MDK:wlj:ch
2005 - 2006 LEGISLATURE
January 19, 2006 - Introduced by Law Revision Committee. Referred to
Committee on Housing and Financial Institutions.
SB511,1,5 1An Act to repeal 186.35; and to amend 34.07, 34.08 (2), 186.082 (1) (b), 186.082
2(2) (f), 186.086 (1) (b), 186.093 (1), 186.093 (2), 186.314 (4), 231.17, 445.125 (1)
3(b) 1. and 880.04 (2) (a) of the statutes; relating to: eliminating the Wisconsin
4credit union savings insurance corporation (suggested as remedial legislation
5by the Department of Financial Institutions).
Analysis by the Legislative Reference Bureau
Current law provides for the organization and operation of the Wisconsin
Credit Union Savings Insurance Corporation, which was organized for the purpose
of insuring the deposit accounts of a credit union. The deposit accounts of all
Wisconsin credit unions, however, are currently insured through the national credit
union share insurance fund. The Wisconsin Credit Union Savings Insurance
Corporation no longer exists. With certain limited exceptions, the bill removes the
provisions in current law relating to the Wisconsin Credit Union Savings Insurance
Corporation.
For further information, see the Notes provided by the Law Revision
Committee of the Joint Legislative Council.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:

Law revision committee prefatory note: This bill is a remedial legislation
proposal, requested by the department of financial institutions and introduced by the law
revision committee under s. 13.83 (1) (c) 4., stats. After careful consideration of the
various provisions of the bill, the law revision committee has determined that this bill
makes minor substantive changes in the statutes, and that these changes are desirable
as a matter of public policy.
SB511, s. 1 1Section 1 . 34.07 of the statutes is amended to read:
SB511,2,5 234.07 Security. A surety bond or other security may be required of or given
3by any public depository for any public deposits that exceed the amount of deposit
4insurance provided by an agency of the United States or by the Wisconsin credit
5union savings insurance corporation
and the coverage provided under s. 34.08 (2).
SB511, s. 2 6Section 2. 34.08 (2) of the statutes is amended to read:
SB511,2,167 34.08 (2) Payments under sub. (1) shall be made in the order in which
8satisfactory proofs of loss are received by the division of banking. The payment made
9to any public depositor for all losses of the public depositor in any individual public
10depository may not exceed $400,000 above the amount of deposit insurance provided
11by an agency of the United States or by the Wisconsin Credit Union Savings
12Insurance Corporation
at the public depository which that experienced the loss.
13Upon a satisfactory proof of loss, the division of banking shall direct the department
14of administration to draw its warrant payable from the appropriation under s. 20.144
15(1) (a) and the secretary of administration shall pay the warrant under s. 16.401 (4)
16in favor of the public depositor that has submitted the proof of loss.
SB511, s. 3 17Section 3. 186.082 (1) (b) of the statutes is amended to read:
SB511,2,1918 186.082 (1) (b) The Wisconsin credit union savings insurance corporation
19organized under s. 186.35, 2003 stats.
SB511, s. 4 20Section 4. 186.082 (2) (f) of the statutes is amended to read:
SB511,2,2221 186.082 (2) (f) A natural person who is or was a trustee of the Wisconsin credit
22union savings insurance corporation organized under s. 186.35, 2003 stats.
SB511, s. 5
1Section 5. 186.086 (1) (b) of the statutes is amended to read:
SB511,3,52 186.086 (1) (b) If the credit union was incorporated before June 13, 1987, by
3an amendment to the articles of incorporation which becomes effective on or after
4June 13, 1987
, as provided in s. 186.02 (4) (a) or under s. 186.35 (1), on or after June
513, 1987
2003 stats., or s. 186.02 (4) (a).
SB511, s. 6 6Section 6. 186.093 (1) of the statutes is amended to read:
SB511,3,97 186.093 (1) "Credit union" means a cooperative, nonprofit corporation
8incorporated under s. 186.02 and the Wisconsin credit union savings insurance
9corporation organized under s. 186.35, 2003 stats.
SB511, s. 7 10Section 7. 186.093 (2) of the statutes is amended to read:
SB511,3,1411 186.093 (2) "Director or officer" means a natural person who serves as a
12director or officer of a credit union, a member of a credit union's credit committee, or
13a natural person who was a trustee of the Wisconsin credit union savings insurance
14corporation organized under s. 186.35, 2003 stats.
SB511, s. 8 15Section 8. 186.314 (4) of the statutes is amended to read:
SB511,3,2116 186.314 (4) Upon ceasing to be a state credit union, the credit union shall no
17longer be subject to this chapter. The successor federal credit union shall be vested
18with all the assets and shall continue to be responsible for all of the obligations of the
19state credit union, including annual and special assessments levied under s. 186.35
20(5) (d) prior to the date a copy of the federal credit union charter is filed with the office
21of credit unions,
to the same extent as though the conversion had not taken place.
SB511, s. 9 22Section 9. 186.35 of the statutes is repealed.
SB511, s. 10 23Section 10. 231.17 of the statutes is amended to read:
SB511,4,11 24231.17 Investment of funds. The authority may invest any funds in bonds,
25notes, certificates of indebtedness, treasury bills, or other securities constituting

1direct obligations of, or obligations the principal and interest of which are
2guaranteed by, the United States; in those certificates of deposit or time deposits
3constituting direct obligations of any bank that are insured by the federal deposit
4insurance corporation; in certificates of deposit constituting direct obligations of any
5credit union that are insured by the Wisconsin credit union savings insurance
6corporation or
the national board, as defined in s. 186.01 (3m); in certificates of
7deposit constituting direct obligations of any savings and loan association or savings
8bank that are insured by the federal deposit insurance corporation; in short-term
9discount obligations of the federal national mortgage association; or in any of the
10investments provided under s. 66.0603 (1m) (a). Any such securities may be
11purchased at the offering or market price thereof at the time of such purchase.
SB511, s. 11 12Section 11. 445.125 (1) (b) 1. of the statutes is amended to read:
SB511,4,2113 445.125 (1) (b) 1. All trust funds under par. (a) shall be deposited with a bank
14or trust company within the state whose deposits are insured by the federal deposit
15insurance corporation, deposited in a savings and loan association or savings bank
16within the state whose deposits are insured by the federal deposit insurance
17corporation, or invested in a credit union within the state whose savings are insured
18by the national board, as defined in s. 186.01 (3m), or by the Wisconsin credit union
19savings insurance corporation
and shall be held in a separate account in the name
20of the depositor, in trust for the beneficiary until the trust fund is released under
21either of the conditions provided in par. (a) 1.
SB511, s. 12 22Section 12 . 880.04 (2) (a) of the statutes is amended to read:
SB511,5,623 880.04 (2) (a) Deposit in a savings account in a bank, the payment of whose
24accounts in cash immediately upon default of the bank are insured by the federal
25deposit insurance corporation; deposit in a savings account in a savings bank or a

1savings and loan association that has its deposits insured by the federal deposit
2insurance corporation; deposit in a savings account in a credit union having its
3deposits guaranteed by the Wisconsin credit union savings insurance corporation or
4by
the national board, as defined in s. 186.01 (3m); or invest in interest-bearing
5obligations of the United States. The fee for the clerk's services in depositing and
6disbursing the funds under this paragraph is prescribed in s. 814.61 (12) (a).
Note: Current law provides for the organization and operation of the Wisconsin
Credit Union Savings Insurance Corporation. The board was organized to insure the
deposit accounts of a credit union. The deposit accounts of all Wisconsin credit unions,
however, are currently insured through the national credit union share insurance fund.
The Wisconsin Credit Union Savings Insurance Corporation no longer exists. Sections
1 through 12 delete references to the Wisconsin Credit Union Savings Insurance
Corporation.
SB511,5,77 (End)
Loading...
Loading...