214.75 Cross-reference
Cross-reference: See also ch.
DFI-SB 6, Wis. adm. code.
214.755
214.755
Disclosure of examination reports and other records. 214.755(1)(1) Employees of the division and members of the review board may not disclose information gathered by examination of or obtained through reports from a savings bank or from a state or federal financial institution regulatory authority except to any of the following:
214.755(1)(a)
(a) Directors, officers or employees of the savings bank if required to administer this chapter.
214.755(1)(b)
(b) A state or federal financial institution regulatory authority if the regulatory authority agrees to keep the information confidential.
214.755(1)(c)
(c) A court, or law enforcement or prosecutorial agencies for use in investigating or prosecuting a crime involving that information.
214.755(1)(d)
(d) The savings bank's independent certified public accountants.
214.755(1)(e)
(e) The savings bank's deposit insurance corporation.
214.755(1m)
(1m) The officers or employees of a savings bank may not disclose the contents of an examination report except to any of the following:
214.755(1m)(a)
(a) A court, or law enforcement or prosecutorial agencies for use in investigating or prosecuting a crime involving the contents of the report.
214.755(1m)(b)
(b) The savings bank's attorneys, independent certified public accountants or other professional advisers.
214.755(2)
(2) An individual who violates
sub. (1) or
(1m) shall forfeit his or her office or position.
214.755 History
History: 1991 a. 221;
1995 a. 27,
103.
214.76(1)(1) At least once in each year and not more than 12 months after its last audit, a savings bank shall cause its books, records and accounts to be audited by an independent certified public accountant not connected with the savings bank. The certified public accountant shall conduct the audit to produce a certified financial statement. The division may require additional information to be included in an audit report.
214.76(2)
(2) The certified public accountant shall deliver the audit report to a committee composed of 3 or more members of the board of directors, none of whom may be an officer, employee or agent of the savings bank. The committee shall present the nature, extent and conclusions of the report at the next meeting of the board of directors. A written summary of the committee's presentation, together with a copy of the audit report and a list of all criticisms made by the certified public accountant conducting the audit and any response of any member of the board of directors or any officer of the savings bank, shall be personally served or sent by certified mail to all members of the board of directors.
214.76(3)
(3) A copy of the audit report, including a balance sheet of the savings bank on the date of the audit and a statement of income and expenses of the savings bank during the year ending with the date of the audit and the written summary prepared for the board of directors shall be filed with the division within 60 days after the date on which the savings bank received the audit report. The division may, for good cause shown, extend the filing date for up to 60 additional days.
214.76(4)
(4) The audit report filed with the division shall be certified by the certified public accountant conducting the audit. If a savings bank fails to cause an audit to be made, the division shall order an audit to be made by an independent certified public accountant at the savings bank's expense. Instead of the audit required under
sub. (1), the division may accept an audit or portion of an audit made exclusively for a deposit insurance corporation or for a financial regulator of another state if the home office of the savings bank is located in that state.
214.76(5)(a)(a) Annually, no later than February 1, a savings bank shall file with the division a report of its activities of the preceding calendar year, upon forms prescribed by the division. The report shall include all of the following:
214.76(5)(a)1.
1. A verified copy of a statement of condition as of the close of December 31 of the preceding calendar year.
214.76(5)(a)2.
2. A statement of its operations during the preceding calendar year.
214.76(5)(b)
(b) A savings bank shall include with its annual report a copy of a statement of condition and operations as of the end of the savings bank's most recent fiscal year, which shall be available to the public. The statement shall contain such information as the division requires.
214.76 Cross-reference
Cross-reference: See also ch.
DFI-SB 4, Wis. adm. code.
214.765
214.765
Unsafe and unsound practices; orders of prohibition and removal. 214.765(1)
(1) A violation of
subch. VI or
VII or s.
214.34,
214.59 or
214.76, or the failure to comply with recommendations of an examination report of the division within 60 days after the date of issuance of the report or within any other period the division specifies, shall be considered an unsafe and unsound practice and creates an unsafe and unsound condition in the savings bank. A savings bank or a person affiliated with a savings bank who violates these provisions shall be subject to a forfeiture under
s. 214.935 and to other enforcement powers of the division under this subchapter,
subch. XII and rules of the division.
214.765(2)
(2) Continued violation of any provision in
sub. (1) after the division issues an order to correct shall subject the members of the board of directors of the savings bank to removal from the board and to a permanent order of prohibition under
s. 214.91.
214.765(3)
(3) The division shall promulgate rules to implement this section.
214.765 History
History: 1991 a. 221;
1995 a. 27.
214.765 Cross-reference
Cross-reference: See also s.
DFI-SB 2.04, Wis. adm. code.
214.772
214.772
Foreign savings banks. 214.772(1)
(1) In this section, "foreign savings bank" means a savings bank organized under the laws of another state or territory. "Foreign savings bank" does not include a federal savings bank.
214.772(2)
(2) A foreign savings bank is doing business in this state if it accepts funds for deposit accounts in this state, takes loan applications in this state in the regular course of business or otherwise engages in any activity which would, if engaged in by a domestic entity, require that entity to be organized under this chapter as a savings bank. A foreign savings bank is not considered to be doing business in this state solely because it does one or more of the following:
214.772(2)(a)
(a) Makes a mortgage loan in this state, purchases a loan secured by real property located in this state or otherwise acquires an interest in real property located in this state.
214.772(2)(b)
(b) Holds or disposes of any interest in real property located in this state.
214.772(2)(c)
(c) Pursues its rights or remedies in this state as the owner of real estate or under the terms of a real estate mortgage or similar security interest.
214.772(3)
(3) The activities in this state that a foreign savings bank may engage in are limited to those activities that a savings bank may engage in, and are subject to the laws of this state to the same extent as those activities conducted by a savings bank. A foreign savings bank may not do business in this state without a certificate of authority issued under this section.
214.772(4)(a)(a) An application by a foreign savings bank for a certificate of authority to do business in this state shall be accompanied by a nonrefundable $500 application fee and shall contain all of the following:
214.772(4)(a)1.
1. A certified copy of the foreign savings bank's articles of incorporation and bylaws.
214.772(4)(a)2.
2. The name and address of the person in this state who will serve as the foreign savings bank's agent under
sub. (6).
214.772(4)(a)3.
3. Satisfactory evidence that the foreign savings bank is in good standing with the regulatory authority responsible for its supervision in the jurisdiction in which the foreign savings bank is organized.
214.772(4)(a)4.
4. Satisfactory evidence of insurance by a deposit insurance corporation.
214.772(4)(b)
(b) Upon receipt of a completed application and the required fee, the division may issue a certificate of authority. The certificate of authority may be subject to specific conditions that the division believes necessary to adequately safeguard the interests of the residents of this state. The division may not issue a certificate of authority to do business in this state unless all of the following conditions are met:
214.772(4)(b)1.
1. The foreign savings bank is in sound financial condition and entitled to public confidence, and the division is satisfied that the foreign savings bank will conduct its business in this state in accordance with the laws of this state.
214.772(4)(b)2.
2. The deposit accounts of the foreign savings bank are insured by a deposit insurance corporation.
214.772(4)(c)
(c) The division may revoke a certificate of authority issued under this section if any of the following occurs:
214.772(4)(c)1.
1. The foreign savings bank fails to conduct its business in this state in accordance with the laws of this state.
214.772(4)(c)2.
2. The foreign savings bank refuses to permit the division to conduct an examination, or fails to pay applicable fees.
214.772(4)(c)3.
3. The division determines that the foreign savings bank is in an unsafe condition or that its continued operation in this state is otherwise inconsistent with the best interests of the residents of this state.
214.772(5)
(5) A foreign savings bank doing business in this state shall be examined by the division as provided under
s. 214.725, audited under
s. 214.76 and assessed fees as provided under
s. 214.715 (1) (h), together with any out-of-state travel expenses incurred in the course of an examination or audit. The division may accept an examination to the extent permitted under
s. 214.725 (1) (b) and may accept all or part of an audit prepared on behalf of the regulatory authority responsible for the supervision of the foreign savings bank in the jurisdiction in which the foreign savings bank is organized.
214.772(6)
(6) A foreign savings bank doing business in this state shall maintain on file with the division the name and address of a person in this state who is authorized to receive legal process on behalf of the foreign savings bank. The division shall maintain a current record of each person so designated. The record of the division shall be conclusive evidence of the authority of the person whose name appears in the record to receive process on behalf of the foreign savings bank.
214.772(7)
(7) If the laws of another jurisdiction prohibit a savings bank from doing business in that jurisdiction, a foreign savings bank organized under the laws of that jurisdiction may not be authorized to do business in this state. If the laws of another jurisdiction require the posting of securities or impose other additional requirements as a condition of permitting a savings bank to do business in that jurisdiction, the division may impose similar requirements on a foreign savings bank organized under the laws of that jurisdiction before issuing the foreign savings bank a certificate of authority to do business in this state.
214.775
214.775
Procedure upon the impairment of capital. If the division finds from a report, examination or other source that a savings bank's capital is impaired, the division may do any of the following:
214.775(1)
(1) Direct the board of directors to do any of the following:
214.775(1)(a)
(a) Require stockholders to contribute an amount at least sufficient to eliminate the impairment.
214.775(1)(b)
(b) Reduce the amount of additional paid-in capital by at least the amount of the impairment and allocate the reduction to undivided profits or reserves to absorb the loss that created the impairment.
214.775(2)
(2) Take custody of the savings bank under
subch. XI, establish a conservatorship and proceed to merge, sell or otherwise dispose of the savings bank in a manner that will remove the capital impairment, remove operating losses and restore compliance with capital requirements.
214.775(3)
(3) Declare the stock worthless and order the directors to cancel the stock or order the directors to sell, merge or otherwise restructure the savings bank in a manner that will remove the capital impairment, eliminate operating losses and restore compliance with capital requirements.
214.775 History
History: 1991 a. 221;
1995 a. 27.
214.78(1)(1) The review board shall do all of the following:
214.78(1)(a)
(a) Advise the division on matters related to this chapter.
214.78(1)(b)
(b) Review the acts, orders and determinations of the division.
214.78(1)(c)
(c) Act on matters pertaining to this chapter that may be submitted to it by the division.
214.78(1)(d)
(d) Perform other review functions relating to this chapter.
214.78(1)(e)
(e) Conduct hearings and take testimony, and subpoena and swear witnesses at such hearings. The review board shall have the subpoena powers under
s. 885.01 (4).
214.78(2)
(2) An interested party may appear at a proceeding of the review board and may participate in the examination of witnesses and present evidence.
214.78(3)
(3) A person who subpoenaes a witness shall advance the fees and mileage of the witness. Witness fees shall be the same as fees under
s. 814.67 (1) (b) and
(c). The fees of witnesses who are called by the review board in the interests of the state shall be paid by the state upon presentation of proper vouchers approved by the chairperson of the review board and charged to the appropriation under
s. 20.144 (1) (g).
214.78 History
History: 1991 a. 221;
1995 a. 27.
214.78 Cross-reference
Cross-reference: See also ch.
DFI-SB 20, Wis. adm. code.
214.785
214.785
Review of acts, orders or determinations. 214.785(1)(1) Any interested person or a savings bank aggrieved by any act, order or determination of the division, which relates to savings banks may, within 20 days after receipt or service of a copy of the act, order or determination, file a written notice requesting the review board's review of the division's act, order or determination. The sole review of the division's decision shall be to determine if the division acted within the scope of the division's authority, has not acted in an arbitrary or capricious manner and that the act, order or determination of the division is supported by substantial evidence in view of the entire record as submitted. The review of applications for new savings banks, branch offices or relocation of offices shall be based exclusively on the record and new evidence may not be taken by the review board. Applications under this subsection shall be considered and disposed of as speedily as possible.
214.785(2)
(2) A determination of the review board shall be subject to review under
ch. 227. If an act, order or determination of the division is reversed or modified by the review board, the division shall be considered to be a person aggrieved and directly affected by the decision under
s. 227.53 (1).
214.785(3)
(3) A member of the review board may not act on any matter involving a savings bank or savings bank holding company of which the member is an officer, director, employee or agent.
214.785 History
History: 1991 a. 221;
1995 a. 27.
214.785 Cross-reference
Cross-reference: See also ch.
DFI-SB 20, Wis. adm. code.
CUSTODY AND CONSERVATORSHIP
214.82
214.82
Division's authority to take custody and appoint a conservator or a receiver. 214.82(1)
(1) The division may take custody of and appoint a conservator for the property, liabilities, books, records, business and assets of a savings bank for any of the purposes under
s. 214.825 if any of the following conditions exists:
214.82(1)(a)
(a) The savings bank fails to produce an annual audited financial statement, after receiving one extension from the division.
214.82(1)(b)
(b) The savings bank's books and records, after at least 2 consecutive notices from the division spanning at least 2 consecutive calendar quarters, are in an inaccurate and incomplete condition to the extent that the division is unable to determine the financial condition of the savings bank or the details or purpose of any transaction that may materially affect the savings bank's financial condition.
