AB649: Bill Text

AB649,20,11 DFI-CU 61.02 (1) The maximum interest rate (finance charge) chargeable to the member-borrower by a seller on a conditional sales contract or similar instrument sold to in a credit sales transaction involving a credit union shall not exceed that permitted by s. 422.201, Stats. On such contracts In such transactions, neither the seller nor the credit union, in the aggregate, may directly benefit by interest charges, including "Time Price Differential", processing or service fees by an amount in excess of that permitted by s. 422.201, Stats.

AB649,20,16 (2) The interest rate or finance charges on conditional sales contracts and similar instruments in credit sales transactions and on all loans shall be calculated and applied on a simple interest basis on the unpaid balance. "Add-on" or "Discount" interest rates on purchased contracts interests in these transactions and on other credit union loans are not permitted.

AB649,45 Section 45. DFI-CU 61.03 (1), (2) and (3) of the administrative code are amended to read:

AB649,20,22 DFI-CU 61.03 (1) Subject to the discretion of the board of directors a portion of interest charges (finance charges) on purchased contracts interests in credit sales transactions may be shared by the credit union with the seller subject, however, to s. DFI-CU 61.02.

AB649,21,2 (2) When interest income (finance charges) is shared with the seller, on contracts interests in credit sales transactions purchased with recourse, the credit union shall establish as a liability on its records, a dealer reserve. This reserve shall be adjusted and negotiated with the seller at least annually on the basis of the interest which has been accrued or earned.

AB649,21,6 (3) On contracts interests in credit sales transactions purchased without recourse, the shared interest (finance charges) paid to the seller must be set up as a deferred charge and applied at least semi-annually to the income received on those contracts interests.

AB649,46 Section 46. DFI-CU 61.04 of the administrative code is amended to read:

AB649,21,12 DFI-CU 61.04 Dealer financial statements. Credit unions purchasing member contracts interests in credit sales transactions made with recourse must secure annual sworn financial statements from each participating seller until the purchased contracts interests have been paid. These sworn financial statements are to be retained by the credit union for review by departmental examiners.

AB649,47 Section 47. Chapter DFI-CU 65 of the administrative code is repealed.

AB649,48 Section 48. DFI-CU 66.02 (2) (note) of the administrative code is repealed.

AB649,49 Section 49. DFI-CU 67.01 of the administrative code is amended to read:

AB649,21,19 DFI-CU 67.01 Purpose. The director may accept an audit report of a certified public accountant who is not an employee of the credit union in lieu of all or a portion of the routine examination which is made by or caused to be made by the director as required by s. 186.235 (16), Stats.

AB649,50 Section 50. DFI-CU 67.02 (2) of the administrative code is amended to read:

AB649,21,22 DFI-CU 67.02 (2) "Accountant" means a certified public accountant who is not an employee of the credit union and is licensed in the state of Wisconsin.

AB649,51 Section 51. DFI-CU 67.03 (8) of the administrative code is amended to read:

AB649,21,25 DFI-CU 67.03 (8) The credit union is operating in accordance with regular generally accepted credit union accounting principles.

AB649,52 Section 52. DFI-CU 67.04 (3) and (3) (note) of the administrative code are repealed.

AB649,53 Section 53. DFI-CU 67.04 (4) of the administrative code is amended to read:

AB649,22,8 DFI-CU 67.04 (4) The credit union requesting the director to accept an audit by an accountant shall pay to the director the current hourly examination fee established by s. 186.235 (14) (c), Stats., for the review and analysis of the audit report, and management report and the special report on the forms supplied by the director.

AB649,54 Section 54. DFI-CU 67.05 (1) of the administrative code is amended to read:

AB649,22,12 DFI-CU 67.05 (1) The director will analyze and review or cause to have analyzed or reviewed the reports and worksheets required by s. DFI-CU 67.04 (2) and (3) and determine if they satisfy s. DFI-CU 67.03.

AB649,55 Section 55. DFI-CU 68.02 (note) of the administrative code is repealed.

AB649,56 Section 56. DFI-CU 68.03 (2) of the administrative code is amended to read:

AB649,22,17 DFI-CU 68.03 (2) "Authorized depository financial institution" means any bank insured by the federal deposit insurance corporation or savings and loan association insured by the federal savings and loan deposit insurance corporation.

AB649,57 Section 57. DFI-CU 68.06 (2) of the administrative code is amended to read:

AB649,22,25 DFI-CU 68.06 (2) Authorized depository financial institutions. A credit union may invest in deposit accounts of any authorized depository financial institution, provided the aggregate investment per institution shall not exceed the greater of the deposit insurance limit under federal deposit insurance corporation or federal savings and loan insurance corporation or 1/2 the unimpaired balance of the credit union's regular reserve unless the director of credit unions approves investment by the credit union exceeding this amount.

AB649,58 Section 58. Chapter DFI-CU 70 of the administrative code is repealed.

AB649,59 Section 59. DFI-CU 72.12 and 72.13 of the administrative code are repealed.

AB649,60 Section 60. Chapter DFI-CU 74 of the administrative code is repealed.

AB649,61 Section 61. DFI-SL 6.01 of the administrative code is amended to read:

AB649,23,12 DFI-SL 6.01 Destruction of records. Except where a longer retention period is required by another state or federal agency having jurisdiction over the association, the division authorizes the destruction of records at the end of the applicable minimum retention period determined under laws, rules, or regulations, an association may destroy its records subject to the considerations set forth in s. DFI-SL 6.03. In the destruction of records, the association shall take reasonable precautions should be taken to assure the confidentiality of members' accounts information in the records.

AB649,62 Section 62. DFI-SL 6.03 of the administrative code is amended to read:

AB649,23,21 DFI-SL 6.03 Records retention requirements. Each association shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and the other applicable state or federal laws, rules or , and regulations of state or federal agencies. Each association shall retain its records for the minimum period specified in the technical publication of the Financial Managers Society, Inc. of Chicago, Illinois, titled "Records Retention Guidelines" and dated July 1986. The record retention system utilized must be able to accurately produce such records.

AB649,63 Section 63. DFI-SB 6.01 of the administrative code is amended to read:

AB649,24,5 DFI-SB 6.01 Retention of records. Each savings bank shall retain its records in a manner consistent with prudent business practices and in accordance with this chapter and the other applicable state or federal laws, rules of state agencies, and regulations of federal agencies. Each savings bank shall retain its records for the minimum period specified in the technical publication of the Financial Managers Society, Inc. of Chicago, Illinois, titled "Records Retention Guidelines" and dated 1992. The record retention system utilized must be able to accurately produce such records.

AB649,64 Section 64. DFI-SB 6.01 (second note) of the administrative code is repealed.

AB649,65 Section 65. DFI-SB 6.03 of the administrative code is amended to read:

AB649,24,14 DFI-SB 6.03 Destruction of records. Except where a longer retention period is required by another state or federal agency having jurisdiction over the savings bank laws, rules, or regulations, a savings bank may destroy its records at the end of the applicable minimum retention period determined under subject to the considerations set forth in s. DFI-SB 6.01. In the destruction of records, the savings bank shall take reasonable precautions to assure the confidentiality of information in the records.

AB649,66 Section 66. DFI-SB 6.05 (1) of the administrative code is amended to read:

AB649,24,19 DFI-SB 6.05 (1) Microphotography standards. Microphotography may be used to commit a savings bank's records to microfilm. The film used shall be of a quality which permits it to be legible for at least the retention periods under s. DFI-SB 6.01 as long as the records are retained.

AB649,67 Section 67. Effective dates. This act takes effect on the day after publication, except as follows:

AB649,24,23 (1) The treatment of section 35.93 (2) (b) 4. and (c) 1. and (3) (e) (intro.) and 1. of the statutes takes effect on January 1, 2015.

AB649,24,24 (End)