222.0405 Investment powers.
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/wi/chapter-222/222-0405A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
222.0405 Investment powers.
(1)Investment securities. Except as provided in subs.
(3)to
(8), a universal bank may purchase, sell, underwrite, and hold investment securities, consistent with safe and sound banking practices, up to 100 percent of the universal bank’s capital. A universal bank may not invest greater than 20 percent of the universal bank’s capital in the investment securities of one obligor or issuer. In this subsection, “investment securities” includes commercial paper, banker’s acceptances, marketable securities in the form of bonds, notes, debentures, and similar instruments that are regarded as investment securities.
(2)Equity securities. Except as provided in subs.
(3)to
(8), a universal bank may purchase, sell, underwrite, and hold equity securities, consistent with safe and sound banking practices, up to 20 percent of the universal bank’s capital or, if approved by the division in writing, a greater percentage of the universal bank’s capital.
(3)Housing activities. With the prior written consent of the division, a universal bank may invest in the initial purchase and development, or the purchase or commitment to purchase after completion, of home sites and housing for sale or rental, including projects for the reconstruction, rehabilitation, or rebuilding of residential properties to meet the minimum standards of health and occupancy prescribed for a local governmental unit, the provision of accommodations for retail stores, shops, and other community services that are reasonably incident to that housing, or the stock of a corporation that owns one or more of those projects and that is wholly owned by one or more financial institutions. The total investment in any one project may not exceed 15 percent of the universal bank’s capital, nor may the aggregate investment under this subsection exceed 50 percent of the universal bank’s capital. A universal bank may not make an investment under this subsection unless it is in compliance with the capital requirements set by the division under s. 222.0305
(1)and with the capital maintenance requirements of its deposit insurance corporation.