214.525 214.525 Prohibited loans. A savings bank may not make a loan to a person owning 10 percent 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 20 percent 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 20 percent limit under sub. (1), but may not exceed 25 percent of the savings bank's capital, if all loans or extensions of credit that exceed the 20 percent limit are at least 100 percent 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 percent 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)2. 2. The savings bank is in compliance with the capital requirements under s. 214.43.
214.54(3)(b)3. 3. Loans made under this paragraph to all borrowers do not, in aggregate, exceed 150 percent 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 percent 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 percent 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; 2017 a. 340.
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.
subch. VIII of ch. 214 SUBCHAPTER VIII
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(4) (4)By a corporation or other person.
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:
NOTICE OF RELATIONSHIP
This company, .... (insert name and address of savings bank, savings bank holding company, or subsidiary), is related to .... (insert name and address of savings bank, savings bank holding company, or subsidiary) of which you are also a customer. You may not be compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction.
If you feel that you have been compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction, you should contact the management of either of the above companies at either of the above addresses or the division of banking at .... (insert address).
214.592 History History: 1991 a. 221; 1995 a. 27; 1999 a. 9; 2003 a. 33.
214.595 214.595 Savings promotion prize programs.
214.595(1)(1)In this section:
214.595(1)(a) (a) “Nonqualifying account" means a deposit account, other than a demand account, that is not a qualifying account.
214.595(1)(b) (b) “Qualifying account" means a deposit account, other than a demand account, through which a savings bank's depositors may obtain chances to win prizes in a savings promotion.
214.595(1)(c) (c) “Savings promotion" means a contest or promotion to encourage savings deposits that is sponsored by one or more savings banks, or by a banking trade association or its subsidiary in conjunction with one or more savings banks, and in which savings bank depositors are offered a chance to win designated prizes.
214.595(2) (2)A savings bank may sponsor, or participate in, a savings promotion if all of the following requirements are satisfied:
214.595(2)(a) (a) Savings bank depositors are not required to pay any fee or otherwise provide any consideration in order to enter the savings promotion.
214.595(2)(b) (b) All fees charged by a savings bank in connection with a qualifying account are comparable with all fees charged in connection with comparable nonqualifying accounts offered by the savings bank.
214.595(2)(c) (c) Each entry in the savings promotion has an equal chance of winning.
214.595(2)(d) (d) Participants in the savings promotion are not required to be present at a prize drawing in order to win.
214.595(3) (3)For purposes of sub. (2) (a), a depositor's deposit of at least a specified amount of money for at least a specified time in a qualifying account, which is required in order to enter the savings promotion, is not consideration if the interest rate associated with the qualifying account is not reduced, as compared to comparable nonqualifying accounts offered by the savings bank, to account for the possibility of winning a prize.
214.595 History History: 2017 a. 72.
subch. IX of ch. 214 SUBCHAPTER IX
VOLUNTARY CORPORATE CHANGES
214.62 214.62 Merger; adoption of plan.
214.62(1)(1)A financial institution may merge with a savings bank. The board of directors of the merging financial institution and of the savings bank, by resolution adopted by a vote of at least two-thirds of the members of each board, shall approve the plan of merger.
214.62(2) (2)The plan of merger shall include all of the following:
214.62(2)(a) (a) The name of each merging financial institution, the name of the resulting financial institution, the location of the resulting home office and the location of other resulting offices.
214.62(2)(b) (b) With respect to the resulting financial institution, the amount of capital, surplus, and reserve for operating expenses; the classes and the number of shares of stock, if a stock financial institution; the articles of incorporation and bylaws of the resulting financial institution; and a detailed financial statement showing the assets and liabilities after the proposed merger.
214.62(2)(c) (c) The method, terms and conditions of effecting the merger, including the manner of converting shares of each merging financial institution into cash, shares of stock or other securities or properties to be received by the stockholders of each merging stock financial institution.
214.62(2)(d) (d) Provisions governing the manner of disposing of any shares of stock of the resulting financial institution that are not taken by dissenting stockholders of a merging financial institution.
214.62(2)(e) (e) Other provisions necessary or desirable or that the division requires.
214.62(3) (3)After approval by the board of directors of each merging financial institution, the merger agreement shall be submitted to the division for approval, together with a certified copy of the authorizing resolution of each board of directors. Before issuing approval, the division may examine the affairs of each merging financial institution and its affiliates and subsidiaries, the expense of which is to be paid by the merging financial institution.
214.62(4) (4)The division may approve or disapprove the proposed merger agreement. The division may not approve a merger agreement unless the division finds all of the following:
214.62(4)(a) (a) The resulting savings bank, if any, meets the requirements of this chapter for the formation of a new savings bank.
214.62(4)(b) (b) The merger agreement is fair to all persons affected.
214.62(4)(c) (c) The resulting savings bank, if any, will be operated in a safe and sound manner.
214.62(5) (5)If the division fails to approve a proposed merger, the division shall state the objections in writing and give the merging financial institutions a stated period of time in which to amend the plan of merger.
214.62 History History: 1991 a. 221; 1995 a. 27, 103.
214.625 214.625 Merger; stockholder vote of approval. If approved by the division, the plan of merger shall be submitted to the stockholders of each merging stock financial institution for approval. A meeting of the stockholders of a savings bank shall be called and held in accordance with ss. 214.305 and 214.31. The plan is approved if it receives the affirmative vote of the majority of the total votes entitled to be cast by stockholders.
214.625 History History: 1991 a. 221; 1995 a. 27, 103.
214.63 214.63 Merger; certificate. The executed merger agreement, together, in the case of a stock financial institution, with a certified copy of the minutes of the meeting of stockholders of each merging stock financial institution approving the merger agreement, shall be filed with the division. The division shall issue to the resulting savings bank a certificate of merger, setting forth the name of each merging financial institution, the name of the resulting savings bank and the date on which the division approves the articles of incorporation and bylaws of the resulting savings bank. The merger takes effect on the date of the recording of the certificate or a later date if the certificate provides for a different date. Recording shall be completed in the same manner as required for savings bank articles of incorporation, in each county in which the home office of any of the merging financial institutions was located and in the county in which the home office of the resulting savings bank is located. The certificate shall be conclusive evidence of the merger and of the correctness of the merger proceedings except against this state.
214.63 History History: 1991 a. 221; 1995 a. 27, 103.
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2021-22 Wisconsin Statutes updated through 2023 Wis. Act 272 and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 19, 2024. Published and certified under s. 35.18. Changes effective after June 19, 2024, are designated by NOTES. (Published 6-19-24)