214.685(8)(i)
(i) The distribution, issuance, sale and subscription of capital stock and additional paid-in capital.
214.685(8)(j)
(j) Any other requirements for converting a mutual savings bank to a stock savings bank that the division considers to be necessary.
214.685 History
History: 1991 a. 221;
1995 a. 27,
103.
214.685 Cross-reference
Cross-reference: See also ch.
DFI-SB 21, Wis. adm. code.
SUPERVISION
214.715
214.715
Powers of the division. 214.715(1)
(1) The division shall do all of the following:
214.715(1)(a)
(a) Supervise and control savings banks and savings bank holding companies.
214.715(1)(b)
(b) Employ persons necessary to administer this chapter.
214.715(1)(c)
(c) Exercise the rights, powers and duties under this chapter or any related chapter.
214.715(1)(e)
(e) Submit an annual report to the governor and the legislature regarding the work of the division under this chapter.
214.715(1)(f)
(f) Commence an action to enforce any law of this state that applies to savings banks, service corporations, savings bank subsidiaries, affiliates or savings bank holding companies, including the enforcement of any obligation of the officers, directors, agents or employees of these entities.
214.715(1)(g)
(g) Prescribe a uniform manner for maintaining the books and records of a savings bank.
214.715(1)(h)
(h) Establish a reasonable fee structure, subject to approval of the review board, for savings banks and savings bank holding companies and for their service corporations and subsidiaries. The fees may include annual fees, application fees, regular and special examination fees and other fees that relate to the division's responsibilities under this chapter and that are directly attributable to the entities operating under this chapter. The division may assess, bill and collect fees established under this paragraph. The amounts collected by the division shall be used for the expenses of the division.
214.715(2)
(2) Employees of the division may not be subject to any civil liability or penalty, or to any criminal prosecution, for any error in judgment or discretion made in good faith and upon reasonable grounds in any action taken or omitted by the employee in an official capacity.
214.715(3)
(3) If it appears to the division that a savings bank is conducting its business in violation of this chapter, the division may report the facts to the department of justice which may bring an action to revoke the certificate of incorporation of the savings bank.
214.715(4)
(4) A savings bank that intends to move its home office or a branch office shall make an application to the division. In approving or denying the application for relocation, the division shall determine the need for relocation and determine whether undue harm or injury would be caused to any savings bank doing business in the area or vicinity of the proposed relocation.
214.715 Cross-reference
Cross-reference: See also
DFI-SB, Wis. adm. code.
214.72
214.72
Prohibited business relationships. 214.72(1)(a)
(a) "Business relationship" means a financial interaction with a savings bank, including obtaining and renegotiating a loan; maintaining a deposit account or escrow account; obtaining and using a credit card; being a trustee or beneficiary of an estate or trust held by the savings bank; and renting a safe deposit box.
214.72(1)(am)
(am) "Department" means the department of financial institutions.
214.72(1)(b)
(b) "Financial regulator" means the department secretary and deputy secretary, and an administrator, a supervisor of data processing, legal counsel and a financial institution examiner employed by the department and includes any member of a financial regulator's immediate family, as defined in
s. 19.42 (7).
214.72(2)(a)(a) A financial regulator may not request, accept or enter into a business relationship with a savings bank unless the business relationship is in the savings bank's ordinary course of business, is negotiated at arms' length and the terms are no more favorable than those available to members of the general public in like circumstances.
214.72(2)(b)
(b) A financial regulator may not be an officer, director, employee or agent of a savings bank.
214.72(2)(c)
(c) A financial regulator may not voluntarily acquire equity securities in a savings bank or a savings bank holding company. A financial regulator shall transfer equity securities which he or she owns within 90 days after commencement of employment as a financial regulator or within 90 days after acquiring ownership by inheritance or gift.
214.72(2)(d)
(d) Notwithstanding
par. (a), a financial regulator may not obtain a new loan from or renegotiate, refinance, renew, extend or modify an existing loan with a savings bank. A financial regulator may exercise contract rights under an existing variable rate, escalator or balloon-type mortgage. A financial regulator is not required to terminate a loan existing at the time he or she becomes a financial regulator.
214.72(3)
(3) Within 30 days after commencing employment as a financial regulator and at least once each year, each financial regulator, for himself or herself and covering his or her immediate family, shall complete a written, sworn report disclosing the nature of all business relationships with savings banks on forms prescribed by the department. Each report shall be reviewed by the department, except that the secretary's and deputy secretary's report shall be reviewed by the review board. The reviewers shall determine if any business relationship is or appears improper and, if so, may direct the termination of that business relationship within a reasonable, prescribed time period.
214.72 History
History: 1991 a. 221;
1995 a. 27.
214.725(1)(a)(a) Except as provided in
par. (b), at least once every 18 months and more often if necessary, the division shall examine the books, records, operations and affairs of a savings bank. In the course of the examination, the division may also examine in the same manner any entity, company or individual that the division determines may have a relationship with the savings bank or a savings bank holding company, savings bank subsidiary, service corporation or affiliate of the savings bank, if the relationship may adversely affect the affairs, activities and safety and soundness of the savings bank.
214.725(1)(b)
(b) In lieu of any examination required under
par. (a), the division may accept any examination that may have been made of any savings bank within a reasonable period by the federal deposit insurance corporation, any federal agency with primary responsibility for supervising savings banks chartered under the laws of the United States, or any agency of another state with primary responsibility for supervising savings banks chartered under the laws of that state.
214.725(2)
(2) The division shall consider it to be necessary to conduct an examination more often than every 18 months if a required report from a savings bank indicates a material change in financial condition or a material violation of a state or federal law, of a federal regulation or of a rule of the division. If that condition is grounds for taking custody of the savings bank, the examination shall be initiated within 10 business days.
214.725(3)
(3) An examination shall include a review of all of the following:
214.725(3)(a)
(a) Quality of financial condition, including safety and soundness and investment and loan quality.
214.725(3)(b)
(b) Compliance with this chapter and other applicable state laws and rules and federal laws and regulations.
214.725(3)(d)
(d) Overall safety and soundness of the savings bank, its parent savings bank holding company, savings bank subsidiaries, service corporations and affiliates.
214.725(3)(e)
(e) Remedial actions required to correct and to restore compliance with applicable statutes, regulations, rules and orders.
214.725(3)(f)
(f) Any other matter the division considers to be appropriate.
214.725(4)
(4) If a savings bank, its savings bank holding company or any of its savings bank subsidiaries or service corporations has not been audited at least once in the 12 months before the examination date under
sub. (1) (a), notwithstanding
sub. (1) (b), the division may order an audit of the entity's books and records to be made by an independent certified public accountant, selected by the division, who has experience in financial institution audits. The cost of the audit shall be paid for by the entity being audited.
214.725(5)
(5) Employees of the division or other designated agents may administer oaths and examine and take and preserve testimony under oath as to anything in the affairs or ownership of the savings bank or the entity examined.
214.725(6)
(6) An examination report under
s. 214.735 or a report based upon an examination accepted under
sub. (1) (b), may contain directives to correct violations or to perform acts to ensure the safety and soundness of the savings bank or the entity examined.
214.725(7)
(7) If a savings bank fails to submit to an examination, the division shall report that failure to the attorney general, who shall institute proceedings to revoke its certificate of incorporation.
214.735
214.735
Examination report. Upon completion of an examination, the division shall provide an examination report to the board of directors of the savings bank or other entity examined. Each director shall read the report and shall sign an affidavit affirming that the director has read and understands the report. The affidavits shall be retained by the savings bank or entity examined and may be examined by the division.
214.735 History
History: 1991 a. 221;
1995 a. 27.
214.74
214.74
Orders of the division. 214.74(1)
(1) If the affairs of the savings bank, savings bank subsidiary, service corporation or affiliate or savings bank holding company are not being conducted in accordance with this chapter, the division may require the directors, officers and employees to take necessary corrective action. If the necessary corrective action is not taken, the division may issue an order to the directors of the entity, to be served personally or by certified mail, specifying a date for the performance of the corrective action.
214.74(2)
(2) If the order contains a finding that the business of the savings bank or savings bank holding company is being conducted in a fraudulent, illegal, unsafe or unsound manner or that the violation or the continuance of the practice to be corrected may cause insolvency, substantial dissipation of assets or earnings or the impairment of capital, the savings bank or savings bank holding company shall comply with the order immediately, unless the order is modified or withdrawn by the division or modified or terminated by a court. Notwithstanding
sub. (3), the division may apply to the circuit court in the county in which the home office of the savings bank or savings bank holding company is located for enforcement of an order.
214.74(3)
(3) If a hearing before the review board has not been requested within 20 days after service of an order, the division may, at any time within 90 days after the date specified in the order for an action to be taken or discontinued, commence an action in the circuit court of the county in which the home office of the savings bank or savings bank holding company is located to compel the directors, officers or employees to take required corrective action. If a hearing is requested pursuant to
s. 214.78, the division may institute suit within 90 days after a determination by the review board.
214.74(4)
(4) This section is in addition to the enforcement authority of the division under
subch. XII.
214.74 History
History: 1991 a. 221;
1995 a. 27.
214.74 Cross-reference
Cross-reference: See also ss.
DFI-SB 2.03 and
2.04, Wis. adm. code.
214.745
214.745
Division's notice to members or stockholders. The division may prepare a statement of the condition of the savings bank, affiliate, savings bank subsidiary, service corporation or savings bank holding company and may mail the statement to the members or stockholders or may publish the statement as a class 1 notice under
ch. 985. The expense of a mailing or publication shall be paid by the savings bank, affiliate, savings bank subsidiary, service corporation or savings bank holding company.
214.745 History
History: 1991 a. 221;
1995 a. 27.
214.75
214.75
Record keeping and retention. 214.75(1)
(1) A savings bank shall maintain books and records, as required by the division, in accordance with generally accepted accounting principles and the requirements of its deposit insurance corporation. All books and records shall be current, complete, organized and accessible to the division's agents and examiners and to the savings bank's auditors and accountants.
214.75(2)
(2) A savings bank employing an outside data processing service shall inform the division at the initiation, renewal or changing of a contract for data processing services with an outside data processing service. The contract shall be submitted to the division at least 60 days before its implementation. The contract shall provide that the records maintained shall at all times be available for examination and audit by the division. A savings bank shall implement internal control and security measures for its data processing activities.
214.75(3)
(3) The division may examine any data processing center that provides data processing or related services to a savings bank as often as the division examines the savings bank it serves.
214.75(4)
(4) The division shall by rule prescribe standards by which savings banks must retain records and may destroy those records. Liability may not accrue against the savings bank, the division or this state for destruction of records according to rules of the division promulgated under this subsection. In an action in which records of the savings bank may be called in question or demanded, a showing of compliance with the division's standards shall be sufficient to excuse any inability to produce the records.
214.75(5)(a)(a) A savings bank may cause records kept by the savings bank to be recorded, copied or reproduced by any photostatic, photographic or miniature photographic process or by optical imaging if the process employed correctly, accurately and permanently copies, reproduces or forms a medium for copying, reproducing or recording the original record on a film or other durable material. A savings bank may thereafter dispose of the original record. This subsection is applicable to federal savings banks if it does not contravene federal law.
214.75(5)(b)
(b) Any photographic, photostatic or miniature photographic copy or reproduction or copy reproduced from a film record or any copy of a record generated by optical disk storage of a savings bank record shall be considered to be an original record for all purposes and shall be treated as an original record in all courts or administrative agencies for the purpose of its admissibility in evidence. A facsimile, exemplification or certified copy of a photographic copy or reproduction, copy reproduced from a film record or copy generated from optical disk storage of a record shall, for all purposes, be considered to be a facsimile, exemplification or certified copy of the original record.
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
214.76
Annual audit requirement. 214.76(1)
(1) Except as provided in
sub. (2), the board of directors of a savings bank shall hire a certified public accountant licensed or certified under
ch. 442 or other qualified person to conduct a comprehensive annual audit of the records, accounts, and affairs of the savings bank.
214.76(2)
(2) The board of directors of a savings bank may appoint an auditing committee of one or more capable persons to annually audit the records, accounts, and cash of the savings bank and to verify customer accounts. Verification procedures shall be conducted according to the savings bank's auditing program or the rules of the division.
