186.094(1)
(1) An officer or employee of the credit union whom the director or officer believes in good faith to be reliable and competent in the matters presented.
186.094(2)
(2) Legal counsel, certified public accountants licensed or certified under
ch. 442, or other persons as to matters the director or officer believes in good faith are within the person's professional or expert competence.
186.094(3)
(3) In the case of reliance by a director, a committee of the board of directors of which the director is not a member if the director believes in good faith that the committee merits confidence.
186.094 History
History: 1987 a. 13;
2001 a. 16.
186.095
186.095
Consideration of interests in addition to members' interests. In discharging his or her duties to the credit union and in determining what he or she believes to be in the best interests of the credit union, a director or officer may, in addition to considering the effects of any action on members, consider the following:
186.095(1)
(1) The effects of the action on employees, suppliers, members of the credit union and the public.
186.095(2)
(2) The effects of the action on communities in which the credit union operates.
186.095(3)
(3) Any other factors the director or officer considers pertinent.
186.095 History
History: 1987 a. 13;
1995 a. 151.
186.096
186.096
Limited liability of directors and officers. 186.096(1)(1)
Limited liability. Except as provided in
subs. (2) and
(3), a director or officer is not liable to the credit union, its members or creditors, or any person asserting rights on behalf of the credit union, its members or creditors, or any other person, for damages, settlements, fees, fines, penalties or other monetary liabilities arising from a breach of, or failure to perform, any duty resulting solely from his or her status as a director or officer, unless the person asserting liability proves that the breach or failure to perform constitutes any of the following:
186.096(1)(a)
(a) A willful failure to deal fairly with the credit union or its members in connection with a matter in which the director or officer has a material conflict of interest.
186.096(1)(b)
(b) A violation of criminal law, unless the director or officer had reasonable cause to believe his or her conduct was lawful or no reasonable cause to believe his or her conduct was unlawful.
186.096(1)(c)
(c) A transaction from which the director or officer derived an improper personal profit.
186.096(2)
(2) Exceptions. Except as provided in
sub. (3), this section does not apply to any of the following:
186.096(2)(b)
(b) A civil or criminal proceeding, other than a proceeding described in
par. (a), brought by or on behalf of any governmental unit, authority or agency.
186.096(2)(c)
(c) A proceeding brought by any person for a violation of state or federal law where the proceeding is brought pursuant to an express private right of action created by state or federal statute.
186.096(3)
(3) Applicability to governments. Subsection (2) (b) and
(c) does not apply to a proceeding brought by a governmental unit, authority or agency in its capacity as a private party or contractor.
186.096 History
History: 1987 a. 13;
1995 a. 151.
186.096 Annotation
Cooperative indemnification. La Rowe and Weine. WBB Sept. 1988.
186.098(1)(1)
Loan approval. The credit union may make loans to members upon terms approved by the credit committee, loan officer or board of directors.
186.098(2)
(2) Appeals. A loan applicant may appeal in writing the decision of the credit committee or a loan officer to the president and may appeal in writing the president's decision to the board of directors.
186.098(3)
(3) Loan applications. Every application for a loan shall be documented and acknowledged by the member and shall state the security or collateral offered, if any.
186.098(4)
(4) Board approval. The board of directors or its designee shall act on the applications of credit committee members and loan officers.
186.098(5)
(5) Limits. No loans shall be made to any member in excess of 10 percent of the credit union's assets, plus the balance of the member's share account pledged as security for the loan. This subsection shall not apply to loans made to member credit unions by a corporate central credit union.
186.098(6)
(6) Policies. The board of directors shall determine policy regarding all of the following:
186.098(6)(c)
(c) Loan approval if a director, officer, credit committee member or employee provides security as a comaker, guarantor, endorser or other form of surety.
186.098(7)
(7) Surety repayment evidence. An endorser, comaker, guarantor or other surety shall provide the credit union with evidence of ability to repay the obligation of the member.
186.098(8)(a)(a) The credit committee or a loan officer may approve, upon its own motion or upon application by a member, an extension of credit, and loans may be granted to the member within the limit of the extension of credit. The credit committee or loan officers shall review all extensions of credit in accordance with written policies adopted by the board of directors.
186.098(8)(b)
(b) A credit union may utilize credit cards, including point-of-purchase credit, if the credit committee or loan officer, upon its or his or her own motion or upon application by a member, has predetermined the extent of credit extension.
186.098(9m)
(9m) Participation loans. A credit union may participate with other lenders in a loan of any type that the credit union may otherwise make.
186.098(10)
(10) Loans to members secured by mortgages. Loans to members secured by mortgages on real estate may be made subject to the rules prescribed by the office of credit unions. Such loans may provide for additional advances, but any additional advance made to a member, if the mortgage and mortgage note so provide, may not exceed an amount specified in the mortgage.
186.098(11)
(11) Guaranteed loans. A credit union may make loans to members that are guaranteed or insured by the federal government, any state or any federal or state agency. Loans under this subsection may be made under the conditions required for the insurance or guarantee.
186.098(12)
(12) Loans to members. A credit union may make loans to members secured by assignment or transfer of stock certificates or other evidence of the borrower's ownership interest in a corporation formed for the cooperative ownership of real estate.
Sections 846.10 and
846.101, as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender's rights in security given for a loan under this subsection. The office of credit unions shall promulgate joint rules with the division of banking that establish procedures for enforcing a lender's rights in security given for a loan under this subsection.
186.098(13)(a)(a) Subject to any limitation on security interests identified in
s. 422.417 (3) and if the loan agreement or endorsement permits it, a credit union shall have a lien on the share deposits and deposit accounts and accumulated dividends of a member for any amount owed the credit union by the member and for any loan endorsed by the member. Upon the default of the owner of the account in an obligation owed to the credit union, the credit union shall have a right of immediate setoff for each share deposit and deposit account unless prohibited under
12 CFR 226.12 (d). If the loan is a consumer credit transaction as defined in
s. 421.301 (10),
ss. 425.104 and
425.105 apply to a default under this paragraph. The credit union may also refuse to allow withdrawals from any share deposit or deposit account in an amount not to exceed any delinquent obligation to the credit union.
186.098(13)(b)
(b) The credit union may waive its rights to a lien, to immediate setoff or to restrict withdrawals or to any combination of these rights for any share deposit or deposit account.
186.098 Cross-reference
Cross-reference: See s.
138.053 for interest adjustment clauses and s.
138.055 for variable rate contracts.
186.098 Cross-reference
Cross-reference: See also chs.
DFI-CU 54 and
69, Wis. adm. code.
186.10
186.10
Minors' rights; shares in trust. 186.10(1)
(1)
Minors' shares. Shares may be issued in the name of a minor, and may be withdrawn by such minor or by the minor's agent under
subch. I of ch. 705. Minors' eligibility to vote at the meetings of the members is at the discretion of the board of directors.
186.10(2)
(2) Shares in trust. Shares may be issued in trust, subject to any conditions prescribed in the bylaws. Share accounts and deposit accounts may be held by a member in trust for a beneficiary, held by a nonmember in trust for a beneficiary who is a member or held by a nonmember custodian for a member under
ss. 54.854 to
54.898.
186.11(1)(1)
General. The board of directors may invest credit union funds in any of the following:
186.11(1)(a)
(a) United States government direct and agency obligations.
186.11(1)(c)
(c) A corporate central credit union organized under
s. 186.32 or under any other state or federal law.
186.11(1)(d)
(d) Deposits and debt instruments of federally insured banks, credit unions, savings banks and savings and loan associations.
186.11(1)(e)
(e) With the approval of the office of credit unions, other investment instruments.
186.11(2)
(2) Credit union property. A credit union may purchase, hold, and dispose of property as necessary for or incidental to its operations.
186.11(3)
(3) Cooperative housing. A credit union may invest an amount not to exceed 10 percent of its regular reserve in agreements with other corporations or its members to provide cooperative housing and related facilities for its members.
186.11(4)
(4) Investments in credit union service organizations. 186.11(4)(a)(a) Unless the office of credit unions approves a higher percentage, a credit union may invest not more than 1.5 percent of its total assets in the capital shares or obligations of credit union service organizations that, in the opinion of the office of credit unions, are sufficiently bonded and insured and that satisfy all of the following:
186.11(4)(a)1.
1. Are corporations, limited partnerships, limited liability companies, or other entities that are permitted under the laws of this state and that are approved by the office of credit unions.
186.11(4)(a)2.
2. Are organized primarily to provide goods and services to credit unions, credit union organizations and credit union members.
186.11(4)(b)
(b) A credit union service organization under
par. (a) may provide any of the following services related to the routine daily operations of credit unions:
186.11(4)(b)1.
1. Checking and currency services, check cashing services, money order services, savings bond services, traveler's check services, and services regarding the purchase and sale of U.S. mint commemorative coins.
186.11(4)(b)2.
2. Clerical, professional, and management services, including, but not limited to, accounting, courier, credit analysis, facsimile transmission and copying, internal credit union audit, locator, management and personnel training and support, marketing, research, and supervisory committee audit services.
186.11(4)(b)4.
4. Electronic transaction services, including, but not limited to, remote terminal, credit and debit card, data processing, electronic fund transfer, electronic income tax filing, payment item processing, wire transfer, and Internet financial services.
186.11(4)(b)5.
5. Tax preparation services, services regarding the development and administration of individual retirement accounts, Keogh plans, deferred compensation plans, and other personnel benefit plans, and financial counseling services, including, but not limited to, estate planning.
186.11(4)(b)6.
6. Fixed asset services, including, but not limited to, the management, development, sale, or lease of fixed assets and the sale, lease, or servicing of computer hardware or software.
186.11(4)(b)7.
7. Insurance brokerage or agency services, including, but not limited to, providing vehicle warranty programs, providing group insurance purchasing programs, and acting as an agent for the sale of insurance.
186.11(4)(b)8.
8. Services with regard to the leasing of real property owned by the credit union service organization or personal property.
186.11(4)(b)9.
9. Loan support services, including, but not limited to, debt collection and loan processing, servicing, and sales services and services regarding the sale of repossessed collateral.
186.11(4)(b)10.
10. Record retention, security, and disaster recovery services, including, but not limited to, alarm monitoring, data storage and retrieval, and record storage services and providing forms and supplies.
186.11(4)(b)15.
15. Trust and other fiduciary services, including, but not limited to, acting as an administrator for prepaid legal services plans or acting as a trustee, guardian, conservator, estate administrator, or in any other fiduciary capacity.
186.11(4)(bd)
(bd) The office of credit unions may expand the list of services under
par. (b) that are related to the routine daily operations of credit unions. Any service approved under this paragraph shall be authorized for all credit union service organizations under
par. (a). A credit union may file a written request with the office of credit unions to exercise its authority under this paragraph and may include, along with the request, a description of any proposed service and an explanation of how that service is related to the routine daily operations of credit unions. Within 60 days after receiving a request under this paragraph, the office of credit unions shall approve or disapprove the request.
186.11(4)(bh)
(bh) A credit union service organization under
par. (a) may provide any service described under
par. (b) or approved under
par. (bd) through an investment by the credit union service organization in a 3rd-party service provider. The amount that a credit union service organization may invest in a 3rd-party service provider under this paragraph may not exceed the amount necessary to obtain the applicable services, or a greater amount if necessary for the credit union service organization to obtain the services at a reduced cost.
186.11(4)(c)
(c) A credit union service organization may be subject to audit by the office of credit unions.
186.11 Cross-reference
Cross-reference: See also chs.
DFI-CU 59 and
68, Wis. adm. code.
186.11 Annotation
A credit union may invest in a credit union service corporation that sells insurance to the general public so long as the corporation was organized to primarily serve credit unions and their members.
78 Atty. Gen. 96.
186.112
186.112
Credit union borrowing. The board of directors may borrow money from any source if the amount borrowed does not exceed 30 percent of the credit union's total savings, deposits and reserves. Credit union borrowing may exceed 30 percent if the office of credit unions approves.
186.113
186.113
Credit union powers. A credit union may:
