reglab/statecodes huggingface dataset:
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.02 - Financial activity

Current through June 24, 2024
For the purposes of this chapter, the following activities
				  shall be considered to be financial in nature:
(1) Lending, exchanging, transferring,
				investing for others, or safeguarding money or securities.
(2) Engaging as agent or broker in any state
				for purposes of insuring, guaranteeing, or indemnifying against loss, harm,
				damage, illness, disability, death, or defects in title, or providing annuities
				as agent or broker.
(3) Issuing or
				selling instruments representing interests in pools of assets permissible for a
				bank to hold directly.
(4)
				Underwriting, dealing in, or making a market in securities.
(5) Extending credit and servicing loans,
				including making, acquiring, brokering, or servicing loans or other extensions
				of credit (such as factoring, issuing letters of credit, and accepting drafts)
				for the financial subsidiary's account or for the account of others.
(6) Engaging in any of the following
				activities related to extending credit:
(a)
				Appraising real estate and personal property.
(b) Arranging commercial and real estate
				equity financing.
(c) Providing
				check guaranty services.
(d)
				Providing collection agency services.
(e) Providing credit bureau
				services.
(f) Engaging in asset
				management, servicing, and collection activities.
(g) Acquiring a debt in default.
(h) Servicing real estate
				settlements.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.03 - Control and interest

Current through June 24, 2024
Subject to s. DFI-SL 21.04 and s. DFI-SL 21.05, a financial
				  institution may control a financial subsidiary or hold an interest in a
				  financial subsidiary to engage in financial activities.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.04 - Application

Current through June 24, 2024
A financial institution desiring to control or hold an
				  interest in a financial subsidiary shall apply to the division on forms
				  prescribed by the division and shall pay the fee to be prescribed by the
				  division. An application submitted to the division shall either be approved or
				  disapproved by the division in writing within 30 days after its submission to
				  the division. The division and the financial institution may mutually agree to
				  extend the period in which the division makes a decision on the application for
				  an additional period of 30 days.
A copy of the forms may be obtained at no charge from the
					 Department of Financial Institutions, Division of Banking, 4822 Madison Yards
					 Way, North Tower, 5th Floor, P.O. Box 7876, Madison, WI 53707-7876, tel. (608)
					 261-7578.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.05 - Conditions and requirements

Current through June 24, 2024
(1) A financial
				institution may control a financial subsidiary or hold an interest in a
				financial subsidiary to engage in financial activities only if the financial
				subsidiary engages in financial activities or activities in which the financial
				institution is permitted to engage under other applicable law. The financial
				subsidiary may also engage in any other activity approved by rule of the
				division. However, the financial subsidiary may not engage in any activity as a
				principal that is not permissible for a financial subsidiary of a national bank
				as a principal unless the activity is authorized by the Federal Deposit
				Insurance Corporation pursuant to
				12 USC
				1831 a.
(2) Prior to acquiring control of, or an
				interest in a financial subsidiary, a financial institution is required to
				receive the prior approval of the division under s. DFI-SL 21.04.
(3) The financial institution and each
				insured depository institution affiliate of the financial institution must be
				well capitalized, after the capital deduction required under s. DFI-SL
				21.06.
(4) The financial
				institution must meet any requirements of
				12 USC
				1831 w applicable to the financial
				institution.
(5) The division may
				establish additional limits or requirements on financial institutions and
				financial subsidiaries if the division determines that the limits or
				requirements are necessary for the protection of depositors, members, investors
				or the public.
(6) For any period
				during which a financial institution fails to meet these requirements, the
				division may by order limit or restrict the activities of the financial
				subsidiary or require the divestiture of the financial institution's interest
				in the financial subsidiary.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.06 - Capital deduction

Current through June 24, 2024
The aggregate amount of the outstanding equity investment,
				  including retained earnings, of a financial institution in all financial
				  subsidiaries controlled by the financial institution shall be deducted from the
				  assets and tangible equity of the financial institution as determined by the
				  division, and the assets and liabilities of the financial subsidiaries shall
				  not be consolidated with those of the financial institution.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.07 - Disclosure

Current through June 24, 2024
Any published financial statement of a financial institution
				  that controls a financial subsidiary shall separately present financial
				  information for the financial institution in the manner proved in s. DFI-SL
				  21.06.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.08 - Safeguards for the financial institution

Current through June 24, 2024
A financial institution that establishes or maintains a
				  financial subsidiary shall ensure the following:
(1) The procedures of the financial
				institution for identifying and managing financial and operational risk within
				the financial institution and the financial subsidiary adequately protect the
				financial institution from such risk; and
(2) The financial institution has, for the
				protection of the financial institution, reasonable policies and procedures to
				preserve the separate corporate identity and limited liability of the financial
				institution and the financial subsidiaries of the financial
				institution.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.09 - Affiliate requirements

Current through June 24, 2024
The financial institution shall comply with the requirements
				  of
				  12 USC 371
				  c.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.10 - Preservation of existing subsidiaries

Current through June 24, 2024
Notwithstanding the provisions of this chapter, a financial
				  institution may retain control of a subsidiary or retain an interest in a
				  subsidiary that the financial institution lawfully controlled or acquired
				  before November 1, 2000, and conduct through such subsidiary any activities
				  lawfully conducted in such subsidiary as of such date. Furthermore, no
				  provision of this chapter shall be construed as superseding the authority for
				  financial institutions to conduct operations through subsidiaries under ch.
				  DFI-SL 15.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.11 - Examination and supervision

Current through June 24, 2024
Each financial subsidiary shall be subject to examination and
				  supervision by the division in the same manner and to the extent as the
				  financial institution.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 21 - Financial Subsidiaries › Section DFI-SL 21.12 - Report of disposition of financial subsidiary

Current through June 24, 2024
At least 30 days prior to disposition of a financial
				  subsidiary, the financial institution shall inform the division by letter of
				  the terms of the transaction.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 22 - Debt cancellation contracts and debt suspension agreements › Section DFI-SL 22.01 - Definitions

Current through June 24, 2024
In this chapter:
(1)
				"Actuarial method" means the method of allocating payments made on a debt
				between the amount financed and the finance charge pursuant to which a payment
				is applied first to the accumulated finance charge and any remainder is
				subtracted from, or any deficiency is added to, the unpaid balance of the
				amount financed.
(2) "Association"
				has the meaning set forth in s.
				215.01(1),
				Stats.
(3) "Closed-end credit"
				means consumer credit other than open-end credit as defined in this
				section.
(4) "Contract" means a
				debt cancellation contract or a debt suspension agreement.
(5) "Customer" means an individual who
				obtains an extension of credit from an association primarily for personal,
				family or household purposes.
(6)
				"Debt cancellation contract" means a loan term or contractual arrangement
				modifying loan terms under which an association agrees to cancel all or part of
				a customer's obligation to repay an extension of credit from that association
				upon the occurrence of a specified event. The agreement may be separate from or
				a part of other loan documents.
(7)
				"Debt suspension agreement" means a loan term or contractual arrangement
				modifying loan terms under which an association agrees to suspend all or part
				of a customer's obligation to repay an extension of credit from that
				association upon the occurrence of a specified event. The agreement may be
				separate from or a part of other loan documents. "Debt suspension agreement"
				does not include loan payment deferral arrangements in which the triggering
				event is the borrower's unilateral election to defer repayment or the
				association's unilateral decision to allow a deferral of repayment.
(8) "Open-end credit" means consumer credit
				extended by an association under a plan in which:
(a) The association reasonably contemplates
				repeated transactions;
(b) The
				association may impose a finance charge from time to time on an outstanding
				unpaid balance; and
(c) The amount
				of credit that may be extended to the customer during the term of the plan, up
				to any limit set by the association, is generally made available to the extent
				that any outstanding balance is repaid.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 22 - Debt cancellation contracts and debt suspension agreements › Section DFI-SL 22.02 - Prohibited practices

Current through June 24, 2024
(1) ANTI-TYING. An association shall not
				extend credit or alter the terms or conditions of an extension of credit
				conditioned upon the customer entering into a debt cancellation contract or
				debt suspension agreement with the association.
(2) MISREPRESENTATIONS GENERALLY. An
				association shall not engage in any practice or use any advertisement that is
				false, misleading or deceptive, or which omits to state material information,
				or otherwise would cause a reasonable person to reach an erroneous belief with
				respect to information that may be disclosed under this section.
(3) PROHIBITED CONTRACT TERMS. An association
				shall not offer debt cancellation contracts or debt suspension agreements that
				contain any of the following:
(a) Terms
				giving the association the right unilaterally to modify the contract unless the
				modification is favorable to the customer and is made without additional charge
				to the customer, or the customer is notified of any proposed change and is
				provided a reasonable opportunity to cancel the contract without penalty before
				the change goes into effect.
(b)
				Terms requiring a lump sum, single payment for the contract payable at the
				outset of the contract, where the debt subject to the contract is a residential
				mortgage loan.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 22 - Debt cancellation contracts and debt suspension agreements › Section DFI-SL 22.03 - Refunds of fees in the event of termination or prepayment of the covered loan

Current through June 24, 2024
(1) REFUNDS. If a debt cancellation contract
				or debt suspension agreement is terminated, including when the customer prepays
				the covered loan, the association shall refund to the customer any unearned
				fees paid for the contract unless the contract provides otherwise. An
				association may offer a customer a contract that does not provide for a refund
				only if the association also offers that customer a bona fide option to
				purchase a comparable contract that provides for a refund.
(2) THE METHOD OF CALCULATING REFUND. The
				association shall calculate the amount of a refund using a method at least as
				favorable to the customer as the actuarial method.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 22 - Debt cancellation contracts and debt suspension agreements › Section DFI-SL 22.04 - Method of payment of fees

Current through June 24, 2024
Except as provided in s. DFI-SL 22.02(3), an association may
				  offer a customer the option of paying the fee for a contract in a single
				  payment, provided the association also offers the customer a bona fide option
				  of paying the fee for that contract in monthly or other periodic payments. If
				  the association offers the customer the option to finance the single payment by
				  adding it to the amount the customer is borrowing, the association shall also
				  disclose to the customer, in accordance with s. DFI-SL 22.05, whether and, if
				  so, the time period during which, the customer may cancel the agreement and
				  receive a refund.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 22 - Debt cancellation contracts and debt suspension agreements › Section DFI-SL 22.05 - Disclosures

Current through June 24, 2024
(1) CONTENT OF SHORT FORM OF DISCLOSURES. The
				short form of disclosures required by this section shall include information
				relating to any of the following that is appropriate to the product offered:
(a) That the product is optional.
(b) Lump sum payment of fee.
(c) Lump sum payment of fee with no
				refund.
(d) Refund of fee paid in
				lump sum.
(e) Any additional
				disclosures.
(f) Eligibility
				requirements, conditions and exclusions.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 22 - Debt cancellation contracts and debt suspension agreements › Section DFI-SL 22.06 - Affirmative election to purchase and acknowledgement of receipt of disclosures required

Current through June 24, 2024
(1) AFFIRMATIVE ELECTION AND ACKNOWLEDGEMENT
				OF RECEIPT OF DISCLOSURES. Before entering into a contract the association
				shall obtain a customer's written affirmative election to purchase a contract
				and written acknowledgement of receipt of the disclosures required by s. DFI-SL
				22.05(2). The election and acknowledgement information shall be conspicuous,
				simple, direct, readily understandable, and designed to call attention to their
				significance. The election and acknowledgement satisfy these standards if they
				conform with the requirements in s. DFI-SL 22.05(4).
(2) TELEPHONE SOLICITATIONS. If the sale of a
				contract occurs by telephone, the customer's affirmative election to purchase
				may be made orally, provided the association does all of the following:
(a) Maintains sufficient documentation to
				show that the customer received the short form disclosures and then
				affirmatively elected to purchase the contract.
(b) Mails the affirmative written election
				and written acknowledgement, together with the long form disclosures required
				by s. DFI-SL 22.05, to the customer within 3 business days after the telephone
				solicitation, and maintains sufficient documentation to show it made reasonable
				efforts to obtain the documents from the customer.
(c) Permits the customer to cancel the
				purchase of the contract without penalty within 30 days after the association
				has mailed the loan form disclosures to the customer.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 22 - Debt cancellation contracts and debt suspension agreements › Section DFI-SL 22.07 - Safety and soundness requirements

Current through June 24, 2024
An association shall manage the risks associated with debt
				  cancellation contracts and debt suspension agreements in accordance with safe
				  and sound banking principles. Accordingly, an association shall establish and
				  maintain effective risk management and control processes over its debt
				  cancellation contracts and debt suspension agreements. Such processes include
				  appropriate recognition and financial reporting of income, expenses, assets and
				  liabilities, and appropriate treatment of all expected and unexpected losses
				  associated with the products. An association shall also assess the adequacy of
				  its internal control and risk mitigation activities in view of the nature and
				  scope of its debt cancellation contract and debt suspension agreement
				  programs.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 1 - Definitions › Section DFI-SB 1.01 - Construction of language

Current through June 24, 2024
In chs.
				  DFI-SB 1 to 22, unless otherwise
				  indicated, all words and phrases shall be construed according to their common
				  and approved usage unless such construction would produce a result inconsistent
				  with the manifest intent of the legislature in enacting ch. 214, Stats., or of
				  the division and the review board in adopting these rules.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 1 - Definitions › Section DFI-SB 1.02 - Adopt statutory definitions

Current through June 24, 2024
In chs.
				  DFI-SB 1 to 22, unless otherwise
				  indicated, words and phrases shall have the meanings specified in ss.
				  214.01 and
				  990.01,
				  Stats.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 1 - Definitions › Section DFI-SB 1.03 - Definitions

Current through June 24, 2024
In chs.
				  DFI-SB 1 to 22, unless otherwise
				  indicated:
(1) "Association" means a
				savings and loan association organized under ch. 215, Stats. or doing business
				in this state under s.
				215.33,
				Stats.
(2) "Commercial loan" means
				a secured or unsecured loan to a person for business, corporate, commercial or
				agricultural purposes.
Note: The authority for savings banks to make commercial
				  loans is s.
				  214.485(8),
				  Stats.
(3) "Consumer loan"
				means a secured or unsecured loan, or an interest in a loan, made to a natural
				person for a personal, family or household purpose. "Consumer loan" includes a
				loan reasonably incident to lending for a personal, family or household purpose
				but does not include a loan to a natural person for a commercial, corporate,
				agricultural or other business activity.
Note: The authority for savings banks to make consumer loans
				  is s.
				  214.485(9),
				  Stats.
(4) "Days" mean
				calendar days computed under s.
				990.001(4),
				Stats.
(5) "Development loan" means
				a loan:
(a) To finance the purchase of land or
				the accomplishment of all improvements required to convert the land to
				developed building lots, or both; or
(b) Made on the security of real estate upon
				which all facilities and improvements have been completely installed as
				required by local regulations and practices so that it is entirely prepared for
				the erection of structures.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 2 - General Provisions › Section DFI-SB 2.01 - Purpose

Current through June 24, 2024
The purpose of chs.
				  DFI-SB 1 to 22 is to provide
				  rules and procedures for the organization, incorporation, examination,
				  operation, regulation and supervision of savings banks, giving primary
				  consideration to protecting the safety and soundness of these financial
				  institutions operating in this state. Lending and investment authorities
				  provided under statutes and rules are intended to provide savings banks the
				  necessary flexibility to accept deposits and make loans and investments under
				  ch. 214, Stats.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 2 - General Provisions › Section DFI-SB 2.02 - Safety and soundness

Current through June 24, 2024
Subject to supervision by the division, the board of
				  directors of each savings bank shall assure that the savings bank operates in a
				  safe and sound manner, adhering to sound business practices, applicable state
				  and federal statutes, state rules and federal regulations.
This section interprets or implements s.
					 214.345
					 and
					 214.715,
					 Stats.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 2 - General Provisions › Section DFI-SB 2.03 - Supervisory orders

Current through June 24, 2024
(1) PURPOSE. To carry out the division's
				supervisory responsibilities, the division may issue a supervisory order when
				he or she determines that a savings bank or a savings bank holding company,
				subsidiary, service corporation or affiliate is:
(a) Violating the provisions of its articles
				of incorporation, bylaws, a state or federal law, a state rule or a federal
				regulation applicable to it or any order issued by the division; or
(b) Engaging in any unsafe or unsound
				practice.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 2 - General Provisions › Section DFI-SB 2.04 - Division's authority

Current through June 24, 2024
The division may do all of the following:
(1) LIMIT INVESTMENT OR ACTIVITY. Restrict or
				prohibit any investment or activity of a savings bank upon determining that an
				investment or activity violates or may violate s.
				DFI-SB 2.02.
(2) REQUIRE CORRECTIVE ACTION. Require a
				savings bank to correct any violation by it, its holding company or a
				subsidiary, service corporation or affiliate if any of these entities are found
				to violate any applicable state or federal statute, state rule, federal
				regulation or a directive of the division. The division may require corrective
				action when it determines a savings bank's lending practices or procedures are
				imprudent, even though individual loans may comply with any applicable state or
				federal statute, state rule, federal regulation or a directive of the
				division.
(3) REQUIRE HIGHER
				LIQUIDITY. Under ch. DFI-SB 3, require a savings bank to maintain a higher
				level of liquidity than the requirement of an applicable federal insuring
				agency.
(4) REQUIRE REAPPRAISALS.
				Require reappraisals of property securing a savings bank's loan at the savings
				bank's expense.
(5) REQUIRE ACTION
				ON UNDERSECURED REAL ESTATE LOANS.
(a) If the
				division determines that the current market value of the real estate collateral
				and any other collateral which is acceptable security for a mortgage loan is
				less than the outstanding balance of the loan, require the savings bank to:
1. Obtain additional collateral acceptable to
				the division;
2. Reduce the book
				value of the loan to the current market value of the acceptable collateral;
				or
3. Establish a valuation reserve
				reflecting the difference between the outstanding balance of the mortgage loan
				and the current market value of the acceptable collateral.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 2 - General Provisions › Section DFI-SB 2.05 - Complaints against savings banks

Current through June 24, 2024
(1) WHERE TO
				COMPLAIN. Any person with a complaint against a savings bank who has been
				unable to satisfactorily resolve it after discussing it with the management of
				the savings bank may file a written complaint with the division.
(2) CONTENTS OF COMPLAINTS. Written
				complaints to the division shall contain:
(a)
				The name and address of the complainant.
(b) The name of the savings bank and the
				person complained of or involved, or both.
(c) A concise statement of the facts
				underlying the complaint.
(d) A
				statement of the specific action requested of the savings bank.
(e) If the complainant has discussed the
				matter with a representative of the savings bank, the dates of any discussions
				and name of the representatives.
Note:
Address complaints to the Department of
				  Financial Institutions, Division of Banking, 4822 Madison Yards Way, North
				  Tower, 5th Floor, PO Box 7876, Madison, WI 53707-7876.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 2 - General Provisions › Section DFI-SB 2.06 - Communications with members

Current through June 24, 2024
(1) RIGHT TO
				COMMUNICATE. Each member of a mutual savings bank may communicate with other
				members of the savings bank with reference to any question pending or to be
				presented at an annual or special meeting.
(2) REQUEST TO THE SAVINGS BANK. A member
				wishing to communicate with other members may request the savings bank in
				writing to provide the member with the approximate number of members of the
				savings bank and the estimated cost that would be incurred by the savings bank
				in handling and mailing a proposed communication. The savings bank shall reply
				within 5 business days after receipt of the request.
(3) NOTICE TO DIVISION OF BANKING.
(a) A member wishing to communicate with
				other members shall submit to the division a signed request containing:
1. The requester's full name and
				address.
2. The nature and extent
				of his or her interest in the savings bank.
3. A statement of the meeting date, a copy of
				the communication, and reason for or the purpose of the communication
				requested.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter I - Surety Bonds › Section DFI-SB 3.01 - Bonds required; form and amount

Current through June 24, 2024
(1) BOND REQUIRED.
				  Each savings bank shall maintain fidelity bond coverage. Except as provided in
				  s. DFI-SB 3.02, the bond shall cover each director, officer, employee and agent
				  who has control over or access to cash, securities, or other property of the
				  savings bank.
(2) AMOUNT. The
				  amount of coverage to be required for each savings bank shall be determined by
				  management, based on its assessment of the level that would be safe and sound
				  in view of the savings bank's potential exposure to risk. The determination
				  shall be approved by the savings bank's board of directors. Each savings bank
				  may maintain bond coverage in addition to that provided by the insurance
				  underwriter industry's standard forms, through the use of endorsements, riders,
				  or other forms of supplemental coverage, if, in the judgment of the board of
				  directors, additional coverage is warranted.
(3) BOARD OF DIRECTORS' DECISION. The board
				  of directors of each savings bank shall formally approve the savings bank's
				  bond coverage. In deciding whether to approve the bond coverage, the board
				  shall review the adequacy of the standard coverage and the need for
				  supplemental coverage. Documentation of the board's approval shall be included
				  as a part of the minutes of the meeting at which the board approves coverage.
				  Additionally, the board of directors shall review the savings bank's bond
				  coverage at least annually to assess the continuing adequacy of
				  coverage.
This section interprets or implements s.
						214.34,
						Stats.
This section parallels
						12
						CFR 563.190 under which the federal office of
						thrift supervision requires bonds and prescribes their form and amount for
						savings and loan associations.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter I - Surety Bonds › Section DFI-SB 3.02 - Bonds for agents

Current through June 24, 2024
In lieu of the bond required by s. DFI-SB 3.01, for agents
					 appointed by a savings bank, a fidelity bond may be provided in an amount at
					 least twice the average monthly collections of each agent if the agent is
					 required to settle with the savings bank at least monthly and if the bond is
					 approved by the board of directors of the savings bank. No bond is required for
					 any agent that is a financial institution insured by the FDIC.
This section interprets or implements s.
						214.34,
						Stats.
This section parallels
						12 CFR
						563.191 adopted by the federal office of
						thrift supervision for savings and loan associations.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter II - Conflicts of Interest › Section DFI-SB 3.03 - Conflicts of interest prohibited

Current through June 24, 2024
(1) POLICY. The
				  division has a paramount interest in the prevention and elimination of
				  practices and conditions which may adversely affect the interests of members in
				  savings banks, the soundness of savings banks, the provision of economical home
				  financing and other credit for residents of this state, and the accomplishment
				  of the other purposes of ch. 214, Stats. and rules adopted under it.
(2) FIDUCIARY RESPONSIBILITIES. Among the
				  practices and conditions which shall be avoided or eliminated are conflicts
				  between the accomplishment of the purposes of ch. 214, Stats., and the personal
				  financial interests of directors, officers, employees and other affiliated
				  persons of savings banks. Conflicts of this type are considered to be
				  inherently unsafe and unsound practices and conditions. The division
				  accordingly holds that each director, officer, employee or other affiliated
				  person of a savings bank has a fundamental duty to avoid placing himself or
				  herself in a position which may create a conflict of interest or the appearance
				  of a conflict of interest.
(3)
				  CONFLICTS PROHIBITED. The division recognizes that it is impossible to define
				  every practice or condition which falls within the broad concept of
				  objectionable conflicts of interest. The division has, nevertheless, adopted
				  ss. DFI-SB 3.04 to
				  3.07 to limit or prohibit certain
				  types of conflicts of interest to implement the purposes of ch. 214, Stats.
				  However, the fact that the division has not specifically limited or prohibited
				  other conflicts of interest should not be interpreted as tacit approval of
				  them. The division will continue to examine those conflict of interest
				  situations which are not specifically limited or prohibited under the statutes
				  and rules and will take appropriate action to prevent, circumscribe or
				  eliminate those situations.
This section interprets or implements ss.
						214.335 and
						214.345,
						Stats.
This section parallels
						12 CFR
						563.200, an OTS regulation applying to
						savings and loan associations.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter II - Conflicts of Interest › Section DFI-SB 3.04 - Corporate opportunities

Current through June 24, 2024
Directors and officers of a savings bank and other persons
					 having the power or authority to direct the management of the savings bank
					 stand in a fiduciary relationship to the institution and its accountholders or
					 shareholders or both. Out of this relationship arises, among other things, the
					 duty of protecting the interests of the savings bank. It is a breach of this
					 duty for such a person to take advantage of a business opportunity for his or
					 her own or another person's personal profit or benefit when the opportunity is
					 within the corporate powers of the savings bank or a service corporation and
					 when the opportunity is of present or potential practical advantage to the
					 savings bank. If a person so appropriates such an opportunity, the savings bank
					 or service corporation may claim the benefit of the transaction or business and
					 the person exposes himself or herself to liability. In determining whether an
					 opportunity is of present or potential practical advantage to a savings bank,
					 the division shall consider, among other things, the financial, managerial, and
					 technical resources of the savings bank and its service corporation, and the
					 reasonable ability of the savings bank directly or through a service
					 corporation to acquire those resources.
This section interprets or implements ss.
						214.335 and
						214.345,
						Stats.
This section parallels
						12 CFR
						563.201, an OTS regulation applying to
						savings and loan associations.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter II - Conflicts of Interest › Section DFI-SB 3.05 - Directors, officers and employees

Current through June 24, 2024
(1) COMPOSITION OF
				  BOARD OF DIRECTORS.
(a)
Requirement.
The composition of a savings bank's board of
				  directors is limited as follows:
1. A majority
				  of the directors may not be salaried officers or employees of the savings bank
				  or of any subsidiary or, except in the case of a savings bank having 50% or
				  more of any class of voting shares owned by a holding company.
2. Members of the same immediate family may
				  not constitute a majority of a board of directors.
3. No 2 or more directors may be attorneys
				  practicing with or employed by the same law firm.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter II - Conflicts of Interest › Section DFI-SB 3.06 - Restrictions on loans, other investments, and property transactions involving affiliated persons

Current through June 24, 2024
(1) RESTRICTIONS ON
				  LOANS AND OTHER TRANSACTIONS WITH AFFILIATED PERSONS.
(a) No savings bank or subsidiary may, either
				  directly or indirectly, make a loan to any person affiliated with the savings
				  bank under s.
				  214.01(2),
				  Stats., or purchase such a loan, except for loans in the ordinary course of
				  business of the savings bank or subsidiary which do not involve more than the
				  normal risk of collectibility or present other unfavorable features, and which
				  do not exceed the loan amount which would be available to members of the
				  general public of similar credit status applying for loans, of the following
				  types:
1. Loans secured by the principal
				  residence of a person affiliated.
2. Loans secured by deposit accounts
				  maintained by the person affiliated at the savings bank.
3. Loans for constructing, adding to,
				  improving, altering, repairing, equipping, or furnishing the principal
				  residence of the person affiliated.
4. Loans in the form of overdraft protection
				  for NOW accounts.
5. Loans for
				  payment of educational expenses, consumer loans, and extension of consumer
				  credit in connection with credit cards.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter II - Conflicts of Interest › Section DFI-SB 3.07 - Annual reports on interests and involvements in business ventures

Current through June 24, 2024
(1)
				  DEFINITIONS. In this section:
(a) "Business
				  venture" means any partnership, joint venture, corporation or similar entity,
				  but does not include any non-profit, religious, charitable or fraternal
				  organization or a corporation in which the savings bank has been authorized to
				  invest by the division.
(b)
				  "Employee" means a person who is any of the following:
1. Employed by a savings bank and is directly
				  involved in approving loans made by the savings bank or determining the terms
				  or conditions under which any specific loan is made.
2. Employed by a savings bank and is directly
				  involved in approving transactions, or in determining the terms or conditions
				  of transactions entered into by the savings bank.
(c) "Officer" means the president, a vice
				  president, the treasurer, the secretary and any other officer which the board
				  designates by resolution, but does not include any assistant officer.
(d) "Reportable interest" means an interest
				  in debt or equity of a business venture other than an interest:
1. In debt of a business venture of not more
				  than $10,000 or 5% of the assets of the business venture, whichever is greater;
				  or
2. Of 5% or less of the stock of
				  a corporation; or
3. Of 5% or less
				  in a limited partnership.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter III - Liquidity › Section DFI-SB 3.08 - Liquidity requirement

Current through June 24, 2024
(1) The division shall establish, by periodic
				  written notice to all savings banks, the minimum liquidity ratio that savings
				  banks shall maintain. The ratio shall be between 4% and 15%. At least 50% of
				  the minimum liquid assets shall consist of primary liquid assets. The division
				  may require a savings bank to maintain a higher ratio if the division
				  determines that the nature of the savings bank's operations requires a higher
				  liquidity ratio.
(2) The liquidity
				  ratio of a savings bank for a month shall be calculated as follows:
(a) Add the savings bank's daily net
				  withdrawable deposit accounts and its outstanding borrowings due in one year or
				  less for the previous month.
(b)
				  Divide the amount in par. (a) by the total number of days in the previous
				  month.
(c) Divide the savings
				  bank's average daily total of liquid assets for the month for which the
				  liquidity ratio is being calculated by the amount in par.
				  (b).
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 3 - Surety bonds; conflicts of interest; liquidity; and appraisal policies › Subchapter IV - Appraisal Policies and Practices › Section DFI-SB 3.09 - Duty of institution

Current through June 24, 2024
Each savings bank shall establish appraisal policies and
					 practices that set standards for appraisers and appraisals used by the savings
					 bank. These standards must comply with the "Uniform Standards of Professional
					 Appraisal Practice" or any other standards deemed appropriate by the
					 division.
A copy of the document captioned "Uniform Standards of
						Professional Appraisal Practice" is available at the office of the division,
						the secretary of state and the legislative reference bureau. A copy may be
						obtained by writing The Appraisal Standards Board of the Appraisal Foundation,
						1029 Vermont Ave., N.W., Suite 900, Washington, D.C. 20005. The document is
						also set out as Appendix I to ch. SPS 86, Wis. Adm. Code.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 4 - Annual Statements (Repealed) › Section DFI-SB 4.01 - Annual printed statements (Repealed)

Current through June 24, 2024
This section is unenforceable as the result of the repeal
					 of s.
					 214.76(5),
					 Stats., by 2011 Wis. Act 182 and will be repealed in future
					 rulemaking.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 4 - Annual Statements (Repealed) › Section DFI-SB 4.02 - Method of preparation (Repealed)

Current through June 24, 2024
This section is unenforceable as the result of the repeal
					 of s.
					 214.76(5),
					 Stats., by 2011 Wis. Act 182 and will be repealed in future
					 rulemaking.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 4 - Annual Statements (Repealed) › Section DFI-SB 4.03 - Publication requirement (Repealed)

Current through June 24, 2024
This section is unenforceable as the result of the repeal
					 of s.
					 214.76(5),
					 Stats., by 2011 Wis. Act 182 and will be repealed in future
					 rulemaking.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 5 - Net worth requirements › Section DFI-SB 5.01 - Net worth requirement

Current through June 24, 2024
(1) REQUIRED LEVEL.
(a)
General provision.
Except as provided in par. (b), a savings bank shall at all times maintain a
				net worth ratio in an amount not less than 6.0 %.
(b)
Exceptions.
The division
				may require a savings bank to maintain a net worth ratio higher than that
				specified in par. (a) if the division determines that the nature of the savings
				bank's operations otherwise entails a risk requiring a greater net worth ratio
				to assure the savings bank's stability.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 5 - Net worth requirements › Section DFI-SB 5.02 - Other powers retained

Current through June 24, 2024
Nothing in this chapter shall limit the division's authority
				  to take other remedial measures as he or she may deem necessary to safeguard
				  the interests of the public, depositors and the savings bank.
This section interprets or implements s.
					 214.715,
					 Stats.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 6 - Records Management, Retention And Destruction › Section DFI-SB 6.01 - Retention of records

Current through June 24, 2024
Each savings bank shall retain its records in a manner
				  consistent with prudent business practices and in accordance with this chapter
				  and the applicable rules of state agencies and regulations of federal agencies.
				  Each savings bank shall retain its records for the minimum period specified in
				  the technical publication of the Financial Managers Society, Inc. of Chicago,
				  Illinois, titled "Records Retention Guidelines" and dated 1992.
This section interprets or implements s.
					 214.75,
					 Stats.
The material incorporated in this rule may be obtained from
					 the Financial Managers Society, Inc., 8 South Michigan Avenue, Suite 500,
					 Chicago, IL. 60603-3307 (phone: (312) 578-1300). A copy is on file at the
					 office of the Division of Savings Institutions, and the legislative reference
					 bureau.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 6 - Records Management, Retention And Destruction › Section DFI-SB 6.02 - Records management

Current through June 24, 2024
(1) DESIGNATION OF RECORDS MANAGER. The board
				of directors of each savings bank shall by resolution designate one employee
				responsible for the supervision and management of the savings bank's program
				for the preservation, retention and destruction of records under this chapter
				and the applicable requirements of the internal revenue service and other
				government agencies.
(2) RECORDS
				MANAGEMENT. If a savings bank utilizes a records storage center or records
				management service, the center or service shall agree in writing to comply with
				the requirements of this chapter and to produce the savings bank's records in a
				timely fashion for inspection by the division upon request.
This section interprets or implements s.
					 214.75,
					 Stats.
Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 6 - Records Management, Retention And Destruction › Section DFI-SB 6.03 - Destruction of records

Current through June 24, 2024
Except where a longer retention period is required by another
				  state or federal agency having jurisdiction over the savings bank, a savings
				  bank may destroy its records at the end of the applicable minimum retention
				  period determined under s. DFI-SB 6.01. In the destruction of records, the
				  savings bank shall take reasonable precautions to assure the confidentiality of
				  information in the records.
This section interprets or implements s.
					 214.75,
					 Stats.