AB563,20,24 22222.0407 Universal bank purchase of its own stock. (1) In general. A
23universal bank may hold or purchase not more than 10% of its capital stock, notes
24or debentures, except as provided in sub. (2) or (3).
AB563,21,2
1(2) Division approval. A universal bank may hold or purchase more than 10%
2of its capital stock, notes or debentures, if approved by the division.
AB563,21,14 3(3) Additional authority. A universal bank may hold or purchase more than
410% of its capital stock, notes or debentures if the purchase is necessary to prevent
5loss upon a debt previously contracted in good faith. Stock, notes or debentures held
6or purchased under this subsection may not be held by the universal bank for more
7than 6 months if the stock, notes or debentures can be sold for the amount of the claim
8of the universal bank against the holder of the debt previously contracted. The
9universal bank shall either sell the stock, notes or debentures within 12 months of
10acquisition under this subsection or shall cancel the stock, notes or debentures.
11Cancellation of the stock, notes or debentures reduces the amount of the universal
12bank's capital stock, notes or debentures. If the reduction reduces the universal
13bank's capital below the minimum level required by the division, the universal bank
14shall increase its capital to the amount required by the division.
AB563,21,20 15(4) Loans secured by capital, surplus or deposits. A universal bank may not
16loan any part of its capital, surplus or deposits on its own capital stock, notes or
17debentures as collateral security, except that a universal bank may make a loan
18secured by its own capital stock, notes or debentures to the same extent that the
19universal bank may make a loan secured by the capital stock, notes and debentures
20of a holding company for the universal bank.
AB563,21,25 21222.0409 Stock in bank-owned banks. With the approval of the division,
22a universal bank may acquire and hold stock in one or more banks chartered under
23s. 221.1202 or national banks chartered under 12 USC 27 (b) or in one or more
24holding companies wholly owning such a bank. Aggregate investments under this
25section may not exceed 10% of the universal bank's capital.
AB563,22,5
1222.0411 General deposit powers. (1) In general. A universal bank may
2set eligibility requirements for, and establish the types and terms of, deposits that
3the universal bank solicits and accepts. The terms set under this subsection may
4include minimum and maximum amounts that the universal bank may accept and
5the frequency and computation method of paying interest.
AB563,22,8 6(2) Pledge of security for deposits. Subject to the limitations of s. 221.0324
7that are applicable to banks, a universal bank may pledge its assets as security for
8deposits.
AB563,22,11 9(3) Securitization of assets. With the approval of the division, a universal
10bank may securitize its assets for sale to the public. The division may establish
11procedures governing the exercise of authority granted under this subsection.
AB563,22,25 12(4) Safe deposit powers. A universal bank may take and receive, from any
13individual or corporation for safekeeping and storage, gold and silver plate, jewelry,
14money, stocks, securities, and other valuables or personal property; and rent out the
15use of safes or other receptacles upon its premises upon such compensation as may
16be agreed upon. A universal bank has a lien for its charges on any property taken
17or received by it for safekeeping. If the lien is not paid within 2 years from the date
18the lien accrues, or if property is not called for by the person depositing the property,
19or by his or her representative or assignee, within 2 years from the date the lien
20accrues, the universal bank may sell the property at public auction. A universal bank
21shall provide the same notice for a sale under this subsection that is required by law
22for sales of personal property on execution. After retaining from the proceeds of the
23sale all of the liens and charges due the bank and the reasonable expenses of the sale,
24the universal bank shall pay the balance to the person depositing the property, or to
25his or her representative or assignee.
AB563,23,5
1222.0413 Other service and incidental activity powers. (1) Necessary
2or convenient powers.
Unless otherwise prohibited or limited by this chapter, a
3universal bank may exercise all powers necessary or convenient to effect the
4purposes for which the universal bank is organized or to further the businesses in
5which the universal bank is lawfully engaged.
AB563,23,15 6(2) Reasonably related powers. (a) Subject to any applicable state or federal
7regulatory or licensing requirements, a universal bank may engage, directly or
8indirectly through a subsidiary, in activities reasonably related or incident to the
9purposes of the universal bank. Activities reasonably related or incident to the
10purposes of the universal bank are those activities that are part of the business of
11financial institutions, or closely related to the business of financial institutions, or
12convenient and useful to the business of financial institutions, or reasonably related
13or incident to the operation of financial institutions or are financial in nature.
14Activities that are reasonably related or incident to the purposes of a universal bank
15include the following:
AB563,23,1616 1. Business and professional services.
AB563,23,1717 2. Data processing.
AB563,23,1818 3. Courier and messenger services.
AB563,23,1919 4. Credit-related activities.
AB563,23,2020 5. Consumer services.
AB563,23,2121 6. Real estate-related services, including real estate brokerage services.
AB563,23,2222 7. Insurance and related services, other than insurance underwriting.
AB563,23,2323 8. Securities brokerage.
AB563,23,2424 9. Investment advice.
AB563,23,2525 10. Securities and bond underwriting.
AB563,24,1
111. Mutual fund activities.
AB563,24,22 12. Financial consulting.
AB563,24,33 13. Tax planning and preparation.
AB563,24,44 14. Community development and charitable activities.
AB563,24,55 15. Debt cancellation contracts.
AB563,24,76 16. Any activities reasonably related or incident to activities under subds. 1.
7to 15.
AB563,24,158 (b) An activity that is authorized by statute or regulation for financial
9institutions to engage in as of the effective date of this paragraph .... [revisor inserts
10date], is an activity that is reasonably related to or incident to the purposes of a
11universal bank. An activity permitted under the Bank Holding Company Act is an
12activity that is reasonably related to or incident to the purposes of a universal bank.
13The list of activities reasonably related or incident to the purposes of a universal
14bank may be expanded by the division. Any additional activity approved by the
15division shall be authorized for all universal banks.
AB563,24,18 16(3) Notice requirement. A universal bank shall give 60 days' prior written
17notice to the division of the universal bank's intention to engage in an activity under
18this section.
AB563,24,25 19(4) Standards for denial. The division may deny the authority of a universal
20bank to engage in an activity under this section, other than those activities described
21in sub. (2) (a) 1. to 16., if the division determines that the activity is not an activity
22reasonably related or incident to the purposes of a universal bank, that the financial
23institution is not well-capitalized or adequately capitalized, that the financial
24institution is the subject of an enforcement action or that the financial institution
25does not have satisfactory management expertise for the proposed activity.
AB563,25,4
1(5) Insurance intermediation. A universal bank, or an officer or salaried
2employe of a universal bank, may obtain a license as an insurance intermediary, if
3otherwise qualified. A universal bank may not, directly or indirectly through a
4subsidiary, engage in the business of underwriting insurance.
AB563,25,6 5(6) Other activities approved by the division. A universal bank may engage
6in any other activity that is approved by rule of the division.
AB563,25,10 7(7) Activities provided through a subsidiary. A universal bank may engage
8in activities under this section, directly or indirectly through a subsidiary, unless the
9division determines that an activity must be conducted through a subsidiary with
10appropriate safeguards to limit the risk exposure of the universal bank.
AB563,25,16 11(8) Limitations on investments through subsidiaries. The amount of the
12investment in any one subsidiary that engages in an activity under this section may
13not exceed 20% of capital or, if approved by the division, a higher percentage
14authorized by the division. The aggregate investment in all subsidiaries that engage
15in an activity under this subsection may not exceed 50% of capital or, if approved by
16the division, a higher percentage authorized by the division.
AB563,25,19 17(9) Ownership of subsidiaries. A subsidiary that engages in an activity under
18this section may be owned jointly, with one or more other financial institutions,
19individuals or entities.
AB563,25,21 20222.0415 Trust powers. Subject to rules of the division, a universal bank may
21exercise trust powers in accordance with s. 221.0316.
AB563, s. 3 22Section 3. Nonstatutory provisions.
AB563,26,423 (1) Using the procedure under section 227.24 of the statutes, the division of
24banking shall promulgate rules required under chapter 222 of the statutes, as
25created by this act, for the period before permanent rules become effective, but not

1to exceed the period authorized under section 227.24 (1) (c) and (2) of the statutes.
2Notwithstanding section 227.24 (1) (a) and (2) (b) of the statutes, the division of
3banking need not provide evidence of the necessity of preservation of the public
4peace, health, safety or welfare in promulgating rules under this subsection.
AB563, s. 4 5Section 4. Effective dates. This act takes effect on the day after publication,
6except as follows:
AB563,26,87 (1) The treatment of section 220.04 (9) (a) 2. and chapter 222 of the statutes
8takes effect on the first day of the 3rd month beginning after publication.
AB563,26,99 (End)
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