SB494, s. 12 4Section 12. 217.11 (1) of the statutes is amended to read:
SB494,14,75 217.11 (1) Every check sold by any licensee shall bear the name of the licensee
6clearly imprinted thereon, including the words authorized under s. 221.49 (2)
7221.0402 (2) if applicable.
SB494, s. 13 8Section 13. 219.08 of the statutes is repealed.
SB494, s. 14 9Section 14. 220.04 (6) (a) of the statutes, as affected by 1995 Wisconsin Act 27,
10is amended to read:
SB494,14,2111 220.04 (6) (a) The division, with the approval of the banking review board, may
12establish uniform savings rules which shall be adopted by every bank and trust
13company bank. Such rules may provide the conditions under which banks or trust
14company banks may accept time deposits and the methods of figuring interest. Such
15rules may also provide the term of notice of withdrawal and the amounts which may
16be withdrawn by depositors, which conditions the bank may put in force in times of
17financial stress by action of its board of directors. The maximum rate of interest on
18deposits paid by banks whose deposits are not insured by the federal deposit
19insurance corporation, whether certificates of deposit or book savings deposits, shall
20be the same as the rate set by the federal deposit insurance corporation for banks
21whose deposits are insured by it
.
SB494, s. 15 22Section 15. 220.04 (7) (b) 3. of the statutes is amended to read:
SB494,14,2523 220.04 (7) (b) 3. Require the organization to maintain reasonable safeguards
24to protect fiduciary property including the maintenance of an indemnity fund in the
25same manner as that required of trust company banks under s. 223.02 (1).
SB494, s. 16
1Section 16. 220.04 (9) (a) 2. of the statutes, as affected by 1995 Wisconsin Act
227
, is amended to read:
SB494,15,53 220.04 (9) (a) 2. "Regulated entity" means a bank, trust company bank and any
4other entity which is described in s. 220.02 (2) or 221.56 221.0526 as under the
5supervision and control of the division.
SB494, s. 17 6Section 17. 220.04 (10) of the statutes, as affected by 1995 Wisconsin Act 27,
7is amended to read:
SB494,15,208 220.04 (10) If it appears to the division that a person has engaged or is about
9to engage in an act or practice constituting a violation of the laws of this state relating
10to banks and banking, including this chapter, chs. 217, 218 and 221 to 224 and s.
11138.09, or a rule promulgated or order issued under those laws, the division may
12bring an action in the name of the state in the circuit court of the appropriate county
13to enjoin the acts or practices and to enforce compliance with the laws, rules or
14orders, or the division may refer the matter to the district attorney of the appropriate
15county or, if the alleged violation may be enforced by the attorney general under sub.
16(12) or
s. 220.12, 221.18, 221.205, 221.28 221.1005 or 224.06 (7) or is statewide in
17nature, to the attorney general. Upon a proper showing, the court may grant a
18permanent or temporary injunction or restraining order, appoint a receiver for the
19defendant or the defendant's assets or order rescission of any acts determined to be
20unlawful. The court may not require the division to post a bond.
SB494, s. 18 21Section 18. 220.04 (11) of the statutes is created to read:
SB494,15,2422 220.04 (11) In order to carry out ss. 220.07, 220.08 and 221.1005, the division
23may commence and maintain in the division's name any and all actions necessary
24or proper to enforce any of said sections.
SB494, s. 19 25Section 19. 220.04 (12) of the statutes is created to read:
SB494,16,17
1220.04 (12) If the division has information that causes the division to believe
2that any bank, trust company bank, or any other person subject in whole or in part
3to supervision or control by the division, or any officer, employe, member or manager
4thereof, has violated any law, rule or order that subjects the person to prosecution
5for a criminal offense or to a penalty, the division shall bring such information to the
6attention of the banking review board, with the division's recommendation in writing
7as to action to be taken. The banking review board shall, if in its judgment probable
8cause exists for believing that a criminal offense has been committed, or a penalty
9incurred, call the facts and information to the attention of the attorney general whose
10duty it shall be to cause prosecution or other action to be instituted if, in the attorney
11general's judgment, the facts warrant. This subsection does not prevent the
12institution of any prosecution by any district attorney of this state with or without
13any advice or act on the part of the attorney general. This subsection does not
14preclude the division, in any case where the division deems it important to act
15immediately, from causing any arrest and prosecution where the division is satisfied
16that there is reason to believe the offense has been committed and that prosecution
17should be immediately commenced.
SB494, s. 20 18Section 20. 220.06 (1m) of the statutes, as affected by 1995 Wisconsin Act 27,
19is amended to read:
SB494,17,1320 220.06 (1m) No division employe may examine a bank or licensee in which that
21person is interested as a stockholder, officer or employe. No division employe may
22examine a bank or licensee located in the same village, city or county with any bank
23or licensee in which that person is so interested. Employes in the division, and each
24member and employe of the banking review board, shall keep secret all facts and
25information obtained in the course of examinations or from reports not under s.

1221.15 221.1002 (1) filed by a bank or licensee with the division, except so far as the
2public duty of the person requires reporting upon or taking special action regarding
3the affairs of any bank or licensee, and except when called as a witness in any
4criminal proceeding or trial in a court of justice. The division may furnish to the
5federal deposit insurance corporation or to any regulatory authority for state or
6federal financial institutions, insurance or securities a copy of any examination
7made of any such bank or licensee or of any report made by such bank or licensee and
8may give access to and disclose to the corporation or to any regulatory authority for
9state or federal financial institutions, insurance or securities any information
10possessed by the division with reference to the conditions or affairs of any such
11insured bank or licensee if the regulatory authority agrees to treat all information
12received with the same degree of confidentiality as applies to reports of examination
13that are in the custody of the division.
SB494, s. 21 14Section 21. 220.075 of the statutes, as affected by 1995 Wisconsin Act 27, is
15repealed.
SB494, s. 22 16Section 22. 220.08 (3am) of the statutes is created to read:
SB494,17,2017 220.08 (3am) On taking possession of a bank for liquidation, the division may
18transfer the trust accounts of the bank to another entity with fiduciary powers.
19Neither the division nor the fiduciary to whom the trust accounts are transferred is
20liable for the past acts of the bank relating to the trust accounts.
SB494, s. 23 21Section 23. 220.09 of the statutes, as affected by 1995 Wisconsin Act 27, is
22amended to read:
SB494,18,10 23220.09 Indemnity fund, national bank. Every national bank which has
24been granted a special permit by the federal reserve board authority under federal
25law
to act in a fiduciary capacity under the provisions of subsection (k) of section 11,

1of the federal reserve act shall deposit with the state treasurer security, approved by
2the division, in the manner which is required of trust company banks organized
3under
shall comply with s. 223.02. Such securities shall be of the same nature as the
4security designated by the provisions of such section for the deposit by trust
5companies organized under the laws of this state. Such national bank, so long as it
6shall continue solvent and comply with the laws of this state applicable thereto, may
7be permitted by the division to collect the interest on the security so deposited and
8from time to time withdraw the said securities or any part thereof provided that
9securities or cash of the amount and value required by this section shall at all times
10be maintained on deposit.
SB494, s. 24 11Section 24. Chapter 221 of the statutes, as affected by 1995 Wisconsin Acts
1227 and 55, is repealed and recreated to read:
SB494,18,1413 Chapter 221
14 State banks
SB494,18,1615 SUBCHAPTER I
16 GENERAL PROVISIONS
SB494,18,18 18221.0101 Title. This chapter may be cited as the "Wisconsin banking law".
SB494,18,19 19221.0102 Definitions. In this chapter:
SB494,18,21 20(1) "Articles of incorporation" includes amended and restated articles of
21incorporation.
SB494,18,23 22(2) "Authorized shares" means the shares of all classes that a bank is
23authorized to issue.
SB494,18,24 24(3) "Capital stock" means the stock of a bank, other than preferred stock.
SB494,19,2
1(4) "Capital" means, with respect to any bank, the sum of all of the following,
2less the bank's intangible assets:
SB494,19,33 (a) The bank's capital stock.
SB494,19,44 (b) The bank's preferred stock.
SB494,19,55 (c) The bank's undivided profits.
SB494,19,76 (d) Outstanding notes and debentures of the bank that are legally issued and
7sold by the bank and approved by the division under s. 221.0318 (2).
SB494,19,9 8(5) "Record date" means the date on which a bank determines the identity of
9its shareholders for purposes of this chapter.
SB494,19,12 10(6) "Shareholder" means the person in whose name shares are registered in
11the records of a bank or, to the extent of the rights granted by a nominee certificate
12on file with a bank, the beneficial owner of the shares.
SB494,19,14 13(7) "Subscriber" means a person who subscribes for shares in a bank, whether
14before or after incorporation of the bank.
SB494,19,17 15(8) "Treasury shares" means shares of a bank that have been issued, that have
16been subsequently acquired by and belong to the bank, and that have not been
17canceled or restored to the status of authorized but unissued shares.
SB494,19,18 18(9) "Voting group" means any of the following:
SB494,19,2119 (a) All shares of one or more classes or series that, under the articles of
20incorporation or this chapter, are entitled to vote and be counted together collectively
21on a matter at a meeting of shareholders.
SB494,19,2322 (b) All shares that under the articles of incorporation or this chapter are
23entitled to vote generally on a matter.
SB494,20,3
1221.0103 Notice. (1) Applicability. This section applies to a notice that is
2required under this chapter or that is made subject to this section by express
3reference to this section.
SB494,20,6 4(2) When oral notice permitted. A person shall give notice in writing, except
5that notices to or from a bank may be given orally, if permitted by the bank's articles
6of incorporation or bylaws and not otherwise prohibited by this chapter.
SB494,20,13 7(3) Method of providing written notice. Unless otherwise provided in the
8articles of incorporation or bylaws, notice may be communicated in person, by
9telephone, telegraph, teletype, facsimile or other form of wire or wireless
10communication, or by mail or private carrier. If these forms of personal notice are
11impracticable, notice may be communicated by a newspaper of general circulation
12in the area where published or by radio, television or other form of public broadcast
13communication.
SB494,20,16 14(4) Date notice is effective. (a) Except as provided in par. (b) and ss.
15221.0607 (2) and 221.0622 (1), written notice is effective on the earliest of the
16following:
SB494,20,1717 1. On the date received.
SB494,20,1918 2. Five days after deposit of the notice in the U.S. mail, if mailed postpaid and
19correctly addressed.
SB494,20,2220 3. On the date shown on the return receipt, if the notice is sent by registered
21or certified mail, return receipt requested, and if the receipt is signed by or on behalf
22of the addressee.
SB494,20,2323 4. On the effective date specified in the articles of incorporation or bylaws.
SB494,21,3
1(b) Written notice by a bank to a shareholder of the bank is effective when
2mailed. The notice may be addressed to the shareholder's address shown in the
3bank's current record of shareholders.
SB494,21,44 (c) Oral notice is effective when communicated.
SB494,21,9 5221.0104 Applicability. This chapter applies to all banks organized and
6existing within this state. The powers, privileges, duties and restrictions conferred
7and imposed upon a bank existing and doing business under the laws of this state
8are hereby abridged, enlarged or modified, as each particular case may require, to
9conform to this chapter.
SB494,21,12 10221.0105 Fees. The division may establish such fees as it determines are
11appropriate for documents filed with the division under this chapter and for such
12other services as the division may provide under this chapter.
SB494,21,1313 SUBCHAPTER II
SB494,21,1414 BANK ORGANIZATION
SB494,21,18 15221.0201 Applicants. Any number of adult residents of this state, not less
16than 3 nor more than 20, who desire to associate for the purpose of organizing a
17banking corporation under this chapter, may apply to the division to organize a bank.
18The application shall be made on a form prescribed by the division.
SB494,21,20 19221.0202 Application. (1) Contents. An application under s. 221.0201 shall
20be prepared and filed in duplicate, and shall include all of the following:
SB494,21,2121 (a) The location of the proposed bank.
SB494,21,2222 (b) The character of the business to be transacted by the proposed bank.
SB494,21,2323 (c) The proposed capital of the proposed bank.
SB494,21,2424 (d) The full name, residence, and occupation of each applicant.
SB494,21,2525 (e) Other information required by the division.
SB494,22,9
1(2) Notice of application. Upon receipt by the division of properly executed
2application, the division shall, within 5 days, forward to the applicants a copy of a
3notice of application for authority to organize a bank. The notice of application shall
4contain the information required under sub. (1) and a date and place for hearing on
5the application. The notice shall be published as a class 3 notice, under ch. 985, by
6the applicants, at their own expense, in the city, village or town where the bank is
7to be located. Proof of publication shall be filed with the division in such form as the
8division requires. The division may waive the requirement of publication, if the bank
9to be organized is to replace, absorb or consolidate one or more existing banks.
SB494,22,12 10(3) Fee. The applicants shall pay to the division a fee in an amount determined
11by the division, together with the actual costs incurred by the division in making an
12investigation under sub. (4) of the application.
SB494,22,14 13(4) Investigation. (a) At the hearing and by such investigation as the division
14considers necessary, the division shall consider all of the following:
SB494,22,1815 1. Whether the character, responsibility and general fitness of the persons
16named in the application command confidence and warrant the belief that the
17business of the proposed bank will be honestly and efficiently conducted in
18accordance with this chapter.
SB494,22,2019 2. Whether public convenience and advantage will be promoted by allowing the
20bank to organize.
SB494,22,2121 3. The character and experience of the proposed officers.
SB494,22,2322 4. The adequacy of existing banking facilities and the need of further banking
23capital.
SB494,22,2524 5. The outlook for the growth and development of the area where the bank is
25to be located.
SB494,23,4
16. The methods and banking practices of any existing banks in the area where
2the bank is to be located; the interest rate that these existing banks charge to
3borrowers; and the character of the service which these existing banks provide to the
4community.
SB494,23,55 7. The prospects for the success of the proposed bank if efficiently managed.
SB494,23,96 (b) The division shall complete the investigation within 90 days after the filing
7with the division of proof of publication under sub. (2) and the paying of the fee under
8sub. (3), whichever is later. If a majority of the applicants and the division mutually
9agree, the time may be extended for an additional period of 60 days.
SB494,23,19 10(5) Decision. After completing the investigation under sub. (4), the division
11shall make a written report to the banking review board stating the results of the
12investigation and the division's recommendation. The board shall consider the
13matter, conduct any necessary hearing and promptly make its decision approving or
14disapproving the application. The decision shall be final except pursuant to s.
15220.035 (1) and (3). If the application is approved, the division shall endorse on each
16of the original applications the word "Approved". If the application is disapproved,
17the division shall endorse the word "Disapproved". One of the duplicate originals
18shall be filed in the division's office and one shall be returned by mail to the
19applicants.
SB494,23,25 20221.0203 Certificate of authority. (1) Powers granted by certificate. If
21an application for authority to organize a banking corporation is approved, the
22division shall issue a certificate of authority to the applicants, who shall thereafter
23be known as the incorporators. The certificate of authority shall grant the
24incorporators such powers as are incidentally or necessarily preliminary to the
25organization of a banking corporation. These powers include all of the following:
SB494,24,2
1(a) Creating a temporary organization, consisting of a chairperson, a secretary
2and a treasurer.
SB494,24,33 (b) Executing and filing articles of incorporation.
SB494,24,54 (c) Adopting rules for the conduct of meetings of the incorporators and of the
5first meeting of the shareholders.
SB494,24,66 (d) Opening subscription books for stock.
SB494,24,77 (e) Securing an option on real estate to be used as a bank office.
SB494,24,88 (f) Fixing an amount at which the stock shall be sold.
SB494,24,99 (g) Collecting subscriptions to the stock.
SB494,24,1010 (h) Selecting a depository for funds as may be collected.
SB494,24,1111 (i) Appointing any agent or agents.
SB494,24,1212 (j) Compiling a set of bylaws for submission to the shareholders.
SB494,24,15 13(2) Voting requirements. Following the incorporation of a bank, an action
14permitted by this chapter to be taken by its incorporators may be taken by the
15majority of its incorporators or the survivors of the incorporators.
SB494,25,6 16221.0204 Temporary organization. The chairperson of the incorporators
17shall preside at all meetings and shall exercise other duties that are ordinarily
18performed by a chairperson. The secretary shall manage the correspondence of the
19incorporators, record fully all proceedings of the meetings of the incorporators, file
20and preserve all documents and papers of the organization, and file any necessary
21papers with the division. The treasurer shall receive all moneys paid in on
22subscriptions to stock or for other purposes, keep a true account thereof, deposit
23these funds in the designated depository, and pay such valid orders as may be drawn
24on the treasurer. The incorporators shall require a bond in a suitable amount from
25the treasurer and from other officers and agents who may handle the funds of the

1proposed bank. The incorporators shall audit claims against the proposed bank and
2record of action on these claims in the minutes. If a claim is ordered paid, an order
3shall be drawn upon the treasurer and signed by the chairperson and secretary.
4Until the completion of the organization of the proposed bank, the incorporators may
5exercise the powers conferred upon incorporators of corporations under ch. 180, to
6the extent that these powers are not in conflict with this chapter.
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