214.485(14)(14) For the purpose of financing educational expenses. 214.485(15)(15) Through revolving lines of credit on the security of a first or junior lien on the borrower’s personal residence, or on other residential real estate based primarily on the borrower’s equity, the proceeds of which may be used for any purpose. 214.485(16)(16) As secured or unsecured credit to cover the payment of checks, drafts or other funds transfer orders in excess of the available balance of an account on which they are drawn. 214.485(17)(17) For any other purpose authorized by rule of the division. 214.485 Cross-referenceCross-reference: See also ch. DFI-SB 13, Wis. adm. code. 214.49214.49 Other investments. Subject to rules of the division, a savings bank may invest funds in any of the following: 214.49(1)(1) In deposit accounts or insured obligations of any financial institution the accounts of which are insured by a deposit insurance corporation. 214.49(2)(2) In obligations of, or obligations that are fully guaranteed by, the United States and in stocks or obligations of any federal reserve bank, federal home loan bank, the student loan market association, the government national mortgage association, the federal national mortgage association, the federal home loan mortgage corporation or the federal deposit insurance corporation. 214.49(3)(3) In bonds or other direct obligations of, or obligations guaranteed as to principal and interest by, this state. 214.49(4)(4) In bonds, notes or other evidences of indebtedness which are a general obligation of any city, town, village, county, technical college district or school district in this state. A savings bank’s total investments in a local governmental unit may not at any time exceed 50 percent of the capital of the savings bank. A savings bank’s total investment in temporary borrowings of a local governmental unit maturing within one year from the date of issue may not exceed 60 percent of the capital of the savings bank. Temporary borrowings and longer-term general obligation borrowings of a single local governmental unit may be considered separately in arriving at the limitations under this subsection. 214.49(5)(5) With the prior written consent of the division, in the initial purchase and development, or the purchase or commitment to purchase after completion, of home sites and housing for sale or rental, including projects for the reconstruction, rehabilitation or rebuilding of residential properties to meet the minimum standards of health and occupancy prescribed by a local governmental unit, the provision of accommodations for retail stores, shops and other community services that are reasonably incident to that housing, or in the stock of a corporation that owns one or more of those projects and that is wholly owned by one or more financial institutions. The total investment in any one project may not exceed 15 percent of the savings bank’s capital, nor may the aggregate investment under this subsection exceed 50 percent of its capital. A savings bank may not make an investment under this subsection unless it is in compliance with the capital requirements under s. 214.43 and with the capital maintenance requirements of its deposit insurance corporation. The division may approve the investment only if the savings bank shows all of the following: 214.49(5)(a)(a) That the savings bank has adequate assets available for the investment. 214.49(5)(b)(b) That the proposed investment does not exceed the reasonable market value of the property or interest in the property as determined by appraisal that meets the requirements of s. 214.48 (4) and (4m). 214.49(5)(c)(c) That all other requirements of this subsection have been met, except that a savings bank may develop or build on land it acquired under any other provision of this chapter and may complete construction of buildings in accordance with any construction loan contract if the borrower fails to comply with the terms of the contract. 214.49(6)(6) In stocks or obligations of a corporation organized for business development by this state or by the United States or by an agency of this state or the United States. 214.49(7)(7) In obligations of an urban renewal investment corporation organized under the laws of this state or of the United States. 214.49(8)(8) In short-term commercial paper having a maturity from 2 to 270 days issued by a financial institution, corporation or other borrower. An investment under this subsection shall be in securities rated in one of the 2 highest categories by a nationally recognized rating service. 214.49(9)(9) In an equity interest in, an insurance company or an insurance holding company organized to provide insurance for savings banks and persons affiliated with savings banks solely to the extent that ownership is a prerequisite to obtaining directors’ and officers’ insurance or blanket bond insurance for the savings bank through the company. 214.49(9m)(9m) In shares of stock, whether purchased or otherwise acquired, in a corporation acquiring, placing and operating remote service units under s. 214.04 (21). 214.49(10)(10) In equity or debt securities or instruments of a service corporation subsidiary of the savings bank. 214.49(12)(12) With the prior written approval of the division, in financial futures transactions, financial options transactions, forward commitments or other financial products for the purpose of reducing, hedging or otherwise managing its interest rate risk exposure. 214.49(13)(13) In a subsidiary organized to exercise corporate fiduciary powers under ch. 112. 214.49(14)(14) In marketable investment securities, including marketable corporate debt instruments rated in one of the 4 highest categories by a nationally recognized rating service, if the total amount of those securities of any one issuer or obligor does not exceed 10 percent of the savings bank’s capital. The aggregate amount of investments under this subsection may not exceed 10 percent of the savings bank’s total assets, unless the savings bank has received written authorization from the division. 214.49(15)(15) In any other investment authorized by rule of the division. 214.495214.495 Lien priority; advances. 214.495(1)(1) A mortgage taken and recorded by a savings bank shall have priority over all liens, except tax and special assessment liens and liens under ss. 292.31 (8) (i) and 292.81, upon the mortgaged premises and the buildings and improvements thereon, that are filed after the recording of the mortgage. 214.495(2)(2) Any additional advance made to a borrower, if the mortgage and mortgage note provides for additional advances, may not exceed an amount specified in the mortgage. 214.50214.50 General loan contract provisions. A loan and an agreement for securing the loan shall be evidenced by one or more written instruments, consistent with sound lending practices. A savings bank shall record an instrument if it is necessary to establish priority over the claim of any 3rd party. 214.50 HistoryHistory: 1991 a. 221. 214.502214.502 Nonconforming loans. Notwithstanding s. 214.48 (3), a savings bank may make loans secured by real property used primarily for residential or farming purposes, even if those loans do not comply with one or more of the requirements under those provisions, if the total amount of loans made under this section does not exceed 5 percent of the savings bank’s total assets. 214.502 HistoryHistory: 1997 a. 144. 214.505214.505 Modification agreements. Except as provided in a loan contract, a savings bank may enter into a written agreement with a borrower to modify the terms of a loan that describe the amount, time or method of the payments, the interest rate or any other provision of the loan contract. The loan contract, security instrument and lien priority are not affected by the modification, even if the modification was not provided for in the loan contract, unless the modification increases the total amount to be loaned under the loan contract. 214.505 HistoryHistory: 1991 a. 221. 214.507214.507 Customer access to credit reports. If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3), shall provide that individual, at no additional charge, with a copy of any written credit report which is held by the financial institution, which relates to that individual and for which a fee is imposed. 214.507 HistoryHistory: 1993 a. 425. 214.509214.509 Record search. A savings bank is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting these expenses and costs or unless the person seeking the production is a government unit, as defined in s. 108.02 (17). The expenses and costs shall be paid by persons seeking such production. If a savings bank is entitled to reimbursement under this section, a savings bank may not be required to produce books, papers, records and other data in response to legal process unless the expenses and costs, identified in an itemized invoice to be provided by the savings bank, are paid or unless payment is tendered to the savings bank in cash or by certified check or draft. 214.509 HistoryHistory: 1995 a. 336. 214.51214.51 Sale, assignment, and servicing of loans and contracts. 214.51(1)(1) A savings bank may sell a loan or a participating interest in a loan with or without recourse. The division may by rule adopt limitations on the sale of loans except loans sold to agencies of the United States or this state or to another government-sponsored agency if approved by the division. 214.51(2)(2) A savings bank may contract to service a loan or a participating interest in a loan, subject to rules of the division. 214.51(3)(3) A savings bank may sell and assign, with or without recourse, any certificate of sale, defaulted loan or defaulted real estate contract to any person eligible to purchase it. 214.51 HistoryHistory: 1991 a. 221; 1995 a. 27. 214.515214.515 Purchase of real estate at forced sale. A savings bank may purchase at any sheriff’s or other judicial sale any real estate upon which the savings bank has any mortgage, lien or other encumbrance, or in which the savings bank has any other interest. The savings bank may repair, insure, improve, sell, lease, preserve, mortgage or dispose of that real estate. 214.515 HistoryHistory: 1991 a. 221. 214.515 Cross-referenceCross-reference: See also ch. DFI-SB 11, Wis. adm. code. 214.52214.52 Purchase of real estate for office and rental purposes. 214.52(1)(1) A savings bank may acquire and hold real estate on which a building exists or may be built that is suitable for the transaction of the savings bank’s business. A savings bank may own all or part of the stock, shares or interest in a corporation, limited liability company, association or trust engaged solely in holding all or part of that real estate. A savings bank may derive rents from any portion of a building not required for the savings bank’s own use. 214.52(2)(2) The amount invested under sub. (1) may not exceed 100 percent of a savings bank’s capital. 214.52(3)(3) Unless prior written approval of the division is obtained, a savings bank may not purchase, lease or acquire a site for an office building or an interest in real estate from an officer, director, employee, from a stockholder holding more than 10 percent of the stock of the savings bank, or from any firm, corporation, entity, or family in which an officer, director, employee or stockholder holding more than 10 percent of the stock of a savings bank has a direct or indirect interest. 214.525214.525 Prohibited loans. A savings bank may not make a loan to a person owning 10 percent or more of its stock, an affiliated person, agent, or attorney of the savings bank, either individually or as an agent or partner of another, except under rules of the division and regulations of a deposit insurance corporation. 214.525 HistoryHistory: 1991 a. 221; 1995 a. 27. 214.525 Cross-referenceCross-reference: See also s. DFI-SB 3.06, Wis. adm. code. 214.53214.53 Effect of unauthorized investments. 214.53(1)(1) If a savings bank makes a loan or other investment that is not authorized under this subchapter, it shall be due and payable according to its terms and the obligation of the loan is not impaired. 214.53(2)(2) A director or officer of a savings bank may not knowingly participate in or assent to, or knowingly permit an officer, employee or agent of the savings bank to make, an investment that is not authorized by this subchapter. 214.53(3)(3) The division may require a director or officer of a savings bank who knowingly participates in or assents to, or who knowingly permits an officer, employee or agent of the savings bank to make, an investment that is not authorized by this subchapter to obtain an indemnity bond, insurance, or collateral sufficient to indemnify the savings bank against damages that the savings bank may sustain as a result of the investment. If an unauthorized investment, the amount considered sufficient to indemnify the savings bank shall be the difference between the book value and the market value of the investment at the time the division determines that the investment is unauthorized. If an unauthorized loan, the amount considered sufficient to indemnify the savings bank shall be the difference between the book value of the loan and the amount of the loan that could have been made under this subchapter. If an unauthorized investment is sold or disposed of without recourse, the division shall release all or part of the indemnity after deducting any loss. If the balance of an unauthorized loan is reduced to an amount that would permit the loan to be made under this subchapter, the indemnity shall be released. In making a determination under this subsection, the division may order an independent appraisal at the savings bank’s expense. 214.53 HistoryHistory: 1991 a. 221; 1995 a. 27. 214.54214.54 Loans to one borrower. 214.54(1)(1) Except as provided in sub. (2) and s. 214.49 (4), the total of outstanding loans and extensions of credit, both direct and indirect, made by a savings bank to a single person shall be subject to limits established by rule of the division, but may not exceed 20 percent of the savings bank’s capital. 214.54(2)(2) Total outstanding loans and extensions of credit, both direct and indirect, made by a savings bank to a single person may exceed the 20 percent limit under sub. (1), but may not exceed 25 percent of the savings bank’s capital, if all loans or extensions of credit that exceed the 20 percent limit are at least 100 percent secured by readily marketable collateral having a market value that may be determined by reliable and continuously available price quotations. 214.54(3)(3) Notwithstanding subs. (1) and (2), a savings bank may make loans to one borrower under any of the following circumstances: 214.54(3)(a)(a) For any purpose if the total amount loaned does not exceed $500,000. 214.54(3)(b)(b) To develop domestic residential housing units if the total amount loaned does not exceed the lesser of $30,000,000 or 30 percent of the savings bank’s capital and if all of the following conditions are met: 214.54(3)(b)1.1. The purchase price of each single-family dwelling unit in a development financed under this paragraph does not exceed $500,000. 214.54(3)(b)3.3. Loans made under this paragraph to all borrowers do not, in aggregate, exceed 150 percent of the savings bank’s capital. 214.54(3)(b)4.4. Loans under this paragraph comply with all applicable loan-to-value requirements. 214.54(4)(4) A savings bank’s loans to one borrower to finance the sale of real property acquired in satisfaction of debts may not exceed 50 percent of the savings bank’s capital. 214.54(5)(5) A loan or extension of credit granted to one person, the proceeds of which are used for the direct benefit of a 2nd person, shall be considered to be a loan or extension of credit to the 2nd person as well as the first person. 214.54(6)(6) The total liabilities of a partnership, pool, syndicate or joint venture shall include the liabilities of the members of the entity. 214.54(7)(7) For a loan authorized under sub. (2), a savings bank shall institute procedures to ensure that collateral fully secures an outstanding loan or extension of credit at all times. 214.54(8)(8) If collateral values fall below 100 percent of an outstanding balance of a loan or extension of credit to the extent that the loan or extension of credit does not comply with subs. (1) and (2), the savings bank shall bring the loan into conformance within 15 business days unless a judicial proceeding or other extraordinary occurrence prevents the savings bank from taking action. 214.54(9)(9) This section does not apply to loans or extensions of credit to the United States or its agencies or to this state or its agencies. 214.545214.545 Rules. The division shall promulgate rules to determine permissible levels of investment and permissible concentrations of assets for savings banks that apply to all lending and investment authority under this subchapter. The rules shall give due regard to capital adequacy, operating income, underwriting standards, risk inherent in the investment or loan, and competitive parity with other financial institutions. 214.545 HistoryHistory: 1991 a. 221; 1995 a. 27. DEPOSIT ACCOUNTS
214.57214.57 Deposit accounts. A savings bank may establish deposit accounts. Deposit accounts shall be payable without notice, unless the contract of deposit provides otherwise. 214.57 HistoryHistory: 1991 a. 221. 214.575214.575 Deposit accounts subject to liens. 214.575(1)(1) A deposit account shall be subject to a lien for the payment of charges that may accrue on the account under this chapter. 214.575(2)(2) A deposit account shall be subject to a debt offset for the debts of the deposit account holder to the savings bank.
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Chs. 178-226, Partnerships and Corporations; Transportation; Utilities; Banks; Savings Associations
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