DFI-SL 16.01(13)(a)
(a)
Authority. Both through a subsidiary under ch.
DFI-SL 15 and directly by the association, sell insurance products (including annuities and life, credit-life, health, property and casualty, unemployment compensation and mortgage guaranty insurance), equity securities (including preferred and common stocks and interests in mutual funds) as agents for the accounts of customers, real estate investment trust interests, corporate and municipal bonds and shares in uninsured brokered deposits.
DFI-SL 16.01(13)(b)1.1. Sales by tellers at teller counters. Sales of noninsured financial products described in par. (a) made directly by association personnel may not be sold at a teller counter by a teller or comparable person.
DFI-SL 16.01(13)(b)2.
2. Investments in association or subsidiary. To avoid any actual or apparent conflict of interest, no investment advice may be given regarding, nor may transactions be made in any equity security or debt instrument of the association or any of its subsidiaries.
DFI-SL 16.01(13)(c)
(c)
Disclosure. When a customer purchases an annuity, equity security, real estate investment trust interest, corporate or municipal bond or share in uninsured brokered deposits from an association or a subsidiary, the association or the subsidiary shall obtain from the customer a signed document in a form prescribed by the division, a copy of which the customer receives, disclosing that the product is not a deposit account and is not insured by a federal insuring agency.
DFI-SL 16.01 Note
Note: This section interprets or implements ss.
215.02 (18) and
215.135, Stats.
DFI-SL 16.01 Note
Note: Savings institutions operating under this rule must comply with other pertinent requirements, including those under securities and insurance laws and rules.
DFI-SL 16.01 History
History: Cr.
Register, June, 1989, No. 402, eff. 7-1-89; cr. (13),
Register, March, 1992, No. 435, eff. 4-1-92;
CR 23-039: am. (8) Register March 2024 No. 819, eff. 4-1-24.
DFI-SL 16.02
DFI-SL 16.02
Election of loan or investment classification. If an association makes an investment or loan under more than one section of the statutes or this chapter, the association may designate under which section the investment or loan or any portion of either is made and may change its designation at any time.
DFI-SL 16.02 Note
Note: This section interprets or implements ss.
215.02 (18) and
215.135, Stats.
DFI-SL 16.02 History
History: Cr.
Register, June, 1989, No. 402, eff. 7-1-89.
DFI-SL 16.03
DFI-SL 16.03
Absorptions. A stock association may, subject to the approval of the division, convert the shares of a stock association absorbed under s.
215.73, Stats., into stock, savings accounts, or other securities of the surviving association or cash, property, rights, or securities of any other entity in connection with the absorption.
DFI-SL 16.03 Note
Note: This section interprets or implements ss.
215.02 (18) and
215.135, Stats.
DFI-SL 16.03 History
History: Cr.
Register, June, 1989, No. 402, eff. 7-1-89.
DFI-SL 16.04(1)(a)
(a) Convert to a stock association as part of a transaction in which a holding company is organized to acquire, upon issuance, all the capital stock of the converted association. In such a transaction, savers of the converting association shall receive, without payment, nontransferable rights to purchase all of the capital stock of the newly formed holding company. All of the shares of capital stock of the holding company not purchased in the subscription offering shall be offered and sold in a public offering or a direct community offering. Prior to offering stock to savers or the public the association shall obtain a valuation of the association by an independent expert using commonly accepted valuation methods. The valuation shall be included in the plan submitted under s.
215.58, Stats. The total price at which the capital stock shall be sold shall be established by the independent valuation.
DFI-SL 16.04(1)(b)
(b) Convert to a stock association as part of a transaction in which an existing holding company acquires, upon issuance, all the capital stock of the converted association. In such a transaction, the savers of the converting association shall receive, without payment, nontransferable rights from the holding company to purchase its equity securities. Equity securities of the holding company issued in the transaction which are not purchased in the subscription offering shall be offered and sold in a public offering or a direct community offering. Prior to offering stock to savers or the public the association shall obtain a valuation of the association by an independent expert using commonly accepted valuation methods. The valuation shall be included in the plan submitted under s.
215.58, Stats. The total price at which the securities of the holding company shall be sold shall be established by the independent valuation.
DFI-SL 16.04(1)(c)
(c) Convert to a stock association through absorption by an existing insured stock association which is a wholly owned subsidiary of a holding company. In such a transaction the savers of the converting association shall receive, without payment, nontransferable rights from the holding company to purchase its equity securities. Equity securities of the holding company issued in the conversion transaction which are not purchased in the subscription offering shall be offered and sold in a public offering or a direct community offering. Prior to offering stock to savers or the public the association shall obtain a valuation of the association by an independent expert using commonly accepted valuation methods. The valuation shall be included in the plan submitted under s.
215.58, Stats. The total price at which the equity securities of the holding company shall be sold shall be established by the independent valuation.
DFI-SL 16.04(1)(d)
(d) Convert to a stock association through absorption by an existing insured stock association as part of a transaction in which the capital stock of the existing association are issued. In such a transaction in which the existing insured stock association is the survivor, the savers of the converting association shall receive, without payment, nontransferable rights from the existing stock association to purchase its capital stock in lieu of capital stock of the converting association. Capital stock of the existing stock association issued in the conversion transaction which is not purchased in the subscription offering shall be offered and sold in a public offering or a direct community offering. Prior to offering stock, the association shall obtain a valuation of the association by an independent expert using commonly accepted valuation methods. The valuation shall be included in the plan submitted under s.
215.58, Stats. The aggregate price at which the capital stock of the existing or the converting association shall be sold shall be established by independent valuation.
DFI-SL 16.04(2)
(2) Except as otherwise explicitly provided by this section, ch.
215, Stats. applies to a conversion or absorption under this section.
DFI-SL 16.04 History
History: Cr.
Register, June, 1989, No. 402, eff. 7-1-89.
DFI-SL 16.05
DFI-SL16.05
Investments in development companies. A savings and loan association is authorized to invest, in an amount not to exceed in the aggregate 5% of its capital, in shares of small business investment companies located in this state.
DFI-SL 16.05 History
History: CR 00-041: cr.
Register August 2001 No. 548, eff. 9-1-01.
DFI-SL 16.06
DFI-SL 16.06
Stock in bank-owned banks. An association may, with the prior written approval of the division, acquire and hold stock, in an aggregate amount not exceeding 10% of its capital, in one or more of the following:
DFI-SL 16.06(3)
(3) A bank holding company wholly owning a bank under sub. (1) or (2).
DFI-SL 16.06 History
History: CR 02-006: cr.
Register June 2002 No. 558, eff. 7-1-02;
CR 23-039: am. (2) Register March 2024 No. 819, eff. 4-1-24.
