Chapter 186 — CREDIT UNIONS

186.01 Definitions. In this chapter: (2) “Credit union” means, except as specifically provided under ss. 186.41 (1) and 186.45 (1), a cooperative, nonprofit corporation, incorporated under this chapter to encourage thrift among its members, create a source of credit at a fair and…

186.015 Credit union review board. (1) CONFER WITH OFFICE. The office of credit unions shall confer with the credit union review board on matters affecting credit unions and the office. Detailed minutes of each review board meeting shall be kept, and the decision of the review bo…

186.02 Incorporation, bylaws, amendment, fees. (1) INCORPORATION. Seven or more residents of this state may organize a credit union by filing with the office of credit unions the proposed articles of incorporation in duplicate and the proposed bylaws, together with a $100 filing …

186.03 Use of name exclusive. (1) LIMITS. A person may not use a name containing the phrase “credit union”, represent itself as a credit union or conduct business as a credit union unless the person is any of the following: (a) A credit union. (b) An association of credit unions.…

186.035 Deceptive or misleading use of credit union name, logo, or symbol. (1) USE OF CREDIT UNION NAME, LOGO, OR SYMBOL FOR MARKETING PURPOSES. Except as provided in sub. (3), no person may use the name, logo, or symbol, or any combination thereof, of a credit union, or any name…

186.07 Board of directors. (1) DIRECTORS. At the first meeting of the members, the members shall elect a board of directors, consisting of an odd number of directors. A board of directors shall consist of at least 5 directors. Subsequent elections for board members shall be held …

186.071 Oath of office. (1) OATH. Every director, officer, committee member and employee shall sign an oath of office. The oath shall require the director, officer, committee member and employee to do all of the following: (a) Keep confidential the financial affairs of credit uni…

186.08 Officers, management. (1) MANAGEMENT. At its first meeting following the annual membership meeting, the board of directors shall elect from its number a chairperson and one or more vice chairpersons, a secretary of the board and a treasurer of the board. Any 2 or more offi…

186.082 Definitions applicable to indemnification and insurance provisions. In ss. 186.082 to 186.091: (1) “Credit union” means a cooperative, nonprofit corporation incorporated under s. 186.02 and any domestic or foreign predecessor of that corporation where the predecessor’s ex…

186.083 Mandatory indemnification. (1) INDEMNIFICATION REQUIRED. A credit union shall indemnify a director or officer, to the extent he or she has been successful on the merits or otherwise in the defense of a proceeding, for all reasonable expenses incurred in the proceeding if …

186.084 Determination of right to indemnification. Unless otherwise provided by the articles of incorporation or bylaws or by written agreement between the director or officer and the credit union, the director or officer seeking indemnification under s. 186.083 (2) shall select …

186.085 Allowance of expenses as incurred. Upon written request by a director or officer who is a party to a proceeding, a credit union may pay or reimburse his or her reasonable expenses as incurred if the director or officer provides the credit union with all of the following: …

186.086 Credit union may limit indemnification. (1) LIMITATIONS. A credit union’s obligations to indemnify under s. 186.083 may be limited as follows: (a) If the credit union is incorporated on or after June 13, 1987, by the articles of incorporation, including any amendments to …

186.087 Additional rights to indemnification and allowance of expenses. (1) ADDITIONAL RIGHTS. Except as provided in sub. (2), ss. 186.083 and 186.085 do not preclude any additional right to indemnification or allowance of expenses that a director or officer may have under any of…

186.088 Court-ordered indemnification. (1) APPLICATION. Except as provided otherwise by written agreement between the director or officer and the credit union, a director or officer who is a party to a proceeding may apply for indemnification to the court conducting the proceedin…

186.089 Indemnification and allowance of expenses of employees and agents. A credit union may indemnify and allow reasonable expenses of an employee or agent who is not a director or officer to the extent provided by the articles of incorporation or bylaws, by general or specific…

186.091 Insurance. A credit union may purchase and maintain insurance on behalf of an individual who is an employee, agent, director or officer of the credit union against liability asserted against and incurred by the individual in his or her capacity as an employee, agent, dire…

186.093 Definitions applicable to liability-related provisions. In ss. 186.093 to 186.096: (1) “Credit union” means a cooperative, nonprofit corporation incorporated under s. 186.02. (2) “Director or officer” means a natural person who serves as a director or officer of a credit …

186.094 Reliance by directors or officers. Unless the director or officer has knowledge that makes reliance unwarranted, a director or officer, in discharging his or her duties to the credit union, may rely on information, opinions, reports or statements, any of which may be writ…

186.095 Consideration of interests in addition to members’ interests. In discharging his or her duties to the credit union and in determining what he or she believes to be in the best interests of the credit union, a director or officer may, in addition to considering the effects…

186.096 Limited liability of directors and officers. (1) LIMITED LIABILITY. Except as provided in subs. (2) and (3), a director or officer is not liable to the credit union, its members or creditors, or any person asserting rights on behalf of the credit union, its members or cre…

186.098 Loans. (1) LOAN APPROVAL. The credit union may make loans to members upon terms approved by the credit committee, loan officer or board of directors. CREDIT UNIONS 186.098 (2) APPEALS. A loan applicant may appeal in writing the decision of the credit committee or a loan o…

186.10 Minors’ rights; shares in trust. (1) MINORS’ SHARES. Shares may be issued in the name of a minor, and may be withdrawn by such minor or by the minor’s agent under subch. I of ch. 705. Minors’ eligibility to vote at the meetings of the members is at the discretion of the bo…

186.11 Investments. (1) GENERAL. The board of directors may invest credit union funds in any of the following: (a) United States government direct and agency obligations. (b) Municipal bonds. (c) A corporate central credit union organized under s. 186.32 or under any other state …

186.112 Credit union borrowing. The board of directors may borrow money from any source if the amount borrowed does not exceed 30 percent of the credit union’s total savings, deposits and reserves. Credit union borrowing may exceed 30 percent if the office of credit unions approv…

186.113 Credit union powers. A credit union may: (1) BRANCH OFFICES. With the approval of the office of credit unions, establish branch offices inside or outside of this state. Permanent records may be maintained at branch offices established under this subsection. In this subsec…

186.114 Savings promotion prize programs. (1) In this section: (a) “Member” means any person holding an account authorized under s. 186.113. (b) “Nonqualifying account” means a deposit account that is not a qualifying account. (c) “Qualifying account” means a deposit account thro…

186.115 Additional credit union authority. (1) SCOPE OF AUTHORITY. Subject to any regulatory approval required by law and subject to sub. (2), a credit union directly or through a subsidiary, may undertake any activity, exercise any power or offer any financially related product …

186.116 Financially related services tie-ins. In any transaction conducted by a credit union or a subsidiary of a credit union with a customer who is also a customer of any other subsidiary of the credit union, the customer shall be given a notice in 12-point boldface type in sub…

186.118 Incidental powers parity with federal credit unions. (1) In addition to any activity or power authorized under ss. 186.098, 186.11, 186.113, 186.114, 186.115, and 186.235 (21), a credit union organized under s. 186.02 may engage in any activity or exercise any power that …

186.12 Compensation of officers, operation expenses. (1) BOARD MEMBERS. No member of the board of directors may receive any compensation for services as a member May 22, 2026, are designated by NOTES. (Published 5-22-26) 186.12 CREDIT UNIONS of the board other than reasonable hea…

186.13 Expulsion. If the board of directors adopts a written policy, a credit union may expel a member if the member neglects or refuses to comply with this chapter or the credit union bylaws or if the board has other just cause. The credit union shall provide notice to the membe…

186.14 Expelled member rights and liabilities. The amounts paid in on shares by members who have withdrawn or have been expelled shall be paid to them, but in the order of withdrawal or expulsion as funds become available and after deducting any amounts due from the members to th…

186.15 Auditing. (1) ANNUAL AUDIT. Except as provided in sub. (2), the board of directors shall hire a certified public accountant licensed or certified under ch. 442 or other qualified person to conduct a comprehensive annual audit of the records, accounts and affairs of the cre…

186.16 Dividends. (1) BOARD ESTABLISHES DIVIDENDS. The board of directors shall establish the dividend period. Dividends shall be considered a normal operating expense of the credit union. Rates of dividends and terms of payment may be established and guaranteed in advance by act…

186.17 Reserves. A credit union shall maintain sufficient reserves to meet anticipated withdrawals, commitments, and loan demand. A credit union shall maintain at least the level of reserves required for it by the national credit union administration. Updated 23-24 Wis. Stats. 12…

186.18 Dissolution. Upon a two-thirds recommendation of the board of directors, the members may vote to dissolve the credit union. If a majority of the total membership vote by ballot, in person or by letter or other written communication in favor of dissolution, and if not more …

186.19 Bonding requirements. A credit union shall maintain the necessary bonds for directors, officers and employees according to any standards prescribed by the national board. History: 1971 c. 193 s. 42 (1); 1971 c. 307; 1993 a. 482; 1995 a. 27; 1995 a. 151 ss. 180, 302; 1997 a…

186.20 Financial privacy. A credit union shall comply with any applicable requirements under 15 USC 6801 to 6803 and any applicable regulations prescribed under 15 USC 6804. History: 2003 a. 63; 2021 a. 241.

186.21 Credit unions promoted. (1) OFFICE TO COOPERATE. It shall be the duty of the office of credit unions to cooperate with every group of people that is interested in the formation of, or in an affiliation with, a credit union in this state. The office of credit unions may do …

186.235 (8), (10) or (11) (b) 1. (b) A civil or criminal proceeding, other than a proceeding described in par. (a), brought by or on behalf of any governmental unit, authority or agency. (c) A proceeding brought by any person for a violation of state or federal law where the proc…

186.31 Mergers. (1) TRANSFER OF ASSETS AND LIABILITIES. Any credit union, which is in good faith winding up its business for the purpose of merging with another credit union, may transfer its assets and liabilities to the credit union with which it is in the process of merging; b…

186.314 Conversion. (1m) TO FEDERAL CREDIT UNION. A credit union may convert to a federal credit union by complying with the following: (a) The proposition for a conversion shall first be approved by unanimous recommendation of the directors of the credit union. The directors sha…

186.315 Charter cancellation. Upon completion of a voluntary liquidation as provided in s. 186.18, or upon completion of the liquidation in cases under s. 186.235 (11), or after the assets and liabilities of a credit union are transferred to another credit union for the purpose o…

186.32 Corporate central credit union. (1) ORGANIZATION. A corporate central credit union may be organized and operated under the conditions and provisions of this chapter and subject to all of the provisions of this chapter not inconsistent with this section. It shall be lawful …

186.325 National corporate central credit union. (1) CRITERIA. A corporate central credit union is a national corporate central credit union if all of the following conditions are met: (a) Its membership consists of any of the following: 1. Central or corporate central credit uni…

186.34 Federal share insurance. (1) INSURANCE REQUIRED. No credit union may accept any deposit from any person other than an incorporator before the credit union has received a certificate of share insurance issued by the national board. (4) CERTIFICATE FILING. Every credit union…

186.36 Sale of insurance in credit unions. Any officer or employee of a credit union, when acting as an agent for the sale of insurance on behalf of the credit union, shall pay all commissions received from the sale of insurance to the credit union. History: 1973 c. 243; 1993 a. …

186.41 Interstate acquisitions and mergers of credit unions. (1) DEFINITIONS. In this section: (am) “Out-of-state credit union” means a state or federal credit union, the principal office of which is located in a state other than this state. (bm) “Wisconsin credit union” means a …