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2021 - 2022 LEGISLATURE
February 17, 2022 - Introduced by Law Revision Committee. Referred to
Committee on Senate Organization.
SB992,1,7 1An Act to repeal 138.056 (1) (a) 1., 186.082 (1) (b) and 186.082 (2) (f); to
2consolidate, renumber and amend
186.082 (1) (intro.) and (a); and to
3amend
20.912 (4), 34.01 (2) (a), 34.10, 186.093 (1), 186.093 (2), 186.20, 215.01
4(7m), 220.04 (6) (b) and 813.16 (7) of the statutes; relating to: eliminating
5obsolete references relating to credit unions, the commissioner of banking,
6certain federal agencies, and a mortgage rate index (suggested as remedial
7legislation by the Department of Financial Institutions).
Analysis by the Legislative Reference Bureau
This bill eliminates the following obsolete statutory references:
1. References to the commissioner of banking. In 1995 Wisconsin Act 27, the
Office of the Commissioner of Banking was eliminated and replaced by a new
Division of Banking in the newly created Department of Financial Institutions.
2. References to the Wisconsin Credit Union Savings Insurance Corporation.
The Wisconsin Credit Union Savings Insurance Corporation was eliminated in 2005
Wisconsin Act 134
.
3. References to federal agencies formerly involved in matters relating to
financial institution insolvency and to a mortgage rate index formerly computed by
one such agency.
4. References to the National Credit Union Administration in the context of
certain federal regulations, such that a credit union must comply with federal

regulations relating to privacy and the disclosure of personal information regardless
of which authorized agency prescribed them.
For further information, see the Notes provided by the Law Revision
Committee of the Joint Legislative Council.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
Law Revision Committee prefatory note: This bill is a remedial legislation
proposal, requested by the Department of Financial Institutions and introduced by the
Law Revision Committee under s. 13.83 (1) (c) 4. and 5., stats. After careful consideration
of the various provisions of the bill, the Law Revision Committee has determined that this
bill makes minor substantive changes in the statutes, and that these changes are
desirable as a matter of public policy.
SB992,1 1Section 1 . 20.912 (4) of the statutes is amended to read:
SB992,2,112 20.912 (4) Insolvent depositories. When the bank, savings and loan
3association, savings bank, or credit union on which any check, share draft, or other
4draft is drawn by the secretary of administration before payment of such check, share
5draft, or other draft becomes insolvent or is taken over by the division of banking, the
6federal home loan bank board, the U.S. office of thrift supervision,
the federal deposit
7insurance corporation, the resolution trust corporation, the office of credit unions,
8the administrator of federal credit unions, or the U.S. comptroller of the currency, the
9secretary of administration shall on the demand of the person in whose favor such
10check, share draft, or other draft was drawn and upon the return to the secretary of
11such check, share draft, or other draft issue a replacement for the same amount.
SB992,2 12Section 2. 34.01 (2) (a) of the statutes is amended to read:
SB992,3,1313 34.01 (2) (a) Any loss of public moneys, which have been deposited in a
14designated public depository in accordance with this chapter, resulting from the
15failure of any public depository to repay to any public depositor the full amount of
16its deposit because the office of credit unions, administrator of federal credit unions,
17U.S. comptroller of the currency, federal home loan bank board, U.S. office of thrift

1supervision,
federal deposit insurance corporation, resolution trust corporation, or
2division of banking has taken possession of the public depository or because the
3public depository has, with the consent and approval of the office of credit unions,
4administrator of federal credit unions, U.S. office of thrift supervision, federal
5deposit insurance corporation, resolution trust corporation, or division of banking,
6adopted a stabilization and readjustment plan or has sold a part or all of its assets
7to another credit union, bank, savings bank, or savings and loan association which
8has agreed to pay a part or all of the deposit liability on a deferred payment basis or
9because the depository is prevented from paying out old deposits because of rules of
10the office of credit unions, administrator of federal credit unions, U.S. comptroller
11of the currency, federal home loan bank board, U.S. office of thrift supervision,
12federal deposit insurance corporation, resolution trust corporation, or division of
13banking.
SB992,3 14Section 3 . 34.10 of the statutes is amended to read:
SB992,4,16 1534.10 Reorganization and stabilization of financial institutions.
16Whenever the office of credit unions, administrator of federal credit unions, U.S.
17comptroller of the currency, federal home loan bank board, U.S. office of thrift
18supervision,
federal deposit insurance corporation, resolution trust corporation, or
19division of banking has taken charge of a credit union, bank, savings bank, or savings
20and loan association with a view of restoring its solvency, pursuant to law, or with
21a view of stabilizing and readjusting the structure of any national or state credit
22union, bank, savings bank, or savings and loan association located in this state, and
23has approved a reorganization plan or a stabilization and readjustment agreement
24entered into between the credit union, bank, savings bank, or savings and loan
25association and depositors and unsecured creditors, or when a credit union, bank,

1savings bank, or savings and loan association, with the approval of the office of credit
2unions, administrator of federal credit unions, U.S. comptroller of the currency,
3federal home loan bank board, U.S. office of thrift supervision, federal deposit
4insurance corporation, resolution trust corporation, or division of banking proposes
5to sell its assets to another credit union, bank, savings bank, or savings and loan
6association which agrees to assume a part or all of the deposit liability of such selling
7credit union, bank, savings bank, or savings and loan association and to pay the same
8on a deferred payment basis, the governing board of the public depositor may, on the
9approval of the division of banking, join in the execution of any reorganization plan,
10or any stabilization and readjustment agreement, or any depositor's agreement
11relative to a proposed sale of assets if, in its judgment and that of the division of
12banking, the reorganization plan or stabilization and readjustment agreement or
13proposed sale of assets is in the best interest of all persons concerned. The joining
14in any reorganization plan, or any stabilization and readjustment agreement, or any
15proposed sale of assets which meets the approval of the division of banking does not
16waive any rights under this chapter.
Note: Sections 1 to 3 delete obsolete references to federal agencies formerly
involved in financial institution insolvency.
SB992,4 17Section 4. 138.056 (1) (a) 1. of the statutes is repealed.
Note: This Section eliminates an obsolete reference to a federal index that was
formerly calculated.
SB992,5 18Section 5 . 186.082 (1) (intro.) and (a) of the statutes are consolidated,
19renumbered 186.082 (1) and amended to read:
SB992,5,220 186.082 (1) “Credit union" means any of the following: (a) A a cooperative,
21nonprofit corporation incorporated under s. 186.02 and any domestic or foreign

1predecessor of that corporation where the predecessor's existence ceased upon the
2consummation of a merger or other transaction.
SB992,6 3Section 6. 186.082 (1) (b) of the statutes is repealed.
SB992,7 4Section 7. 186.082 (2) (f) of the statutes is repealed.
SB992,8 5Section 8. 186.093 (1) of the statutes is amended to read:
SB992,5,86 186.093 (1) “Credit union" means a cooperative, nonprofit corporation
7incorporated under s. 186.02 and the Wisconsin credit union savings insurance
8corporation organized under s. 186.35, 2003 stats
.
SB992,9 9Section 9 . 186.093 (2) of the statutes is amended to read:
SB992,5,1310 186.093 (2) “Director or officer" means a natural person who serves as a
11director or officer of a credit union, or as a member of a credit union's credit
12committee, or a natural person who was a trustee of the Wisconsin credit union
13savings insurance corporation organized under s. 186.35, 2003 stats
.
Note: Sections 5 to 9 delete references to the Wisconsin credit union savings
insurance corporation, which was eliminated by 2005 Wisconsin Act 34.
SB992,10 14Section 10. 186.20 of the statutes is amended to read:
SB992,5,17 15186.20 Financial privacy. A credit union shall comply with any applicable
16requirements under 15 USC 6801 to 6803 and any applicable regulations prescribed
17by the national credit union administration under 15 USC 6804.
Note: This Section eliminates a reference to a specific federal agency but retains
the requirement for a credit union to comply with regulations prescribed under federal
law.
SB992,11 18Section 11 . 215.01 (7m) of the statutes is amended to read:
SB992,5,2119 215.01 (7m) “Federal regulatory agency" means the federal office of thrift
20supervision or other
a federal agency or entity which that supervises and examines
21an association.
SB992,12 22Section 12. 220.04 (6) (b) of the statutes is amended to read:
SB992,6,5
1220.04 (6) (b) In times of financial distress, the commissioner division with the
2approval of the banking institutions review board may by order restrict the
3withdrawal of any class of deposits in any bank or trust company bank. The
4pendency of any proceeding for review of such order shall not stay or suspend the
5operation of such order.
Note: This Section replaces an obsolete reference to the commissioner of banking
with a reference to the Division of Banking within the Department of Financial
Institutions.
SB992,13 6Section 13 . 813.16 (7) of the statutes is amended to read:
SB992,6,137 813.16 (7) If the person seeking the appointment of a receiver under sub. (1)
8is a savings and loan association or savings bank supervised by the division of
9banking or a corporation supervised by the home loan bank board, federal office of
10thrift supervision,
federal deposit insurance corporation, or resolution trust
11corporation,
the court, unless the opposing party objects, shall appoint an officer of
12such corporation as receiver to act without compensation and to give such bond as
13the court requires.
Note: Sections 11 and 13 delete obsolete references to federal agencies formerly
involved in financial institution insolvency.
SB992,6,1414 (End)
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