AB897,5,25 22(7) Limitation of authority. If a credit union fails to maintain a rating of 3 or
23better in the annual assessment performed by the office of credit unions under sub.
24(3), the office of credit unions may limit the credit union's exercise of powers under
25ss. 186.113 and 186.115.
AB897,6,4
1(8) Hearing. The office of credit unions may hold a public hearing on an
2application of a credit union that is listed under sub. (5) if the office of credit unions
3receives an objection to the application that is based on any of the factors used in
4making the assessment under sub. (3).
AB897,6,9 5(9) Administration. The office of credit unions, with the approval of the credit
6union review board, shall promulgate rules for the efficient administration of this
7section. The rules shall include the form and content of a community credit needs
8statement and the form and content of, and acceptable manner of posting, a
9community credit needs notice under sub. (1).
AB897, s. 2 10Section 2. 186.235 (7) (a) (intro.) of the statutes is amended to read:
AB897,6,1611 186.235 (7) (a) (intro.) Employees Except as provided in s. 186.117 (4) (a),
12employees
of the office of credit unions and members of the review board shall keep
13secret all the facts and information obtained in the course of examinations or
14contained in any report provided by a credit union other than any semiannual or
15quarterly financial report that is regularly filed with the office of credit unions. This
16requirement does not apply in any of the following situations:
AB897, s. 3 17Section 3. 186.314 (intro.) of the statutes is renumbered 186.314 (1m).
AB897, s. 4 18Section 4. 186.314 (1m) (title) of the statutes is created to read:
AB897,6,1919 186.314 (1m) (title) To federal credit union.
AB897, s. 5 20Section 5. 186.314 (2) of the statutes is created to read:
AB897,6,2221 186.314 (2) To mutual savings bank. (a) A credit union may convert to a mutual
22savings bank by complying with pars. (b) to (d).
AB897,7,1523 (b) The proposition for a conversion shall first be approved by a majority
24recommendation of the directors of the credit union. The directors shall, by a
25majority vote of the directors, set a date for a meeting of credit union members to vote

1on the conversion. Credit union members may also vote by written ballot to be filed
2on or before the meeting date. Written notice specifying the purpose and subject
3matter of the meeting and the date that is set for the meeting and for voting by
4submission of a written ballot shall be sent to each member eligible to vote at the
5member's address appearing on the records of the credit union. This notice shall be
6sent to each credit union member 3 times, once not more than 95 days nor less than
790 days before the date of the meeting to vote on the conversion, once not more than
865 days nor less than 60 days before the date of the meeting to vote on the conversion,
9and once not more than 35 days nor less than 30 days before the date of the meeting
10to vote on the conversion. The 3rd such notice shall be accompanied by a written
11ballot, shall clearly inform the member that the member may vote at the meeting or
12by submitting the written ballot, and shall state the time and place of the meeting
13in addition to the date of the meeting. Approval of the proposition for conversion
14shall be by affirmative vote, in person or in writing, of a majority of the credit union
15members voting at the meeting or by written ballot.
AB897,7,2416 (c) A credit union that proposes to convert to a mutual savings bank under this
17subsection shall file with the office of credit unions a notice of its intent to convert
18and, within 10 days after the member vote on the conversion under par. (b), a
19statement of the results of the member vote. If the credit union members vote to
20approve the proposition for conversion, the member vote shall be verified by the office
21of credit unions and, if the office of credit unions disapproves of the methods or
22procedures used in relation to that member vote, the member vote shall be taken
23again in the manner directed by the office of credit unions and consistent with the
24requirements under par. (b).
AB897,8,9
1(d) Upon approval by the credit union members of the proposition for
2conversion under par. (b), the credit union shall take all necessary action under ch.
3214 to complete the conversion to a mutual savings bank. Within 10 days after
4receipt from the division of banking of a certificate of incorporation as a mutual
5savings bank, the credit union shall file a copy of the certificate with the office of
6credit unions. The office of credit unions shall issue to a converting credit union a
7certificate of conversion to a mutual savings bank if the office determines that the
8conversion complies with this subsection and all requirements under ch. 214. The
9date specified in the certificate of conversion is the effective date of the conversion.
AB897,8,2010 (e) Upon conversion, the credit union shall cease to be a credit union, shall be
11a mutual savings bank, shall no longer be subject to this chapter, and shall be subject
12to ch. 214 and all other provisions of law governing mutual savings banks. Upon
13conversion, the legal existence of the mutual savings bank shall be a continuation
14of the credit union, and all property and every right, privilege, interest, and asset of
15the credit union immediately, without any conveyance, transfer, or further act of the
16mutual savings bank, vests in the mutual savings bank. The resulting mutual
17savings bank shall succeed to and be vested with all the rights, assets, obligations,
18and relations of the credit union, and all actions and other judicial proceedings to
19which the credit union is a party may be prosecuted and defended, to the same extent
20as though the conversion had not taken place.
AB897,8,2421 (f) 1. In this paragraph, "senior management official" means a chief executive
22officer, an assistant chief executive officer, a chief financial officer, and any other
23senior executive officer as defined by the appropriate federal banking agency as
24directed under 12 USC 1831i(f).
AB897,9,6
12. No director or senior management official of a credit union may receive any
2economic benefit in connection with a conversion of the credit union to a mutual
3savings bank except that a director or senior management official may receive
4director fees as well as compensation and other benefits paid to directors and senior
5management officials of the converted mutual savings bank in the ordinary course
6of business.
AB897, s. 6 7Section 6. 214.40 (3) of the statutes is amended to read:
AB897,9,118 214.40 (3) A stock financial institution seeking to convert to a savings bank
9under s. 214.66 (1m) shall, before declaring a dividend on its capital stock, transfer
10not less than 50% of its net profits of the preceding half year to its paid-in surplus
11until it has paid-in surplus equal to 20% of capital stock.
AB897, s. 7 12Section 7. 214.66 (intro.) of the statutes is renumbered 214.66 (1m) (intro.).
AB897, s. 8 13Section 8. 214.66 (1m) (title) of the statutes is created to read:
AB897,9,1414 214.66 (1m) (title) From savings and loan association or federal savings bank.
AB897, s. 9 15Section 9. 214.66 (2) of the statutes is created to read:
AB897,9,1716 214.66 (2) From credit union. A credit union under ch. 186 may become a
17mutual savings bank by doing all of the following:
AB897,9,2018 (a) Applying to the division for authority to organize as a mutual savings bank
19and satisfying all requirements under this chapter for organizing as a mutual
20savings bank.
AB897,9,2221 (b) Satisfying all requirements under s. 186.314 (2) for conversion to a mutual
22savings bank.
AB897,9,2423 (c) Recording the mutual savings bank's articles of incorporation in the county
24in which its home office is located.
AB897, s. 10 25Section 10 . Nonstatutory provisions.
AB897,10,7
1(1) Initial statements and rating notice. A credit union's initial community
2credit needs statement required under section 186.117 (1) and (2) of the statutes, as
3created by this act, shall be filed no later than March 1, 2009. A credit union shall
4make its first rating notice posting, as required under section 186.117 (1) of the
5statutes, as created by this act, no later than 30 days after the office of credit unions
6has issued its first rating of the credit union under section 186.117 (4) (a) of the
7statutes, as created by this act.
AB897,10,88 (2) Rule making.
AB897,10,129 (a) The office of credit unions shall submit in proposed form the rules required
10under section 186.117 (9) of the statutes, as created by this act, to the legislative
11council staff under section 227.15 (1) of the statutes no later than the first day of the
126th month beginning after the effective date of this paragraph.
AB897,10,2513 (b) Using the emergency rules procedure under section 227.24 of the statutes,
14the office of credit unions shall promulgate the rules required under section 186.117
15(9) of the statutes, as created by this act, for purposes of implementing this act, for
16the period before the effective date of the rules submitted under paragraph (a). The
17office of credit unions shall promulgate these emergency rules no later than the first
18day of the 6th month beginning after the effective date of this paragraph.
19Notwithstanding section 227.24 (1) (c) and (2) of the statutes, these emergency rules
20may remain in effect until July 1, 2010, or the date on which permanent rules take
21effect, whichever is sooner. Notwithstanding section 227.24 (1) (a) and (3) of the
22statutes, the office of credit unions is not required to provide evidence that
23promulgating a rule under this paragraph as an emergency rule is necessary for the
24preservation of the public peace, health, safety, or welfare and is not required to
25provide a finding of emergency for a rule promulgated under this paragraph.
AB897, s. 11
1Section 11. Initial applicability.
AB897,11,32 (1) The treatment of section 186.117 (3) of the statutes first applies with respect
3to credit unions that have filed community credit needs statements.
AB897,11,64 (2) The treatment of section 186.117 (5), (6), and (7) of the statutes first applies
5with respect to credit unions for which the office of credit unions has completed a
6written assessment report and rating.
AB897, s. 12 7Section 12. Effective dates. This act takes effect on the first day of the 6th
8month beginning after publication, except as follows:
AB897,11,119 (1) The treatment of sections 186.314 (intro.), (1m) (title), and (2), 214.40 (3),
10and 214.66 (intro.), (1m) (title), and (2) of the statutes and Section 10 (2) of this act
11takes effect on the day after publication.
AB897,11,1212 (End)
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