186.094 History History: 1987 a. 13.
186.095 186.095 Consideration of interests in addition to members' interests. In discharging his or her duties to the credit union and in determining what he or she believes to be in the best interests of the credit union, a director or officer may, in addition to considering the effects of any action on members, consider the following:
186.095(1) (1) The effects of the action on employes, suppliers, members of the credit union and the public.
186.095(2) (2) The effects of the action on communities in which the credit union operates.
186.095(3) (3) Any other factors the director or officer considers pertinent.
186.095 History History: 1987 a. 13; 1995 a. 151.
186.096 186.096 Limited liability of directors and officers.
186.096(1)(1)Limited liability. Except as provided in subs. (2) and (3), a director or officer is not liable to the credit union, its members or creditors, or any person asserting rights on behalf of the credit union, its members or creditors, or any other person, for damages, settlements, fees, fines, penalties or other monetary liabilities arising from a breach of, or failure to perform, any duty resulting solely from his or her status as a director or officer, unless the person asserting liability proves that the breach or failure to perform constitutes any of the following:
186.096(1)(a) (a) A wilful failure to deal fairly with the credit union or its members in connection with a matter in which the director or officer has a material conflict of interest.
186.096(1)(b) (b) A violation of criminal law, unless the director or officer had reasonable cause to believe his or her conduct was lawful or no reasonable cause to believe his or her conduct was unlawful.
186.096(1)(c) (c) A transaction from which the director or officer derived an improper personal profit.
186.096(1)(d) (d) Wilful misconduct.
186.096(2) (2)Exceptions. Except as provided in sub. (3), this section does not apply to any of the following:
186.096(2)(a) (a) A proceeding brought against a director or officer under s. 186.235 (8), (10) or (11) (b) 1.
186.096(2)(b) (b) A civil or criminal proceeding, other than a proceeding described in par. (a), brought by or on behalf of any governmental unit, authority or agency.
186.096(2)(c) (c) A proceeding brought by any person for a violation of state or federal law where the proceeding is brought pursuant to an express private right of action created by state or federal statute.
186.096(3) (3)Applicability to governments. Subsection (2) (b) and (c) does not apply to a proceeding brought by a governmental unit, authority or agency in its capacity as a private party or contractor.
186.096 History History: 1987 a. 13; 1995 a. 151.
186.096 Annotation Cooperative indemnification. La Rowe and Weine. WBB Sept. 1988.
186.098 186.098 Loans.
186.098(1)(1)Loan approval. The credit union may make loans to members upon terms approved by the credit committee, loan officer or board of directors.
186.098(2) (2)Appeals. A loan applicant may appeal in writing the decision of the credit committee or a loan officer to the president and may appeal in writing the president's decision to the board of directors.
186.098(3) (3) Every application for a loan shall be documented and acknowledged by the member and shall state the security or collateral offered, if any.
186.098(4) (4)Board approval. The board of directors or its designee shall act on the applications of credit committee members and loan officers.
186.098(5) (5)Limits. No loans shall be made to any member in excess of 10% of the credit union's assets, plus the balance of the member's share account pledged as security for the loan. This subsection shall not apply to loans made to member credit unions by a corporate central credit union.
186.098(6) (6)Policies. The board of directors shall determine policy regarding all of the following:
186.098(6)(a) (a) Collateral acceptable for secured loans.
186.098(6)(b) (b) Loan limits.
186.098(6)(c) (c) Loan approval if a director, officer, credit committee member or employe provides security as a comaker, guarantor, endorser or other form of surety.
186.098(7) (7)Surety repayment evidence. An endorser, comaker, guarantor or other surety shall provide the credit union with evidence of ability to repay the obligation of the member.
186.098(8) (8)Credit extensions.
186.098(8)(a)(a) The credit committee or a loan officer may approve, upon its own motion or upon application by a member, an extension of credit, and loans may be granted to the member within the limit of the extension of credit. The credit committee or loan officers shall review all extensions of credit in accordance with written policies adopted by the board of directors.
186.098(8)(b) (b) A credit union may utilize credit cards, including point-of-purchase credit, if the credit committee or loan officer, upon its or his or her own motion or upon application by a member, has predetermined the extent of credit extension.
186.098(9m) (9m)Participation loans. Subject to rules prescribed by the office of credit unions, a credit union may participate with other lenders in a loan of any type that the credit union may otherwise make.
186.098(10) (10) Loans to members secured by mortgages on real estate may be made subject to the rules prescribed by the office of credit unions. Such loans may provide for additional advances, but any additional advance made to a member, if the mortgage and mortgage note so provide, may not exceed an amount specified in the mortgage.
186.098(11) (11)Guaranteed loans. A credit union may make loans to members that are guaranteed or insured by the federal government, any state or any federal or state agency. Loans under this subsection may be made under the conditions required for the insurance or guarantee.
186.098(12) (12)Loans to members. A credit union may make loans to members secured by assignment or transfer of stock certificates or other evidence of the borrower's ownership interest in a corporation formed for the cooperative ownership of real estate. Sections 846.10 and 846.101, as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender's rights in security given for a loan under this subsection. The office of credit unions shall promulgate joint rules with the divisions of savings and loan and of banking that establish procedures for enforcing a lender's rights in security given for a loan under this subsection.
186.098(13) (13)Liens.
186.098(13)(a)(a) Subject to any limitation on security interests identified in s. 422.417 (3) and if the loan agreement or endorsement permits it, a credit union shall have a lien on the share deposits and deposit accounts and accumulated dividends of a member for any amount owed the credit union by the member and for any loan endorsed by the member. Upon the default of the owner of the account in an obligation owed to the credit union, the credit union shall have a right of immediate setoff for each share deposit and deposit account unless prohibited under 12 CFR 226.12 (d). Sections 425.104 and 425.105 apply to a default under this paragraph. The credit union may also refuse to allow withdrawals from any share deposit or deposit account in an amount not to exceed any delinquent obligation to the credit union.
186.098(13)(b) (b) The credit union may waive its rights to a lien, to immediate setoff or to restrict withdrawals or to any combination of these rights for any share deposit or deposit account.
186.098 Cross-reference Cross-reference: See s. 138.053 for interest adjustment clauses and s. 138.055 for variable rate contracts.
186.10 186.10 Minors' rights; shares in trust.
186.10(1) (1)Minors' shares. Shares may be issued in the name of a minor, and may be withdrawn by such minor or by the minor's agent under subch. I of ch. 705. Minors' eligibility to vote at the meetings of the members is at the discretion of the board of directors.
186.10(2) (2)Shares in trust. Shares may be issued in trust, subject to any conditions prescribed in the bylaws. Share accounts and deposit accounts may be owned by a member in trust for a beneficiary, or owned by a nonmember in trust for a beneficiary who is a member.
186.11 186.11 Investments.
186.11(1)(1)General. The board of directors may invest credit union funds in any of the following:
186.11(1)(a) (a) United States government direct and agency obligations.
186.11(1)(b) (b) Municipal bonds.
186.11(1)(c) (c) A corporate central credit union organized under s. 186.32 or under any other state or federal law.
186.11(1)(d) (d) Deposits and debt instruments of federally insured banks, credit unions, savings banks and savings and loan associations.
186.11(1)(e) (e) With the approval of the office of credit unions, other investment instruments.
186.11(2) (2)Credit union property.
186.11(2)(a)(a) Subject to par. (b), a credit union may purchase, hold and dispose of property as necessary for or incidental to its operations.
186.11(2)(b) (b) The board of directors may purchase, lease or construct a building for the operation of the credit union, if the aggregate depreciated value of the building, including any associated remodeling of the building or land improvements, land acquisition, office furnishings and equipment, does not exceed the greater of 5% of the credit union's total assets, including the building to be acquired, or 100% of the credit union's irrevocable reserve unless prior approval for greater amounts is given by the office of credit unions. Nothing in this subsection authorizes a credit union to lease a building owned by a director or by a corporation, limited liability company, partnership or association controlled by a director. The credit union may rent or lease a portion of its building or property.
186.11(3) (3)Cooperative housing. A credit union may invest an amount not to exceed 10% of its regular reserve in agreements with other corporations or its members to provide cooperative housing and related facilities for its members.
186.11(4) (4)Investment in credit union service corporations.
186.11(4)(a)(a) A credit union may invest not more than 1.5% of its total assets in the capital shares or obligations of a credit union service corporation organized primarily to provide goods and services to credit unions, credit union organizations and credit union members.
186.11(4)(b) (b) A service corporation under par. (a) may provide goods and services including any of the following:
186.11(4)(b)1. 1. Credit union operations services, including service centers, credit and debit card services, automated teller and remote terminal services, accounting systems, data processing, management training and support, payment item processing, record retention and storage, locator services, research, debt collection, credit analysis and loan servicing, coin and currency services and marketing and advertising services.
186.11(4)(b)2. 2. Family financial services including financial planning and counseling, retirement counseling, estate planning and income tax preparation.
186.11(4)(b)3. 3. Development and administration of individual retirement accounts, Keogh plans and other employe benefit plans.
186.11(4)(b)4. 4. Provision of trust services and other similar fiduciary capacities.
186.11(4)(b)5. 5. Acting as agent for the sale of insurance, including liability, casualty, automobile, life, health, accident, title and other insurance.
186.11(4)(b)6. 6. Personal property leasing and development of leasing plans.
186.11(4)(b)7. 7. Other services associated with the routine operation of credit unions and credit union organizations.
186.11(4)(c) (c) A service corporation may be subject to audit by the commissioner.
186.11 Annotation Wisconsin credit union may invest in credit union service corporation which sells insurance to general public so long as corporation was organized to primarily serve credit unions and their members. 78 Atty. Gen. 96.
186.112 186.112 Credit union borrowing. The board of directors may borrow money from any source if the amount borrowed does not exceed 30% of the credit union's total savings, deposits and reserves. Credit union borrowing may exceed 30% if the office of credit unions approves.
186.112 History History: 1971 c. 193 ss. 23, 42 (1); 1979 c. 34, 282; 1981 c. 156; 1983 a. 369; 1995 a. 27, 151.
186.113 186.113 Credit union powers. A credit union may:
186.113(1) (1)Branch offices. If the need and necessity exist and with the approval of the office of credit unions, establish branch offices inside this state or no more than 25 miles outside of this state. Permanent records may be maintained at branch offices established under this subsection.
186.113(1m) (1m)
186.113(1m)(a)(a) Establish limited services offices outside this state to serve any member of the credit union if all of the following requirements are met:
186.113(1m)(a)1. 1. The establishment of limited services offices outside the state is necessary.
186.113(1m)(a)2. 2. The common bond among the members of the credit union establishing limited services offices under this subsection is employment by a corporation, limited liability company, partnership or association which maintains an office or other facility in this state. A limited services office lawfully established under this subsection may continue in service notwithstanding the fact that the corporation, limited liability company, partnership, or association is acquired by an entity whose principal office is outside this state.
186.113(1m)(a)3. 3. The establishment of such offices has been approved by the office of credit unions.
186.113(1m)(a)4. 4. Such offices are established and operated in accordance with rules promulgated by the office of credit unions.
186.113(1m)(b) (b) A limited services office established under this subsection may pay withdrawals and accept deposits, loan applications and payments on loans. Permanent records of limited services offices established under this subsection shall be maintained at the credit union's home office in this state.
186.113(1s) (1s)Service centers. Upon notice to the office of credit unions, establish and maintain service centers that are reasonably necessary to furnish services to members. A credit union may operate a shared service center with one or more credit unions and may participate in a shared service center network that is operated from inside or outside of this state. This subsection does not prohibit a credit union from referring to a service center as a branch office. A service center shall be under the supervision of the office of credit unions.
186.113(2) (2)Credit union center corporation. With other credit unions, organize a credit union center corporation that provides facilities, equipment and personnel. A credit union center corporation shall be under the supervision of the office of credit unions.
186.113(3) (3)Financial counseling. Provide nonprofit financial counseling.
186.113(4) (4)Fees. Charge for perfection of security interests and investigations of borrowers.
186.113(5) (5)Third-party checks. Issue third-party checks from an account of a member upon request of the member.
186.113(6) (6)Trust services.
186.113(6)(a)(a) Contract with a trust organization authorized to do business in this state to provide trust services to the credit union's members.
186.113(6)(b) (b) Act as trustees of member tax deferred funds permitted by federal law to be deposited in a credit union.
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