AB563,6,1511 (b) For a universal bank organized as a mutual organization, the universal
12bank's net worth, undivided profits, surplus, outstanding notes and debentures
13approved by the division, other forms of capital designated as capital by the division
14and other forms of capital considered to be qualifying capital by a deposit insurance
15corporation.
AB563,6,19 16(3) "Deposit insurance corporation" means the Federal Deposit Insurance
17Corporation or other instrumentality of, or corporation chartered by, the United
18States that insures deposits of financial institutions and that is supported by the full
19faith and credit of the U.S. government as stated in a congressional resolution.
AB563,6,20 20(4) "Division" means the division of banking.
AB563,6,23 21(5) "Financial institution" means a state savings bank organized under ch. 214,
22state savings and loan association organized under ch. 215 or a state bank chartered
23under ch. 221.
AB563,6,25 24(6) "Universal bank" means a financial institution that has been issued a
25certificate of authority under s. 222.0205.
AB563,7,1
1(7) "Well-capitalized" has the meaning given in 12 USC 1831o (b) (1) (A).
AB563,7,6 2222.0103 Applicability. (1) Savings banks. A universal bank that is a savings
3bank organized under ch. 214 remains subject to all of the requirements, duties and
4liabilities, and may exercise all of the powers, of a savings bank, except that in the
5event of a conflict between this chapter and those requirements, duties, liabilities or
6powers, this chapter shall control.
AB563,7,11 7(2) Savings and loan associations. A universal bank that is a savings and loan
8association organized under ch. 215 remains subject to all of the requirements,
9duties and liabilities, and may exercise all of the powers, of a savings and loan
10association, except that, in the event of a conflict between this chapter and those
11requirements, duties, liabilities or powers, this chapter shall control.
AB563,7,15 12(3) Banks. A universal bank that is a bank chartered under ch. 221 remains
13subject to all of the requirements, duties and liabilities, and may exercise all of the
14powers, of a bank, except that, in the event of a conflict between this chapter and
15these requirements, duties, liabilities or powers, this chapter shall control.
AB563,7,18 16222.0105 Fees. The division may establish such fees as it determines are
17appropriate for documents filed with the division under this chapter and for services
18provided by the division under this chapter.
AB563,7,20 19222.0107 Administration. (1) Powers of division. The division shall
20administer this chapter for all universal banks.
AB563,7,25 21(2) Rule-making authority. The division may promulgate rules to administer
22and carry out this chapter. The division may establish additional limits or
23requirements on universal banks, if the division determines that the limits or
24requirements are necessary for the protection of depositors, members, investors or
25the public.
AB563,8,2
1SUBCHAPTER II
2 Certification
AB563,8,7 3222.0201 Procedure. (1) Application. A financial institution may apply to
4become certified as a universal bank by filing a written application with the division.
5The application shall include such information as the division may require. The
6application shall be on such forms and in accordance with such procedures as the
7division may prescribe.
AB563,8,11 8(2) Review by division. An application submitted to the division shall either
9be approved or disapproved by the division in writing within 60 days after its
10submission to the division. The division and the financial institution may mutually
11agree to extend the application period for an additional period of 60 days.
AB563,8,14 12222.0203 Eligibility. (1) Requirements. The division shall approve an
13application for certification as a universal bank, if the applying financial institution
14meets all of the following requirements:
AB563,8,1715 (a) The financial institution is chartered or organized, and regulated, under ch.
16214, 215 or 221 and has been in existence and continuous operation for a minimum
17of 3 years prior to the date of the application.
AB563,8,1818 (b) The financial institution is well-capitalized or adequately capitalized.
AB563,8,2319 (c) The financial institution does not exhibit a combination of financial,
20managerial, operational and compliance weaknesses that is moderately severe or
21unsatisfactory, as determined by the division based upon the division's assessment
22of the financial institution's capital adequacy, asset quality, management capability,
23earnings quantity and quality, adequacy of liquidity, and sensitivity to market risk.
AB563,9,224 (d) During the 12-month period prior to the application, the financial
25institution has not been the subject of an enforcement action and there is no

1enforcement action pending against the financial institution by any state or federal
2financial institution regulatory agency, including the division.
AB563,9,5 3(2) Failure to maintain compliance. For any period during which a universal
4bank fails to meet the requirements under sub. (1), the division may by order limit
5or restrict the exercise of the powers of the universal bank under this chapter.
AB563,9,9 6222.0205 Certificate of authority. Upon approval of the application under
7s. 222.0201 for certification as a universal bank, the division shall issue to the
8applicant a certificate of authority stating that the financial institution is certified
9as a universal bank under this chapter.
AB563,9,16 10222.0207 Decertification. A financial institution that is certified as a
11universal bank under this chapter may elect to terminate its certification upon 60
12days' prior written notice to the division and written approval of the division. The
13financial institution shall, as a condition to the termination, terminate its exercise
14of all powers granted under this chapter prior to the termination of the certification.
15Written approval of the termination by the division is void if the financial institution
16fails to satisfy the precondition to termination under this section.
AB563,9,1817 SUBCHAPTER III
18 ORGANIZATION
AB563,9,23 19222.0301 Articles of incorporation and bylaws. A universal bank shall
20continue to operate under its articles of incorporation and bylaws as in effect prior
21to certification as a universal bank or as such articles or bylaws may be subsequently
22amended in accordance with the provisions of the chapter under which the universal
23bank was organized or chartered.
AB563,9,25 24222.0303 Name. (1) Use of "bank". Notwithstanding ss. 214.035, 215.40 (1)
25and 215.60 (1) and subject to subs. (2) and (4), a universal bank may use the word

1"bank" in its name, without having to include the word "savings". Notwithstanding
2ss. 215.40 (1) and 215.60 (1) and subject to subs. (2) and (4), a universal bank that
3is organized under ch. 215 and that uses the word "bank" in its name in accordance
4with this section need not include the words "savings and loan association" or
5"savings association" in its name.
AB563,10,8 6(2) Distinguishability. Except as provided in subs. (3) and (4), the name of the
7universal bank shall be distinguishable upon the records of the division from all of
8the following names:
AB563,10,109 (a) The name of any other financial institution organized under the laws of this
10state.
AB563,10,1211 (b) The name of a national bank or foreign bank authorized to transact business
12in this state.
AB563,10,1613 (3) Exceptions. A universal bank may apply to the division for authority to use
14a name that does not meet the requirement under sub. (2). The division may
15authorize the use of the name if any of the conditions under s. 221.0403 (2) (a) or (b)
16is met.
AB563,10,19 17(4) Use of same name. A universal bank may use a name that is used in this
18state by another financial institution or by an institution authorized to transact
19business in this state, if the universal bank has done any of the following:
AB563,10,2020 (a) Merged with the other institution.
AB563,10,2121 (b) Been formed by reorganization of the other institution.
AB563,10,2322 (c) Acquired all or substantially all of the assets, including the name, of the
23other institution.
AB563,11,3
1222.0305 Capital and assets. (1) Capital requirements. Notwithstanding
2subch. VI of ch. 214 and ss. 215.24 and 221.0205, the division shall determine the
3minimum capital requirements of universal banks.
AB563,11,5 4(2) Certain asset requirements. Section 214.045 does not apply to universal
5banks.
AB563,11,12 6222.0307 Acquisitions, mergers and asset purchases. (1) In general. A
7universal bank may, with the approval of the division, purchase the assets of, merge
8with, acquire or be acquired by any other financial institution, universal bank,
9national bank, federally chartered savings bank or savings and loan association, or
10by a holding company of any of these entities. Notwithstanding subch. III of ch. 214
11and ss. 214.09 and 215.36, the approval of the division of savings and loan is not
12required.
AB563,11,16 13(2) Applications for approval. An application for approval under sub. (1) shall
14be submitted on a form prescribed by the division and accompanied by a fee
15determined by the division. In processing and acting on applications under this
16section the division shall apply the following standards:
AB563,11,1817 (a) For universal banks organized under ch. 214, ss. 214.09, 214.62 to 214.64
18and 214.665 and subch. III of ch. 214.
AB563,11,2019 (b) For universal banks organized under ch. 215, ss. 215.35, 215.36, 215.53 and
20215.73.
AB563,11,2121 (c) For universal banks chartered under ch. 221, subchs. VII and IX of ch. 221.
AB563,11,2322 SUBCHAPTER IV
23 POWERS
AB563,12,3 24222.0401 Federal financial institution powers. (1) In general. Subject
25to the limitations in this section, universal banks may exercise all powers that may

1be exercised, directly or indirectly through a subsidiary, by a federally chartered
2savings bank, a federally chartered savings and loan association, a federally
3chartered national bank or by an affiliate of such an institution.
AB563,12,6 4(2) Required notification for exercise of a federal power. A universal bank
5shall give 60 days' prior written notice to the division of the universal bank's
6intention to exercise a power under this section.
AB563,12,10 7(3) Exercise of federal powers through a subsidiary. The division may
8require that certain powers exercisable by universal banks under this section be
9exercised through a subsidiary of the universal bank with appropriate safeguards to
10limit the risk exposure of the universal bank.
AB563,12,13 11222.0403 Loan powers. (1) Permitted purposes. A universal bank may
12make, sell, purchase, arrange, participate in, invest in or otherwise deal in loans or
13extensions of credit for any purpose.
AB563,12,19 14(2) In general. Except as provided in subs. (3) to (8), the total liabilities of any
15person, other than a municipal corporation, to a universal bank for a loan or
16extension of credit may not exceed 20% of the capital of the universal bank at any
17time. In determining compliance with this section, liabilities of a partnership
18includes the liabilities of the general partners, computed individually as to each
19general partner on the basis of his or her direct liability.
AB563,12,22 20(3) Certain secured liabilities. The percentage limitation under sub. (2) is
2150% of the universal bank's capital, if the liabilities under sub. (2) are limited to the
22following types of liabilities:
AB563,13,223 (a) Warehouse receipts. A liability secured by warehouse receipts issued by
24warehouse keepers who are licensed and bonded in this state under ss. 99.02 and

199.03 or under the federal Bonded Warehouse Act or who hold a registration
2certificate under ch. 127, if all of the following requirements are met:
AB563,13,33 1. The receipts cover readily marketable nonperishable staples.
AB563,13,44 2. The staples are insured, if it is customary to insure the staples.
AB563,13,65 3. The market value of the staples is not, at any time, less than 140% of the face
6amount of the obligation.
AB563,13,87 (b) Certain bonds or notes. A liability in the form of a note or bond that meets
8any of the following qualifications:
AB563,13,119 1. The note or bond is secured by not less than a like amount of bonds or notes
10of the United States issued since April 24, 1917, or certificates of indebtedness of the
11United States.
AB563,13,1612 2. The note or bond is secured or covered by guarantees or by commitments or
13agreements to take over, or to purchase, the bonds or notes, and the guarantee,
14commitment or agreement is made by a federal reserve bank, the federal small
15business administration, the federal department of defense or the federal maritime
16commission.
AB563,13,1817 3. The note or bond is secured by mortgages or trust deeds insured by the
18federal housing administration.
AB563,13,20 19(4) Obligations of local governmental units. (a) Definition. In this
20subsection, "local governmental unit" has the meaning given in s. 16.97 (7).
AB563,13,2321 (b) General limitation. Except as otherwise provided in this subsection, the
22total liabilities of a local governmental unit to a universal bank for money borrowed
23may not, at any time, exceed 25% of the capital of the universal bank.
AB563,14,424 (c) Revenue obligations. Liabilities in the form of revenue obligations of a local
25governmental unit are subject to the limitations provided in par. (b). In addition, a

1universal bank is permitted to invest in a general obligation of that local
2governmental unit in an amount that will bring the combined total of the general
3obligations and revenue obligations of a single local governmental unit to a sum not
4in excess of 50% of the capital of the universal bank.
AB563,14,85 (d) General obligations. If the liabilities of the local governmental unit are in
6the form of bonds, notes or other evidences of indebtedness that are a general
7obligation of a local governmental unit, the total liability of the local governmental
8unit may not exceed 50% of the capital of the universal bank.
AB563,14,139 (e) Temporary borrowings. The total amount of temporary borrowings of any
10local governmental unit maturing within one year after the date of issue may not
11exceed 60% of the capital of the universal bank. Temporary borrowings and
12longer-term general obligation borrowings of a single local governmental unit may
13be considered separately in determining compliance with this subsection.
AB563,14,19 14(5) Obligations of certain international organizations; other foreign bonds.
15A universal bank may purchase bonds offered for sale by the International Bank for
16Reconstruction and Development and the Inter-American Development Bank or
17such other foreign bonds as may be approved under rules established by the division.
18At no time shall the aggregate investment in any of these bonds issued by a single
19issuer exceed 10% of the capital of the universal bank.
AB563,14,25 20(6) Foreign national government bonds. A universal bank may purchase
21general obligation bonds issued by any foreign national government if the bonds are
22payable in United States funds. The aggregate investment in these foreign bonds
23may not exceed 3% of the capital of the universal bank, except that this limitation
24does not apply to bonds of the Canadian government and Canadian provinces that
25are payable in United States funds.
AB563,15,8
1(7) Limits established by board. (a) When financial statements required. A
2universal bank may not make or renew a loan or loans, the aggregate total of which
3exceeds the level established by the board of directors without being supported by a
4signed financial statement of the borrower, unless the loan is secured by collateral
5having a value in excess of the amount of the loan. A signed financial statement
6furnished by the borrower to a universal bank in compliance with this paragraph
7must be renewed annually as long as the loan or any renewal of the loan remains
8unpaid and is subject to this paragraph.
AB563,15,139 (b) Treatment of loans complying with limits. A loan or a renewal of a loan made
10by a universal bank in compliance with par. (a), without a signed financial statement,
11may be treated by the universal bank as entirely independent of any secured loan
12made to the same borrower if the loan does not exceed the limitations provided in this
13section.
AB563,15,14 14(8) Exceptions. This section does not apply to any of the following:
AB563,15,1815 (a) Liabilities secured by certain short-term federal obligations. A liability that
16is secured by not less than a like amount of direct obligations of the United States
17which will mature not more than 18 months after the date on which such liabilities
18to the universal bank are entered into.
AB563,15,2219 (b) Certain federal and state obligations or guaranteed obligations. A liability
20that is a direct obligation of the United States or this state, or an obligation of any
21governmental agency of the United States or this state, that is fully and
22unconditionally guaranteed by the United States or this state.
AB563,15,2423 (c) Commodity Credit Corporation liabilities. A liability in the form of a note,
24debenture or certificate of interest of the Commodity Credit Corporation.
AB563,16,4
1(d) Discounting bills of exchange or business or commercial paper. A liability
2created by the discounting of bills of exchange drawn in good faith against actually
3existing values or the discounting of commercial or business paper actually owned
4by the person negotiating the same.
AB563,16,105 (e) Certain other federal or federally guaranteed obligations. In obligations of,
6or obligations that are fully guaranteed by, the United States and in obligations of
7any federal reserve bank, federal home loan bank, the Student Loan Marketing
8Association, the Government National Mortgage Association, the Federal National
9Mortgage Association, the Federal Home Loan Mortgage Corporation, the
10Export-Import Bank of Washington or the Federal Deposit Insurance Corporation.
AB563,16,24 11(9) Additional authority. (a) In general. In addition to the authority granted
12under subs. (1) to (8), and except as provided in par. (b), a universal bank may lend
13under this subsection, through the universal bank or subsidiary of the universal
14bank, to all borrowers from the universal bank and all of its subsidiaries, an
15aggregate amount not to exceed 20% of the universal bank's capital. Neither a
16universal bank nor any subsidiary of the universal bank may lend to any borrower,
17under this subsection and any other law or rule, an amount that would result in an
18aggregate amount for all loans to that borrower that exceeds 20% of the universal
19bank's capital. A universal bank or its subsidiary may take an equity position or
20other form of interest as security in a project funded through such loans. Every
21transaction by a universal bank or its subsidiary under this subsection shall require
22prior approval by the governing board of the universal bank or its subsidiary,
23respectively. Such loans are not subject to s. 221.0326 or to classification as losses,
24for a period of 3 years from the date of each loan except as provided in par. (b).
AB563,17,7
1(b) Suspension of additional authority. The division may suspend authority
2established under this subsection and, in such case, may specify how an outstanding
3loan shall be treated by the universal bank or its subsidiary. Among the factors that
4the division may consider in suspending authority under this subsection are the
5universal bank's capital adequacy, asset quality, earnings quantity, earnings quality,
6adequacy of liquidity and sensitivity to market risk and the ability of the universal
7bank's management.
AB563,17,15 8222.0405 Investment powers. (1) Investment securities. Except as
9provided in subs. (3) to (8), a universal bank may purchase, sell, underwrite and hold
10investment securities, consistent with safe and sound banking practices, up to 100%
11of the universal bank's capital. A universal bank shall not invest greater than 20%
12of the universal bank's capital in the investment securities of one obligor or issuer.
13In this subsection, "investment securities" includes commercial paper, banker's
14acceptances, marketable securities in the form of bonds, notes, debentures and
15similar instruments that are regarded as investment securities.
AB563,17,19 16(2) Equity securities. Except as provided in subs. (3) to (8), a universal bank
17may purchase, sell, underwrite and hold equity securities, consistent with safe and
18sound banking practices, up to 20% of capital or, if approved by the division in
19writing, a greater percentage of capital.
AB563,18,8 20(3) Housing activities. With the prior written consent of the division, a
21universal bank may invest in the initial purchase and development, or the purchase
22or commitment to purchase after completion, of home sites and housing for sale or
23rental, including projects for the reconstruction, rehabilitation or rebuilding of
24residential properties to meet the minimum standards of health and occupancy
25prescribed for a local governmental unit, the provision of accommodations for retail

1stores, shops and other community services that are reasonably incident to that
2housing, or in the stock of a corporation that owns one or more of those projects and
3that is wholly owned by one or more financial institutions. The total investment in
4any one project may not exceed 15% of the universal bank's capital, nor may the
5aggregate investment under this subsection exceed 50% of capital. A universal bank
6may not make an investment under this subsection unless it is in compliance with
7the capital requirements set by the division under s. 222.0305 (1) and with the capital
8maintenance requirements of its deposit insurance corporation.
AB563,18,20 9(4) Profit-participation projects. A universal bank may take equity positions
10in profit-participation projects, including projects funded through loans from the
11universal bank, in an aggregate amount not to exceed 20% of capital. The division
12may suspend the investment authority under this subsection. If the division
13suspends the investment authority under this subsection, the division may specify
14how outstanding investments under this subsection shall be treated by the universal
15bank or its subsidiary. Among the factors that the division may consider in
16suspending authority under this subsection are the universal bank's capital
17adequacy, asset quality, earnings quantity, earnings quality, adequacy of liquidity
18and sensitivity to market risk and the ability of the universal bank's management.
19This subsection does not authorize a universal bank, directly or indirectly through
20a subsidiary, to engage in the business of underwriting insurance.
AB563,18,23 21(5) Debt investments. A universal bank may invest in bonds, notes, obligations
22and liabilities described under s. 222.0403 (3) to (7), subject to the limitations under
23those subsections.
AB563,18,25 24(6) Certain liabilities. This section does not limit investment in the
25liabilities described in s. 222.0403 (8).
AB563,19,2
1(7) Certain investments. A universal bank may invest without limitation in
2any of the following:
AB563,19,53 (a) Business development corporations. Stocks or obligations of a corporation
4organized for business development by this state or by the United States or by an
5agency of this state or the United States.
AB563,19,76 (b) Urban renewal investment corporations. Obligations of an urban renewal
7investment corporation organized under the laws of this state or of the United States.
AB563,19,128 (c) Certain bank insurance companies. An equity interest in an insurance
9company or an insurance holding company organized to provide insurance for
10universal banks and for persons affiliated with universal banks, solely to the extent
11that this ownership is a prerequisite to obtaining directors' and officers' insurance
12or blanket bond insurance for the universal bank through the company.
AB563,19,1613 (d) Certain remote service unit corporations. Shares of stock, whether
14purchased or otherwise acquired, in a corporation acquiring, placing and operating
15remote service units under s. 214.04 (21) or 215.13 (46) or bank communications
16terminals under s. 221.0303 (2).
AB563,19,1817 (e) Service corporations. Equity or debt securities or instruments of a service
18corporation subsidiary of the universal bank.
AB563,19,1919 (f) Federal funds. Advances of federal funds.
AB563,19,2320 (g) Certain risk management financial products. With the prior written
21approval of the division, financial futures transactions, financial options
22transactions, forward commitments or other financial products for the purpose of
23reducing, hedging or otherwise managing its interest rate risk exposure.
AB563,19,2524 (h) Certain fiduciaries. A subsidiary organized to exercise corporate fiduciary
25powers under ch. 112.
AB563,20,4
1(i) Agricultural credit corporations. An agricultural credit corporation. Unless
2a universal bank owns at least 80% of the stock of the agricultural credit corporation,
3a universal bank may not invest more than 20% of the universal bank's capital in the
4agricultural credit corporation.
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