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Can you summarize WIAC DFI-Bkg Chapter 17?
Department of Financial Institutions-Banking > Interim Banks
Short Summary
This legal document, found in the Wisconsin Administrative Code under the Department of Financial Institutions-Banking, pertains to the capital structure of interim banks. It specifies that the minimum level of capital stock for an interim bank shall be $5,000. Additionally, it outlines the requirements for capital stock in the context of mergers or consolidations involving interim banks. If the existing bank is the surviving charter, the interim bank’s capital stock may be cancelled and transferred to the surplus of the surviving entity or the stock of the surviving entity may be increased by the amount of the interim bank’s capital stock. If the interim bank is the surviving charter, the capital stock of the interim bank following the merger or consolidation must be increased to at least the capital stock of the existing bank prior to the transaction. However, if the transaction results in a significant increase in total assets, the capital stock of the interim bank must be increased to the greater of $1,000,000 or the amount of capital stock of the existing bank prior to the merger or consolidation. Upon approval of the application, the division shall issue to the applicant a certificate to organize the interim bank. Shareholders of the existing bank who did not vote for the merger or consolidation shall be given notice of the division’s approval. Upon approval of the application, the applicant shall file with the division 2 copies of the articles of incorporation of the interim bank. The articles of incorporation shall be on a form prescribed by the division. This document governs the process of mergers and consolidations of banks under the Wisconsin Administrative Code. It applies to banks involved in such transactions in Wisconsin. The document outlines the required documentation that must be filed with the division prior to the effective date of the merger or consolidation, including copies of notices sent to shareholders, certified copies of resolutions adopted by shareholders, and copies of approvals from the Federal Deposit Insurance Corporation or the Federal Reserve System. It also specifies additional documentation that must be filed within 90 days after the approval of the interim bank’s articles of incorporation and capital has been paid-in, such as a list of shareholders, oath of directors, and proposed bylaws. The document does not mention any exemptions or penalties.
Whom does it apply to?
Interim banks, shareholders of existing banks involved in mergers or consolidations
What does it govern?
Capital structure of interim banks, mergers or consolidations involving interim banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Wisconsin