Under current law, a credit union may make loans to members upon terms approved by the credit committee, loan officer, or board of directors.

The bill specifies that a credit union may allow nonmember loan participation as a joint applicant, co-obligor, cosigner, co-borrower, surety, or guarantor.

Supplemental capital

The bill specifies that credit unions may issue or offer supplemental forms of capital approved by OCU.

Charges for credit union examinations

Current law generally requires OCU to conduct, at least once every 18 months, examinations of credit unions in which OCU examines the credit union's records and accounts. OCU must charge the credit union for the cost of the examination, and the credit union must pay the charge on the day on which the examination is completed.

The bill requires the credit union to pay the charge within 30 days of the completion of OCU's examination.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB478,1 Section 1. 186.07 (7) of the statutes is amended to read:

AB478,4,5 186.07 (7) Vacancies. Within 60 90 days after the date of a removal vacancy on the board of directors, the board of directors shall appoint a director to fill the vacancy. The appointee shall serve until a successor is elected at the next annual membership meeting.

AB478,2 Section 2. 186.098 (1) of the statutes is amended to read:

AB478,4,11 186.098 (1) Loan approval. The credit union may make loans to members upon terms approved by the credit committee, loan officer, or board of directors. The credit union may also permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, cosigner, co-borrower, surety, or guarantor.

AB478,3 Section 3. 186.11 (2) of the statutes is renumbered 186.11 (2) (a) and amended to read:

AB478,4,15 186.11 (2) (a) A Subject to pars. (b) and (c), a credit union may purchase, hold, and dispose of property as necessary for or incidental to its operations.

AB478,4 Section 4. 186.11 (2) (b) and (c) of the statutes are created to read:

AB478,4,18 186.11 (2) (b) Subject to guidance issued by the office of credit unions, a credit union may purchase, lease, hold, and convey the following types of real estate:

AB478,4,20 1. Real estate conveyed to the credit union in satisfaction of debts previously contracted in the course of the credit union's business.

AB478,4,23 2. Real estate purchased at sale on judgments, decrees, or mortgage foreclosures under securities held by the credit union, but a credit union may not bid at a sale a larger amount than is necessary to satisfy its debts and costs.

AB478,4,25 3. Subject to the approval of the office of credit unions, real estate acquired or held by the credit union for any other purpose.

AB478,5,2 (c) Real estate acquired under par. (b) may not be held for more than 5 years, unless an extension is granted by the office of credit unions.

AB478,5 Section 5. 186.113 (15) (a) of the statutes is amended to read:

AB478,5,21 186.113 (15) (a) Directly or indirectly, acquire, place, and operate, or participate in the acquisition, placement, and operation of, at locations other than its offices, remote terminals, in accordance with rules established by the office of credit unions. The rules shall provide that any remote terminal shall be available for use, on a nondiscriminatory basis, by any state or federal credit union which has its principal place of business in this state, by any other credit union obtaining the consent of a state or federal credit union which has its principal place of business in this state and is using the terminal and by all members designated by a credit union using the terminal. This subsection does not authorize a credit union which has its principal place of business outside the state to conduct business as a credit union in this state. The remote terminals also shall be available for use, on a nondiscriminatory basis, by any state or national bank, state or federal savings bank or state or federal savings and loan association, whose home office is located in this state, if the bank, savings bank or savings and loan association requests to share its use, subject to the joint rules established under s. 221.0303 (2). The office of credit unions by order may authorize the installation and operation of a remote terminal in a mobile facility, after notice and hearing upon the proposed service stops of the mobile facility.

AB478,6 Section 6. 186.113 (26) of the statutes is created to read:

AB478,5,25 186.113 (26) Supplemental capital. Issue or otherwise offer supplemental forms of capital in such form and with such conditions as are approved by the office of credit unions.

AB478,7 Section 7. 186.115 (2) of the statutes is amended to read:

AB478,6,9 186.115 (2) Rules Guidance. The activities, powers, products , and services that may be undertaken, exercised, or offered by credit unions under sub. (1) are limited to those specified by rule of guidance issued by the office of credit unions. The office of credit unions may direct any credit union to cease any activity, the exercise of any power, or the offering of any product or service authorized by rule this guidance. Among the factors that the office of credit unions may consider in so directing a credit union are the credit union's net worth, assets, management rating, and liquidity ratio and its ratio of net worth to assets.

AB478,8 Section 8. 186.118 (1) of the statutes is amended to read:

AB478,6,14 186.118 (1) In addition to any activity or power authorized under ss. 186.098, 186.11, 186.113, 186.114, and 186.115, and 186.235 (21), a credit union organized under s. 186.02 may engage in any activity or exercise any power that is listed by the office of credit unions under sub. (2) (a) or, (3) (b) 1., or (3m) (b) 1.