LRB-4193/1
ARG:all
2019 - 2020 LEGISLATURE
2019 Senate BILL 457
September 27, 2019 - Introduced by Senators Marklein, Feyen, Olsen, Ringhand
and Kapenga, cosponsored by Representatives Katsma, Duchow, Dittrich,
Doyle, Felzkowski, Horlacher, Kitchens, Quinn, Skowronski, Tusler and
Zimmerman. Referred to Committee on Agriculture, Revenue and Financial
Institutions.
SB457,2,5 1An Act to repeal 15.07 (1) (b) 5., 15.07 (5) (g), 15.185 (3) and 227.53 (1) (b) 2.;
2to amend 15.07 (1) (b) 1., 15.07 (5) (b), 15.185 (1), 71.91 (6) (c) 1., 71.91 (6) (d)
31., 214.01 (1) (sr), 215.01 (22), 220.02 (5), 220.035 (title), 220.035 (1) (a), 220.035
4(2), 220.035 (3), 220.035 (6), 220.04 (1) (a), 220.04 (4), 220.04 (6), 220.04 (7) (b)
5(intro.), 220.04 (8), 220.04 (9) (f) 2., 220.04 (12), 220.05 (2), 220.06 (1m), 220.06
6(2), 220.07 (2), 220.08 (1), 220.08 (3a), 220.08 (9), 220.085, 221.0202 (5),
7221.0205, 221.0324 (9), 221.0702 (3), 221.1006, 223.01, 224.725 (1), 227.52 (3),
8227.53 (1) (a) 1., 227.53 (1) (b) 4., 227.53 (1) (d), 403.312 (2) (c) 1., 705.04 (2)
9(intro.), 705.04 (2g), 705.06 (3) and 812.18 (1); and to create 71.91 (6) (a) 1r.,
1071.91 (6) (d) 4., 224.46, 224.725 (1r), 705.06 (2m) and 812.19 (4) of the statutes;
11relating to: P.O.D. accounts and loan obligations to financial institutions; the
12duty of a bank to make payment on a lost, destroyed, or stolen cashier's check,
13teller's check, or certified check; providing temporary authority to act as a
14mortgage loan originator while a license application is pending; property

1subject to garnishment or tax levy in possession of a financial institution;
2entities that provide to financial institutions electronic data processing
3services; loans to state banks by a Federal Home Loan Bank; and consolidating
4the Banking Review Board and Savings Institutions Review Board in the
5Department of Financial Institutions.
Analysis by the Legislative Reference Bureau
P.O.D. accounts
This bill allows a financial institution that has established a payable-on-death
(P.O.D.) account and made a loan to the P.O.D. account owner to, upon the death of
the account owner, withhold distribution to the P.O.D. account beneficiary of an
amount necessary to satisfy the account owner's loan obligation to the financial
institution.
Current law allows a depositor of a financial institution to establish a P.O.D.
account under which the sums on deposit at the time of the depositor's death are
transferred to a designated P.O.D. beneficiary and are not subject to distribution by
will or otherwise as part of the deceased depositor's estate.
Under this bill, if the financial institution has made a loan to the depositor and
has any lien right, right to setoff, or security interest in the P.O.D. account resulting
from the loan, then upon the depositor's death, the financial institution may retain
control of all sums on deposit in the P.O.D. account to the extent necessary to exercise
its lien right or right to setoff or to protect its security interest. The financial
institution must then pay the remaining balance of the account to the P.O.D.
beneficiary.
Bank's payment duty on lost, destroyed, or stolen instrument
This bill reduces the period, from 90 days to 14 days, after certain checks are
issued or guaranteed before the issuing or guaranteeing bank is obligated to pay the
amount of the check to a person who meets specified requirements and claims that
the check has been lost, destroyed, or stolen.
Under current law, if certain requirements are satisfied, a person may claim the
right to receive the amount of a cashier's check, teller's check, or certified check that
was lost, destroyed, or stolen by communicating the claim to the obligated bank (the
issuer or guarantor of the check), describing the check with reasonable certainty, and
requesting payment of the amount of the check. If various requirements are
satisfied, the obligated bank must pay the amount of the check to the claimant on the
later of the time that the claim is asserted or the 90th day after the date of the
cashier's check or teller's check or, for a certified check, the 90th day after the date
of the obligated bank's guarantee to honor the check. Payment to the claimant
discharges all liability of the obligated bank with respect to the check. However,
under certain circumstances, the claimant must refund the payment to the obligated

bank if the check is subsequently presented for payment by a person with certain
superior rights.
Under this bill, if all applicable requirements are satisfied, the obligated bank
must pay the claimant the amount of the lost, destroyed, or stolen check on the later
of the time that the claim is asserted or the 14th day after the date of the cashier's
check or teller's check or, for a certified check, the 14th day after the date of the
obligated bank's guarantee to honor the check.
Mortgage loan originators
This bill provides an applicant for a mortgage loan originator license, under
limited circumstances, with temporary authority to act as a mortgage loan originator
while the application is pending with the Department of Financial Institutions.