AB2, s. 39 13Section 39. 186.41 (4) (intro.), (a) to (d) and (f) of the statutes are amended to
14read:
AB2,21,1615 186.41 (4) Limitations. (intro.) A regional An out-of-state credit union may
16not take any action under sub. (3) until all of the following conditions have been met:
AB2,21,2017 (a) The office of credit unions finds that the statutes of the regional state in
18which the regional out-of-state credit union has its principal office permit in-state
19Wisconsin credit unions to both acquire regional out-of-state credit union assets and
20merge with one or more regional out-of-state credit unions in the regional that state.
AB2,21,2321 (b) The office of credit unions has not disapproved the acquisition of in-state
22Wisconsin credit union assets or the merger with the in-state Wisconsin credit union
23under sub. (5).
AB2,22,724 (c) The office of credit unions gives a class 3 notice, under ch. 985, in the official
25state newspaper, of the application to take an action under sub. (3) and of the

1opportunity for a hearing and, if at least 25 residents of this state petition for a
2hearing within 30 days of the final notice or if the office of credit unions on its own
3motion calls for a hearing within 30 days of the final notice, the office of credit unions
4holds a public hearing on the application, except that a hearing is not required if the
5office of credit unions finds that an emergency exists and that the proposed action
6under sub. (3) is necessary and appropriate to prevent the probable failure of an
7in-state
a Wisconsin credit union that is closed or in danger of closing.
AB2,22,118 (d) The office of credit unions is provided a copy of any original application
9seeking approval by a federal agency of the acquisition of in-state Wisconsin credit
10union assets or of the merger with an in-state a Wisconsin credit union and of any
11supplemental material or amendments filed with the application.
AB2,22,1412 (f) With regard to an acquisition of assets of an in-state a Wisconsin credit
13union that is chartered on or after May 9, 1986, the in-state Wisconsin credit union
14has been in existence for at least 5 years before the date of acquisition.
AB2, s. 40 15Section 40. 186.41 (5) (a), (b), (c) and (cr) of the statutes are amended to read:
AB2,22,1916 186.41 (5) (a) Considering the financial and managerial resources and future
17prospects of the applicant and of the in-state Wisconsin credit union concerned, the
18action would be contrary to the best interests of the members of the in-state
19Wisconsin credit union.
AB2,22,2220 (b) The action would be detrimental to the safety and soundness of the
21applicant or of the in-state Wisconsin credit union concerned, or to a subsidiary or
22affiliate of the applicant or of the in-state Wisconsin credit union.
AB2,23,223 (c) Because the applicant, its executive officers, or directors have not
24established a record of sound performance, efficient management, financial
25responsibility, and integrity, the action would be contrary to the best interests of the

1creditors, the members or, the other customers of the applicant or of the in-state , the
2Wisconsin
credit union, or contrary to the best interests of the public.
AB2,23,63 (cr) The applicant has failed to propose to provide adequate and appropriate
4services of the type contemplated by the community reinvestment act of 1977 in the
5community in which the in-state Wisconsin credit union which the applicant
6proposes to acquire or merge with is located.
AB2, s. 41 7Section 41. 186.41 (6) (a) of the statutes is renumbered 186.41 (6).
AB2, s. 42 8Section 42. 186.41 (6) (b) of the statutes is repealed.
AB2, s. 43 9Section 43. 186.41 (8) of the statutes is repealed.
AB2, s. 44 10Section 44. 186.45 of the statutes is created to read:
AB2,23,12 11186.45 Non-Wisconsin credit union, Wisconsin offices. (1) Definitions.
12In this section:
AB2,23,1413 (a) "Non-Wisconsin credit union" means a credit union organized under the
14laws of and with its principal office located in a state other than this state.
AB2,23,1515 (b) "Wisconsin credit union" has the meaning given in s. 186.41 (1) (bm).
AB2,23,20 16(2) Approval. A non-Wisconsin credit union may open an office and conduct
17business as a credit union in this state if the office of credit unions finds that
18Wisconsin credit unions are allowed to do business in the other state under
19conditions similar to those contained in this section and that all of the following apply
20to the non-Wisconsin credit union:
AB2,23,2221 (a) It is a credit union organized under laws similar to the credit union laws of
22this state.
AB2,23,2323 (b) It is financially solvent based upon national board ratings.
AB2,23,2424 (c) It has member savings insured with federal share insurance.
AB2,24,2
1(d) It is effectively examined and supervised by the credit union authorities of
2the state in which it is organized.
AB2,24,53 (e) It has received approval to open an office and conduct business as a credit
4union in this state from the credit union authorities of the state in which it is
5organized.
AB2,24,76 (f) It has a need to place an office in this state to adequately serve its members
7in this state.
AB2,24,98 (g) It meets all other relevant standards or qualifications established by the
9office of credit unions.
AB2,24,11 10(3) Requirements. A non-Wisconsin credit that opens an office and conducts
11business as a credit union in this state shall do all of the following:
AB2,24,1312 (a) Grant loans at rates not in excess of the rates permitted for Wisconsin credit
13unions.
AB2,24,1414 (b) Comply with this state's laws.
AB2,24,1515 (c) Designate and maintain an agent for the service of process in this state.
AB2,24,19 16(4) Records. As a condition of a non-Wisconsin credit union doing business in
17this state under this section, the office of credit unions may require copies of
18examination reports and related correspondence regarding the non-Wisconsin
19credit union.
AB2, s. 45 20Section 45. 186.80 of the statutes is created to read:
AB2,24,22 21186.80 False statements. (1) No officer, director, or employee of a credit
22union may do any of the following:
AB2,24,2423 (a) Willfully and knowingly subscribe to or make, or cause to be made, a false
24statement or entry in the books of the credit union.
AB2,25,2
1(b) Knowingly subscribe to or exhibit false information with the intent to
2deceive any person authorized to examine the affairs of the credit union.
AB2,25,43 (c) Knowingly make, state, or publish any false report or statement of the credit
4union.
AB2,25,5 5(2) Any person who violates sub. (1) is guilty of a Class F felony.
AB2, s. 46 6Section 46. 220.04 (9) (a) 2. of the statutes is amended to read:
AB2,25,97 220.04 (9) (a) 2. "Regulated entity" means a bank, universal bank, trust
8company bank, and any other entity which that is described in s. 220.02 (2) or
9221.0526 as under the supervision and control of the division.
AB2, s. 47 10Section 47. 220.14 (5) of the statutes is created to read:
AB2,25,1211 220.14 (5) Contain a statement of the total number of orders issued by the
12division during the year under s. 222.0203 (2).
AB2, s. 48 13Section 48. Chapter 222 of the statutes is created to read:
AB2,25,1514 CHAPTER 222
15 UNIVERSAL BANKS
AB2,25,1716 Subchapter I
17 General Provisions
AB2,25,19 18222.0101 Title. This chapter may be cited as the "Wisconsin universal bank
19law."
AB2,25,20 20222.0102 Definitions. In this chapter:
AB2,25,23 21(1) "Capital" of a universal bank means the sum of the following, less the
22amount of intangible assets that is not considered to be qualifying capital by a deposit
23insurance corporation or the division:
AB2,26,324 (a) For a universal bank organized as a stock organization, the universal bank's
25capital stock, preferred stock, undivided profits, surplus, outstanding notes and

1debentures approved by the division, other forms of capital designated as capital by
2the division, and other forms of capital considered to be qualifying capital of the
3universal bank by a deposit insurance corporation.
AB2,26,84 (b) For a universal bank organized as a mutual organization, the universal
5bank's net worth, undivided profits, surplus, outstanding notes and debentures
6approved by the division, other forms of capital designated as capital by the division,
7and other forms of capital considered to be qualifying capital by a deposit insurance
8corporation.
AB2,26,12 9(2) "Deposit insurance corporation" means the Federal Deposit Insurance
10Corporation or other instrumentality of, or corporation chartered by, the United
11States that insures deposits of financial institutions and that is supported by the full
12faith and credit of the U.S. government as stated in a congressional resolution.
AB2,26,13 13(3) "Division" means the division of banking.
AB2,26,16 14(4) "Financial institution" means a savings bank organized under ch. 214,
15savings and loan association organized under ch. 215, or bank chartered under ch.
16221.
AB2,26,18 17(5) "Universal bank" means a financial institution that has been issued a
18certificate of authority under s. 222.0205.
AB2,26,19 19(6) "Well-capitalized" has the meaning given in 12 USC 1831o (b) (1) (A).
AB2,26,24 20222.0103 Applicability. (1) Savings banks. A universal bank that is a savings
21bank organized under ch. 214 remains subject to all of the requirements, duties, and
22liabilities, and may exercise all of the powers, of a savings bank, except that, in the
23event of a conflict between this chapter and those requirements, duties, liabilities,
24or powers, this chapter shall control.
AB2,27,5
1(2) Savings and loan associations. A universal bank that is a savings and loan
2association organized under ch. 215 remains subject to all of the requirements,
3duties, and liabilities, and may exercise all of the powers, of a savings and loan
4association, except that, in the event of a conflict between this chapter and those
5requirements, duties, liabilities, or powers, this chapter shall control.
AB2,27,9 6(3) Banks. A universal bank that is a bank chartered under ch. 221 remains
7subject to all of the requirements, duties, and liabilities, and may exercise all of the
8powers, of a bank, except that, in the event of a conflict between this chapter and
9those requirements, duties, liabilities, or powers, this chapter shall control.
AB2,27,12 10222.0105 Fees. The division may establish such fees as it determines are
11appropriate for documents filed with the division under this chapter and for services
12provided by the division under this chapter.
AB2,27,14 13222.0107 Administration. (1) Powers of division. The division shall
14administer this chapter for all universal banks.
AB2,27,19 15(2) Rule-making authority. The division may promulgate rules to administer
16and carry out this chapter. The division may establish additional limits or
17requirements on universal banks, if the division determines that the limits or
18requirements are necessary for the protection of depositors, members, investors, or
19the public.
AB2,27,2120 SUBCHAPTER II
21 Certification
AB2,28,2 22222.0201 Procedure. (1) Application. A financial institution may apply to
23become certified as a universal bank by filing a written application with the division.
24The application shall include all information required by the division. The

1application shall be on the forms and in accordance with the procedures prescribed
2by the division.
AB2,28,8 3(2) Review by division. An application submitted by a financial institution
4under sub. (1) shall either be approved or disapproved by the division, in writing,
5within 60 days after the date on which application is filed with the division. The
6division and the financial institution may mutually agree to extend the application
7period for an additional period of 60 days. The division shall approve an application
8if all of the applicable requirements under s. 222.0203 (1) are met.
AB2,28,11 9222.0203 Eligibility. (1) Requirements. The division may approve an
10application from a financial institution for certification as a universal bank only if
11all of the following requirements are met:
AB2,28,1312 (a) The financial institution has been in existence and continuous operation for
13a minimum of 3 years before the date of the application.
AB2,28,1414 (b) The financial institution is well-capitalized.
AB2,28,1915 (c) The financial institution does not exhibit a combination of financial,
16managerial, operational, and compliance weaknesses that is moderately severe or
17unsatisfactory, as determined by the division based upon the division's assessment
18of the financial institution's capital adequacy, asset quality, management capability,
19earnings quantity and quality, adequacy of liquidity, and sensitivity to market risk.
AB2,28,2320 (d) During the 12-month period before the date of the application, the financial
21institution has not been the subject of an enforcement action, and there is no
22enforcement action pending against the financial institution by any state or federal
23financial institution regulatory agency, including the division.
AB2,29,324(e) The most current evaluation prepared under 12 USC 2906 that the financial
25institution has received rates the financial institution as "outstanding" or

1"satisfactory" in helping to meet the credit needs of its entire community, including
2low-income and moderate-income neighborhoods, consistent with the safe and
3sound operation of the financial institution.
AB2,29,94 (f) If the financial institution has received from its federal functional regulator,
5as defined in 15 USC 6809 (2), a consumer compliance examination that contains
6information regarding the financial institution's compliance with 15 USC 6801 to
76803 and any applicable regulations prescribed under 15 USC 6804, the most recent
8such examination indicates, in the opinion of the division, that the financial
9institution is in substantial compliance with those statutes or regulations.
AB2,29,15 10(2) Failure to maintain eligibility; limitation of authority and
11decertification.
For any period during which a universal bank fails to meet the
12requirements under sub. (1), the division shall limit or restrict the exercise of the
13powers of the universal bank under this chapter. In addition to or in lieu of limiting
14or restricting the universal bank's authority under this subsection, the division may
15by order revoke the universal bank's certificate of authority issued under s. 222.0205.
AB2,29,19 16222.0205 Certificate of authority. Upon approval of an application for
17certification as a universal bank, the division shall issue to the applicant a certificate
18of authority stating that the financial institution is certified as a universal bank
19under this chapter.
AB2,30,3 20222.0207 Voluntary termination of certification. A financial institution
21that is certified as a universal bank under this chapter may elect to terminate its
22certification by giving 60 days' prior written notice of the termination to the division.
23A termination under this section is effective only with the written approval of the
24division. A financial institution shall, as a precondition to termination under this
25section, terminate its exercise of all powers granted under this chapter before the

1termination of the certification. The division's written approval of a financial
2institution's termination under this section is void if the financial institution fails to
3satisfy the precondition to termination under this section.
AB2,30,54 SUBCHAPTER III
5 ORGANIZATION
AB2,30,10 6222.0301 Articles of incorporation and bylaws. A universal bank shall
7continue to operate under its articles of incorporation and bylaws as in effect prior
8to certification as a universal bank or as such articles or bylaws may be subsequently
9amended in accordance with the provisions of the chapter under which the universal
10bank was organized or chartered.
AB2,30,17 11222.0303 Name. (1) Use of "bank." Notwithstanding ss. 214.035, 215.40 (1)
12(c), and 215.60 (1) (c) and subject to subs. (2) and (3) (b), a universal bank may use
13the word "bank" in its name, without having to include the word "savings."
14Notwithstanding ss. 215.40 (1) (a) and 215.60 (1) (a) and subject to subs. (2) and (3)
15(b), a universal bank that is organized under ch. 215 and that uses the word "bank"
16in its name in accordance with this section need not include the words "savings and
17loan association" or "savings association" in its name.
AB2,30,20 18(2) Distinguishability. Except as provided in sub. (3), the name of the
19universal bank shall be distinguishable upon the records of the division from all of
20the following names:
AB2,30,2221 (a) The name of every other financial institution organized under the laws of
22this state.
AB2,30,2423 (b) The name of every national bank or foreign bank authorized to transact
24business in this state.
AB2,31,4
1(3) Exceptions. (a) A universal bank may apply to the division for authority
2to use a name that does not meet the requirements under sub. (2). The division may
3authorize the use of the name if any of the conditions under s. 221.0403 (2) (a) or (b)
4is met.
AB2,31,75 (b) A universal bank may use a name that is used in this state by another
6financial institution or by an institution authorized to transact business in this state,
7if the universal bank has done any of the following:
AB2,31,88 1. Merged with the other institution.
AB2,31,99 2. Been formed by reorganization of the other institution.
AB2,31,1110 3. Acquired all or substantially all of the assets, including the name, of the
11other institution.
AB2,31,14 12222.0305 Capital and assets. (1) Capital requirements. Notwithstanding
13subch. VI of ch. 214 and ss. 215.24 and 221.0205, the division shall determine the
14minimum capital requirements of universal banks.
AB2,31,16 15(2) Certain asset requirements. Section 214.045 does not apply to universal
16banks.
AB2,31,23 17222.0307 Acquisitions, mergers, and asset purchases. (1) In general.
18A universal bank may, with the approval of the division, purchase the assets of,
19merge with, acquire, or be acquired by any other financial institution, universal
20bank, national bank, or federally chartered savings bank or savings and loan
21association, or by a holding company of any of these entities. Notwithstanding subch.
22III of ch. 214 and ss. 214.09 and 215.36, the approval of the division of savings
23institutions is not required.
AB2,32,2 24(2) Applications for approval. An application for approval under sub. (1) shall
25be submitted on a form prescribed by the division and accompanied by a fee

1determined by the division. In processing and acting on applications under this
2section the division shall apply the following standards:
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