Evidence of ownership of savings accounts. 215.15(1)(1)
Savings account forms.
The association shall issue to each saver a written summary of the terms of the saver's account or, if permitted by the division, a receipt. The division may promulgate rules prescribing the form of or otherwise regulating issuance and use of evidences of savings accounts, summaries of savings accounts and receipts.
(2) Validation of passbooks and certificates.
The board of directors may designate one or more persons to sign passbooks, certificates or other evidence of savings accounts. Facsimile signatures of designated signatures may be used when authorized by the board of directors.
The board of directors may, subject to the rules of the division and par. (b)
, provide for the following:
The transfer of savings accounts by any procedure permitted by law or limit or prohibit transfer of savings accounts.
The replacement of lost or destroyed evidences of savings accounts.
Unless the division approves, a mutual association may not issue negotiable certificates of deposit which are not in registered form in an aggregate amount exceeding 20 percent of the total amount in savings accounts.
The division may promulgate rules governing the transfer of savings accounts or the replacement of lost or destroyed evidences of savings accounts.
Savings account earnings.
Subject to the rules of the division, the board of directors of an association may:
Declare or contractually fix one or more rates of earnings on savings accounts.
Prescribe the methods for computing, and the time and manner of crediting or paying, earnings on savings accounts.
Withdrawal of savings accounts. 215.17(1)(1)
The association may pay, on request, withdrawals on its savings accounts to the owners of such savings accounts. The association may require advance notice of withdrawal.
(2) Withdrawal requests of savers.
In a mutual association a saver who has made a withdrawal request does not become a creditor of the association by reason of the withdrawal request.
Closing of savings accounts. 215.18(1)(1)
Except as provided in sub. (3)
, an association may close a savings account by delivering notice of the closing to the saver or mailing notice to the last-known address of the saver.
On the date the notice required under sub. (1)
is delivered or mailed, all rights of the saver in the savings account terminate except the right to receive the withdrawal value of the account calculated as of the date of delivery or mailing of the notice. A saver remains a member until the withdrawal value of the savings account is paid.
An association may agree in writing not to close a savings account. The division may promulgate rules restricting the authority of an association to close savings accounts.
Loans on savings accounts. 215.19(1)(1)
An association may make loans on the security of its savings accounts.
In no event shall a savings account loan exceed the withdrawal value of the savings account pledged as security therefor.
Each savings account loan shall be evidenced by a savings account loan note and a pledge of the savings account books or savings account certificates securing said loan.
Any corporation, owning savings accounts in an association, and whose officers, directors or employees are officers, directors or employees of said association, may obtain a savings account loan on the security of said saving accounts.
History: 1975 c. 359
; 1983 a. 167
Property improvement loans. 215.20(1)(1)
For the purpose of this section, a property improvement loan means a loan, the proceeds of which are used to repair, modernize, alter, furnish, equip or improve the real estate or the structure upon it, or both. As used in this section, loans made for the purpose of furnishing or equipping a structure shall be made to the owners thereof only.
An association may make, buy, sell and hold property improvement loans to such persons, for such purposes, in such individual and aggregate amounts, and upon such terms as the division by rule prescribes.
Other loans and investments.
Subject to such rules as the division prescribes, an association may make, buy, sell and hold the following loans and investments:
Loans or obligations, or interests therein, for the purpose of mobile home or manufactured home financing.
Housing project loans or interests therein, having the benefit of any guaranty under sec. 221 of the foreign assistance act of 1961, as now or hereafter in effect, or loans or interests therein, having the benefit of any guaranty under sec. 224 of such act, or any commitment or agreement with respect to such loans or interests therein, made pursuant to either of such sections.
Loans or obligations or interests therein, which the association has the benefit of any guaranty under Title IV of the housing and urban development act of 1968, as now or hereafter in effect, or of a commitment or agreement therefor.
Loans or interests in loans to financial institutions with respect to which the United States, or any agency or instrumentality thereof, has any function of examination or supervision, or to any broker or dealer registered with the securities and exchange commission, secured by loans, obligations or investments in which it has any statutory authority to invest directly, subject to such rules as the division may issue.
Notwithstanding any other statutory provision relating to investments in or ownership of real property, an association may invest in, or in interests in, real property located within urban renewal areas as defined in the national housing act of 1949 as now or hereafter in effect, and in obligations secured by first liens on real property so located.
Loans to building contractors for the purpose of the development and construction of residential property.
History: 1975 c. 11
; 1995 a. 27
; 2007 a. 11
Basic security required.
Subject to such additional limitations as the division may prescribe, associations may make loans on the security of any of the following:
A mortgage on real estate owned by the borrower in fee simple if the aggregate value of the mortgage and any current balance of any mortgage, lien and encumbrances does not exceed the appraised value of the real estate.
Leasehold interests extending or renewable automatically for a period of at least 15 years beyond the maturity of the debt.
An assignment or transfer of stock certificates or other evidence of the borrower's ownership interest in a corporation formed for the cooperative ownership of real estate. Sections 846.10
, as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender's rights in security given for a loan under this paragraph. The division shall promulgate joint rules with the office of credit unions that establish procedures for enforcing a lender's rights in security given for a loan under this paragraph.
(2) Lending area.
Except for loans made under s. 45.37
, 2017 stats., the lending area of an association is limited to that area within a radius of 100 miles of the association's office.
(3) Mortgage and mortgage note.
Every mortgage loan shall be secured by a mortgage upon the real estate security and evidenced by a mortgage note.
(4) Priority of association's mortgages. 215.21(4)(a)(a)
All mortgages described in this section shall have priority over all liens, except tax and special assessment liens and liens under ss. 292.31 (8) (i)
, upon the mortgaged premises and the buildings and improvements thereon, which shall be filed subsequent to the recording of such mortgage.
Any additional advance made to a borrower, where the mortgage and mortgage note provides for such additional advances, shall not exceed an amount specified in said mortgage.
(5) Maximum amount of loans to one borrower. 215.21(5)(a)(a)
The aggregate of loans that an association may make to any one borrower is subject to such limits as determined and prescribed by the division and review board, but not exceeding 10 percent of the aggregate savings accounts or the net worth of the association, whichever is less.
The aggregate of loans to any one borrower shall consist of any loans made directly to the borrower and to any corporation of which the borrower is an officer, director or shareholder.
(6) Maximum periods of loan amortization. 215.21(6)(a)(a)
Direct reduction mortgage loans.
The total monthly contractual payment on a direct reduction mortgage shall appear in the mortgage note. The division shall by regulation establish the maximum terms for the various types of direct reduction mortgages. The interest charges on loans of this type may be adjusted monthly or semiannually in accordance with the terms of the mortgage note.
Straight mortgage loans.
An association may make mortgage loans without the amortization of principal.
(7) Types of real estate security.
An association may make loans on the following types of real estate security as defined by the division:
Combination home-and-business type properties;
Commercial type properties, the aggregate of which shall be fixed by the division;
(8) Insurance coverage of mortgaged premises. 215.21(8)(a)(a)
The borrower shall cause the buildings and improvements on any property on which the association has a mortgage to be insured and kept insured, unless the association maintains insurance under par. (b)
, up to the full insurable value during the life of the loan, for the benefit of the association, against loss by fire, windstorm and such other hazards as the association requires. The selection of the insurance agent or insurer through which the insurance covering such property is to be negotiated shall be made in accordance with ss. 134.10
and 628.34 (5)
The insurance policies or evidence or certificate of the existence of such insurance policies shall remain on deposit with the association until the loan is paid. An association which carries adequate insurance, issued by a company licensed to write insurance protecting the association from losses under par. (a)
at no cost to the borrower if the borrower fails to maintain insurance, shall not be required to request or record future insurance policies of the borrower if at the time of closing the mortgage transaction the borrower deposited with the association an acceptable policy or evidence or certificate of the existence of such an insurance policy, with a mortgage clause protecting the interest of the association.
War damage insurance shall not be required unless the directors of the association, by resolution, demand that same be provided by the borrower.
Any association may accept, as additional collateral to its mortgage note, any other real estate, personal property or a policy of insurance on the life of any person who is a party to or responsible for the payment of the mortgage note. The association may be named beneficiary as well as absolute assignee of such life insurance and, to protect its interests therein, advance premiums thereon.
Upon written request of any borrower, any association may accept as additional collateral a policy of health and accident insurance on the life of any person responsible for the repayment of the mortgage loan, and may, in the event of the borrower's inability to pay premiums thereon, advance said premiums. Any premiums so advanced shall be added to the unpaid balance of the mortgage loan and become a part of the mortgage indebtedness.
(12) Insured or guaranteed loans.
An association may make mortgage loans insured or guaranteed wholly or in part under the national housing act approved June 27, 1934, or the servicemen's readjustment act of 1944, (P.L. 78-346
). All mortgage loans made under this section shall be in accordance with federal law and regulations and ch. 219
(13) Purchasing of loans.
Except as otherwise prescribed in s. 215.13 (21)
, an association may purchase mortgage loans from any person, provided that the association could have made such loans in the first instance. The association may enter into an agreement with the seller of such mortgages to service the loans.
(14) Selling loans.
Except as otherwise prescribed in s. 215.13 (22)
an association may sell mortgage loans, without recourse, to any person, and service such loans for the purchaser in accordance with a duly executed servicing agreement. The aggregate of loans sold in any calendar year shall not exceed such limits as may be set by the division and review board.
(15) Participation loans.
Any association may participate with other lenders in mortgage loans of any type that such association may otherwise make, subject to such rules as the division issues, including the interest in participation loans to be retained by the originator. The normal lending area, prescribed in sub. (2)
, shall not apply to any association purchasing a participating interest in such loan, provided the real estate securing such loan is located within the United States.
An association may make a mortgage loan on the security of vacant land, if the loan is any of the following:
A loan made to develop or to acquire and develop land for primarily residential purposes may be secured by the land to be developed.
A loan made to a builder to construct residential property may be secured by a lot suitable for the construction of a home.
A loan made to acquire a building site for future construction of a personal residence may be secured by the building site.
A loan made to acquire land for use in connection with a farm operated for profit may be secured by that land.
A loan that the association reasonably believes will be used to develop or to acquire and develop land for commercial or industrial use within 5 years after the acquisition of the land.
An association may not make a mortgage loan on the security of real estate in which an officer, director or employee of the association or his or her spouse has an interest. This paragraph does not apply to home-type property containing 4 dwelling units or less personally used by the borrower as a place of residence.
Nothing in this section shall prevent any property from being pledged as additional collateral for a loan as long as the value of the unacceptable security is not used to determine the appraised value of the real estate security upon which the loan is based.
An association may not make a mortgage loan on the security of or to finance the purchase of vacant land that is acquired or held for speculation.
No association may directly or indirectly make a mortgage loan to an officer, director or employee of the association.
Without the prior written approval of the division, no association may directly or indirectly make a mortgage loan to:
A business venture employing an officer, director or employee of the association.
Such other persons as the division may by rule designate to avoid conflicts between the best interests of the association and the interests of its officers, directors or employees.
In this subsection “business venture" means any partnership, joint venture, corporation or similar entity.