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Register, July, 1998, No. 511
Chapter DFI-SL 5
NET WORTH REQUIREMENTS
DFI-SL 5.01   Net worth requirement.
DFI-SL 5.02   Other powers retained.
Ch. DFI-SL 5 Note Note: Chapter S-L 5 was renumbered chapter DFI-SL 5 under s. 13.93 (2m) (b) 1., Stats., and corrections made under s. 13.93 (2m) (b) 6. and 7., Stats., Register, July, 1998, No. 511.
DFI-SL 5.01 DFI-SL 5.01Net worth requirement.
DFI-SL 5.01(1) (1) Level to be maintained.
DFI-SL 5.01(1)(a)(a) General provision. Except as provided in par. (b), an association shall at all times maintain a net worth ratio in an amount not less than 6.0%. This level shall be attained according to the following schedule:
DFI-SL 5.01(1)(a)1. 1. Four percent by January 1, 1988.
DFI-SL 5.01(1)(a)2. 2. After each subsequent calendar year, effective January 1 of the following year, until the level of 6% is attained, the minimum required net worth ratio shall increase by the lesser of .25% or the ratio, expressed as a percentage, the numerator of which is the net income for all Wisconsin state chartered savings and loan associations and the denominator of which is the average assets of those associations for the 12 months ending December 31 of that year.
DFI-SL 5.01(1)(b) (b) Exceptions. The division may require an association to maintain a net worth ratio higher than that specified in par. (a) if the division determines that the nature of the association's operations otherwise entails a risk requiring a greater net worth ratio to assure the association's stability.
DFI-SL 5.01(2) (2)Actions to re-establish compliance.
DFI-SL 5.01(2)(a)(a) Generally. If an association's net worth ratio falls below the level required under sub. (1), the division may, by order issued under s. DFI-SL 2.04, direct the association to adhere to a specific written plan established by the division to correct the association's net worth ratio deficiency. In addition to any other provisions, the plan may:
DFI-SL 5.01(2)(a)1. 1. Require the association to maintain an increased level of liquidity specified by the division.
DFI-SL 5.01(2)(a)2. 2. Require the association to cease or limit specified expenditures.
DFI-SL 5.01(2)(a)3. 3. Prevent the association from originating or purchasing loans of one or more types.
DFI-SL 5.01(2)(a)4. 4. Prevent the association from making specified investments, including investments under ch. DFI-SL 13, 14 or 15, and investments otherwise permitted under s. 215.13 (26), Stats.
DFI-SL 5.01(2)(a)5. 5. Prevent the association from filing applications for branch offices.
DFI-SL 5.01(2)(a)6. 6. Prevent the association from opening customer savings accounts of any specified class, category or amount, or at any specified interest rate.
DFI-SL 5.01(2)(a)7. 7. Prevent the association from accepting additions to existing savings accounts, except under such conditions as may be specified by the division.
DFI-SL 5.01(2)(b) (b) Additional measures pertaining to stock associations. Unless the association receives the division's prior written approval, no stock association may pay a dividend to stockholders or otherwise distribute any profits when its net worth ratio is, or if upon such payment or distribution would be, below that required under sub. (1).
DFI-SL 5.01 Note Note: This section interprets or implements s. 215.24, Stats.
DFI-SL 5.01 History History: Cr. Register, June, 1989, No. 402, eff. 7-1-89.
DFI-SL 5.02 DFI-SL 5.02Other powers retained. Nothing in this chapter shall limit the division's authority to take such other remedial measures as it may deem necessary to safeguard the interests of the public and the association.
DFI-SL 5.02 Note Note: This section interprets or implements s. 215.03 (2), Stats.
DFI-SL 5.02 History History: Cr. Register, June, 1989, No. 402, eff. 7-1-89.
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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.