NONDEPOSITORY SMALL BUSINESS LENDERS
224.923 License application. 224.927 Disclosure of certain application information. 224.935 Expiration of license. 224.94 Renewal of license. 224.95 Denial of or disciplinary action relating to license. 224.96 Required loan loss reserve. 224.97 Division review of nondepository lender operations. 224.98 Powers of licensee. 224.985 Required records and reports. Ch. 224 Cross-referenceCross-reference: See definitions in s. 220.01 BANKING PROVISIONS
224.02224.02 Banking, defined. The soliciting, receiving, or accepting of money or its equivalent on deposit as a regular business by any person, partnership, association, or corporation, shall be deemed to be doing a banking business, whether such deposit is made subject to check or is evidenced by a certificate of deposit, a passbook, a note, a receipt, or other writing, provided that nothing herein shall apply to or include money left with an agent, pending investment in real estate or securities for or on account of the agent’s principal. 224.02 HistoryHistory: 991 a. 316; 1993 a. 490; 2005 a. 158. 224.02 AnnotationA “junior achievement” bank would be a banking business and violate s. 224.03. 62 Atty. Gen. 254.
224.03224.03 Banking, unlawful, without charter; penalty. It shall be unlawful for any person, partnership, association, or corporation to do a banking business without having been regularly organized and chartered as a national bank, a state bank or a trust company bank. Any person or persons violating any of the provisions of this section, either individually or as an interested party in any partnership, association, or corporation shall be guilty of a misdemeanor and on conviction thereof shall be fined not less than $300 nor more than $1,000 or imprisoned in the county jail for not less than 60 days nor more than one year or both. 224.05224.05 Municipality not preferred creditor. If any bank, banking institution or trust company, being indebted to the state of Wisconsin, or indebted to any county, city, town or other municipality therein, for deposits made or indebtedness incurred after April 23, 1899, becomes insolvent or bankrupt, except as provided in s. 34.07, the state, county, city, town or other municipality shall not be a preferred creditor and shall have no preference or priority of claim whatever over any other creditor or creditors thereof; but a just and fair distribution of the property of such bank, banking institution or trust company, and of the proceeds thereof, shall be made among the creditors thereof proportionally, according to the amount of their respective claims. Nothing herein contained shall in any manner affect the provisions of law as they existed on said date providing for the payment of unpaid taxes and assessments, laborer’s claims, expenses of assignment and execution of the trust. 224.05 HistoryHistory: 1979 c. 110 s. 60 (12); 1985 a. 257. 224.06224.06 Fidelity bonds for bank officers and employees. 224.06(1)(1) As a condition precedent to qualification or entry upon the discharge of his or her duties, every person appointed or elected to any position requiring the receipt, payment or custody of money or other personal property owned by a bank or in its custody or control as collateral or otherwise, shall give a bond from an insurer qualified under s. 610.11 to do business in this state, in such adequate sum as the directors shall require and approve. In lieu of individual bonds the division may accept a schedule or blanket bond which covers all of the officers and employees of any bank whose duties include the receipt, payment or custody of money or other personal property for or on behalf of the bank. All such bonds shall be in the form prescribed by the division. 224.06(2)(2) No officer or employee who is required to give bond shall be deemed qualified nor shall be permitted to enter upon the discharge of duties until the bond is approved by a majority of the board of directors. The minute books of each bank shall contain a record of each bond executed and approved. 224.06(3)(3) Such bond shall be sufficient in amount to protect the bank from loss by reason of acts of fraud or dishonesty including forgery, theft, embezzlement, wrongful abstraction or misapplication on the part of the person, directly or through connivance with others. At any time the division may require additional bond or security, when in the division’s opinion, the bonds then executed and approved are insufficient. 224.06(4)(4) Every such bond shall provide that no cancellation or other termination of the bond shall be effective unless the surety gives in advance at least 10 days’ written notice by registered mail to the division. If the bond is canceled or terminated at the request of the insured (employer), the surety shall give the written notice to the division within 10 days after the receipt of such request. 224.06(5)(5) For reasons which the division deems valid and sufficient the division may waive as to the cancellation or termination of any such bond the 10-day written notice in advance required by sub. (4) and may give written consent to the termination or cancellation being made effective as of a date agreed upon and requested by the surety and the bank. 224.06(6)(6) The provisions required by sub. (4) to be in every such bond shall not in any way modify, impair or otherwise affect or render invalid a provision therein to the effect that the bond shall terminate as to any person covered thereby upon the discovery by the bank of any dishonest act on the part of such person. 224.06(7)(7) Any violation of the provisions contained in subs. (1) and (2) shall subject the bank to a fine of $100 per day for each consecutive day of such violation and it shall be the duty of the attorney general to recover any such penalties by action for and in behalf of the state. 224.07224.07 Checks to clear at par. Checks drawn on any bank or trust company, organized under the laws of this state, shall be cleared at par by the bank or trust company on which they are drawn. Any bank or trust company, or officer or employee thereof, who violates the provisions of this section shall be guilty of a misdemeanor and punished as provided in s. 939.61. 224.075224.075 Financially related services tie-ins. In any transaction conducted by a bank, bank holding company or a subsidiary of either with a customer who is also a customer of any other subsidiary of any of them, the customer shall be given a notice in 12-point boldface type in substantially the following form: NOTICE OF RELATIONSHIP
This company, .... (insert name and address of bank, bank holding company or subsidiary), is related to .... (insert name and address of bank, bank holding company or subsidiary) of which you are also a customer. You may not be compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction.
If you feel that you have been compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction, you should contact the management of either of the above companies at either of the above addresses or the division of banking at .... (insert address).
224.075 HistoryHistory: 1985 a. 325; 1995 a. 27. 224.10224.10 Indian loan funds. 224.10(1)(1) Administration in trust as a loan fund. The loan funds of any Indian tribe which are transferred to the custody of such tribe by the United States, including any outstanding loan accounts, shall be administered as follows: 224.10(1)(a)(a) The funds shall be held in trust by the tribe or a legal entity thereof as an Indian loan fund, for the purpose of making loans to members of the tribe. 224.10(1)(b)(b) Management of an Indian loan fund shall be vested in a board of trustees, which may hire necessary personnel to administer the loan fund. The board of trustees shall consist of 5 members of the tribe and shall be appointed annually by the governing body of the tribe. 224.10(1)(c)(c) The Indian loan fund in custody of the Menominee Indian Tribe and administered by a board of trustees appointed by that tribe shall, at the termination of federal control, be administered, subject to this section, by a board of 5 trustees appointed annually by the stockholders of the corporation described in s. 710.05, 1973 stats., and shall be used for making loans to those who were enrolled tribal members as proclaimed by the secretary of the interior as of June 17, 1954, and their spouses and descendants and to any additional classes recommended by the trustees. 224.10(3)(3) Rules of board of trustees. The board of trustees of an Indian loan fund may establish rules for the administration of the fund. 224.10 HistoryHistory: 1975 c. 422 s. 163; 1987 a. 252. FINANCIAL INSTITUTIONS
224.25224.25 Customer access to appraisals. If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3), shall provide that individual with a copy of any written appraisal report which is held by the financial institution, which relates to residential real estate that the individual owns or has agreed to purchase and for which a fee is imposed. 224.25 HistoryHistory: 1991 a. 78; 1997 a. 191 s. 236; Stats. 1997 s. 224.25. 224.26224.26 Customer access to credit reports. If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3), shall provide that individual, at no additional charge, with a copy of any written credit report which is held by the financial institution, which relates to that individual and for which a fee is imposed. 224.26 HistoryHistory: 1993 a. 425; 1997 a. 191 s. 237; Stats. 1997 s. 224.26. 224.30224.30 Powers and duties of the department. 224.30(1)(1) Definition. In this section, “department” means the department of financial institutions. 224.30(3)(3) Computer databases, networks and systems; access and use fees. The department may establish fees to be paid by members of the public for accessing or using the department’s computer databases, computer networks or computer systems. Every fee established under this paragraph shall be based upon the reasonable cost of the service provided by the department, together with a reasonable share of the costs of developing and maintaining the department’s computer databases, computer networks and computer systems. 224.30(4)(4) Restrictions on recording instruments with social security numbers. 224.30(4)(a)(a) In this subsection, “system” means the department’s corporate registration information system. 224.30(4)(b)(b) The department may not record in the system any instrument offered for recording that contains the social security number of an individual. If the department is presented with an instrument for recording in the system that contains an individual’s social security number, the department may, prior to recording the instrument, remove or obscure characters from the social security number such that the social security number is not discernable on the instrument. 224.30(4)(c)(c) If the department is presented with an instrument for recording in the system that contains an individual’s social security number, and if the department records the instrument but does not discover that the instrument contains the individual’s social security number until after the instrument is recorded, the department is not liable for the instrument drafter’s placement of the individual’s social security number on the instrument and the department may remove or obscure characters from the social security number such that the social security number is not discernable on the instrument. 224.30(4)(d)(d) If the department records an instrument in the system that contains the complete social security number of an individual, the instrument drafter is liable to the individual whose social security number appears in the recorded instrument for any actual damages resulting from the instrument being recorded. 224.30(5)(a)(a) In this subsection, “filing” means the submission to the department of any form, instrument, application, report, notice, or other information required or permitted to be submitted to the department for retention in the department’s records. 224.30(5)(b)(b) Subject to par. (c), the department may require any filing to be made electronically in a manner prescribed by the department. Subject to par. (c), if the department requires that a filing be made electronically, the department may require that any fee associated with the filing be paid using a suitable method prescribed by the department. 224.30(5)(c)(c) The department may waive any requirement imposed under par. (b) if all of the following apply: 224.30(5)(c)1.1. The person affected by the requirement makes a written request to the department, in a manner prescribed by the department, that the requirement be waived and clearly states in the request why the requirement causes the person undue hardship. 224.30(5)(c)2.2. The department determines, in its discretion, that the requirement, if imposed on the person, would cause the person undue hardship. 224.35224.35 Nationwide multistate licensing system and registry and cooperative arrangements. 224.35(1g)(b)(b) “Nationwide multistate licensing system and registry” means the multistate system developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliate entity, for the licensing and registration of persons in financial services industries. 224.35(1g)(c)(c) “Reinstatement period” means the period beginning on the first day of January and ending on the last day of February of the year following the expiration of a license, or such other period prescribed by the division. 224.35(1g)(d)(d) “Renewal period” means the period beginning on November 1 and ending on December 31, or such other period prescribed by the division. 224.35(1g)(e)(e) “Unique identifier” means a number or other identifier assigned by protocols established by the nationwide multistate licensing system and registry. 224.35(1m)(a)(a) The division shall participate in the nationwide multistate licensing system and registry. The division may establish relationships or contracts with the nationwide multistate licensing system and registry or other entities designated by the nationwide multistate licensing system and registry to collect and maintain records and process transaction fees or other fees related to persons holding licenses identified in sub. (1r). With respect to any form, fee, or other information related to the initial issuance, transition, or renewal of a license identified in sub. (1r), the division may require that any applicant submit such form, fee, or other information directly to the nationwide multistate licensing system and registry and may authorize the nationwide multistate licensing system and registry to perform any function under subch. III, s. 138.09, 138.12, 138.14, 218.0101 to 218.0163, 218.02, 218.04, or 218.05, or ch. 217 related to the licensing of any person with respect to a license identified in sub. (1r). 224.35(1m)(b)(b) The division may require an applicant or licensee to provide, and may provide to the nationwide multistate licensing system and registry, any information relating to an applicant for initial issuance or renewal of a license identified in sub. (1r) that the division and the nationwide multistate licensing system and registry determine to be relevant to the application or to any responsibility administered or conducted through the nationwide multistate licensing system and registry related to the licensed activity. 224.35(1m)(bm)(bm) The division may require an applicant or licensee, or an individual with the power to direct the management or policies of the applicant or licensee, to submit an independent credit report from a consumer reporting agency, an investigative background report prepared by an independent search firm, fingerprints, or any other personal or professional history information deemed necessary by the division. The division may require fingerprints for the purposes of identifying the individual and to determine whether the individual has a record of warrants, arrests, or convictions in any jurisdiction. Fingerprints may be submitted, directly or as provided in sub. (2), to the federal bureau of investigation and any government agency or entity authorized to receive this information for a state and national criminal history record check. 224.35(1m)(c)(c) The division may rely on the nationwide multistate licensing system and registry to establish any dates relating to application or reporting deadlines for persons holding or applying for licenses identified in sub. (1r), to establish requirements for amending or surrendering licenses identified in sub. (1r), or to establish any other requirements applicable to persons holding licenses identified in sub. (1r) to the extent the requirements are a condition of the state’s participation in the nationwide multistate licensing system and registry. 224.35(1r)(1r) Applicable licensed activities. The division shall utilize the nationwide multistate licensing system and registry, as provided in this section, with respect to applicants and licensees under ss. 138.09, 138.12, 138.14, 217.05, and 218.0114 except for motor vehicle dealers within the meaning of ss. 218.0101 (23), 218.02, 218.04, 218.05, 224.72, and 224.725 and with respect to applicants and registrants under s. 224.722. 224.35(2)(2) Channeling information. To reduce the points of contact that the division may have to maintain, and to facilitate compliance with any requirement that an applicant provide identity information, including a social security number or federal employer identification number, fingerprints, credit reports, or other personal history, the division may use the nationwide multistate licensing system and registry as a channeling agent for requesting and distributing information to and from any source so directed by the division, including the federal bureau of investigation, any state or federal department of justice, or any other governmental agency. 224.35(3)(3) Challenge process. The division shall establish a process whereby persons holding licenses identified in sub. (1r) may challenge information maintained by the nationwide multistate licensing system and registry on behalf of the division. 224.35(4)(a)(a) If any information or material is considered confidential or privileged under federal or state law before it is provided or disclosed to the nationwide multistate licensing system and registry, it shall continue to be confidential or privileged after it is provided or disclosed to, and while maintained by, the nationwide multistate licensing system and registry, except to the extent federal or state law expressly provides otherwise and except as provided in par. (c). Confidential or privileged information or material under this paragraph is not subject to any of the following: 224.35(4)(a)1.1. Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of federal or state government. 224.35(4)(a)2.2. Subpoena or discovery, or admission into evidence, in any private civil action or administrative proceeding, unless the person to whom the information or material pertains waives any right or protection of confidentiality or privilege in the information or material. 224.35(4)(b)(b) Confidential or privileged information or material under par. (a) may be shared with any state or federal regulatory agency having supervisory authority over activities to which licenses identified in sub. (1r) apply without losing any right or protection of confidentiality or privilege under federal or state law. 224.35(4)(c)(c) This subsection does not prohibit the nationwide multistate licensing system and registry from providing public access to information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, persons holding licenses identified in sub. (1r).
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Chs. 178-226, Partnerships and Corporations; Transportation; Utilities; Banks; Savings Associations
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