221.1008 History
History: 1995 a. 336.
BANK SERVICE CORPORATIONS
221.1101
221.1101
Bank service corporations. 221.1101(1)(a)
(a) "Bank service corporation" means a corporation organized to perform bank services for 2 or more banks, each of which owns part of the capital stock of the corporation.
221.1101(1)(b)
(b) "Bank services" means check and deposit sorting and posting, computation and posting of interest and other credits and charges, preparation and mailing of checks, statements, notices and similar items, or any other clerical, bookkeeping, accounting, statistical or other similar functions performed for a bank.
221.1101(1)(c)
(c) "Invest" includes any advance of funds to a bank service corporation, whether by purchase of stock, the making of a loan, or otherwise, except a payment for rent earned, goods sold and delivered, or services rendered prior to the making of the payment.
221.1101(2)
(2) Investments in bank service corporations. 221.1101(2)(a)(a) Two or more banks may invest not more than 10% of the capital of each of the banks in a bank service corporation.
221.1101(2)(b)
(b) If stock in a bank service corporation is held by 2 banks, and one of the banks ceases to utilize the services of the corporation and ceases to hold stock in it, and leaves the other as the sole stock holding bank, the corporation may nevertheless continue to function as a bank service corporation and the other bank may continue to hold stock in it.
221.1101(3)(a)(a) Except as provided in
par. (b), if a bank, referred to in this subsection as the "applying bank", applies for a type of bank service for itself from a bank service corporation that supplies the same type of bank service to another bank, and the applying bank is competitive with a bank that holds stock in the bank service corporation, the bank service corporation must offer to supply the service by doing at least one of the following, at the option of the applying bank:
221.1101(3)(a)1.
1. Issuing stock to the applying bank and furnishing the bank service to it on the same basis as to the other banks holding stock in the bank service corporation.
221.1101(3)(a)2.
2. Furnishing the bank service to the applying bank at a rate no higher than necessary to fairly reflect the cost of the service, including the reasonable cost of the capital provided to the bank service corporation by its shareholders.
221.1101(3)(b)
(b) The bank service corporation need not offer to supply the bank service to the applying bank under
par. (a) if the service at competitive overall costs are available to the applying bank from another source, or if the furnishing of the bank service sought by the applying bank would be beyond the practical capacity of the bank service corporation. In any action or proceeding to enforce the duty imposed by this subsection, or for damages for the breach of this section, the bank service corporation has the burden of showing the applicability of this paragraph.
221.1101(4)
(4) Permitted activities of bank service corporations. A bank service corporation may not engage in any activity other than the performance of bank services for banks.
221.1101(5)
(5) Contracting for bank services. A bank may cause to be performed, by contract or otherwise, any bank service for itself, whether on or off its premises, if the bank and the party performing the service provide the division with assurances, satisfactory to the division, that the performance of the service will be subject to regulation and examination by the division to the same extent as if the service was being performed by the bank itself on its own premises.
221.1101 History
History: 1995 a. 336.
BANK-OWNED BANKS
221.1201
221.1201
Stock in bank-owned banks. A bank, or, subject to the limitations of
s. 221.0901, a bank holding company, may, with the approval of the division, acquire and hold stock, in an aggregate amount not exceeding 10% of its capital, in one or more of the following:
221.1201(3)
(3) A bank holding company wholly owning a bank described under
sub. (1) or
(2).
221.1201 History
History: 1995 a. 336.
221.1202(1)(1)
Establishment and ownership. The division may authorize the establishment of, and issue a charter to, a bank, all of the stock of which is owned by 2 or more depository institutions or depository institution holding companies. Notwithstanding any other requirement of this section, the division may authorize, by rule, up to 10% of the stock to be held by other persons to accommodate operational needs of the bank.
221.1202(2)
(2) Status and powers. A bank established under
sub. (1) is a state bank chartered under this chapter for all purposes, except that its functions are limited solely to doing the following:
221.1202(2)(a)
(a) Providing banking and banking-related services to or for depository institutions, subsidiaries of depository institutions, depository institution holding companies, subsidiaries of depository institution holding companies and directors, officers and employes of other depository institutions.
221.1202(2)(b)
(b) Providing correspondent banking services at the request of other depository institutions or depository institution holding companies, and to depository institution trade associations.
221.1202(3)
(3) Stock issuance. A bank established under
sub. (1) may authorize and hold authorized but not issued stock.
221.1202 History
History: 1995 a. 336.
