Savings and loan association lending areas
Current law specifies the authority of an S&L association to make mortgage
loans but also limits the lending area of an S&L association to a radius of 100 miles
of the S&L association's home office. In general, an S&L association may establish
branch offices within the lending area of its home office.
The bill eliminates the lending-area restriction on an S&L association and,
consequently, the limitation that a branch office must be located within the lending
area.
Residential mortgage loans and variable rate loans
Under current law, a residential mortgage loan generally is a loan secured by
a first lien real estate mortgage on a one-family to four-family dwelling that the
borrower uses as his or her principal residence. Current law imposes various
requirements related to residential mortgage loans, including the following:
1. Before a lender accepts an application or fee in connection with a residential
mortgage loan, the lender must deliver to the potential loan applicant a written
disclosure that contains certain information, including whether an application fee
is refundable and whether the interest rate and other terms of the agreement may
change before the closing date.
2. The lender must provide a written statement to an applicant of the reasons
for adverse action on an application. Delivery of a notice of adverse action in
compliance with federal law satisfies this requirement.
3. The lender must provide written notice to the borrower if the loan servicing
for the residential mortgage loan is sold. The notice must include the name, address,
and telephone number of the new loan servicer.
The bill repeals the requirements identified as 1. to 3. immediately above.
Under current law, a variable rate loan generally is a residential mortgage loan
the terms of which permit the interest rate to be increased or decreased. Current law
imposes various requirements related to variable rate loans, including a disclosure
requirement. Before making a variable rate loan, the lender must disclose specified

information to at least one of the borrowers, including that the loan contract contains
a variable interest rate provision; identification of the index used and its current
base; and rights of the borrower with respect to a change in the interest rate.
The bill repeals these disclosure requirements.
Promissory notes of certain public bodies
Under current law, a public body that has the authority to borrow money and
issue obligations to repay the money out of public funds or revenues and that has the
authority to levy a tax may issue promissory notes for any public purpose. Public
bodies covered by this provision include cities, villages, towns, counties, and school
districts. Each promissory note, with several exceptions, must be repaid within 10
years after the original date of the note. Under the bill, each promissory note must
be repaid within 20 years after the original date of the note.
Vacancy on board of directors
Current law allows the board of directors of a credit union to remove a director.
Within 60 days after the date of removal of a director, the board of directors must
appoint a director to fill the vacancy. The bill requires a credit union's board of
directors to fill any vacancy, including a vacancy resulting from removal of a director,
within 90 days.
Public deposit losses
Under current law, the Investment Board (SWIB) and the governing bodies of
counties, municipalities, and certain other local governmental units (collectively,
public depositors) must designate one or more financial institutions in this state for
deposit of all public moneys received by the public depositor. DFI administers a
claims process that repays public depositors for losses that exceed applicable deposit
insurance resulting from a failed or failing financial institution's failure to repay the
deposit of public moneys. The maximum payment that DFI can make to a public
depositor for losses from a single financial institution is $400,000. These loss
payment provisions also apply to local government deposits in the local government
pooled-investment fund managed by SWIB.
The bill increases, from $400,000 to $1,000,000, the maximum payment that
DFI can make to a public depositor for losses from a single financial institution that
exceed deposit insurance.
Parity with federally chartered credit unions
Current law includes certain provisions relating to parity between federally
chartered and state-chartered credit unions. Under one of these provisions, OCU
must establish, by rule, a list of activities and powers incidental to the business of
a credit union that are authorized for federally chartered credit unions as of April 18,
2014. A credit union chartered under Wisconsin law (Wisconsin-chartered credit
union) may engage in any activity or exercise any power listed by OCU in addition
to exercising any other power authorized for the credit union. After April 18, 2014,
if any additional activity or power incidental to the business of a credit union
becomes authorized for federally chartered credit unions, OCU must make a
determination, within 30 days after the activity or power becomes authorized, as to
whether the activity or power should also be authorized for Wisconsin-chartered

credit unions. If OCU determines that the activity or power authorized for federally
chartered credit unions should also be authorized for Wisconsin-chartered credit
unions, OCU must, by rule, add the activity or power to the list.
The bill extends, from 30 days to 60 days, the period during which OCU must
determine whether an additional activity or power authorized for federally chartered
credit unions should also be authorized for Wisconsin-chartered credit unions.
Charges for credit union examinations
Current law generally requires OCU to conduct, at least once every 18 months,
examinations of credit unions in which OCU examines the credit union's records and
accounts. OCU must charge the credit union for the cost of the examination, and the
credit union must pay the charge on the day on which the examination is completed.
The bill requires the credit union to pay the charge within 30 days of the
completion of OCU's examination.
Because this bill creates a new crime or revises a penalty for an existing crime,
the Joint Review Committee on Criminal Penalties may be requested to prepare a
report.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB715,1 1Section 1 . 34.08 (2) of the statutes is amended to read:
AB715,5,112 34.08 (2) Payments under sub. (1) shall be made in the order in which
3satisfactory proofs of loss are received by the division of banking. The payment made
4to any public depositor for all losses of the public depositor in any individual public
5depository may not exceed $400,000 $1,000,000 above the amount of deposit
6insurance provided by an agency of the United States at the public depository that
7experienced the loss. Upon a satisfactory proof of loss, the division of banking shall
8direct the department of administration to draw its warrant payable from the
9appropriation under s. 20.144 (1) (a) and the secretary of administration shall pay
10the warrant under s. 16.401 (4) in favor of the public depositor that has submitted
11the proof of loss.
AB715,2 12Section 2 . 38.20 (2) (e) of the statutes is amended to read:
AB715,6,18
138.20 (2) (e) The district purchasing property under this subsection may, with
2approval of the city council or village board involved, pay the purchase price by
3issuing and delivering directly to the city or village the general obligation promissory
4notes or the notes of the district under s. 67.12 (12), except that no referendum may
5be held and the 10-year 20-year limitation on such notes shall be inapplicable to
6such notes issued under this paragraph. Such notes shall mature and be payable at
7such times, in such amounts and at such rate of interest as will amortize and pay
8when due the principal and interest on the outstanding obligations of the city or
9village for technical college purposes. All such notes, upon execution and delivery
10to the city or village, shall in all respects be held and considered as an authorized
11investment under s. 66.0603 (1m) or 67.11 (2) and (3) of the debt service fund created
12for payment of the city or village obligations issued for technical college purposes and
13shall be offset against city or village indebtedness in computing legal debt limit to
14the same extent as other authorized investments of the debt service fund and such
15notes may be sold and hypothecated. If the offset against city or village indebtedness
16under this paragraph is determined to be invalid in any respect, such city or village
17immediately may require the district issuing the promissory notes to such city or
18village to comply with pars. (c) and (d) to the extent necessary to cure such invalidity.
AB715,3 19Section 3. 67.12 (12) (a) of the statutes, as affected by 2023 Wisconsin Act 6,
20is amended to read:
AB715,7,621 67.12 (12) (a) Any municipality may issue promissory notes as evidence of
22indebtedness for any public purpose, as defined in s. 67.04 (1) (b), including but not
23limited to paying any general and current municipal expense, and refunding any
24municipal obligations, including interest on them. Each note, plus interest if any,
25shall be repaid within 10 years after the original date of the note, except that notes

1issued under this section for purposes of ss. 119.498, 281.58, 281.59, 281.61, and
2292.72 and s. 281.60, 2021 stats., issued to raise funds to pay a portion of the capital
3costs of a metropolitan sewerage district, or issued by a 1st class city or a county
4having a population of 750,000 or more, to pay unfunded prior service liability with
5respect to an employee retirement system, shall be repaid
within 20 years after the
6original date of the note.
AB715,4 7Section 4. 138.052 (7e) and (7m) of the statutes are repealed.
AB715,5 8Section 5. 138.052 (12) (a) of the statutes is amended to read:
AB715,7,129 138.052 (12) (a) Any lender violating sub. (2) (b), (5), (5m) (b) 1., (6), (7), (7e),
10(7m)
or (7s), or an escrow agent, as defined in sub. (5m) (a), violating sub. (5m) (b)
112., is liable to the borrower for $500 plus actual damages, costs and reasonable
12attorney fees.
AB715,6 13Section 6. 138.056 (6) of the statutes is repealed.
AB715,7 14Section 7. 186.07 (7) of the statutes is amended to read:
AB715,7,1815 186.07 (7) Vacancies. Within 60 90 days after the date of a removal vacancy
16on the board of directors
, the board of directors shall appoint a director to fill the
17vacancy. The appointee shall serve until a successor is elected at the next annual
18membership meeting.
AB715,8 19Section 8. 186.11 (2) of the statutes is renumbered 186.11 (2) (a) and amended
20to read:
AB715,7,2221 186.11 (2) (a) A Subject to pars. (b) and (c), a credit union may purchase, hold,
22and dispose of property as necessary for or incidental to its operations.
AB715,9 23Section 9. 186.11 (2) (b) and (c) of the statutes are created to read:
AB715,7,2524 186.11 (2) (b) Subject to guidance issued by the office of credit unions, a credit
25union may purchase, lease, hold, and convey the following types of real estate:
AB715,8,2
11. Real estate conveyed to the credit union in satisfaction of debts previously
2contracted in the course of the credit union's business.
AB715,8,53 2. Real estate purchased at sale on judgments, decrees, or mortgage
4foreclosures under securities held by the credit union, but a credit union may not bid
5at a sale a larger amount than is necessary to satisfy its debts and costs.
AB715,8,76 3. Subject to the approval of the office of credit unions, real estate acquired or
7held by the credit union for any other purpose.
AB715,8,98 (c) Real estate acquired under par. (b) may not be held for more than 5 years,
9unless an extension is granted by the office of credit unions.
AB715,10 10Section 10. 186.113 (15) (a) of the statutes is amended to read:
AB715,9,311 186.113 (15) (a) Directly or indirectly, acquire, place, and operate, or
12participate in the acquisition, placement, and operation of, at locations other than
13its offices, remote terminals, in accordance with rules established by the office of
14credit unions. The rules shall provide that any remote terminal shall be available
15for use, on a nondiscriminatory basis, by any state or federal credit union which has
16its principal place of business in this state, by any other credit union obtaining the
17consent of a state or federal credit union which has its principal place of business in
18this state and is using the terminal and by all members designated by a credit union
19using the terminal. This subsection does not authorize a credit union which has its
20principal place of business outside the state to conduct business as a credit union in
21this state. The remote terminals also shall be available for use, on a
22nondiscriminatory basis, by any state or national bank, state or federal savings bank
23or state or federal savings and loan association, whose home office is located in this
24state, if the bank, savings bank or savings and loan association requests to share its
25use, subject to the joint rules established under s. 221.0303 (2). The office of credit

1unions by order may authorize the installation and operation of a remote terminal
2in a mobile facility, after notice and hearing upon the proposed service stops of the
3mobile facility.
AB715,11 4Section 11 . 186.113 (26) of the statutes is created to read:
AB715,9,105 186.113 (26) Supplemental capital. In addition to the rights of credit unions
6under other law, issue or otherwise offer supplemental forms of capital in the form
7and with the conditions, including those related to the safety and soundness of the
8proposed use of the capital and the overall condition of the credit union, approved by
9the office of credit unions. This approval shall be in writing and obtained prior to the
10issuance of the supplemental capital.
AB715,12 11Section 12 . 186.118 (3) (a) (intro.) of the statutes is amended to read:
AB715,9,1912 186.118 (3) (a) (intro.) After April 18, 2014, if any activity or power incidental
13to the business of a credit union that is not listed under sub. (2) (a) becomes
14authorized for federally chartered credit unions, within 30 60 days after the activity
15or power becomes authorized the office of credit unions shall make a determination
16as to whether the activity or power should also be authorized for credit unions
17organized under s. 186.02. In making this determination, the office of credit unions
18shall consider the degree to which the following apply with respect to the activity or
19power:
AB715,13 20Section 13. 186.235 (14) (c) of the statutes is amended to read:
AB715,9,2521 186.235 (14) (c) In addition to the annual assessment, each credit union shall
22be charged for the cost of every examination made. The examination charge shall
23include the prorated amount of salaries and expenses of all examiners and other
24employees actively engaged in the examination, the salaries and expenses of any
25other person whose services are required in connection with the examination and

1any examination report and any other expenses which may be directly attributable
2to the examination. The examination charge shall be paid on within 30 days of the
3day on which the examination is completed.
AB715,14 4Section 14. 214.04 (21) (b) of the statutes is amended to read:
AB715,10,195 214.04 (21) (b) The rules of the division shall provide that any remote service
6unit shall be available for use, on a nondiscriminatory basis, by any state or federal
7savings bank which has its principal place of business in this state, by any other state
8or federal savings bank obtaining the consent of a state or federal savings bank that
9has its principal place of business in this state and is using the terminal and by all
10customers designated by a savings bank using the unit. This paragraph does not
11authorize a savings bank which has its principal place of business outside this state
12to conduct business as a savings bank in this state. A remote service unit shall be
13available for use, on a nondiscriminatory basis, by any credit union, state or national
14bank or state or federal savings and loan association, whose home office is located
15in this state, if the credit union, bank or savings and loan association requests to
16share its use, subject to joint rules established by the division and the office of credit
17unions. The division by order may authorize the installation and operation of a
18remote service unit in a mobile facility, after notice and hearing upon the proposed
19service stops of the mobile facility.
AB715,15 20Section 15 . 215.13 (39) of the statutes is amended to read:
AB715,11,221 215.13 (39) Branches. Subject to the approval of the division, any savings and
22loan association may establish and maintain one or more branch offices within the
23normal lending area of the home office, as defined in s. 215.21 (2),
in this state or in
24any one of the regional states, as defined in s. 215.36 (1) (f). In the division's approval,
25the division may limit the powers of the branch. Savings and loan associations may

1promote thrift in their local schools by accepting payments in the school upon savings
2accounts of the teachers and pupils.
AB715,16 3Section 16. 215.13 (46) (a) 1. of the statutes is amended to read:
AB715,11,234 215.13 (46) (a) 1. Directly or indirectly, acquire, place, and operate, or
5participate in the acquisition, placement, and operation of, at locations other than
6its home or branch offices, remote service units, in accordance with rules established
7by the division. Remote service units established in accordance with such rules are
8not subject to sub. (36), (39), (40) or (47) or s. 215.03 (8). The rules of the division shall
9provide that any such remote service unit shall be available for use, on a
10nondiscriminatory basis, by any state or federal savings and loan association which
11has its principal place of business in this state, by any other savings and loan
12association obtaining the consent of a state or federal savings and loan association
13which has its principal place of business in this state and is using the terminal and
14by all customers designated by a savings and loan association using the unit. This
15paragraph does not authorize a savings and loan association which has its principal
16place of business outside this state to conduct business as a savings and loan
17association in this state. The remote service units also shall be available for use, on
18a nondiscriminatory basis, by any credit union, state or national bank or state or
19federal savings bank, whose home office is located in this state, if the credit union,
20bank or savings bank requests to share its use, subject to the joint rules established
21under s. 221.0303 (2). The division by order may authorize the installation and
22operation of a remote service unit in a mobile facility, after notice and hearing upon
23the proposed service stops of the mobile facility.
AB715,17 24Section 17 . 215.21 (2) of the statutes is repealed.
AB715,18 25Section 18 . 215.21 (15) of the statutes is amended to read:
AB715,12,7
1215.21 (15) Participation loans. Any association may participate with other
2lenders in mortgage loans of any type that such association may otherwise make if
3the real estate securing such loan is located within the United States
, subject to such
4rules as the division issues, including the interest in participation loans to be
5retained by the originator. The normal lending area, prescribed in sub. (2), shall not
6apply to any association purchasing a participating interest in such loan, provided
7the real estate securing such loan is located within the United States.
AB715,19 8Section 19. 221.0303 (2) of the statutes is amended to read:
AB715,12,259 221.0303 (2) Operation and acquisition of customer bank communications
10terminals.
A bank may, directly or indirectly, acquire, place, and operate, or
11participate in the acquisition, placement, and operation of, at locations other than
12its main or branch offices, customer bank communications terminals, in accordance
13with rules established by the division. The rules of the division shall provide that
14any such customer bank communications terminal shall be available for use, on a
15nondiscriminatory basis, by any state or national bank and by all customers
16designated by a bank using the terminal. This subsection does not authorize a bank
17which has its principal place of business outside this state to conduct banking
18business in this state. The customer bank communications terminals also shall be
19available for use, on a nondiscriminatory basis, by any credit union, savings and loan
20association, or savings bank, if the credit union, savings and loan association, or
21savings bank requests to share its use, subject to rules jointly established by the
22division of banking and the office of credit unions. The division by order may
23authorize the installation and operation of a customer bank communications
24terminal in a mobile facility, after notice and hearing upon the proposed service stops
25of the mobile facility.
AB715,20
1Section 20. 227.01 (13) (yu) of the statutes is created to read:
AB715,13,32 227.01 (13) (yu) Relates to guidance issued by the office of credit unions under
3s. 186.11 (2) (b).
AB715,21 4Section 21 . 941.38 (1) (b) 21. of the statutes is amended to read:
AB715,13,75 941.38 (1) (b) 21. A crime under s. 943.81, 943.82, 943.825, 943.83, 943.85,
6943.86, 943.87, 943.88, 943.89, or 943.90 or, if the victim is a financial institution, as
7defined in s. 943.80 (2), a crime under s. 943.84 (1) or (2).
AB715,22 8Section 22 . 943.825 of the statutes is created to read:
AB715,13,12 9943.825 Interference with automated teller machine. Whoever
10intentionally causes impairment or interruption of use, in whole or in part, of a
11financial institution's automated teller machine or customer bank communications
12terminal is guilty of a Class H felony.
AB715,23 13Section 23. 946.82 (4) of the statutes, as affected by 2023 Wisconsin Act 10,
14is amended to read:
AB715,14,415 946.82 (4) “Racketeering activity" means any activity specified in 18 USC 1961
16(1) in effect as of April 27, 1982, or the attempt, conspiracy to commit, or commission
17of any of the felonies specified in: chs. 945 and 961, subch. V of ch. 551, and ss. 49.49,
18134.05, 139.44 (1), 180.0129, 181.0129, 185.825, 201.09 (2), 215.12, 221.0625,
19221.0636, 221.0637, 221.1004, 553.41 (3) and (4), 553.52 (2), 940.01, 940.19 (4) to (6),
20940.20, 940.201, 940.203, 940.21, 940.30, 940.302 (2), 940.305, 940.31, 941.20 (2) and
21(3), 941.26, 941.28, 941.298, 941.31, 941.32, 942.09, 943.01 (2), (2d), or (2g), 943.011,
22943.012, 943.013, 943.02, 943.03, 943.04, 943.05, 943.06, 943.10, 943.20 (3) (bf) to (e),
23943.201, 943.203, 943.23 (2) and (3), 943.231 (1), 943.24 (2), 943.27, 943.28, 943.30,
24943.32, 943.34 (1) (bf), (bm), and (c), 943.38, 943.39, 943.40, 943.41 (8) (b) and (c),
25943.50 (4) (bf), (bm), and (c) and (4m), 943.60, 943.70, 943.76, 943.81, 943.82,

1943.825, 943.83, 943.84, 943.85, 943.86, 943.87, 943.88, 943.89, 943.90, 944.21 (5) (c)
2and (e), 944.32, 944.34, 945.03 (1m), 945.04 (1m), 945.05 (1), 945.08, 946.10, 946.11,
3946.12, 946.13, 946.31, 946.32 (1), 946.48, 946.49, 946.61, 946.64, 946.65, 946.72,
4946.76, 946.79, 947.015, 948.05, 948.051, 948.08, 948.12, and 948.30.
AB715,24 5Section 24. 969.08 (10) (b) of the statutes, as affected by 2023 Wisconsin Act
610
, is amended to read:
AB715,14,177 969.08 (10) (b) “Serious crime" means any crime specified in s. 943.23 (1m),
81999 stats., s. 943.23 (1r), 1999 stats., or s. 943.23 (1g), 2021 stats., or s. 346.62 (4),
9940.01, 940.02, 940.03, 940.05, 940.06, 940.08, 940.09, 940.10, 940.19 (5), 940.195
10(5), 940.198 (2) (a) or (c), 940.20, 940.201, 940.203, 940.204, 940.21, 940.225 (1) to (3),
11940.23, 940.24, 940.25, 940.29, 940.295 (3) (b) 1g., 1m., 1r., 2. or 3., 940.302 (2),
12940.31, 941.20 (2) or (3), 941.26, 941.30, 941.327, 943.01 (2) (c), 943.011, 943.013,
13943.02, 943.03, 943.04, 943.06, 943.10, 943.231 (1), 943.30, 943.32, 943.81, 943.82,
14943.825, 943.83, 943.85, 943.86, 943.87, 943.88, 943.89, 943.90, 946.01, 946.02,
15946.43, 947.015, 948.02 (1) or (2), 948.025, 948.03, 948.04, 948.05, 948.051, 948.06,
16948.07, 948.085, or 948.30 or, if the victim is a financial institution, as defined in s.
17943.80 (2), a crime under s. 943.84 (1) or (2).
AB715,25 18Section 25 . DFI-Bkg 14.03 of the administrative code is repealed.
AB715,26 19Section 26 . DFI-SB 12.03 of the administrative code is repealed.
AB715,27 20Section 27 . DFI-SL 12.03 of the administrative code is repealed.
AB715,28 21Section 28 . Initial applicability.
AB715,14,2322 (1) Public deposit losses. The treatment of s. 34.08 (2) first applies to losses,
23as defined in s. 34.01 (2), occurring on the effective date of this subsection.
AB715,15,3
1(2) Residential mortgage loans and variable rate loans. The treatment of ss.
2138.052 (7e) and (7m) and 138.056 (6) first applies to loans for which applications are
3received on the effective date of this subsection.
AB715,29 4Section 29 . Effective dates. This act takes effect on the day after publication,
5except as follows:
AB715,15,86 (1) Administrative rules. The repeal of sections DFI-Bkg 14.03, DFI-SB
712.03, and DFI-SL 12.03 of the administrative code takes effect as provided in s.
8227.265.
AB715,15,99 (End)
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