AB378: Bill Text

AB378,129,8 186.11 (4) (c) A service corporation may be subject to audit by the commissioner office of credit unions.

Note: 1995 Wis. Act 151 was intended to replace all references to the commissioner of credit unions, effective 7-1-96. This reference was unintentionally retained.

AB378, s. 355 Section 355. 186.113 (1m) (title) of the statutes is created to read:

AB378,129,10 186.113 (1m) (title) Limited service offices.

Note: The other subsections of s. 186.113 have titles.

AB378, s. 356 Section 356. 186.235 (15) (b) of the statutes, as created by 1995 Wisconsin Act 151, is amended to read:

AB378,129,20 186.235 (15) (b) Witness fees shall be the same as fees under s. 814.67 (1) (b) and (c). The fees of witnesses who are called by the office in the interests of the state shall be paid by the state upon presentation of proper vouchers approved by the commissioner office of credit unions and charged to the appropriation under s. 20.141 (1) 20.144 (2) (g). A witness subpoenaed by the office at the instance of a party other than the office shall not be entitled to payment of fees by the state unless the office certifies that the testimony was material to the purpose for which the subpoena was issued.

Note: 1995 Wis. Act 27 renumbered s. 20.141 (1) (g) to be s. 20.144 (2) (g) and changed references to the "commissioner of credit unions" to the "office of credit unions", all effective 7-1-96.

AB378, s. 357 Section 357. 190.01 (2) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,130,14 190.01 (2) The articles of incorporation and amendments thereto shall be filed with the department of revenue financial institutions; in the case of articles, the department of revenue financial institutions shall thereupon issue a certificate of incorporation and the corporation then has legal existence. The articles of incorporation or special charter of any railroad company may be amended by a majority vote of all the stock in the respects and for the purposes provided in s. 180.1001. The fees for filing articles and amendments thereto are as provided in s. 180.0122 (1) (a) and (m) except that the fees for filing an amendment which authorizes the issuance of redeemable preference shares for sale to the U.S. secretary of transportation under sections 505 and 506 of P.L. 94-210 is $15 for the amendment and an additional sum equal to $1 for each $100,000 or fraction thereof of par value redeemable preference shares authorized by the amendment.

Note: The governor's budget proposal provided for the transfer of corporate filings to the department of revenue, but was changed to the department of financial institutions as enacted in 1995 Wis. Act 27. That change inadvertently was not made to the treatment of this provision by Act 27.

AB378, s. 358 Section 358. 214.26 (2) (c) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,131,2 214.26 (2) (c) After 3 years of corporate existence, the board of directors may petition the division for authority to repay the incorporators, on a proportional basis, any unused portion remaining in the expense fund. If the division determines that the operations of the mutual savings bank at that point are of such degree as so to enable the mutual savings bank to operate without the subsidy, the division may authorize repayment.

Note: Inserts correct word.

AB378, s. 359 Section 359 . 214.345 (5) of the statutes, as affected by 1995 Wisconsin Act 103, sections 8 and 9, is repealed and recreated to read:

AB378,131,10 214.345 (5) (a) Subject to the approval of the division, a savings bank's bylaws shall provide for reasonable indemnification to its officers, directors and employes in connection with the faithful performance of their duties for the savings bank. For stock savings banks, the provisions shall be consistent with those under ss. 180.0850 to 180.0859. For mutual savings banks, the provisions shall be consistent with those under ss. 215.512 to 215.525.

AB378,131,15 (b) The provisions relating to the limited liability of directors under s. 180.0828, as they apply to a director of a corporation, apply to a director of a stock savings bank. The provisions relating to the limited liability of directors and officers under s. 215.525, as they apply to a director or officer of a mutual savings and loan association, apply to a director or officer of a mutual savings bank.

Note: 1995 Wisconsin Act 103, section 8, repeals and recreates s. 214.345 (5) effective on July 1, 1996. 1995 Wisconsin Act 103, section 9, repealed and recreated s. 214.345 (5) effective on the day after publication of the act. The section 8 treatment was intended to take effect on publication, to be replaced by the section 9 treatment on July 1, 1996. This bill recreates the section 9 treatment.

AB378, s. 360 Section 360. 214.65 (2) (b) of the statutes, as affected by 1995 Wisconsin Act 103, section 31, is amended to read:

AB378,132,3 214.65 (2) (b) The proposed sale is approved by the stockholders if it receives an affirmative vote from a majority of the total number of votes that are entitled to be cast. A proposal for the voluntary liquidation of the savings bank may be submitted to the stockholders at the same meeting or at any later meeting called for that purpose. A certified summary of proceedings setting forth the terms of the proposed sale, the form and timing of the notice given, the vote on the proposal and the total number of votes entitled to be cast shall be filed with the division.

Note: Inserts missing words.

AB378, s. 361 Section 361. 214.825 of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,132,15 214.825 Purposes of taking custody. The purposes of taking custody of a savings bank may include examination; production of an audited financial statement; reconstruction of books and records; conservation of assets; restoration of impaired capital; the making of any necessary or equitable adjustment, including changes in officers and management, considered necessary by the division under any plan of reorganization or liquidation; restructuring of the savings bank through a merger or formation of a an interim institution; establishment of a conservatorship to operate and manage a savings bank as an ongoing concern until the grounds for custody and conservatorship are remedied; or the maturing of an obligation of the deposit insurance corporation.

Note: Inserts correct word.

AB378, s. 362 Section 362. 215.02 (6) (a) 3. of the statutes, as affected by 1995 Wisconsin Act 104, section 7, is amended to read:

AB378,132,21 215.02 (6) (a) 3. For the purpose of comparing notes as to matters affecting an association with an examiner of the a deposit insurance corporation or a federal regulatory agency as to any association whose savings accounts are insured by the deposit insurance corporation.

Note: Deletes unnecessary word consistent with the treatment of s. 215.02 (6) (a) 4. by 1995 Wis. Act 104.

AB378, s. 363 Section 363. 215.32 (6) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,133,17 215.32 (6) (a) Notice, allowance and payment of claims. The special deputy commissioner shall publish a class 3 notice, under ch. 985, requiring all persons who have claims against the association, other than savers whose claims are shown in the records of the association, to file proof of their claims at a place and by a date not earlier than 30 days after the last insertion of the notice. The special deputy shall mail a copy of the notice to all persons, at their last-known addresses, who appear as creditors upon the books of the association. Proof of publication and service of the notice shall be filed with the clerk of circuit court. A claim, other than that of a saver whose claim is shown on the records of the association, for which no proof of claim is filed by the date fixed in the notice is barred. Savers whose claims are shown in the records of the association need not file proof of their claims. Any interested party may file written objections to any claim with the special deputy. The special deputy may reject any claim, including a claim of a saver. After notice by registered mail of rejection, the claim is barred unless the claimant commences an action within 90 days after the date of mailing of the notice of rejection.

AB378,133,19 NOTE: The stricken word should have been deleted by 1995 Wis. Act 27 which eliminated the office of the commissioner of savings and loan.

AB378, s. 364 Section 364. 215.32 (6) (h) (title) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,133,22 215.32 (6) (h) (title) Transfer of residual assets to commissioner division .

AB378,133,25 NOTE: The stricken word should have been deleted by 1995 Wis. Act 27 which eliminated the office of the commissioner of savings and loan and replaced it with the division of savings and loan in the department of financial institutions.

AB378, s. 365 Section 365. 217.12 (2) of the statutes is amended to read:

AB378,134,3 217.12 (2) Tokens. No licensee shall issue script scrip or tokens other than checks to be used in lieu of money for the purchase of goods or services from any enterprise.

Note: Inserts correct word.

AB378, s. 366 Section 366. 218.05 (4) (b) of the statutes, as affected by 1995 Wisconsin Act 225, is amended to read:

AB378,134,16 218.05 (4) (b) If the division shall finds that the conditions under par. (a) 1. to 3. are not met, the division shall not issue the license and shall notify the applicant of the denial, retaining the investigation fee to cover the cost of investigating the applicant. The division shall approve or deny every application within 30 days from the filing thereof. No application shall be denied unless the applicant has had notice of a hearing on the application and an opportunity to be heard thereon. If the application is denied, the division shall, within 20 days thereafter, prepare and keep on file with the division a written order of denial which shall contain the division's findings with respect thereto and the reasons supporting the denial. The division shall mail a copy of the order of denial to the applicant at the address set forth in the application, within 5 days after the filing of the order.

Note: Deletes word unintentionally retained by 1995 Wis. Act 225.

AB378, s. 367 Section 367. 220.04 (1) (b) of the statutes, as affected by 1995 Wisconsin Act 55, section 5, is amended to read:

AB378,134,23 220.04 (1) (b) In lieu of any examination required to be made by the division, the division may accept any examination that may have been made of any bank or trust company bank within a reasonable period by a bank supervisory agency, as defined in s. 221.59 221.0901 (2) (d), if a copy of the examination is furnished to the division.

Note: Inserts correct cross-reference. Chapter 221 was repealed and recreated by 1995 Wis. Act 336. The definition of "bank supervisory agency" now appears at s. 221.0901 (2) (d).

AB378, s. 368 Section 368. 221.0216 (4) of the statutes, as created by 1995 Wisconsin Act 336, is amended to read:

AB378,135,7 221.0216 (4) Liability of holders of preferred stock. Preferred stock of a bank is not subject to a an assessment to restore an impairment in the capital of the bank. A holder of preferred stock of a bank is not individually responsible, in the shareholder's capacity as a shareholder, for any debt, contract or acknowledgment of a bank.

Note: Inserts correct word.

AB378, s. 369 Section 369. 221.0321 (5) of the statutes, as created by 1995 Wisconsin Act 336, is amended to read:

AB378,135,18 221.0321 (5) Certain secured loans. A bank may make loans secured by assignment or transfer of stock certificates or other evidence of the borrower's ownership interest in a corporation formed for the cooperative ownership of real estate. Sections 846.10 and 846.101, as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender's rights in security given for a loan under this subsection. The division shall promulgate joint rules with the division office of credit unions and the division of savings and loan that establish procedures for enforcing a lender's rights in security given for a loan under this subsection.

Note: Inserts correct word.

AB378, s. 370 Section 370. 221.0402 (2) (b) of the statutes, as affected by 1995 Wisconsin Act 336, is amended to read:

AB378,136,2 221.0402 (2) (b) Mortgage bankers registered under s. 440.72 224.72 may use the designation "mortgage banker".

Note: Inserts correct cross-reference. Section 440.72 was renumbered to s. 224.72 by 1995 Wis. Act 27.

AB378, s. 371 Section 371. 221.0802 of the statutes, as affected by 1995 Wisconsin Act 336, is amended to read:

AB378,136,16 221.0802 Banks may be placed in hands of division. A bank doing business under this chapter may place its affairs and assets under the control of the division by posting a notice on its front door, as follows: "This bank is in the hands of the Division of Banking of the Department of Financial Institutions". Immediately upon posting such notice, the bank shall notify the division of this action. The posting of the notice, or the taking possession of a bank by the division, places the bank's assets and property in the possession of the division, and bars any attachment proceedings. For each day the division is placed in possession of the bank, and until such time as a special deputy is appointed under s. 220.08 (4), the bank shall pay to the division the actual cost of such liquidation proceedings. The division shall pay the amounts to the state treasurer and the percentage specified in s. 20.124 20.144 (1) (g) shall be credited to the appropriation account under s. 20.124 20.144 (1) (g).

Note: Inserts correct cross-reference. Section 20.124, the appropriation for the office of the commissioner of banking, was repealed by 1995 Wis. Act 27. The office of the commissioner of banking was replaced by the department of financial institutions, the appropriation for which appears at s. 20.144. The percentage and appropriation now appear at s. 20.144 (1) (g).

AB378, s. 372 Section 372. The amendment of 223.08 of the statutes by 1995 Wisconsin Act 336 is not repealed by 1995 Wisconsin Act 417. Both amendments stand.

Note: There is no conflict of substance.

AB378, s. 373 Section 373. 223.105 (4) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,137,10 223.105 (4) Notice of fiduciary operation. Except for those organizations licensed under ch. 221 or this chapter, any organization engaged in fiduciary operations as defined in this section shall, as required by rule, notify the division of banking, the office of credit unions or the division of savings and loan of that fact, directing the notice to the agency then exercising regulatory authority over the organization or, if there is none, to the division of banking. Any organization which intends to engage in fiduciary operations shall, prior to engaging in such operations, notify the appropriate agency of this intention. The notifications required under this subsection shall be on forms and contain information required by the rules promulgated by the division of banking.

Note: Inserts missing word.

AB378, s. 374 Section 374. 223.12 (2) of the statutes, as affected by 1995 Wisconsin Act 273, section 8, is amended to read:

AB378,138,9 223.12 (2) Service of process. Any foreign corporation acting in this state in a fiduciary capacity is considered to have appointed the division of banking to be its true and lawful attorney upon whom may be served all legal process in any action or proceeding against it relating to or growing out of any trust, estate or matter in respect of which the foreign corporation has acted or is acting in this state in any such fiduciary capacity. Engagement in this state in any acts in a fiduciary capacity signifies agreement that any process against the foreign corporation which is served under this subsection shall be of the same legal force and validity as though served upon the foreign corporation personally. Service of process under this subsection shall be made by delivering to the division of banking a copy of the process, together with any fee for service of process required by the commissioner division. Service of process is sufficient if notice of such service and a copy of the process are, within 10 days after delivery to the division of banking, sent by registered mail by the plaintiff to the defendant at its principal office in such other state or territory and the plaintiff's affidavit of compliance with this requirement is appended to the summons. The court in which the action is pending may order such continuances as may be necessary to afford the defendant reasonable opportunity to defend the action. The fee paid by the plaintiff to the division at the time of the service may be recovered as taxable costs by the plaintiff if the plaintiff prevails in the action. The division shall keep a record of all processes served upon the division under this subsection and shall record the time of the service.

Note: 1995 Wis. Act 273 inserted "division" without showing it underscored and deleted "commissioner" without showing it stricken. The change was intended.

AB378, s. 375 Section 375. 223.12 (4) (c) of the statutes, as affected by 1995 Wisconsin Act 273, section 11, is amended to read:

AB378,138,14 223.12 (4) (c) Each foreign corporation making application for a certificate of authority shall pay reasonable fees to the office of the division of banking as determined by the division for the services of that division.

Note: 1995 Wis. Act 273 deleted "office of the" without showing it stricken. The change was intended.

AB378, s. 376 Section 376. 224.72 (5) (b) 1. of the statutes, as affected by 1995 Wisconsin Act 465, is amended to read:

AB378,138,22 224.72 (5) (b) 1. Upon receiving a properly completed application for registration as a mortgage banker, the fee specified in sub. (8) (b) and, except as provided in s. 224.85 (2), satisfactory evidence of compliance with sub. (4), the department shall issue to the applicant a temporary certificate of registration as a mortgage banker. A temporary certificate of registration is valid for 6 months after the date of issuance.

Note: 1995 Wis. Act 465 deleted "in" without showing it as stricken. No change was intended.

AB378, s. 377 Section 377. 226.14 (1) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,139,23 226.14 (1) No common law trust organized in this state, and no such trust formed or organized under or by authority of the laws of any state or foreign jurisdiction, for the purpose of doing business under a declaration of trust which shall have issued to five 5 or more persons, or which shall sell or propose to sell beneficial interests, certificates or memberships therein, shall transact business, or acquire, hold or dispose of property in this state until the trustees named in said declaration of trust shall have caused to be filed with the department of financial institutions the original declaration of trust, or a true copy thereof, and all amendments which may be made, verified as such by the affidavits of two 2 of the signers thereof. A like verified copy of the declaration and such amendments, and a certificate of the department of financial institutions, showing the date when such declaration was filed and accepted by the department of financial institutions, within thirty 30 days of such filing and acceptance, shall be recorded with the register of deeds of the county in which such trust has its principal office or place of business in this state. No such trust shall transact business in this state until such declaration or such copy thereof be left for record. The register of deeds shall forthwith transmit to the department of financial institutions a certificate stating the time when such copy was recorded and shall be entitled to a fee of twenty-five 25 cents therefor, to be paid by the person presenting such papers for record. Upon receipt of such certificate the department of financial institutions shall issue to said trustees a certificate of filing.

Note: Corrects error in transcribing 1991 Wis. Act 316 and replaces word form of number with digits for conformity with current style.

AB378, s. 378 Section 378. 227.01 (13) (zs) of the statutes, as created by 1995 Wisconsin Act 363, is renumbered 227.01 (13) (zt).

Note: 1995 Wis. Act 289 also created a s. 227.01 (13) (zs).

AB378, s. 379 Section 379. 233.04 (7s) of the statutes, as affected by 1995 Wisconsin Act 216, is amended to read:

AB378,140,7 233.04 (7s) Prior to the initial 5-year review by the joint committee on finance under s. 13.094, notify the legislative audit bureau and cooperate with the legislative audit bureau in its performance of the audit required under s. 13.94 (1) (o).

Note: The underscored language was added by 1995 Wis. Act 216 without being shown as underscored. The change was intended.

AB378, s. 380 Section 380. 234.15 (3) (a) 1. of the statutes, as affected by 1995 Wisconsin Act 225, is amended to read:

AB378,140,12 234.15 (3) (a) 1. All interest payable during the fiscal year on all bonds secured in whole or in part by the capital reserve fund outstanding on the date of computation.

Note: "[T]he" is added to improve grammar.

AB378, s. 381 Section 381. The amendment of 234.265 (2) of the statutes by 1995 Wisconsin Act 116 is not repealed by 1995 Wisconsin Act 150. Both amendments stand.

Note: There is no conflict of substance.

AB378, s. 382 Section 382. 234.54 (3) (b) of the statutes, as affected by 1995 Wisconsin Act 225, is amended to read:

AB378,141,5 234.54 (3) (b) The annual debt service calculation made under par. (a) shall be calculated on the assumption that the bonds will after the date of computation cease to be outstanding by reason, but only by reason, of the payment of bonds when due, and the payment when due and application in accordance with the resolution authorizing those bonds, of all of the sinking fund payments payable at or after the date of computation. However, in computing the annual debt service for any calendar year, bonds considered to have been paid in accordance with the defeasance provisions of the resolution of the authority authorizing the issuance thereof shall may not be included in bonds outstanding on the date of computation.

Note: 1995 Wis. Act 225 deleted "may" without showing it as stricken and inserted "shall" without showing it as underscored. No change was intended.

AB378, s. 383 Section 383. 243.10 (9) (i) of the statutes is amended to read:

AB378,141,10 243.10 (9) (i) Prepare, sign, file and deliver reports, compilations of information, returns or other papers with respect to a business which are required by a governmental agency or instrumentality or which the agent considers desirable, and make related payments.

Note: Inserts missing period.

AB378, s. 384 Section 384. 252.14 (1) (d) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB378,141,18 252.14 (1) (d) "Inpatient health care facility" means a hospital, nursing home, community-based residential facility, county home, county mental health complex, tuberculosis sanatorium or other place licensed or approved by the department under ss. 49.70, 49.71, 49.72, 50.02, 50.03, 50.35, 51.08, 51.09, 58.06, 252.073 and 252.076 or a facility under s. 45.365, 48.62, 51.05, 51.06, 233.40, 233.41, 233.42 or 252.10 or ch. 142.