214.49(9)
(9) In an equity interest in, an insurance company or an insurance holding company organized to provide insurance for savings banks and persons affiliated with savings banks solely to the extent that ownership is a prerequisite to obtaining directors' and officers' insurance or blanket bond insurance for the savings bank through the company.
214.49(9m)
(9m) In shares of stock, whether purchased or otherwise acquired, in a corporation acquiring, placing and operating remote service units under
s. 214.04 (21).
214.49(10)
(10) In equity or debt securities or instruments of a service corporation subsidiary of the savings bank.
214.49(12)
(12) With the prior written approval of the division, in financial futures transactions, financial options transactions, forward commitments or other financial products for the purpose of reducing, hedging or otherwise managing its interest rate risk exposure.
214.49(13)
(13) In a subsidiary organized to exercise corporate fiduciary powers under
ch. 112.
214.49(14)
(14) In marketable investment securities, including marketable corporate debt instruments rated in one of the 4 highest categories by a nationally recognized rating service, if the total amount of those securities of any one issuer or obligor does not exceed 10% of the savings bank's capital. The aggregate amount of investments under this subsection may not exceed 10% of the savings bank's total assets, unless the savings bank has received written authorization from the division.
214.49(15)
(15) In any other investment authorized by rule of the division.
214.495
214.495
Lien priority; advances. 214.495(1)
(1) A mortgage taken and recorded by a savings bank shall have priority over all liens, except tax and special assessment liens and liens under
ss. 292.31 (8) (i) and
292.81, upon the mortgaged premises and the buildings and improvements thereon, that are filed after the recording of the mortgage.
214.495(2)
(2) Any additional advance made to a borrower, if the mortgage and mortgage note provides for additional advances, may not exceed an amount specified in the mortgage.
214.50
214.50
General loan contract provisions. A loan and an agreement for securing the loan shall be evidenced by one or more written instruments, consistent with sound lending practices. A savings bank shall record an instrument if it is necessary to establish priority over the claim of any 3rd party.
214.50 History
History: 1991 a. 221.
214.502
214.502
Nonconforming loans. Notwithstanding
s. 214.48 (3), a savings bank may make loans secured by real property used primarily for residential or farming purposes, even if those loans do not comply with one or more of the requirements under those provisions, if the total amount of loans made under this section does not exceed 5% of the savings bank's total assets.
214.502 History
History: 1997 a. 144.
214.505
214.505
Modification agreements. Except as provided in a loan contract, a savings bank may enter into a written agreement with a borrower to modify the terms of a loan that describe the amount, time or method of the payments, the interest rate or any other provision of the loan contract. The loan contract, security instrument and lien priority are not affected by the modification, even if the modification was not provided for in the loan contract, unless the modification increases the total amount to be loaned under the loan contract.
214.505 History
History: 1991 a. 221.
214.507
214.507
Customer access to credit reports. If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in
s. 705.01 (3), shall provide that individual, at no additional charge, with a copy of any written credit report which is held by the financial institution, which relates to that individual and for which a fee is imposed.
214.507 History
History: 1993 a. 425.
214.509
214.509
Record search. A savings bank is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting these expenses and costs or unless the person seeking the production is a government unit, as defined in
s. 108.02 (17). The expenses and costs shall be paid by persons seeking such production. If a savings bank is entitled to reimbursement under this section, a savings bank may not be required to produce books, papers, records and other data in response to legal process unless the expenses and costs, identified in an itemized invoice to be provided by the savings bank, are paid or unless payment is tendered to the savings bank in cash or by certified check or draft.
214.509 History
History: 1995 a. 336.
214.51
214.51
Sale, assignment, and servicing of loans and contracts. 214.51(1)(1) A savings bank may sell a loan or a participating interest in a loan with or without recourse. The division may by rule adopt limitations on the sale of loans except loans sold to agencies of the United States or this state or to another government-sponsored agency if approved by the division.
214.51(2)
(2) A savings bank may contract to service a loan or a participating interest in a loan, subject to rules of the division.
214.51(3)
(3) A savings bank may sell and assign, with or without recourse, any certificate of sale, defaulted loan or defaulted real estate contract to any person eligible to purchase it.
214.51 History
History: 1991 a. 221;
1995 a. 27.
214.515
214.515
Purchase of real estate at forced sale. A savings bank may purchase at any sheriff's or other judicial sale any real estate upon which the savings bank has any mortgage, lien or other encumbrance, or in which the savings bank has any other interest. The savings bank may repair, insure, improve, sell, lease, preserve, mortgage or dispose of that real estate.
214.515 History
History: 1991 a. 221.
214.515 Cross-reference
Cross-reference: See also ch.
DFI-SB 11, Wis. adm. code.
214.52
214.52
Purchase of real estate for office and rental purposes. 214.52(1)(1) A savings bank may acquire and hold real estate on which a building exists or may be built that is suitable for the transaction of the savings bank's business. A savings bank may own all or part of the stock, shares or interest in a corporation, limited liability company, association or trust engaged solely in holding all or part of that real estate. A savings bank may derive rents from any portion of a building not required for the savings bank's own use.
214.52(2)
(2) The amount invested under
sub. (1) may not exceed 100% of a savings bank's capital.
214.52(3)
(3) Unless prior written approval of the division is obtained, a savings bank may not purchase, lease or acquire a site for an office building or an interest in real estate from an officer, director, employee, from a stockholder holding more than 10% of the stock of the savings bank, or from any firm, corporation, entity, or family in which an officer, director, employee or stockholder holding more than 10% of the stock of a savings bank has a direct or indirect interest.
214.525
214.525
Prohibited loans. A savings bank may not make a loan to a person owning 10% or more of its stock, an affiliated person, agent, or attorney of the savings bank, either individually or as an agent or partner of another, except under rules of the division and regulations of a deposit insurance corporation.
214.525 History
History: 1991 a. 221;
1995 a. 27.
214.525 Cross-reference
Cross-reference: See also s.
DFI-SB 3.06, Wis. adm. code.
214.53
214.53
Effect of unauthorized investments. 214.53(1)
(1) If a savings bank makes a loan or other investment that is not authorized under this subchapter, it shall be due and payable according to its terms and the obligation of the loan is not impaired.
214.53(2)
(2) A director or officer of a savings bank may not knowingly participate in or assent to, or knowingly permit an officer, employee or agent of the savings bank to make, an investment that is not authorized by this subchapter.
214.53(3)
(3) The division may require a director or officer of a savings bank who knowingly participates in or assents to, or who knowingly permits an officer, employee or agent of the savings bank to make, an investment that is not authorized by this subchapter to obtain an indemnity bond, insurance, or collateral sufficient to indemnify the savings bank against damages that the savings bank may sustain as a result of the investment. If an unauthorized investment, the amount considered sufficient to indemnify the savings bank shall be the difference between the book value and the market value of the investment at the time the division determines that the investment is unauthorized. If an unauthorized loan, the amount considered sufficient to indemnify the savings bank shall be the difference between the book value of the loan and the amount of the loan that could have been made under this subchapter. If an unauthorized investment is sold or disposed of without recourse, the division shall release all or part of the indemnity after deducting any loss. If the balance of an unauthorized loan is reduced to an amount that would permit the loan to be made under this subchapter, the indemnity shall be released. In making a determination under this subsection, the division may order an independent appraisal at the savings bank's expense.
214.53 History
History: 1991 a. 221;
1995 a. 27.
214.54
214.54
Loans to one borrower. 214.54(1)
(1) Except as provided in
sub. (2) and
s. 214.49 (4)
, the total of outstanding loans and extensions of credit, both direct and indirect, made by a savings bank to a single person shall be subject to limits established by rule of the division, but may not exceed 15% of the savings bank's capital.
214.54(2)
(2) Total outstanding loans and extensions of credit, both direct and indirect, made by a savings bank to a single person may exceed the 15% limit under
sub. (1), but may not exceed 25% of the savings bank's capital, if all loans or extensions of credit that exceed the 15% limit are at least 100% secured by readily marketable collateral having a market value that may be determined by reliable and continuously available price quotations.
214.54(3)
(3) Notwithstanding
subs. (1) and
(2), a savings bank may make loans to one borrower under any of the following circumstances:
214.54(3)(a)
(a) For any purpose if the total amount loaned does not exceed $500,000.
214.54(3)(b)
(b) To develop domestic residential housing units if the total amount loaned does not exceed the lesser of $30,000,000 or 30% of the savings bank's capital and if all of the following conditions are met:
214.54(3)(b)1.
1. The purchase price of each single-family dwelling unit in a development financed under this paragraph does not exceed $500,000.
214.54(3)(b)3.
3. Loans made under this paragraph to all borrowers do not, in aggregate, exceed 150% of the savings bank's capital.
214.54(3)(b)4.
4. Loans under this paragraph comply with all applicable loan-to-value requirements.
214.54(4)
(4) A savings bank's loans to one borrower to finance the sale of real property acquired in satisfaction of debts may not exceed 50% of the savings bank's capital.
214.54(5)
(5) A loan or extension of credit granted to one person, the proceeds of which are used for the direct benefit of a 2nd person, shall be considered to be a loan or extension of credit to the 2nd person as well as the first person.
214.54(6)
(6) The total liabilities of a partnership, pool, syndicate or joint venture shall include the liabilities of the members of the entity.
214.54(7)
(7) For a loan authorized under
sub. (2), a savings bank shall institute procedures to ensure that collateral fully secures an outstanding loan or extension of credit at all times.
214.54(8)
(8) If collateral values fall below 100% of an outstanding balance of a loan or extension of credit to the extent that the loan or extension of credit does not comply with
subs. (1) and
(2), the savings bank shall bring the loan into conformance within 15 business days unless a judicial proceeding or other extraordinary occurrence prevents the savings bank from taking action.
214.54(9)
(9) This section does not apply to loans or extensions of credit to the United States or its agencies or to this state or its agencies.
214.54 History
History: 1991 a. 221;
1995 a. 27.
214.545
214.545
Rules. The division shall promulgate rules to determine permissible levels of investment and permissible concentrations of assets for savings banks that apply to all lending and investment authority under this subchapter. The rules shall give due regard to capital adequacy, operating income, underwriting standards, risk inherent in the investment or loan, and competitive parity with other financial institutions.
214.545 History
History: 1991 a. 221;
1995 a. 27.
DEPOSIT ACCOUNTS
214.57
214.57
Deposit accounts. A savings bank may establish deposit accounts. Deposit accounts shall be payable without notice, unless the contract of deposit provides otherwise.
214.57 History
History: 1991 a. 221.
214.575
214.575
Deposit accounts subject to liens. 214.575(1)
(1) A deposit account shall be subject to a lien for the payment of charges that may accrue on the account under this chapter.
214.575(2)
(2) A deposit account shall be subject to a debt offset for the debts of the deposit account holder to the savings bank.
214.575(3)
(3) Deposit accounts may not be assessed for any debts or losses of the savings bank.
214.575 History
History: 1991 a. 221.
214.58
214.58
Payment of interest. 214.58(1)(1) The board of directors shall determine the rate and amount of interest to be paid on or credited to deposit accounts. The board of directors may establish reasonable classifications of accounts based on the types of accounts, the length of time accounts are continued in effect, the size of initial deposits into accounts, the minimum balances of accounts required for payment of interest, the frequency and extent of the activity on accounts, or on other classifications the division may approve.
214.58(2)
(2) The board of directors shall determine by resolution the method of calculating the amount of interest on deposit accounts and the date on which interest is to be paid or credited.
214.58 History
History: 1991 a. 221;
1995 a. 27.
214.585
214.585
Holders of deposit accounts. Deposit accounts may be held as follows:
214.585(1)
(1) By an individual in his or her own right, regardless of age, or by 2 or more individuals.
214.585(2)
(2) By a fiduciary if authorized by law.
214.585(3)
(3) By a government or governmental instrumentality if authorized by law.
214.585(5)
(5) In any other form receiving the prior written approval of the division.
214.585 History
History: 1991 a. 221;
1995 a. 27.
214.59
214.59
Prohibited activities. 214.59(1)
(1) A savings bank may not participate, directly or indirectly, in the sale or transfer of any equity or debt security or instrument of an affiliate, its parent savings bank holding company or an affiliate of the savings bank holding company.
214.59(2)
(2) A shareholder, director, officer, employee or agent of the savings bank may not participate, directly or indirectly, in any sale or transfer described in
sub. (1), nor may that person allow any other person to do so at an office of the savings bank or any office of the savings bank's subsidiaries or service corporations.
214.59 History
History: 1991 a. 221.
214.592
214.592
Financially related services tie-ins. In any transaction conducted by a savings bank, a savings bank holding company, or a subsidiary of either with a customer who is also a customer of any other subsidiary of any of them, the customer shall be given a notice in 12-point boldface type in substantially the following form:
