AB150,2001,217 221.08 (9) The board of directors shall meet at least once each month. At the
18monthly meeting they shall generally investigate the affairs of the bank and
19determine whether the assets are of the value at which they are carried on the books
20of the bank. The directors shall name a loan committee of 3 or more of its members,
21a majority of whom shall be other than active executives, except in 1st or 2nd class
22cities, or except when a majority of the directors are actively engaged in the bank's
23management. The committee shall meet at least once each month and shall
24determine policies as to renewals and applications for new loans. Any director who
25is found to be lax in attendance may be removed by the commissioner department

1and the vacancy shall be filled within a reasonable time as the commissioner
2department may direct.
AB150, s. 6127 3Section 6127. 221.09 (1) (intro.) of the statutes is amended to read:
AB150,2001,84 221.09 (1) (intro.) After receipt by the board of directors of a bank of each report
5of examination of the bank by the office of the commissioner department, the board
6or an examining committee appointed under sub. (2), unless the commissioner
7department requires response by the board as provided in s. 220.05 (5), shall do all
8of the following:
AB150, s. 6128 9Section 6128. 221.09 (5) of the statutes is amended to read:
AB150,2001,1310 221.09 (5) The board of directors shall transmit the report prepared under sub.
11(1) (b) and the acknowledgments prepared under sub. (3) to the office of the
12commissioner
department within 45 days after receipt by the board of each report
13of examination under sub. (1) (intro.).
AB150, s. 6129 14Section 6129. 221.12 of the statutes is amended to read:
AB150,2002,13 15221.12 Articles may be amended. A bank may amend its articles of
16incorporation in any manner not inconsistent with law, at any time, by a vote of its
17stockholders representing two-thirds of the capital stock taken at a meeting called
18for that purpose. The bank shall submit the amendment to the commissioner of
19banking
department. The amendment is not effective unless approved by the
20commissioner department. The amendment may provide for a change of location of
21the bank. The amendment may provide for a change of the location of a parent bank
22to the location of a branch of the parent bank and a change of the location of a branch
23of the parent bank to the location of the parent bank if the change is first approved
24by the commissioner department upon application. The amendment, certified by the
25president or cashier, and setting forth the volume and page of recording in the office

1of the register of deeds of the original articles of incorporation, shall be recorded as
2required for articles of incorporation. No increase of the capital shall be valid until
3the amount of the increase has been subscribed and actually paid in. The entire
4surplus fund of a bank, or as much as may be required, may be declared and paid out
5as a stock dividend to apply on, and be converted into, an increase of capital. No
6reduction of capital shall be made to a less amount than is required under this
7chapter for capital, nor be valid or warrant the cancellation of stock certificates or
8diminish the personal liability of stockholders, until the reduction has been approved
9by the commissioner department. No reduction may be effected in any other way
10than by a proportional reduction of all outstanding shares unless approved by the
11commissioner department. The approval may be given only when the commissioner
12department is satisfied that the reduction of the capital is in the best interests of the
13depositors.
AB150, s. 6130 14Section 6130. 221.14 (1) of the statutes is amended to read:
AB150,2002,2315 221.14 (1) Real estate necessary for the convenient transaction of its business,
16including with its banking offices other facilities to rent as source of income. No bank
17may invest in a banking office, including facilities connected with the office, together
18with furniture, equipment and fixtures, or become liable for it in a sum exceeding
1960% of its capital and surplus; but in lieu of this it may invest, with the approval of
20the commissioner of banking department, an amount not to exceed 40% of its capital
21and surplus in the stocks, bonds or obligations of a bank building corporation. Any
22bank not owning its banking offices may not invest in furniture, equipment and
23fixtures a sum exceeding 20% of its capital and surplus.
AB150, s. 6131 24Section 6131. 221.14 (4s) of the statutes is amended to read:
AB150,2003,8
1221.14 (4s) Real estate used as an attended or unattended remote facility for
2paying and receiving only. Remote facilities may be established only with specific
3approval by the commissioner department. The authority under this subsection is
4in addition to the authority to establish facilities that are attached to or a part of a
5bank or a branch bank. After July 31, 1989, and before February 1, 1990, a bank may
6inform the commissioner department in writing that it is converting a remote facility
7existing on August 1, 1989, into a branch bank, specifying the effective date of the
8conversion. An application fee is not required for a conversion under this subsection.
AB150, s. 6132 9Section 6132. 221.14 (5) of the statutes is amended to read:
AB150,2003,1310 221.14 (5) Real estate purchased and held, subject to the approval of the
11commissioner of banking department, for the purpose of providing needed housing
12accommodations for its essential employes who are relocated by the bank, including
13purchasing the former residence of the relocated, essential employe.
AB150, s. 6133 14Section 6133. 221.14 (6) of the statutes is amended to read:
AB150,2003,2115 221.14 (6) No real estate acquired under sub. (2), (3) or (5) may be held for a
16longer time than 5 years, unless an extension is granted by the commissioner
17department. If the extension is not granted, it must be sold at a private or public sale
18within one year thereafter. Nothing in this section may be construed to prevent a
19bank from lending moneys upon real estate security as provided by law. Real estate
20shall be conveyed under the corporate seal of the bank, and the hand of the president
21or vice president and cashier or assistant cashier.
AB150, s. 6134 22Section 6134. 221.15 (1) of the statutes is amended to read:
AB150,2004,223 221.15 (1) Every bank shall make to the commissioner of banking department
24not less than 2 reports during each calendar year, at such times as the said
25commissioner
department shall require the same, according to the forms which the

1commissioner department shall prescribe and furnish. Such forms shall conform as
2nearly as practicable to that now required of national banks, including the schedules.
AB150, s. 6135 3Section 6135. 221.15 (3) of the statutes is amended to read:
AB150,2004,84 221.15 (3) Such report shall exhibit in detail and under proper heads, the
5resources and liabilities of the bank at the close of the business of any past day
6specified by the commissioner department, and shall be transmitted to the
7commissioner department within 30 days after the receipt of request therefor from
8the commissioner department.
AB150, s. 6136 9Section 6136. 221.15 (4) of the statutes is amended to read:
AB150,2004,1310 221.15 (4) The most recent report filed under sub. (1) as of the last business day
11of the 4th calendar quarter shall be published by the bank as a class 1 notice, under
12ch. 985, where the bank is located, in the condensed form as the commissioner
13department prescribes. Each bank shall maintain proof of publication of the report.
AB150, s. 6137 14Section 6137. 221.15 (6) of the statutes is amended to read:
AB150,2004,1915 221.15 (6) When requested by the commissioner department, any bank shall
16report to the commissioner on call by the commissioner, department a list of its
17stockholders, their residences, and the amount of stock held by each, which report
18shall be signed and verified by the oath or affirmation of one of the officers of said
19bank.
AB150, s. 6138 20Section 6138. 221.15 (7) of the statutes is amended to read:
AB150,2004,2421 221.15 (7) The commissioner department shall also have the power to call for
22special reports from any bank whenever in the commissioner's department's
23judgment the same is necessary to inform the commissioner department fully of the
24condition of such bank.
AB150, s. 6139 25Section 6139. 221.16 of the statutes is amended to read:
AB150,2005,8
1221.16 One hundred dollars per day forfeiture. Every bank failing to
2make and transmit to the commissioner of banking department any of the reports
3or proofs of publication as required by this chapter shall be subject, at the discretion
4of the commissioner department, to a forfeiture of $100 for each day after the time
5required for making such reports. Whenever any bank fails or refuses to pay the
6forfeiture herein imposed for a failure to make and transmit such report, the
7commissioner department is hereby authorized to institute proceedings for the
8recovery of such forfeiture.
AB150, s. 6140 9Section 6140. 221.18 of the statutes is amended to read:
AB150,2005,20 10221.18 Inspection; refusal to permit; action to dissolve; prosecutions.
11Whenever any officer in charge of a bank refuses to submit the books, papers and
12concerns of such bank to the inspection of the commissioner of banking, the
13commissioner's deputy, or examiner appointed hereunder, department of financial
14institutions
or refuses to be examined on oath touching the concerns of the bank, the
15commissioner department of financial institutions may inform the attorney general.
16The department of justice shall then institute an action to procure a judgment
17dissolving such corporation. In order to carry out this section the commissioner
18department may commence and maintain in the commissioner's department's name
19as commissioner of banking any and all actions necessary or proper to enforce this
20section.
AB150, s. 6141 21Section 6141. 221.19 of the statutes is amended to read:
AB150,2005,25 22221.19 Prosecutions. In order to carry out ss. 220.07, 220.08 and 221.18, the
23commissioner of banking department may commence and maintain in the
24commissioner's department's name any and all actions necessary or proper to enforce
25any of said sections.
AB150, s. 6142
1Section 6142. 221.205 of the statutes is amended to read:
AB150,2006,24 2221.205 Banks; disciplinary provisions. Whenever the commissioner of
3banking
department shall have or receive information causing the commissioner
4department to believe that any bank, trust company bank, or any other corporation,
5limited liability company or association in respect to whose affairs or any part thereof
6the commissioner department has any supervision or control under the law, or any
7officer, employe, member or manager thereof has been guilty of a violation of any of
8the provisions of law or regulations or orders in execution thereof which subjects any
9such corporation, limited liability company or association or person to prosecution
10for a criminal offense or for recovery of penalty under the law, the commissioner
11department shall bring such facts and information to the attention of the banking
12review board with the commissioner's department's recommendation in writing as
13to action to be taken. Said banking review board shall, if in its judgment probable
14cause exists for believing that a criminal offense has been committed, or a penalty
15incurred, call the facts and information to the attention of the attorney general whose
16duty it shall be to cause prosecution or other action to be instituted if in the attorney
17general's judgment the facts warrant. Nothing herein contained shall be deemed to
18prevent the institution of any prosecution by any district attorney of this state with
19or without any advice or act on the part of the attorney general. Nothing herein
20contained shall preclude the commissioner of banking department, in any case
21where the commissioner department deems it important to act immediately, from
22causing any arrest and prosecution where the commissioner department is satisfied
23that there is reason to believe the offense has been committed and that prosecution
24should be immediately commenced.
AB150, s. 6143 25Section 6143. 221.21 of the statutes is amended to read:
AB150,2007,9
1221.21 When organized as national bank. Any bank organized under this
2chapter may reorganize under the laws of the United States as a national bank. As
3soon as such bank shall have obtained the certificate from the comptroller of the
4currency, authorizing it to commence business under the United States banking law,
5such reorganized bank shall take and hold all of the assets, real and personal, of such
6bank organized under this chapter, subject to all liabilities existing against said bank
7organized under this chapter at the time of such reorganization, and shall
8immediately notify the commissioner of banking department of such reorganization
9and transfer.
AB150, s. 6144 10Section 6144. 221.22 of the statutes is amended to read:
AB150,2007,25 11221.22 National banks may reorganize as state banks. Any national bank
12authorized to dissolve, and which shall have taken the necessary steps to effect
13dissolution, may reorganize under this chapter, upon the consent in writing of the
14owners of two-thirds of the capital stock of such bank, and with the approval of the
15commissioner of banking department. Such stockholders shall make, execute and
16acknowledge articles of organization as required by this chapter, and shall set forth
17the said written consent of such stockholders. A national bank seeking to reorganize
18under this section shall pay to the commissioner department a fee of $1,000 plus the
19actual costs incurred by the commissioner department in investigating the proposed
20reorganization. Upon the filing of the articles as provided by this chapter, and upon
21the approval of the commissioner department, such bank shall be deemed to be
22reorganized under this chapter, and thereupon all assets, real and personal, of such
23dissolved national bank shall be vested in and be and become the property of such
24reorganized bank, subject to all liabilities of such national bank not liquidated before
25such reorganization.
AB150, s. 6145
1Section 6145. 221.23 of the statutes is amended to read:
AB150,2008,7 2221.23 Consolidation of banks. A bank, which is in good faith winding up
3its business, for the purpose of consolidating with some other bank, may transfer its
4resources and liabilities to the bank with which it is in process of consolidation; but
5no consolidation shall be made without the consent of the commissioner of banking
6department, and not then to defeat or defraud any of the creditors in the collection
7of their debts against such banks, or either of them.
AB150, s. 6146 8Section 6146. 221.24 (1) of the statutes is amended to read:
AB150,2008,159 221.24 (1) Any bank organized or doing business under this chapter may go
10into liquidation by a vote of its stockholders owning two-thirds of the capital stock.
11Whenever a vote is taken to go into liquidation, the board of directors shall give notice
12of this fact to the commissioner of banking department, and the notice shall be
13certified by the president or cashier under the seal of the bank. No liquidating bank
14may transfer assets or liabilities to another bank until the transfer is approved by
15the commissioner department.
AB150, s. 6147 16Section 6147. 221.245 of the statutes is amended to read:
AB150,2008,23 17221.245 Cancellation of charter of merged bank. Whenever any bank has
18merged or consolidated with or been absorbed by another bank, the commissioner of
19banking
department may cancel the charter of the first mentioned bank after notice
20of proposed cancellation has been published as a class 3 notice, under ch. 985, in the
21county wherein the bank is located, unless written objections are filed with the
22commissioner department within a time specified in the notice stating grounds
23which the commissioner department deems sufficient.
AB150, s. 6148 24Section 6148. 221.25 (1) of the statutes is amended to read:
AB150,2010,9
1221.25 (1) Any 2 or more banks may, with the approval of the commissioner of
2banking
department, consolidate into one bank under the charter of either existing
3bank on such terms and conditions as may be lawfully agreed upon by a majority of
4the board of directors of each bank proposing to consolidate and be ratified and
5confirmed by the affirmative vote of the stockholders of each such bank owning at
6least two-thirds of its capital stock outstanding and at least two-thirds of any
7outstanding preferred stock having voting rights, at a meeting to be held on call of
8the directors, after sending notice of the time, place and object of the meeting to each
9shareholder of record by registered mail at least 30 days prior to said meeting;
10provided that the capital stock of such consolidated bank shall not be less than that
11required under existing law for the organization of a state bank in the place in which
12it is located. When such consolidation is approved by the commissioner department,
13any shareholder of either of the banks so consolidated who has not voted for such
14consolidation shall be given notice of the approval by the bank in which the
15shareholder holds an interest and of the shareholder's right to receive the appraised
16value for the shareholder's shares. If within 20 days after the date that notice of
17approval is mailed or delivered to a shareholder the shareholder notifies the
18directors of the bank in which the shareholder is interested that the shareholder
19dissents from the plan of consolidation as adopted and approved and desires to
20withdraw from such bank, the shareholder shall be entitled to receive in cash the
21value of the shares so held by the shareholder, to be ascertained by an appraisal made
22by a committee of 3 persons, one to be selected by the shareholders, one by the
23directors, and the 3rd by the 2 so chosen; the expense of such appraisal shall be borne
24by the bank; and in case the value so fixed shall not be satisfactory to the shareholder
25he or she may within 5 days after being notified of the appraisal appeal to the

1commissioner, who department, which shall cause a reappraisal to be made by an
2appraiser or appraisers to be named by said commissioner the department, which
3appraisal shall be final and binding, and if said reappraisal shall exceed the value
4fixed by said committee the bank shall pay the expense of reappraisal, otherwise the
5shareholder shall pay said expense, and the value so ascertained and determined
6shall be deemed to be a debt due and be forthwith paid to said shareholder from said
7bank, and the share or shares so paid shall be surrendered and after such notice as
8the board of directors may provide, be sold at public auction within 30 days after the
9final appraisement provided for by this section.
AB150, s. 6149 10Section 6149. 221.25 (3) of the statutes is amended to read:
AB150,2010,2311 221.25 (3) The commissioner department may after consultation with the
12banking review board make recommendations to any bank or trust company within
13this state as to advisability of consolidation with other banks and may make
14recommendations as to terms for consolidation or merger of banks in order to avoid
15a condition of oversupply of banks in any community or area of the state. The
16commissioner department may also, if requested so to do, act as mediator or
17arbitrator to fix any of the terms of any such consolidation or merger. It shall be
18within the power of the board of directors of any bank or trust company organized
19under the laws of this state to appropriate a reasonable amount from the assets of
20the bank toward assisting in bringing about a consolidation or merger of banks or to
21aid in reorganization or in avoiding the closing of a bank where such action is deemed
22to be in the interests of safe banking and the maintenance of credit and banking
23facilities in the county in which such bank is located.
AB150, s. 6150 24Section 6150. 221.25 (4) of the statutes is amended to read:
AB150,2011,4
1221.25 (4) Application for approval of a consolidation under sub. (1) shall be
2made on a form prescribed by the commissioner department. The application shall
3be accompanied by a fee of $5,000, except that if more than 3 banks are to be
4consolidated the fee is $5,000 plus $1,000 for each bank after the 3rd bank.
AB150, s. 6151 5Section 6151. 221.26 of the statutes is amended to read:
AB150,2011,21 6221.26 (title) Banks may be placed in hands of commissioner under
7department control
. Any bank doing business under this chapter may place its
8affairs and assets under the control of the commissioner of banking department by
9posting a notice on its front door, as follows: "This bank is in the hands of the
10commissioner of banking department of financial institutions". Immediately upon
11posting such notice, the bank shall notify the commissioner department of such
12action. The posting of such notice, or the taking possession of any bank by the
13commissioner department, shall be sufficient to place all its assets and property of
14whatever nature in the possession of the commissioner department, and shall
15operate as a bar to any attachment proceedings. For each day the commissioner
16department is so placed in possession of the bank, and until such time as a special
17deputy commissioner of banking is appointed under s. 220.08 (4), the bank shall pay
18to the commissioner department the actual cost of such liquidation proceedings. All
19such fees shall be paid by the commissioner department to the state treasurer to be
20placed to the credit of s. 20.124 20.144 (1) (g) in the percentage specified in that
21paragraph.
AB150, s. 6152 22Section 6152. 221.27 (2) of the statutes is amended to read:
AB150,2012,323 221.27 (2) Every bank shall maintain sufficient reserves to meet anticipated
24withdrawals, commitments and loan demand. Every bank shall maintain at least
25the level of reserves required for it by the federal reserve system. The commissioner

1of banking
department may prescribe additional reserve requirements for an
2individual bank based on examination findings or other reports available to the
3commissioner department.
AB150, s. 6153 4Section 6153. 221.27 (3) (g) of the statutes is amended to read:
AB150,2012,65 221.27 (3) (g) Short-term obligations approved by rule of the commissioner of
6banking
department.
AB150, s. 6154 7Section 6154. 221.28 of the statutes is amended to read:
AB150,2012,20 8221.28 Reserve to be kept up. Whenever the reserve of any bank falls below
9the amount required to be kept, such bank shall not increase its loans or discounts
10otherwise than by discounting or purchasing bills of exchange payable at sight or on
11demand, and the commissioner department of financial institutions shall notify any
12bank whose reserve is below the amount required, to make good such reserve, and
13in case the bank fails, for 30 days thereafter to make good such reserve, the
14commissioner department of financial institutions may assess such bank $100 for
15each 2-week period which the bank has been in default or may notify the attorney
16general and the department of justice shall institute proceedings for the
17appointment of a receiver and to wind up the business of the bank. Such assessment
18shall be paid to the commissioner department of financial institutions and if any such
19bank fails or refuses to pay such assessment the commissioner department of
20financial institutions
may maintain an action for the recovery of the assessment.
AB150, s. 6155 21Section 6155. 221.29 (1) (f) of the statutes is amended to read:
AB150,2013,222 221.29 (1) (f) The limitations in this section shall not apply to that portion of
23any loan which is guaranteed by a federal or Wisconsin state guaranty program
24approved by the commissioner department. The commissioner department shall

1designate federal and Wisconsin state guaranty programs which qualify under this
2paragraph.
AB150, s. 6156 3Section 6156. 221.295 (1) of the statutes is amended to read:
AB150,2013,164 221.295 (1) Except as provided in sub. (3), a bank may lend under this
5subsection, through the bank or a subsidiary of the bank, to all borrowers from the
6bank and all of its subsidiaries, an aggregate amount not to exceed the percentage
7of its capital and surplus established by the commissioner department under sub. (3).
8Neither a bank nor any subsidiary of the bank may lend to any borrower, under this
9subsection and any other law or rule, an amount that would result in an aggregate
10amount for all loans to that borrower that exceeds the percentage of the bank's
11capital and surplus established under sub. (3). A bank or its subsidiary may take an
12equity position or other form of interest as security in a project funded through such
13loans. Every transaction by a bank or its subsidiary under this subsection shall
14require prior approval by the board of directors of the bank or its subsidiary,
15respectively. Such loans are not subject to s. 221.36 or to classification as losses for
16a period of 2 years from the date of each loan except as provided in sub. (3).
AB150, s. 6157 17Section 6157. 221.295 (2) of the statutes is amended to read:
AB150,2014,418 221.295 (2) Except as provided in sub. (3), a bank may invest under this
19subsection amounts not to exceed, in the aggregate, that percentage of its capital and
20surplus established by the commissioner of banking department under sub. (3) in
21equity positions, such as profit-participation projects. A bank may take an
22investment position in a project with respect to which it is also a lender. The bank
23shall limit its liability as an investor in a specific project under this subsection to an
24amount not exceeding the amount of its investment in that project. For purposes of
25calculating the bank's aggregate investment under this subsection, the amount of

1each investment shall be established as of the date that the investment is made.
2Every transaction by a bank under this subsection shall require prior approval by
3the board of directors of the bank and shall be disclosed to the shareholders of the
4bank prior to each annual meeting of the shareholders.
AB150, s. 6158 5Section 6158. 221.295 (3) of the statutes is amended to read:
AB150,2014,136 221.295 (3) The commissioner of banking department shall establish for each
7bank the applicable percentage, not to exceed 20%, under sub. (1) and the applicable
8percentage, not to exceed 10%, under sub. (2). The commissioner department may
9withdraw or suspend a percentage established under this subsection and, in such
10case, may specify how outstanding loans or investments shall be treated by the bank
11or subsidiary. Among the factors that the commissioner department may consider
12in establishing, withdrawing or suspending a percentage under this subsection are
13the bank's capital, assets, management and liquidity ratio and its capital ratio.
AB150, s. 6159 14Section 6159. 221.295 (4) of the statutes is amended to read:
AB150,2014,1815 221.295 (4) At the time of making a loan or investment, the bank or subsidiary
16shall note in its records whether it is made under sub. (1) or (2). The forms of security
17for loans under sub. (1) and the forms of investment under sub. (2) shall be as
18approved by the commissioner of banking department by rule.
AB150, s. 6160 19Section 6160. 221.295 (6) of the statutes is amended to read:
AB150,2015,220 221.295 (6) A bank may make loans secured by assignment or transfer of stock
21certificates or other evidence of the borrower's ownership interest in a corporation
22formed for the cooperative ownership of real estate. Sections 846.10 and 846.101, as
23they apply to a foreclosure of a mortgage involving a one-family residence, apply to
24a proceeding to enforce the lender's rights in security given for a loan under this
25subsection. The commissioner department shall promulgate joint rules with the

1commissioners office of credit unions and savings and loan that establish procedures
2for enforcing a lender's rights in security given for a loan under this subsection.
AB150, s. 6161 3Section 6161. 221.296 (1) of the statutes is amended to read:
AB150,2015,134 221.296 (1) A bank may invest amounts not to exceed, in the aggregate, that
5percentage of its capital and surplus established by the commissioner of banking
6department under sub. (2) in partnership interests in farm operations. A bank may
7acquire a partnership interest in a farm operation with respect to which it is also a
8lender. The bank may only acquire a partnership interest in a farm operation as a
9limited partner. For purposes of calculating the bank's aggregate investment, the
10amount of each investment shall be established as of the date that the investment
11is made. Every transaction by a bank under this subsection shall require prior
12approval by the board of directors of the bank and shall be disclosed to the
13shareholders of the bank prior to each annual meeting of the shareholder.
AB150, s. 6162 14Section 6162. 221.296 (2) of the statutes is amended to read:
AB150,2015,2215 221.296 (2) The commissioner of banking department shall establish for each
16bank the applicable percentage, not to exceed 10%, under sub. (1). The commissioner
17department may withdraw or suspend a percentage established under this
18subsection and, in such case, may specify how outstanding investments shall be
19treated by the bank. Among the factors the commissioner department may consider
20in establishing, withdrawing or suspending a percentage established under this
21subsection are the bank's capital, assets, management and liquidity ratio and its
22capital ratio.
AB150, s. 6163 23Section 6163. 221.297 (1) of the statutes is amended to read:
AB150,2016,324 221.297 (1) Subject to any regulatory approval required by law and subject to
25sub. (2), a bank, directly or through a subsidiary, may undertake any activity,

1exercise any power or offer any financially related product or service in this state that
2any other provider of financial products or services may undertake, exercise or
3provide or that the commissioner department finds to be financially related.
AB150, s. 6164 4Section 6164. 221.297 (2) of the statutes is amended to read:
AB150,2016,135 221.297 (2) The activities, powers, products and services that may be
6undertaken, exercised or offered by banks under sub. (1) are limited to those
7specified by rule of the commissioner of banking department and, with respect to
8loans under s. 221.295 (1) and investments under s. 221.295 (2), are subject to the
9limitations set forth in s. 221.295. The commissioner department may direct any
10bank to cease any activity, the exercise of any power or the offering of any product
11or service authorized by rule under this subsection. Among the factors that the
12commissioner department may consider in so directing a bank are the bank's capital,
13assets, management and liquidity ratio and its capital ratio.
AB150, s. 6165 14Section 6165. 221.33 (1) of the statutes is amended to read:
AB150,2017,2215 221.33 (1) Except as provided in s. 34.07, no bank or bank officer shall give
16preference to any depositor or creditor by pledging the assets of the bank as collateral
17security. A state bank may deposit with the treasurer of the United States, or in the
18custody of federal reserve banks or branches thereof designated by the judges of the
19several courts of bankruptcy, so much of its assets not exceeding its capital and
20surplus as may be necessary under the act of congress approved June 25, 1910, and
21all amendments thereof, to qualify as a depository for postal savings funds, other
22government deposits and as depository for bankrupt estates, debtors, corporations
23and railroads under reorganization under U.S. bankruptcy laws, and amendments
24thereto, and receivers, trustees and other officers thereof appointed by any U.S.
25district court or by any bankruptcy court of the United States and that in acting as

1such depository a state bank shall have all the rights and privileges granted to
2banking institutions under section 61 of the U.S. bankruptcy act, and amendments
3thereto; and any bank may borrow money for temporary purposes, and may pledge
4assets of the bank not exceeding 50% in excess of the amount borrowed as collateral
5security therefor. Any state bank so authorized by the commissioner of banking, who
6department, that complies with s. 223.02, shall be exempt from furnishing the bond
7specified in s. 221.04 (6), and shall be entitled to the same exemption as to making
8and filing any oath or giving any bond or security as is conferred on trust company
9banks by s. 223.03 (8), but it is unlawful for any bank to borrow money unless the
10board of directors has adopted a resolution designating the bank from which the
11money may be borrowed, the maximum amount for which the bank may become
12indebted at any one time, and the names of the officers who may sign the promissory
13note evidencing the indebtedness. A bank may pledge assets in an amount not to
14exceed 4 times the amount of its capital and surplus to the federal reserve bank (as
15fiscal agent of the United States) of the federal reserve district in which it is located,
16except that no such pledge shall be made in excess of the amount of its capital and
17surplus without the consent of the commissioner of banking department. Whenever
18it appears that a bank is borrowing habitually for the purpose of reloaning, the
19commissioner department may require the bank to repay money so borrowed.
20Nothing herein contained shall prevent any bank from rediscounting in good faith
21and endorsing any of its negotiable notes if the same has been authorized by a
22recorded resolution of the board of directors.
AB150, s. 6166 23Section 6166. 221.37 (1) of the statutes is amended to read:
AB150,2018,724 221.37 (1) Before the board of directors of a bank may declare and pay a cash
25dividend, a sum equivalent to not less than one-fifth of the net profits of the bank

1for the preceding half year, or for such period as is covered by the dividend, shall be
2carried to a surplus fund, until such surplus fund shall amount to 100 per cent of the
3capital stock, except that the bank, with the approval of the commissioner
4department, may be exempted from the requirements of this section whenever its
5daily average of deposits for a period of one year shall be less than 10 times the
6unimpaired capital and surplus; such surplus shall not include items classified by
7the commissioner of banking department as doubtful or loss.
AB150, s. 6167 8Section 6167. 221.38 (1) (b) of the statutes is amended to read:
AB150,2018,149 221.38 (1) (b) Compliance has been made with s. 221.37; except that, if a bank
10has had, during the immediate preceding 2 years, insufficient net profits to declare
11and pay a dividend out of current earnings and has paid a dividend out of undivided
12profits accrued during prior years, such bank shall not declare and pay a second
13dividend either in part or in full out of undivided profits accrued during prior years
14except with the written consent of the commissioner of banking department.
AB150, s. 6168 15Section 6168. 221.38 (2) of the statutes is amended to read:
AB150,2019,416 221.38 (2) No dividend shall be declared by the directors of a bank to the
17stockholders except out of net profits applicable thereto, and which shall not in any
18way impair or diminish the capital; and if any such shall be paid, every stockholder
19receiving the same shall be liable to restore the full amount thereof unless the capital
20be subsequently made good; and if the directors of any bank shall pay such dividend
21when the corporation is insolvent or in danger of insolvency, or not having reason to
22believe that there were sufficient net profits properly applicable thereto, to pay the
23same without impairing or diminishing the capital, they shall be jointly and
24severally liable to the creditors of the corporation at the time of declaring such
25dividends to double the amount thereof. Interest unpaid, although due or accrued,

1on debts owing to any bank, shall not be included in calculation of its profits previous
2to a dividend; nor shall any bank, except with the previous written consent of the
3commissioner department, enter or at any time, carry on its books any of its assets
4at a valuation exceeding its actual cost to such bank.
AB150, s. 6169 5Section 6169. 221.41 of the statutes is amended to read:
AB150,2019,15 6221.41 Charter, how forfeited. If the board of directors or a quorum thereof
7or any committee of such board of any bank shall knowingly violate or knowingly
8permit any of the officers, agents or employes of the bank to violate any of the
9provisions of this chapter, such directors shall jointly and severally be liable for the
10amount of the loss sustained by the bank; and if after a warning from the
11commissioner of banking department it shall fail to make good any loss or damage
12resulting from such acts, or continue such conduct, it shall constitute a ground for
13the forfeiture of the charter of such bank, and it shall thereupon be the duty of the
14commissioner department to institute proceedings to enforce such forfeiture and to
15secure a dissolution and a winding up of the affairs of such bank.
AB150, s. 6170 16Section 6170. 221.43 of the statutes is amended to read:
AB150,2020,2 17221.43 Shares of stock, when not transferable. The shares of stock of an
18incorporated bank shall be deemed personal property, and shall be transferred on the
19books of the bank in such manner as the bylaws thereof may direct, and no transfer
20of capital stock shall be valid while the bank is under notice to make good the
21impairment of its capital, as provided in s. 220.07, nor until such impairment shall
22have been made good. A transfer of stock shall be certified by the bank cashier to the
23commissioner of banking department within 3 days after the transfer, if the transfer
24is of at least 5% of the outstanding shares or affects the holdings of the owner of

1record or beneficial owner of at least 5% of the outstanding shares. Failure to comply
2with this requirement shall be punishable by a fine of not to exceed $100.
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