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DFI-SB 17.14(10) (10)Income transfers.
DFI-SB 17.14(10)(a)(a) A savings bank may transfer up to 5% of the net income derived by a collective investment fund from mortgages held by the fund during any regular accounting period to a reserve account. No transfers shall be made which would cause the amount in the account to exceed l% of the outstanding principal amount of all mortgages held in the fund. The amount of the reserve account, if established, shall be deducted from the assets of the fund in determining the fair market value of the fund for the purposes of admissions and withdrawals.
DFI-SB 17.14(10)(b) (b) At the end of each accounting period all interest payments which are due but unpaid with respect to mortgages in the fund shall be charged against the reserve account to the extent available and credited to income distributed to participants. If interest payments are subsequently recovered by the fund, the reserve account shall be credited with the amount recovered.
DFI-SB 17.14(11) (11)Management. A savings bank administering a collective investment fund shall manage the fund exclusively. The savings bank may charge a fee for the management of the collective investment fund. The fractional part of the fee proportionate to the interest of each participant shall not, when added to any other compensation charged by a savings bank to a participant, exceed the total amount of compensation which would have been charged to the participant if no assets of the participant had been invested in participation in the fund. The savings bank shall absorb the costs of establishing or reorganizing a collective investment fund.
DFI-SB 17.14(12) (12)Certificates prohibited. No savings bank administering a collective investment fund may issue any certificate or other document evidencing a direct or indirect interest in the fund in any form.
DFI-SB 17.14(13) (13)Correcting mistakes. No mistake made in good faith and in the exercise of due care in connection with the administration of a collective investment fund violates this chapter if promptly after the discovery of the mistake the savings bank takes whatever action may be practicable in the circumstances to remedy the mistake.
DFI-SB 17.14 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94.
DFI-SB 17.15 DFI-SB 17.15Indemnity fund. A savings bank applying for trust powers under this chapter shall comply with s. 220.04 (7) (b) 3., Stats., and s. DFI-Bkg 15.04.
DFI-SB 17.15 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94.
DFI-SB 17.16 DFI-SB 17.16Surrender of trust powers.
DFI-SB 17.16(1) (1) Resolution. Any savings bank may surrender its rights to exercise trust powers by filing with the division a certified copy of a resolution of its board of directors.
DFI-SB 17.16(2) (2)Investigation; certificate. Upon receipt of the resolution under sub. (1), the division shall make an investigation and if satisfied that the savings bank has been discharged from all fiduciary duties which it has undertaken, the division shall issue a certificate to the savings bank certifying that it is no longer authorized to exercise fiduciary powers.
DFI-SB 17.16(3) (3)Cancellation of authority. On issuance of a certificate under sub. (2) by the division, a savings bank:
DFI-SB 17.16(3)(a) (a) Is no longer subject to this chapter;
DFI-SB 17.16(3)(b) (b) Is entitled to have returned to it the indemnity fund required by s. DFI-Bkg 15.04; and
DFI-SB 17.16(3)(c) (c) Shall not exercise any of the powers granted by this chapter without first applying for and obtaining new authorization to exercise trust powers.
DFI-SB 17.16 Note Note: This section parallels 12 CFR 550.14 and s. DFI-SL 17.16.
DFI-SB 17.16 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94.
DFI-SB 17.17 DFI-SB 17.17Effect of trust accounts of appointment of conservator or receiver or voluntary dissolution of savings bank.
DFI-SB 17.17(1) (1) Appointment of liquidator, conservator or receiver. Whenever a liquidator, conservator or receiver is appointed for a savings bank, the liquidator, receiver or conservator shall, pursuant to the instructions of the division and the orders of the court having jurisdiction, close such of the savings bank's trust accounts as can be closed promptly and transfer all other trust accounts to substitute fiduciaries.
DFI-SB 17.17(2) (2)Voluntary dissolution. Whenever a savings bank exercising trust powers is placed in voluntary dissolution, the liquidating agent shall, in accordance with local law, proceed at once to liquidate the affairs of the trust department as follows:
DFI-SB 17.17(2)(a) (a) All trusts and estates over which a court is exercising jurisdiction shall be closed or disposed of as soon as practicable in accordance with the order or instructions of the court; and
DFI-SB 17.17(2)(b) (b) All other accounts which can be closed promptly shall be closed as soon as practicable and final accounting made for the closed accounts and all remaining accounts shall be transferred by appropriate legal proceedings to substitute fiduciaries.
DFI-SB 17.17 Note Note: This section parallels 12 CFR 550.15 and s. DFI-SL 17.17.
DFI-SB 17.17 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94.
DFI-SB 17.18 DFI-SB 17.18Revocation of trust powers.
DFI-SB 17.18(1)(1) Notice of intent. In addition to the other sanctions available, if, in the opinion of the division, a savings bank is unlawfully or unsoundly exercising, or has failed for a period of 5 consecutive years to exercise, the powers granted by this chapter or otherwise fails to comply with the requirements of this chapter, the division may issue and serve upon the savings bank a notice of intent to revoke the authority of the savings bank to exercise the powers granted by this chapter. The notice shall contain a statement of the facts constituting the alleged unlawful or unsound exercise of powers, or failure to exercise powers, or failure to comply with the requirements of this chapter, and shall fix a time and place at which a hearing will be held to determine whether an order revoking authority to exercise trust powers should be issued against the savings bank.
DFI-SB 17.18(2) (2)Hearing. A hearing under sub. (1) shall be conducted as a contested class 2 hearing under ch. 227, Stats.
DFI-SB 17.18(3) (3)Revocation order. Unless the savings bank served under sub. (1) appears at the hearing by a duly authorized representative, it is deemed to have consented to the issuance of the revocation order. In the event of consent or if, upon the record made at the hearing, the division finds that any allegation specified in the notice of charges has been established, the division may issue and serve upon the savings bank an order prohibiting it from accepting any new or additional trust accounts and revoking authority to exercise powers granted by this chapter except that the order shall permit the savings bank to continue to service all previously accepted trust accounts pending their expeditious divestiture or termination.
DFI-SB 17.18(4) (4)Effective period. A revocation order is effective not earlier than the expiration of 30 days after service of the order upon the savings bank, except a consent revocation order which is effective at the time specified in the order, and shall remain effective and enforceable, except to the extent it is stayed, modified, terminated, or set aside by action of the division or a reviewing court.
DFI-SB 17.18 Note Note: This section parallels 12 CFR 550.16 and s. DFI-SL 17.18
DFI-SB 17.18 History History: Cr. Register, February, 1994, No. 458, eff. 3-1-94.
Published under s. 35.93, Stats. Updated on the first day of each month. Entire code is always current. The Register date on each page is the date the chapter was last published.