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Can you summarize WIST Chapter 224 Subchapter I?
Miscellaneous banking and financial institutions provisions. >
Short Summary
The provided legal document content covers various aspects of banking and financial institutions provisions in Wisconsin. It defines the activities that constitute doing a banking business, including the soliciting, receiving, or accepting of money on deposit. It specifies that a person, partnership, association, or corporation must be regularly organized and chartered as a national bank, state bank, or trust company bank to engage in a banking business. Violations of this requirement can result in fines or imprisonment. The document also addresses the preference of creditors in the event of insolvency or bankruptcy of a bank, banking institution, or trust company. It states that debts owed to the state of Wisconsin, counties, cities, towns, or other municipalities for deposits made or indebtedness incurred after April 23, 1899, shall not be given preference or priority over other creditors. Instead, a fair distribution of the bank’s property and proceeds should be made among all creditors proportionally based on their respective claims. The provision does not affect the payment of unpaid taxes and assessments, laborer’s claims, and expenses of assignment and execution of the trust. Another aspect covered in the document is the requirement for bank officers and employees to obtain fidelity bonds. These bonds must protect the bank from loss due to acts of fraud or dishonesty and can be in the form of individual bonds or a schedule or blanket bond covering all officers and employees. Violations of the bond requirements can result in fines. The document also addresses the clearing of checks at par by banks and trust companies organized under the laws of Wisconsin. It states that checks drawn on such banks or trust companies must be cleared at par. Violations of this provision can result in misdemeanor charges. Additionally, the document includes a provision regarding notice requirements for transactions conducted by banks, bank holding companies, or their subsidiaries with customers who are also customers of any other subsidiary. These entities must provide a notice to the customer clarifying the relationship between the companies and ensuring that the customer is not compelled to purchase any product or service from any of the related companies to participate in the transaction. The document also governs the administration and management of Indian loan funds transferred to Indian tribes by the United States. It establishes a board of trustees responsible for managing the funds and making loans to eligible tribal members. The Menominee Indian Tribe is specifically mentioned as administering the Indian loan fund through a board of trustees appointed by the stockholders of the corporation. The board of trustees has the authority to establish rules for the administration of the fund.
Whom does it apply to?
Persons, partnerships, associations, corporations, banks, banking institutions, trust companies, bank officers, bank employees, customers, Indian tribes, board of trustees
What does it govern?
Banking business, preference of creditors in insolvency or bankruptcy, fidelity bonds for bank officers and employees, clearing checks at par, notice requirements for transactions with related companies, administration and management of Indian loan funds
What are exemptions?
Money left with an agent pending investment, transactions conducted by banks, bank holding companies, or their subsidiaries with customers who are also customers of any other subsidiary
What are the Penalties?
For doing a banking business without being regularly organized and chartered: fine of not less than $300 nor more than $1,000 or imprisonment in the county jail for not less than 60 days nor more than one year or both. For violations of fidelity bond requirements: fine of $100 per day for each consecutive day of violation. For violation of clearing checks at par: misdemeanor and punishment as provided in s. 939.61.
Jurisdiction
Wisconsin