215.32 Possession by division; involuntary liquidation.

778 words·~4 min read·/wi/chapter-215/215-32-6

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definition. In this section, “circuit court” means the circuit court of Dane County, notwithstanding s. 801.50 .

(1m)Conditions for taking possession. The division may take possession of the business and property of any association to which this chapter applies if the division finds that the association:

(a)Is conducting its business contrary to law; or

(b)Has violated its charter or any law; or

(c)Is conducting its business in an unauthorized or unsafe manner; or

(d)Is in an unsound or unsafe condition to transact its business; or

(e)Has an impairment of its savings accounts; or

(f)Cannot with safety and expediency continue business; or

(g)Has suspended payment of its obligations; or

(h)Has failed to comply with an order of the division; or

(i)Has refused to submit its books, papers, records or affairs for inspection; or

(j)Has refused to be examined upon oath regarding its affairs.

(2)Procedure after taking possession. After taking possession of the business and property of an association, the division shall immediately:

(a)Serve written notice on an officer of the association stating that the division has taken possession and control of the business and property of the association. A copy of the notice and proof of service thereof shall be filed with the clerk of circuit court.

(b)Mail notice to the last-known address of any person known to the division to be in possession of assets of the association.

(3)Employment of counsel; retention of officers and employees of association. The division may employ necessary counsel and experts in a liquidation under this section and may retain any officer or employee of the association.

(4)Appointment of special deputy. The division may appoint special deputies as agents to assist in the liquidation and distribution of the assets of associations whose business and property the division has taken possession of. A certificate of the appointment shall be filed with the division and a certified copy shall be filed in the office of the clerk of circuit court.

(5)Surety bonds of special deputies and assistants. Special deputies and assistants shall furnish surety bonds in accordance with s. 215.11 .

(6)Duties of special deputies.

(a)Notice, allowance and payment of claims. The special deputy shall publish a class 3 notice, under ch. 985 , requiring all persons who have claims against the association, other than savers whose claims are shown in the records of the association, to file proof of their claims at a place and by a date not earlier than 30 days after the last insertion of the notice. The special deputy shall mail a copy of the notice to all persons, at their last-known addresses, who appear as creditors upon the books of the association. Proof of publication and service of the notice shall be filed with the clerk of circuit court. A claim, other than that of a saver whose claim is shown on the records of the association, for which no proof of claim is filed by the date fixed in the notice is barred. Savers whose claims are shown in the records of the association need not file proof of their claims. Any interested party may file written objections to any claim with the special deputy. The special deputy may reject any claim, including a claim of a saver. After notice by registered mail of rejection, the claim is barred unless the claimant commences an action within 90 days after the date of mailing of the notice of rejection.

(b)Inventory of assets and statement of liabilities. The special deputy appointed under this section shall make an inventory of the assets of the association. One copy of the inventory shall be filed with the division and one in the office of the clerk of circuit court. After the time for filing proof of claims has expired, the special deputy shall make a complete list of the claims for which proof of claims were filed and specify the claims the special deputy has rejected. One copy shall be filed with the division and one in the office of the clerk of circuit court. The inventory of assets and list of claims shall be open to inspection.

(c)Execution of legal documents; borrowing of money. A special deputy appointed under this section may, with the prior approval of the division and the circuit court, execute, acknowledge and deliver all deeds, assignments, releases or other instruments necessary and proper to effect any sale or transfer or encumbrance of the property of an association subject to this section and may borrow money for use in the liquidation.