SB274: Bill Text

SB274, s. 25 Section 25. 186.235 (7m) of the statutes is created to read:

SB274,11,15 186.235 (7m) Return of examination reports. Examination reports possessed by a credit union are confidential, remain the property of the office of credit unions and shall be returned to the office of credit unions immediately upon request.

SB274, s. 26 Section 26. 186.235 (16) (a) of the statutes is renumbered 186.235 (16).

SB274, s. 27 Section 27. 186.235 (16) (b) of the statutes is repealed.

SB274, s. 28 Section 28. 186.36 of the statutes is amended to read:

SB274,11,22 186.36 Sale of insurance in credit unions. Any officer or employe of a credit union, when acting as an agent for the sale of insurance on behalf of the credit union, shall pay all commissions received from the sale of credit life insurance or credit accident and sickness insurance to the credit union.

SB274, s. 29 Section 29. 186.41 (title) of the statutes is amended to read:

SB274,11,25 186.41 (title) Interstate acquisition acquisitions and merger mergers of credit unions.

SB274, s. 30 Section 30. 186.41 (1) (a) of the statutes is renumbered 186.41 (1) (bm) and amended to read:

SB274,12,4 186.41 (1) (bm) "In-state Wisconsin credit union" means a credit union having its principal office located in this state.

SB274, s. 31 Section 31. 186.41 (1) (c) of the statutes is renumbered 186.41 (1) (am) and amended to read:

SB274,12,9 186.41 (1) (am) "Regional Out-of-state credit union" means a state or federal credit union that has its, the principal office of which is located in one of the regional states a state other than this state.

SB274, s. 32 Section 32. 186.41 (1) (d) of the statutes is repealed.

SB274, s. 33 Section 33. 186.41 (2) and (3) of the statutes are amended to read:

SB274,12,13 186.41 (2) In-state Wisconsin credit union. (a) An in-state A Wisconsin credit union may do any of the following:

SB274,12,15 1. Acquire an interest in, or some or all of the assets and liabilities of, one or more regional out-of-state credit unions.

SB274,12,16 2. Merge with one or more regional out-of-state credit unions.

SB274,12,20 (b) An in-state A Wisconsin credit union proposing any action under par. (a) shall provide the office of credit unions a copy of any original application seeking approval by a federal agency or by an agency of the regional another state and of any supplemental material or amendments filed in connection with any application.

SB274,12,22 (3) Regional Out-of-state credit unions. Except as provided in sub. (4), a regional an out-of-state credit union may do any of the following:

SB274,12,24 (a) Acquire an interest in, or some or all of the assets of, one or more in-state Wisconsin credit unions.

SB274,12,25 (b) Merge with one or more in-state Wisconsin credit unions.

SB274, s. 34 Section 34. 186.41 (4) (intro.), (a) to (d) and (f) of the statutes are amended to read:

SB274,13,4 186.41 (4) Limitations. (intro.) A regional An out-of-state credit union may not take any action under sub. (3) until all of the following conditions have been met:

SB274,13,8 (a) The office of credit unions finds that the statutes of the regional state in which the regional out-of-state credit union has its principal office permit in-state Wisconsin credit unions to both acquire regional out-of-state credit union assets and merge with one or more regional out-of-state credit unions in the regional that state.

SB274,13,11 (b) The office of credit unions has not disapproved the acquisition of in-state Wisconsin credit union assets or the merger with the in-state Wisconsin credit union under sub. (5).

SB274,13,20 (c) The office of credit unions gives a class 3 notice, under ch. 985, in the official state newspaper, of the application to take an action under sub. (3) and of the opportunity for a hearing and, if at least 25 residents of this state petition for a hearing within 30 days of the final notice or if the office of credit unions on its own motion calls for a hearing within 30 days of the final notice, the office of credit unions holds a public hearing on the application, except that a hearing is not required if the office of credit unions finds that an emergency exists and that the proposed action under sub. (3) is necessary and appropriate to prevent the probable failure of an in-state a Wisconsin credit union that is closed or in danger of closing.

SB274,13,24 (d) The office of credit unions is provided a copy of any original application seeking approval by a federal agency of the acquisition of in-state Wisconsin credit union assets or of the merger with an in-state a Wisconsin credit union and of any supplemental material or amendments filed with the application.

SB274,14,3 (f) With regard to an acquisition of assets of an in-state a Wisconsin credit union that is chartered on or after May 9, 1986, the in-state Wisconsin credit union has been in existence for at least 5 years before the date of acquisition.

SB274, s. 35 Section 35. 186.41 (5) (a), (b), (c) and (cr) of the statutes are amended to read:

SB274,14,8 186.41 (5) (a) Considering the financial and managerial resources and future prospects of the applicant and of the in-state Wisconsin credit union concerned, the action would be contrary to the best interests of the members of the in-state Wisconsin credit union.

SB274,14,11 (b) The action would be detrimental to the safety and soundness of the applicant or of the in-state Wisconsin credit union concerned, or to a subsidiary or affiliate of the applicant or of the in-state Wisconsin credit union.

SB274,14,16 (c) Because the applicant, its executive officers or directors have not established a record of sound performance, efficient management, financial responsibility and integrity, the action would be contrary to the best interests of the creditors, members or other customers of the applicant or of the in-state Wisconsin credit union or contrary to the best interests of the public.

SB274,14,20 (cr) The applicant has failed to propose to provide adequate and appropriate services of the type contemplated by the community reinvestment act of 1977 in the community in which the in-state Wisconsin credit union which the applicant proposes to acquire or merge with is located.

SB274, s. 36 Section 36. 186.41 (6) (a) of the statutes is renumbered 186.41 (6).

SB274, s. 37 Section 37. 186.41 (6) (b) of the statutes is repealed.

SB274, s. 38 Section 38. 186.41 (8) of the statutes is repealed.

SB274, s. 39 Section 39. 186.45 of the statutes is created to read:

SB274,15,2 186.45 Non-Wisconsin credit union, Wisconsin offices. (1) Definitions. In this section:

SB274,15,4 (a) "Non-Wisconsin credit union" means a credit union organized under the laws of and with its principal office located in a state other than this state.

SB274,15,5 (b) "Wisconsin credit union" has the meaning given in s. 186.41 (1) (bm).

SB274,15,10 (2) Approval. A non-Wisconsin credit union may open an office and conduct business as a credit union in this state if the office of credit unions finds that Wisconsin credit unions are allowed to do business in the other state under conditions similar to those contained in this section and that all of the following apply to the non-Wisconsin credit union:

SB274,15,12 (a) It is a credit union organized under laws similar to the credit union laws of this state.

SB274,15,13 (b) It is financially solvent based upon national board ratings.

SB274,15,14 (c) It has member savings insured with federal share insurance.

SB274,15,16 (d) It is effectively examined and supervised by the credit union authorities of the state in which it is organized.

SB274,15,18 (e) It has received approval from the credit union authorities of the state in which it is organized.

SB274,15,20 (f) It has a need to place an office in this state to adequately serve its members in this state.

SB274,15,22 (g) It meets all other relevant standards or qualifications established by the office of credit unions.

SB274,15,24 (3) Requirements. A non-Wisconsin credit union shall agree to do all of the following:

SB274,16,2 (a) Grant loans at rates not in excess of the rates permitted for Wisconsin credit unions.

SB274,16,3 (b) Comply with this state's laws.

SB274,16,4 (c) Designate and maintain an agent for the service of process in this state.

SB274,16,8 (4) Records. As a condition of a non-Wisconsin credit union doing business in this state under this section, the office of credit unions may require copies of examination reports and related correspondence regarding the non-Wisconsin credit union.

SB274, s. 40 Section 40. 186.80 of the statutes is created to read:

SB274,16,13 186.80 False statements. A person who knowingly publishes false reports or makes false statements about a credit union may be fined not less than $1,000 nor more than $5,000 or imprisoned for not less than one year nor more than 15 years or both.

SB274,16,14 (End)