221.0318(3)(3) Status as capital of bank. Notes and debentures issued by a bank constitute capital of the bank, only if approved by the division. 221.0318(4)(4) Retirement of notes and debentures. Before a bank may retire or pay notes or debentures, any existing deficiency of the bank’s capital, disregarding the notes and debentures to be retired, must be paid in cash or in assets acceptable to the division, so that the sound capital assets of the bank shall at least equal the capital stock of the bank. 221.0318(5)(5) Liability for assessment. A bank’s notes or debentures are not subject to any assessment. The holders of these notes or debentures are not liable for the debts, contracts or engagements of the bank or for assessments to restore impairments in the capital of the bank. 221.0318 HistoryHistory: 1995 a. 336. 221.0319(1)(1) Purposes for which real estate may be held. A bank may purchase, lease, hold and convey only the following types of real estate: 221.0319(1)(a)(a) Real estate necessary for the convenient transaction of its business, including facilities connected with the office, furniture, equipment and fixtures. A bank may include with its banking offices, other facilities to rent as a source of income. A bank may also invest in the stocks, bonds or obligations of a bank building corporation. A bank’s investment under this paragraph or its liability for it may not exceed in the aggregate 60 percent of the bank’s capital. 221.0319(1)(b)(b) Real estate conveyed to the bank in satisfaction of debts previously contracted in the course of the bank’s business. 221.0319(1)(c)(c) Real estate purchased at sale on judgments, decrees or mortgage foreclosures under securities held by the bank, but a bank may not bid at a sale a larger amount than is necessary to satisfy its debts and costs. 221.0319(1)(d)(d) Subject to the approval of the division, real estate purchased and held for the purpose of providing needed housing accommodations for its essential employees who are relocated by the bank, including purchasing the former residence of the relocated, essential employee. 221.0319(1)(e)(e) Real estate acquired or held for such other purposes as may be approved by the division, subject to s. 221.0321. 221.0319(2)(2) Time limitation. Real estate acquired under sub. (1) (b), (c) or (d) may not be held for more than 5 years, unless an extension is granted by the division. If an application for an extension is denied, the real estate must be sold at a private or public sale within one year after the denial of the application. This section does not prevent a bank from lending money secured by real estate as provided by law. Real estate may be conveyed under the signature of an officer of the bank. 221.0319(3)(3) Holding companies. Subject to sub. (1) (a), a bank may convey real estate to an entity engaged solely in holding property of the bank, to a bank holding company, as defined in 12 USC 1841 (a), of which the bank is a subsidiary or to any other subsidiary of that bank holding company. A liability of the entity holding property of the bank, bank holding company or subsidiary of the bank holding company to the bank that results from a conveyance under this subsection is not subject to the limitation under s. 221.0320 (1). 221.0319 HistoryHistory: 1995 a. 336. 221.0320221.0320 Limit of loans and investments. 221.0320(1)(1) In general. Except as provided in subs. (2) to (8) and s. 221.0319 (3), the total liabilities of any person, other than a municipal corporation, to a bank for money borrowed may not, at any time, exceed 20 percent of the capital of the bank. In determining compliance with this section, the total liabilities of a partnership includes the liabilities of the general partners of the partnership, computed individually as to each general partner on the basis of his or her direct liability. 221.0320(2)(2) Warehouse receipts and certain bonds and notes. The percentage limitation under sub. (1) is 50 percent of the bank’s capital, if the liabilities under sub. (1) are limited to the following types of liabilities: 221.0320(2)(a)(a) A liability secured by warehouse receipts issued by warehouse keepers licensed and bonded in this state under ss. 99.02 and 99.03 or under the federal bonded warehouse act or holding a license under s. 126.26, if all of the following requirements are met: 221.0320(2)(a)2.2. The staples are insured, if it is customary to insure the staples. 221.0320(2)(a)3.3. The market value of the staples is not, at any time, less than 140 percent of the face amount of the obligation. 221.0320(2)(b)(b) A liability in the form of a note or bond that meets any of the following qualifications: 221.0320(2)(b)1.1. The note or bond is secured by not less than a like amount of bonds or notes of the United States issued since April 24, 1917, or certificates of indebtedness of the United States. 221.0320(2)(b)2.2. The note or bond is secured or covered by guarantees or by commitments or agreements to take over, or to purchase the bonds or notes, and the guarantee, commitment or agreement is made by a federal reserve bank, the federal small business administration, the federal department of defense or the federal maritime commission. 221.0320(2)(b)3.3. The note or bond is secured by mortgage or trust deeds insured by the federal housing administrator. 221.0320(3)(3) Obligations of certain local governmental units. 221.0320(3)(b)(b) Except as otherwise provided in this subsection, the total liabilities of a local governmental unit to a bank for money borrowed may not, at any time, exceed 25 percent of the capital of the bank. 221.0320(3)(c)(c) Liabilities in the form of revenue obligations of a local governmental unit are subject to the limitations provided in par. (b). In addition, a bank is permitted to invest in a general obligation of that local governmental unit in an amount that will bring the combined total of the general obligations and revenue obligations of a single local governmental unit to a sum not in excess of 50 percent of the capital of the bank.