186.113(14m)(b)
(b) Sell any property subject to a lien under
par. (a) at public auction in accordance with procedures under
ch. 815. A credit union may retain from the proceeds of the sale all lien fees and charges due including reasonable expenses of the sale. A credit union shall pay the remaining balance to the person depositing the property or to the legal representatives or assigns.
186.113(15)(a)(a) Directly or indirectly, acquire, place and operate, or participate in the acquisition, placement and operation of, at locations other than its offices, remote terminals, in accordance with rules established by the office of credit unions. The rules shall provide that any remote terminal shall be available for use, on a nondiscriminatory basis, by any state or federal credit union which has its principal place of business in this state, by any other credit union obtaining the consent of a state or federal credit union which has its principal place of business in this state and is using the terminal and by all members designated by a credit union using the terminal. This subsection does not authorize a credit union which has its principal place of business outside the state to conduct business as a credit union in this state. The remote terminals also shall be available for use, on a nondiscriminatory basis, by any state or national bank, state or federal savings bank or state or federal savings and loan association, whose home office is located in this state, if the bank, savings bank or savings and loan association requests to share its use, subject to the joint rules established under
s. 221.0303 (2). The office of credit unions by order may authorize the installation and operation of a remote terminal in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.
186.113(15)(b)
(b) In this subsection, "remote terminal" means a terminal or other facility or installation, attended or unattended, which is not located at the principal office or at a subsidiary office of a credit union and through which members and credit unions may engage, by means of either the direct transmission of electronic impulses to and from a credit union or the recording of electronic impulses or other indicia of a transaction for delayed transmission to a credit union, in transactions which are incidental to the conduct of the business of a credit union and which are otherwise permitted by law. "Remote terminal" also includes all equipment, regardless of location, which is interconnected with a remote terminal and which is necessary to transmit, route and process electronic impulses in order to enable the remote terminal to perform any function for which it is designed.
186.113(15)(c)
(c) If any person primarily engaged in the retail sale of goods or services owns or operates a remote terminal on such person's premises and allows access to the unit by any financial institution, group of financial institutions or their customers, nothing in this subsection or in rules established by the office of credit unions shall, or shall be construed or interpreted to, require such person to accept any connection to or use of the unit on its premises for any other purpose or function or to accept any connection to the unit on its premises by any other financial institution.
186.113(15)(d)
(d) If a person primarily engaged in the retail sale of goods or services owns or operates a remote terminal on such person's premises and allows access to the unit by any financial institution, group of financial institutions or their customers for any purpose or function, no laws governing such institutions or rules established by the office of credit unions shall apply to such person other than those laws or rules directly related to the particular function performed by the unit on such person's premises for a financial institution.
186.113(15)(e)
(e) Information transmitted from a remote terminal, either identified as to particular transactions or aggregate information, shall only be used for purposes of effecting the financial transactions for which such information was received, for any other purpose lawfully authorized by contract, or for any other purpose permitted by statute and rules pertaining to the dissemination and disclosure of such information.
186.113(16)
(16) Dormant accounts. Subject to
ch. 177, establish a policy, including a fee schedule, for disposing of dormant accounts.
186.113(17)
(17) Contracts. Make contracts necessary and proper to meet its purpose and to conduct its business.
186.113(18)
(18) Legal actions. To sue and be sued, and to appear and defend in all actions and proceedings under its corporate name.
186.113(19)
(19) Client fund accounts. Maintain real estate broker trust accounts under
s. 452.13 for brokers who are eligible for membership in the credit union, attorney trust accounts under
s. 757.293 for attorneys who are eligible for membership in the credit union and collection agency trust accounts under
s. 218.04 (9g) for persons who are eligible for membership in the credit union.
186.113(20)
(20) Public depository. Act as a depository of state and local public funds.
186.113(21)
(21) Federal depository. On request of the federal secretary of the treasury, act as federal depository, fiscal agent or both of the federal government. A credit union may perform such services as the federal secretary of the treasury may authorize in connection with the collection of taxes and other obligations due the federal government and the lending, borrowing and repayment of money by the federal government, including the issue, sale, redemption or repurchase of bonds, notes, treasury certificates of indebtedness, or other obligations of the federal government.
186.113(22)
(22) Community currency exchange and seller of checks. Engage in the business and functions provided for in
s. 218.05 and
ch. 217 upon receiving a certificate of authority from the office of credit unions. An applicant shall meet the same requirements as other applicants under
ch. 217, but no investigation fee may be charged of credit union applicants. The office of credit unions may revoke a certificate of authority following a hearing held upon 10 days' notice to the credit union for any reason which would have justified the rejection of an application or on the ground that the continued operation of the business threatens the solvency of the credit union.
186.113 History
History: 1971 c. 193;
1973 c. 12 s.
20;
1973 c. 208;
1973 c. 255 ss.
2,
3,
5;
1973 c. 336 s.
56;
1975 c. 345;
1977 c. 136,
342,
447;
1979 c. 121,
282;
1981 c. 5,
156,
319,
391;
1983 a. 368,
369;
1987 a. 403 s.
256;
1991 a. 221,
269;
1993 a. 112,
482;
1995 a. 27,
55,
151,
336.
186.113 Annotation
Under (7) a credit union is not obliged to secure a sales finance company license to purchase instalment contracts of its members, nor is an auto dealer subject to penalty if he sells such a contract to a credit union. 61 Atty. Gen. 439.
186.115
186.115
Additional credit union authority. 186.115(1)
(1)
Scope of authority. Subject to any regulatory approval required by law and subject to
sub. (2), a credit union directly or through a subsidiary, may undertake any activity, exercise any power or offer any financially related product or service in this state that any other provider of financial products or services may undertake, exercise or provide or that the office of credit unions finds to be financially related.
186.115(2)
(2) Rules. The activities, powers, products and services that may be undertaken, exercised or offered by credit unions under
sub. (1) are limited to those specified by rule of the office of credit unions. The office of credit unions may direct any credit union to cease any activity, the exercise of any power or the offering of any product or service authorized by rule. Among the factors that the office of credit unions may consider in so directing a credit union are the credit union's net worth, assets, management rating and liquidity ratio and its ratio of net worth to assets.
186.115(3)
(3) Insurance underwriting not authorized. This section does not authorize a credit union, directly or through a subsidiary, to engage in the business of underwriting insurance.
186.115 History
History: 1985 a. 325;
1995 a. 27,
151.
186.116
186.116
Financially related services tie-ins. In any transaction conducted by a credit union or a subsidiary of a credit union with a customer who is also a customer of any other subsidiary of the credit union, the customer shall be given a notice in 12-point boldface type in substantially the following form:
NOTICE OF RELATIONSHIP
This company, .... (insert name and address of credit union or subsidiary), is related to .... (insert name and address of credit union or subsidiary) of which you are also a customer. You may not be compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction.
If you feel that you have been compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction, you should contact the management of either of the above companies at either of the above addresses or the office of credit unions at .... (insert address).
186.116 History
History: 1985 a. 325;
1995 a. 27,
151.
186.12
186.12
Compensation of officers, sureties, operation expenses. 186.12(1)(1)
Board members. No member of the board of directors may receive any compensation for services as a member of the board other than reasonable health, accident and similar insurance.
186.12(2)
(2) Sureties. A member of the credit committee or a loan officer shall not, directly or indirectly, become surety for any loan or advance made by the credit union.
186.12(3)
(3) Expenditures. The officers elected by the board of directors, the members of the credit committee and loan officers may receive such compensation as the board authorizes, but the expenditures of the credit union for all purposes shall be paid from its earnings.
186.13
186.13
Expulsion. If the board of directors adopts a written policy, a credit union may expel a member if the member neglects or refuses to comply with this chapter or the credit union bylaws or if the board has other just cause. The credit union shall provide notice to the member in writing of the reason for expulsion. The notice shall include a description of the member's right to a hearing. If a member requests a hearing in writing, the board shall give the member an opportunity to be heard on the expulsion within 90 days after the date of the expulsion notice.
186.14
186.14
Expelled member rights and liabilities. The amounts paid in on shares by members who have withdrawn or have been expelled shall be paid to them, but in the order of withdrawal or expulsion as funds become available and after deducting any amounts due from the members to the credit union. Expulsion or withdrawal shall not relieve a member from any remaining liability to the credit union.
186.14 History
History: 1971 c. 193 s.
42 (3);
1995 a. 151.
186.15(1)(1)
Annual audit. Except as provided in
sub. (2), the board of directors shall hire a licensed public accountant or other qualified person to conduct a comprehensive annual audit of the records, accounts and affairs of the credit union.
186.15(2)
(2) Audit committee. The board of directors may appoint an auditing committee of one or more capable persons to annually audit the records, accounts and cash of the credit union and to verify member accounts. Verification procedures shall be conducted according to the credit union's bylaws or the rules of the office of credit unions.
186.15(3)
(3) Independent audit. The office of credit unions may order an independent audit at the credit union's expense if the office of credit unions finds an annual audit to be unsatisfactory.
186.15(4)
(4) Audit reports. Audit reports under this section shall be submitted to the board of directors and retained as records of the credit union.
186.16(1)(1)
Board establishes dividends. The board of directors shall establish the dividend period. Dividends shall be considered a normal operating expense of the credit union. Rates of dividends and terms of payment may be established and guaranteed in advance by action of the board of directors. The board of directors may classify its accounts and declare dividends which may be at variable rates.
186.16(2)
(2) Maximum set by office of credit unions. The office of credit unions may establish the maximum dividend that a credit union and a corporate central credit union may pay in each classification of its savings.
186.17(1)(1)
Regular reserves. Semiannually, a credit union shall determine its gross income. From gross income, the credit union shall transfer to regular reserve amounts required under a schedule set by the national board.
186.17(2)
(2) Special reserves. Special reserves may be required by the office of credit unions on an individual credit union basis or for a corporate central credit union.
186.18
186.18
Dissolution. Upon a two-thirds recommendation of the board of directors, the members may vote to dissolve the credit union. If a majority of the total membership vote by ballot, in person or by letter or other written communication in favor of dissolution, and if not more than the greater of 15 members or 10% of the total membership, by written notice, vote against dissolution, the credit union shall be dissolved. If both the number of votes in favor of dissolution and the number of votes against dissolution are each less than 25% of the total number of members, the board of directors may, with the permission of the office of credit unions, mail to each member at the member's last-known address a written notice which states that the board's proposal to dissolve the credit union will be approved or disapproved at a special or annual meeting to be held at the time and place specified in the notice. The credit union shall be dissolved only if a majority of the members present at the meeting vote in favor of the board's proposal to dissolve the credit union. If the members vote to dissolve the credit union, a committee of 3 shall be elected by the members to liquidate the assets of the credit union. After assets are liquidated and debts paid, members shall be paid a liquidating dividend in proportion to their savings from remaining assets. The committee in charge of liquidation may sell or dispose of the assets in whole or in part at a public or private sale subject to confirmation by the board of directors and the office of credit unions.
186.19
186.19
Bonding requirement. 186.19(1)(1)
Officer bonds. A credit union shall maintain the necessary bonds for officers according to standards prescribed by the national board.
186.19(2)
(2) Director bonds. A credit union shall maintain the necessary bonds for directors according to standards prescribed in the bylaws.
186.21
186.21
Credit unions promoted. 186.21(1)
(1)
Office to cooperate. It shall be the duty of the office of credit unions to cooperate with every group of people that is interested in the formation of, or in an affiliation with, a credit union in this state. The office of credit unions may do all things reasonably necessary for the discharge of this duty.
186.21(2)
(2) Advertising. The office of credit unions shall use advertising that is suitable and effective to acquaint the people of this state with the agencies and organizations dealing with credit unions.
186.21(3)
(3) Consultations. The office of credit unions shall offer without charge to any group, either joined in a credit union or considering such an organization, advice and direction on accounting practices and managerial problems.
186.21(4)
(4) Materials. The office of credit unions shall provide application blanks, model bylaws and other materials to help in the organization, efficient functioning and expansion of credit unions.
186.21 History
History: 1971 c. 193 s.
42 (2);
1995 a. 27,
151.
186.22
186.22
Credit union finance corporation; incorporation; organization certificate. 186.22(1)
(1)
Organization. When authorized by the office of credit unions, 10 or more credit unions, the aggregate resources of which shall not be less than $50,000, may form the "Credit Union Finance Corporation". Each of such credit unions shall subscribe, acknowledge and submit to the office of credit unions an organization certificate in duplicate which shall specifically state:
186.22(1)(a)
(a) The name "Credit Union Finance Corporation".
186.22(1)(b)
(b) The place in the state where its business is to be transacted.
186.22(1)(c)
(c) The number of shares for which each credit union has subscribed, which shall amount in the aggregate to not less than $200.
186.22(1)(d)
(d) The number of directors of such credit union finance corporation, which shall not be less than 7, and the names of the persons who shall be its directors until the first annual meeting. The certificate shall recite that the directors possess the qualifications specified in
sub. (10).
186.22(1)(e)
(e) The name and location of the business office of each credit union subscribing the certificate and the aggregate resources of each such credit union.
186.22(2)
(2) Proposed bylaws. The incorporators shall subscribe and acknowledge and submit to the office of credit unions proposed bylaws in duplicate, which shall prescribe the manner in which the business of such credit union finance corporation shall be conducted with reference to the following matters:
186.22(2)(a)
(a) The date during the month of February of the annual meeting of shareholders; the manner of calling special meetings, and the number of members which shall constitute a quorum.
186.22(2)(b)
(b) The number and qualifications of directors, subject to
sub. (10); the method of division into classes for the purpose of electing, as nearly as may be, an equal number of directors each year; the removal or suspension of directors; the filling of vacancies in the board of directors, and the number of directors which shall constitute a quorum, which shall not be less than 4.
186.22(2)(c)
(c) The meetings, powers and duties of directors; the appointment or election of appraisal, supervisory and auditing committees.
186.22(2)(d)
(d) The officers; the manner of their election; their terms of office, duties and compensation; and the bonds which shall be required of officers who have the custody or possession of money, securities or property of the credit union finance corporation.
186.22(2)(e)
(e) The annual commission that may be charged each member, subject to the limitations of
sub. (9).
186.22(2)(f)
(f) The transfer of membership, subject to the limitations of
sub. (8).
186.22(2)(g)
(g) The manner in which the bylaws may be altered or amended.
186.22(3)
(3) When corporate existence begins; conditions precedent to commencing business. When the office of credit unions approves the organization certificate, the corporate existence of the credit union finance corporation shall begin and it shall then have power to elect officers and transact such other business as relates to its organization; but such credit union finance corporation shall transact no other business until:
186.22(3)(a)
(a) Subscriptions to its shares aggregating $2,000 shall have been paid in cash and an affidavit stating that such subscriptions have been so paid, subscribed and sworn to by its 2 principal officers, shall have been filed with the department of financial institutions and a certified copy thereof in the office of credit unions.
186.22(3)(b)
(b) The office of credit unions shall have duly issued to it an authorization certificate.
186.22(4)
(4) General powers. In addition to the powers conferred by the general corporation law the credit union finance corporation shall, subject to the restrictions and limitations contained in this section and its bylaws, have the following powers:
186.22(4)(a)
(a) To issue, sell and redeem bonds and notes secured by bonds and first mortgages made to or held by member credit unions.
186.22(4)(b)
(b) To receive money or property from its members and from other associations, corporations and persons with whom it has contracts, engagements or undertakings, in instalments or otherwise; to enter into any contract engagement or undertaking with such associations, corporations or persons for the withdrawal of such money or property, with any increase thereof, or for the payment to them or to any association, corporation or person of any sum of money, at any time, either fixed or uncertain; to lend money to credit unions upon the security of their promissory notes with or without collateral.
186.22(4)(c)
(c) To invest its capital and other funds in bonds and notes of the United States, the state of Wisconsin, and the political subdivisions of this state.
186.22(4)(d)
(d) To receive by assignment from its members and to deposit in trust with the office of credit unions to be held by the office as security for its and their outstanding obligations any first mortgages on real estate and the bonds secured thereby and such other securities as are provided for in
s. 186.11 and are legally receivable by credit unions; to empower such credit unions as agents of the credit union finance corporation to collect and immediately pay over to the credit union the dues, interest and other sums payable under the terms, conditions and covenants of the bonds and mortgages or, prior to a default upon any such bond and mortgage so assigned and when adequate security has been given to the credit union finance corporation, by any such credit union, to retain such collections until a payment to the credit union finance corporation from such credit union becomes due; to return to, or permit such credit unions to retain any sums of money so collected in excess of the amount required to meet the obligations of such credit unions respectively.
186.22(4)(e)
(e) To purchase in its own name, hold and convey real property for the following purposes and no others:
186.22(4)(e)1.
1. A plot whereon there is or may be erected a building suitable for the convenient transaction of its business, from portions of which not required for its own use a revenue may be derived.
186.22(4)(e)2.
2. Such as shall be mortgaged to it in good faith, by way of security for loans made by it or moneys due to it.
186.22(4)(e)3.
3. Such as shall be conveyed to it for debts previously contracted in the course of its business, and such as it shall purchase at sales under judgments, decrees or mortgages held by it.
186.22(4)(f)
(f) To designate as depositories of its funds any credit union, bank, trust company, or savings bank of this state, or any national banking association located in this state doing a banking business under the laws of the United States.
