
SB494,120,9 5(2) Effect of demand on holders of uncertificated shares. The shareholder
6or beneficial shareholder who asserts dissenters' rights as to uncertificated shares
7retains all of the rights of a shareholder or beneficial shareholder, other than those
8restricted under sub. (1), until these rights are canceled or modified by the
9effectuation of the corporate action.
SB494,120,14 10221.0713 Payment. (1) When payment made. Except as provided in s.
11221.0715, as soon as the corporate action is effectuated or upon receipt of a payment
12demand, whichever is later, the bank shall pay each shareholder or beneficial
13shareholder who has complied with s. 221.0711 the amount that the bank estimates
14to be the fair value of his or her shares, plus accrued interest.
SB494,120,16 15(2) Material to accompany payment. The payment shall be accompanied by all
16of the following:
SB494,120,2017 (a) The bank's latest available financial statements, including a balance sheet
18as of the end of a fiscal year ending not more than 16 months before the date of
19payment, an income statement for that year, a statement of changes in shareholders'
20equity for that year and the latest available interim financial statements, if any.
SB494,120,2121 (b) A statement of the bank's estimate of the fair value of the shares.
SB494,120,2222 (c) An explanation of how the interest was calculated.
SB494,120,2423 (d) A statement of the dissenter's right to demand payment under s. 221.0716
24if the dissenter is dissatisfied with the payment.
SB494,120,2525 (e) A copy of ss. 221.0701 to 221.0718.
SB494,121,4
1221.0714 Failure to take action. (1) Action not taken. If an issuer bank
2does not effectuate the corporate action within 60 days after the date set under s.
3221.0710 for demanding payment, the issuer bank shall return the deposited
4certificates and release the transfer restrictions imposed on uncertificated shares.
SB494,121,8 5(2) Action taken at a later date. If, after returning deposited certificates and
6releasing transfer restrictions, the issuer bank effectuates the corporate action, the
7bank shall deliver a new dissenters' notice under s. 221.0710 and repeat the payment
8demand procedure.
SB494,121,14 9221.0715 After-acquired shares. (1) Withholding for after-acquired
10shares.
A bank may elect to withhold payment required by s. 221.0713 from a
11dissenter unless the dissenter was the beneficial owner of the shares before the date
12specified in the dissenters' notice under s. 221.0710 (2) (c) as the date of the first
13announcement to news media or to shareholders of the terms of the proposed
14corporate action.
SB494,121,21 15(2) Payment. To the extent that the bank elects to withhold payment under sub.
16(1) after effectuating the corporate action, the bank shall estimate the fair value of
17the shares, plus accrued interest, and shall pay this amount to each dissenter who
18agrees to accept it in full satisfaction of his or her demand. The bank shall send with
19its offer a statement of its estimate of the fair value of the shares, an explanation of
20how the interest was calculated, and a statement of the dissenter's right to demand
21payment under s. 221.0716 if the dissenter is dissatisfied with the offer.
SB494,122,3 22221.0716 Procedure if dissenter is dissatisfied with payment or offer.
23(1)
Rights of dissenter. A dissenter may, in the manner provided in sub. (2), notify
24the bank of the dissenter's estimate of the fair value of his or her shares and the
25amount of interest due, and demand payment of his or her estimate, less any

1payment received under s. 221.0713, or reject the offer under s. 221.0715 and
2demand payment of the fair value of his or her shares and interest due, if any of the
3following applies:
SB494,122,64 (a) The dissenter believes that the amount paid under s. 221.0713 or offered
5under s. 221.0715 is less than the fair value of his or her shares or that the interest
6due is incorrectly calculated.
SB494,122,87 (b) The bank fails to make payment under s. 221.0715 within 60 days after the
8date set under s. 221.0710 for demanding payment.
SB494,122,129 (c) The issuer bank, having failed to effectuate the corporate action, does not
10return the deposited certificates or release the transfer restrictions imposed on
11uncertificated shares within 60 days after the date set under s. 221.0710 for
12demanding payment.
SB494,122,16 13(2) Waiver of rights. A dissenter waives his or her right to demand payment
14under this section unless the dissenter notifies the bank of his or her demand under
15sub. (1) in writing within 30 days after the bank makes or offers payment for his or
16her shares. The notice shall comply with s. 221.0103.
SB494,122,22 17221.0717 Court action. (1) When special proceeding required. If a demand
18for payment under s. 221.0716 remains unsettled, the bank shall bring a special
19proceeding within 60 days after receiving the payment demand under s. 221.0716
20and petition the court to determine the fair value of the shares and accrued interest.
21If the bank does not bring the special proceeding within the 60-day period, it shall
22pay each dissenter whose demand remains unsettled the amount demanded.
SB494,123,3 23(2) Where proceeding to be brought. The bank shall bring the special
24proceeding in the circuit court for the county where its principal office or, if none in
25this state, its registered office is located. If the bank is a foreign bank without a

1registered office in this state, it shall bring the special proceeding in the county in
2this state in which was located the registered office of the issuer bank that merged
3with or whose shares were acquired by the foreign bank.
SB494,123,7 4(3) Parties to the proceeding. The bank shall make all dissenters, whether
5or not residents of this state, whose demands remain unsettled parties to the special
6proceeding. Each party to the special proceeding shall be served with a copy of the
7petition as provided in s. 801.14.
SB494,123,13 8(4) Jurisdiction. The jurisdiction of the court in which the special proceeding
9is brought under sub. (2) is plenary and exclusive. The court may appoint one or more
10persons as appraisers to receive evidence and recommend a decision on the question
11of fair value. An appraiser has the power described in the order appointing him or
12her or in any amendment to the order. The dissenters are entitled to the same
13discovery rights as parties in other civil proceedings.
SB494,123,15 14(5) Judgements. Each dissenter made a party to the special proceeding is
15entitled to judgment for any of the following:
SB494,123,1716 (a) The amount, if any, by which the court finds the fair value of his or her
17shares, plus interest, exceeds the amount paid by the bank.
SB494,123,2018 (b) The fair value, plus accrued interest, of his or her shares acquired on or after
19the date specified in the dissenters' notice under s. 221.0710 (2) (c), for which the
20bank elected to withhold payment under s. 221.0715.
SB494,123,25 21221.0718 Court costs and counsel fees. (1) Assessment of and liability
22for costs.
(a) Notwithstanding ss. 814.01 to 814.04, the court in a special proceeding
23brought under s. 221.0717 shall determine all costs of the proceeding, including the
24reasonable compensation and expenses of appraisers appointed by the court and
25shall assess the costs against the bank, except as provided in par. (b).
SB494,124,4
1(b) Notwithstanding ss. 814.01 and 814.04, the court may assess costs against
2all or some of the dissenters, in amounts that the court finds to be equitable, to the
3extent that the court finds the dissenters acted arbitrarily, vexatiously or not in good
4faith in demanding payment under s. 221.0716.
SB494,124,8 5(2) When liable for fees and costs. The parties shall bear their own expenses
6of the proceeding, except that, notwithstanding ss. 814.01 to 814.04, the court may
7also assess the fees and expenses of counsel and experts for the respective parties,
8in amounts that the court finds to be equitable, as follows:
SB494,124,109 (a) Against the bank and in favor of any dissenter if the court finds that the
10bank did not substantially comply with ss. 221.0708 to 221.0716.
SB494,124,1411 (b) Against the bank or against a dissenter, in favor of any other party, if the
12court finds that the party against whom the fees and expenses are assessed acted
13arbitrarily, vexatiously or not in good faith with respect to the rights provided by this
14chapter.
SB494,124,19 15(3) Payment of counsel and experts from recovery. Notwithstanding ss.
16814.01 to 814.04, if the court finds that the services of counsel and experts for any
17dissenter were of substantial benefit to other dissenters similarly situated, the court
18may award to these counsel and experts reasonable fees to be paid out of the amounts
19awarded the dissenters who were benefited.
SB494,124,2020 SUBCHAPTER VIII
SB494,124,2121 DISSOLUTION AND LIQUIDATION
SB494,125,3 22221.0801 Liquidation. (1) When authorized. A bank organized or doing
23business under this chapter may go into liquidation by a vote of its shareholders
24owning a majority of the capital stock outstanding or such greater percentage
25required under the articles of incorporation or bylaws. If a vote is taken to go into

1liquidation, the board of directors shall give notice of this fact to the division, and the
2notice shall be certified by an officer of the bank. A liquidating bank may not transfer
3assets or liabilities to another bank until the transfer is approved by the division.
SB494,125,7 4(2) Notice. The board of directors shall also give notice of this fact by certified
5mail to all persons whose names appear as creditors upon the books of the bank and
6by publication as a class 3 notice, under ch. 985. The notice shall direct all persons
7who may have claims against the bank to file the claims.
SB494,125,19 8221.0802 Banks may be placed in hands of division. A bank doing
9business under this chapter may place its affairs and assets under the control of the
10division by posting a notice on its front door, as follows: "This bank is in the hands
11of the Division of Banking of the Department of Financial Institutions". Immediately
12upon posting such notice, the bank shall notify the division of this action. The posting
13of the notice, or the taking possession of a bank by the division, places the bank's
14assets and property in the possession of the division, and bars any attachment
15proceedings. For each day the division is placed in possession of the bank, and until
16such time as a special deputy is appointed under s. 220.08 (4), the bank shall pay to
17the division the actual cost of such liquidation proceedings. The division shall pay
18the amounts to the state treasurer and the percentage specified in s. 20.124 (1) (g)
19shall be credited to the appropriation account under s. 20.124 (1) (g).
SB494,126,3 20221.0803 Charter, how forfeited. If the board of directors or a quorum
21thereof or any committee of the board of any bank knowingly violates or knowingly
22permits any of the officers, agents or employes of the bank to violate this chapter, the
23directors are jointly and severally liable for the amount of the loss sustained by the
24bank. If, after a warning from the division, the directors shall fail to make good any
25loss or damage resulting from the violations, or continue such conduct, it shall

1constitute a ground for the forfeiture of the charter of the bank, and the division shall
2institute proceedings to enforce the forfeiture and to secure a dissolution and a
3winding up of the affairs of the bank.
SB494,126,44 SUBCHAPTER IX
SB494,126,65 INTERSTATE BANKING AND
6 FOREIGN BANKS
SB494,126,9 7221.0901 Acquisitions of banks and bank holding companies. (1)
8Applicability. This section applies to acquisitions of an in-state bank or an in-state
9bank holding company by any company.
SB494,126,10 10(2) Definitions. In this section:
SB494,126,1111 (a) "Affiliate" has the meaning set forth in 12 USC 1841 (k).
SB494,126,1212 (b) "Bank" has the meaning set forth in 12 USC 1841 (c).
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