215.32215.32 Possession by division; involuntary liquidation. 215.32(1)(1) Definition. In this section, “circuit court” means the circuit court of Dane County, notwithstanding s. 801.50. 215.32(1m)(1m) Conditions for taking possession. The division may take possession of the business and property of any association to which this chapter applies if the division finds that the association: 215.32(1m)(c)(c) Is conducting its business in an unauthorized or unsafe manner; or 215.32(1m)(d)(d) Is in an unsound or unsafe condition to transact its business; or 215.32(1m)(f)(f) Cannot with safety and expediency continue business; or 215.32(1m)(h)(h) Has failed to comply with an order of the division; or 215.32(1m)(i)(i) Has refused to submit its books, papers, records or affairs for inspection; or 215.32(1m)(j)(j) Has refused to be examined upon oath regarding its affairs. 215.32(2)(2) Procedure after taking possession. After taking possession of the business and property of an association, the division shall immediately: 215.32(2)(a)(a) Serve written notice on an officer of the association stating that the division has taken possession and control of the business and property of the association. A copy of the notice and proof of service thereof shall be filed with the clerk of circuit court. 215.32(2)(b)(b) Mail notice to the last-known address of any person known to the division to be in possession of assets of the association. 215.32(3)(3) Employment of counsel; retention of officers and employees of association. The division may employ necessary counsel and experts in a liquidation under this section and may retain any officer or employee of the association. 215.32(4)(4) Appointment of special deputy. The division may appoint special deputies as agents to assist in the liquidation and distribution of the assets of associations whose business and property the division has taken possession of. A certificate of the appointment shall be filed with the division and a certified copy shall be filed in the office of the clerk of circuit court. 215.32(5)(5) Surety bonds of special deputies and assistants. Special deputies and assistants shall furnish surety bonds in accordance with s. 215.11. 215.32(6)(a)(a) Notice, allowance and payment of claims. The special deputy shall publish a class 3 notice, under ch. 985, requiring all persons who have claims against the association, other than savers whose claims are shown in the records of the association, to file proof of their claims at a place and by a date not earlier than 30 days after the last insertion of the notice. The special deputy shall mail a copy of the notice to all persons, at their last-known addresses, who appear as creditors upon the books of the association. Proof of publication and service of the notice shall be filed with the clerk of circuit court. A claim, other than that of a saver whose claim is shown on the records of the association, for which no proof of claim is filed by the date fixed in the notice is barred. Savers whose claims are shown in the records of the association need not file proof of their claims. Any interested party may file written objections to any claim with the special deputy. The special deputy may reject any claim, including a claim of a saver. After notice by registered mail of rejection, the claim is barred unless the claimant commences an action within 90 days after the date of mailing of the notice of rejection. 215.32(6)(b)(b) Inventory of assets and statement of liabilities. The special deputy appointed under this section shall make an inventory of the assets of the association. One copy of the inventory shall be filed with the division and one in the office of the clerk of circuit court. After the time for filing proof of claims has expired, the special deputy shall make a complete list of the claims for which proof of claims were filed and specify the claims the special deputy has rejected. One copy shall be filed with the division and one in the office of the clerk of circuit court. The inventory of assets and list of claims shall be open to inspection. 215.32(6)(c)(c) Execution of legal documents; borrowing of money. A special deputy appointed under this section may, with the prior approval of the division and the circuit court, execute, acknowledge and deliver all deeds, assignments, releases or other instruments necessary and proper to effect any sale or transfer or encumbrance of the property of an association subject to this section and may borrow money for use in the liquidation. 215.32(6)(d)(d) Conservation of assets; collection of claims; sale of assets and performance of any other acts upon order of the court. A special deputy appointed under this section may take any action necessary to conserve the assets and business of an association subject to this section and shall proceed to liquidate its affairs. The special deputy shall collect all claims belonging to the association, and, with the prior approval of the division and the circuit court, may sell or compound all bad or doubtful claims, do any act or execute any necessary instruments, or sell the property of the association. 215.32(6)(e)(e) Depositing of moneys in one or more financial institutions. The moneys collected by the special deputy under this section shall be deposited in financial institutions, and in case of the suspension or insolvency of the depository the deposits shall be preferred before all other deposits. 215.32(6)(em)(em) Claims against association. Claims against an association subject to this section shall be satisfied according to the following priority: 215.32(6)(em)1.1. All costs, expenses and debts of the association incurred on or after the date on which the division takes possession of the association. 215.32(6)(em)2.2. All claims which are secured by, or which are liens on, assets of the association, to the extent of the value of the assets. 215.32(6)(em)3.3. All portions of secured claims which remain unsatisfied and unsecured claims on equal priority and proportionate basis, except subordinated debt shall be paid according to the terms of the contract evidencing it.