221.0318 Notes and debentures. (1) ISSUANCE. A bank may, by the action of its board of directors, issue and sell its notes or debentures of one or more classes in the amount, in the form and with the maturity determined by the board. The notes and debentures may confer such rights and privileges upon the holders of the notes and debentures as determined by the board. (2) LIMITATION ON ISSUANCE. A bank may issue notes and debentures if the amount issued is within limits previously established by the division for issuances by the bank. (3) STATUS AS CAPITAL OF BANK. Notes and debentures issued by a bank constitute capital of the bank, only if approved by the division. (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. (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. History: 1995 a. 336.
221.0319
Real estate. (1) PURPOSES FOR WHICH REAL ESTATE MAY BE HELD. A bank may purchase, lease, hold and convey only the following types of real estate: (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 lia-
STATE BANKS
221.0320
bility for it may not exceed in the aggregate 60 percent of the bank’s capital. (b) Real estate conveyed to the bank in satisfaction of debts previously contracted in the course of the bank’s business. (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. (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. (e) Real estate acquired or held for such other purposes as may be approved by the division, subject to s. 221.0321. (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. (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). History: 1995 a. 336.