Chapter 214, SAVINGS BANKS

214.43 Capital maintenance. (1) A savings bank shall maintain total capital of not less than 6 percent of total assets. This is the minimum capital level acceptable for a savings bank that is well-managed and whose overall financial condition is fundamentally sound. If the divisi…

214.435 Dividends. (1) Subject to the restrictions in this section and the savings bank’s bylaws, the board of directors from time to time may declare dividends on stock. (2) The board of directors may not declare dividends if the total capital of the savings bank is less than th…

214.44 Loans or discounts on capital stock. A savings bank may not make a loan or discount on the security of or be the purchaser or holder of the shares of its own stock or preferred stock or on the security of its own debentures or evidences of its debt that are convertible to …

214.48 General provisions. (1) In this subchapter, “underwriting” means the process of compiling information to support a determination as to whether an investment or extension of credit shall be made by a savings bank. “Underwriting” includes evaluating a borrower’s creditworthi…

214.485 Investment in loans. Subject to rules of the division, a savings bank may lend funds under any of the following conditions or for any of the following purposes: (1) On the security of deposit accounts, but such a loan may not exceed the withdrawal value of the pledged acc…

214.49 Other investments. Subject to rules of the division, a savings bank may invest funds in any of the following: (1) In deposit accounts or insured obligations of any financial institution the accounts of which are insured by a deposit insurance corporation. (2) In obligation…

214.495 Lien priority; advances. (1) A mortgage taken and recorded by a savings bank shall have priority over all liens, except tax and special assessment liens and liens under ss. 292.31 (8) (i) and 292.81, upon the mortgaged premises and the buildings and improvements thereon, …

214.50 General loan contract provisions. A loan and an agreement for securing the loan shall be evidenced by one or more written instruments, consistent with sound lending practices. A savings bank shall record an instrument if it is necessary to establish priority over the claim…

214.502 Nonconforming loans. Notwithstanding s. 214.48 (3), a savings bank may make loans secured by real property used primarily for residential or farming purposes, even if those loans do not comply with one or more of the requirements under those provisions, if the total amoun…

214.505 Modification agreements. Except as provided in a loan contract, a savings bank may enter into a written agreement with a borrower to modify the terms of a loan that describe the amount, time or method of the payments, the interest rate or any other provision of the loan c…

214.507 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 w…

214.509 Record search. A savings bank is entitled to reimbursement for expenses and costs incurred in searching for, reproducing and transporting books, papers, records and other data required to be produced by legal process, unless otherwise prohibited by law from collecting the…

214.51 Sale, assignment, and servicing of loans and contracts. (1) A savings bank may sell a loan or a participating interest in a loan with or without recourse. The division may by rule adopt limitations on the sale of loans except loans sold to agencies of the United States or …

214.515 Purchase of real estate at forced sale. A savings bank may purchase at any sheriff’s or other judicial sale any real estate upon which the savings bank has any mortgage, lien or other encumbrance, or in which the savings bank has any other interest. The savings bank may r…

214.52 Purchase of real estate for office and rental purposes. (1) A savings bank may acquire and hold real estate on which a building exists or may be built that is suitable for the transaction of the savings bank’s business. A savings bank may

214.525 Prohibited loans. A savings bank may not make a loan to a person owning 10 percent or more of its stock, an affiliated person, agent, or attorney of the savings bank, either individually or as an agent or partner of another, except under rules of the division and regulati…

214.53 Effect of unauthorized investments. (1) If a savings bank makes a loan or other investment that is not authorized under this subchapter, it shall be due and payable according to its terms and the obligation of the loan is not impaired. (2) A director or officer of a saving…

214.54 Loans to one borrower. (1) Except as provided in sub. (2) and s. 214.49 (4), the total of outstanding loans and extensions of credit, both direct and indirect, made by a savings bank to a single person shall be subject to limits established by rule of the division, but may…

214.545 Rules. The division shall promulgate rules to determine permissible levels of investment and permissible concentrations of assets for savings banks that apply to all lending and investment authority under this subchapter. The rules shall give due regard to capital adequac…

214.57 Deposit accounts. A savings bank may establish deposit accounts. Deposit accounts shall be payable without notice, unless the contract of deposit provides otherwise. History: 1991 a. 221.

214.575 Deposit accounts subject to liens. (1) A deposit account shall be subject to a lien for the payment of charges that may accrue on the account under this chapter. (2) A deposit account shall be subject to a debt offset for the debts of the deposit account holder to the sav…

214.58 Payment of interest. (1) The board of directors shall determine the rate and amount of interest to be paid on or credited to deposit accounts. The board of directors may establish reasonable classifications of accounts based on the types of accounts, the length of time acc…

214.585 Holders of deposit accounts. Deposit accounts may be held as follows: (1) By an individual in his or her own right, regardless of age, or by 2 or more individuals. (2) By a fiduciary if authorized by law. (3) By a government or governmental instrumentality if authorized b…

214.59 Prohibited activities. (1) A savings bank may not participate, directly or indirectly, in the sale or transfer of any equity or debt security or instrument of an affiliate, its parent savings bank holding company or an affiliate of the savings bank holding company. (2) A s…

214.592 Financially related services tie-ins. In any transaction conducted by a savings bank, a savings 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 …

214.595 Savings promotion prize programs. (1) In this section: (a) “Nonqualifying account” means a deposit account, other than a demand account, that is not a qualifying account. (b) “Qualifying account” means a deposit account, other than a demand account, through which a saving…

214.62 Merger; adoption of plan. (1) A financial institution may merge with a savings bank. The board of directors of the merging financial institution and of the savings bank, by resolution adopted by a vote of at least two-thirds of the members of each board, shall approve the …

214.625 Merger; stockholder vote of approval. If approved by the division, the plan of merger shall be submitted to the stockholders of each merging stock financial institution for approval. A meeting of the stockholders of a savings bank shall be called and held in accordance wi…

214.63 Merger; certificate. The executed merger agreement, together, in the case of a stock financial institution, with a certified copy of the minutes of the meeting of stockholders of each merging stock financial institution approving the merger agreement, shall be filed with t…

214.635 Effect of merger. The resulting savings bank shall be considered the same business and corporate entity as each merging financial institution, with all the property, rights, duties and obligations of each merging institution, except as otherwise provided by the articles o…

214.64 Merger; expenses. The merging financial institutions shall pay the expenses of any examination made by or at the direction of the division in connection with a proposed merger. History: 1991 a. 221; 1995 a. 27.

214.645 Sale of assets. Subject to rules of the division, a savings bank may, in a transaction not in the usual course of business, sell all or substantially all of its assets, with or without its name and goodwill, to another financial institution, in consideration of money, cap…

214.65 Procedure to effect sale of all assets. (1) The procedure in this section applies to a sale authorized under s. 214.645 or 214.67. (2) (a) The board of directors shall adopt by a two-thirds majority vote of all directors a resolution setting forth the terms of the proposed…

214.655 Authority to form interim institution. (1) A savings bank may form an interim institution to effect a corporate restructuring, a voluntary corporate change or other transformation that does not in reality create an additional new financial institution, but that moves insu…

214.66 Conversion of an existing institution to a savings bank. (1m) FROM SAVINGS AND LOAN ASSOCIATION OR FEDERAL SAVINGS BANK. A savings and loan association organized under ch. 215, a federal savings and loan association with its home office in this state or a federal savings b…

214.665 Emergency merger. (1) With the prior approval of the division, which shall state that the proposed merger is necessary for the protection of depositors and other creditors, a savings bank that is in default or in danger of default may, by a majority vote of its board of d…

214.67 Emergency sale of assets. (1) With the prior approval of the division, which shall state that the proposed sale is necessary for the protection of depositors and other creditors, a savings bank may, by a majority vote of its board of directors and, notwithstanding s. 214.6…

214.675 Acquisition of control. (1) A person, whether acting directly or indirectly, alone or with one or more persons, shall give the division 60 days’ written notice of intent to acquire control of 10 percent or more of a savings bank, affiliate, savings bank subsidiary, saving…

214.68 Jurisdictional conversion. (1) A federal savings bank or federal savings and loan association may convert itself into a savings bank, and a savings bank may convert itself into a federal savings bank, by following the procedures under pars. (a) to (e). (a) A meeting of the…

214.685 Organizational conversion of mutual savings bank to stock savings bank. (1) A mutual savings bank may convert to a stock savings bank under this section. The board of directors of the mutual savings bank shall adopt a plan of conversion that complies with this section and…

214.715 Powers of the division. (1) The division shall do all of the following: (a) Supervise and control savings banks and savings bank holding companies. (b) Employ persons necessary to administer this chapter. (c) Exercise the rights, powers and duties under this chapter or an…

214.72 Prohibited business relationships. (1) In this section: (a) “Business relationship” means a financial interaction with a savings bank, including obtaining and renegotiating a loan; maintaining a deposit account or escrow account; obtaining and using a credit card; being a …

214.725 Examination. (1) (a) Except as provided in par. (b), at least once every 18 months and more often if necessary, the division shall examine the books, records, operations and affairs of a savings bank. In the course of the examination, the division may also examine in the …

214.735 Examination report. Upon completion of an examination, the division shall provide an examination report to the board of directors of the savings bank or other entity examined. Each director shall read the report and shall sign an affidavit affirming that the director has …

214.74 Orders of the division. (1) If the affairs of the savings bank, savings bank subsidiary, service corporation or affiliate or savings bank holding company are not being conducted in accordance with this chapter, the division may require the directors, officers and employees…

214.745 Division’s notice to members or stockholders. The division may prepare a statement of the condition of the savings bank, affiliate, savings bank subsidiary, service corporation or savings bank holding company and may mail the statement to the members or stockholders or ma…

214.75 Record keeping and retention. (1) A savings bank shall maintain books and records, as required by the division, in accordance with generally accepted accounting principles and the requirements of its deposit insurance corporation. All books and records shall be current, co…

214.755 Disclosure of examination reports and other records. (1) Employees of the division and members of the review board may not disclose information gathered by examination of or obtained through reports from a savings bank or from a state or federal financial institution regu…

214.76 Annual audit requirement. (1) Except as provided in sub. (2), the board of directors of a savings bank 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, a…

214.765 Unsafe and unsound practices; orders of prohibition and removal. (1) A violation of subch. VI or VII or s. 214.34, 214.59 or 214.76, or the failure to comply with recommendations of an examination report of the division within 60 days after the date of issuance of the rep…