Chapter DFI-SL 2
GENERAL PROVISIONS; PROCEDURES; DIVISION’S AUTHORITY
DFI-SL 2.02 Safety and soundness. DFI-SL 2.03 Conflicts of interest. DFI-SL 2.04 Supervisory orders. DFI-SL 2.05 Division’s authority. DFI-SL 2.06 Complaints against associations. DFI-SL 2.07 Communications with members. DFI-SL 2.08 Corporate name. Ch. DFI-SL 2 NoteNote: Chapter S-L 2 was renumbered chapter DFI-SL 2 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 2.01DFI-SL 2.01 Purpose. The purpose of chs. DFI-SL 1 to 20 is to provide rules and procedures for the organization, incorporation, examination, operation, regulation and supervision of associations, giving primary consideration to the best practices of financial institutions operating in this state. Lending and investment authorities provided under statutes and rules are intended to provide associations the necessary flexibility to maintain their primary role of providing credit for housing related purposes. DFI-SL 2.01 HistoryHistory: Cr. Register, June, 1989, No. 402, eff. 7-1-89. DFI-SL 2.02DFI-SL 2.02 Safety and soundness. Subject to supervision by the division, the board of directors of each association shall assure that the association operates in a safe and sound manner, adhering to sound business practices and applicable statutes, rules and federal regulations. DFI-SL 2.02 NoteNote: This section interprets or implements ss. 215.03, 215.50 and 215.70, Stats. DFI-SL 2.02 HistoryHistory: Cr. Register, June, 1989, No. 402, eff. 7-1-89. DFI-SL 2.03DFI-SL 2.03 Conflicts of interest. When a person in a decision making position with an association must decide between his or her personal financial interests and those of the association, the association is exposed to unnecessary risk. Each officer, director and employee shall avoid such conflict of interest situations. The board of directors of each association shall establish and implement written policies and procedures reasonably calculated to identify potential conflicts of interest and, when reasonably possible, to avoid placing an association’s officer, director or employe in such a position. Establishing and implementing policies and procedures that assure compliance with its federal insuring agency’s regulations governing transactions between the insured association and affiliated persons shall constitute compliance with this section. DFI-SL 2.03 HistoryHistory: Cr. Register, June, 1989, No. 402, eff. 7-1-89; CR 23-039: am. Register March 2024 No. 819, eff. 4-1-24. DFI-SL 2.04(1)(1) Purpose. To carry out the division’s responsibilities, the division may issue a supervisory order when it determines that an association is: DFI-SL 2.04(1)(a)(a) Violating the provisions of its articles, bylaws, the laws of this state, or the laws of the United States, or any order or rule issued by the division or by the division and the review board: or