601.13 Financial services; deposits.

733 words·~3 min read·/wi/chapter-601/601-13

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

(1)Receipt of deposits. Subject to the approval of the commissioner, the secretary of administration shall accept deposits or control of acceptable book-entry accounts from insurers and other licensees of the office as follows:

(a)Deposits required or permitted by the laws of this state;

(b)Deposits of domestic insurers or of alien insurers domiciled in this state if required by the laws of other states as prerequisite to authority to do an insurance business in other states; and

(c)Deposits resulting from application of any retaliatory provisions.

(2)Terms of deposit. Unless otherwise provided by the law requiring or permitting the deposit, each deposit shall be held in trust: first, for the claimants under s. 645.68

(3); 2nd, for the claimants under s. 645.68

(3c); 3rd, for the claimants under s. 645.68

(3m); 4th, for the claimants under s. 645.68

(4); and thereafter, for all other creditors in the order of priority established by s. 645.68 . No claim may be made against the deposit of an alien insurer unless the claim arises out of a transaction in the United States.

(3)Securities eligible. All deposits may consist of any of the securities authorized in this subsection. Each security must be approved by the commissioner, must be subject to disposition by the secretary of administration, and must not be available to any other person except as expressly provided by law. The authorized securities are:

(a)Lawfully authorized bonds or other evidences of indebtedness which are the direct obligation of the United States or Canada or any state or province thereof.

(b)Lawfully authorized bonds or other evidences of indebtedness which are the direct obligation of any county, city, village, town, school district or other governmental or civil division within the United States or Canada.

(c)Lawfully authorized bonds or other evidences of indebtedness payable from and adequately secured by revenues specifically pledged therefor of the United States or Canada, or of any state or province, or of a commission, board or other instrumentality of one or more of them.

(d)Interest-bearing notes of any savings bank or savings and loan association organized under the laws of this state.

(e)Bonds or other securities of any savings and loan finance corporation organized under the laws of this state.

(f)Investment shares of any savings bank or savings and loan association to the extent that they are or may be insured or guaranteed by the federal government, by the federal deposit insurance corporation or by any other agency of the United States.

(g)Shares of corporations chartered or incorporated under section 5 of the homeowners’ loan act of 1933.

(h)Certificates of deposit of any bank organized under the laws of this state or of any national bank located in this state.

(4)Valuation. Securities held on deposit shall be valued under s. 623.03 for valuation of such investments of life insurers, or at market, whichever is lower.

(5)Receipt, inspection, and record. The secretary of administration shall deliver to the depositor a receipt for all securities deposited or held under the control of the secretary of administration and shall permit the depositor to inspect its physically held securities at any reasonable time. On application of the depositor the secretary of administration shall certify when required by any law of the United States or of any other state or foreign country or by the order of any court of competent jurisdiction that the deposit was made. The secretary of administration and the commissioner shall each keep a permanent record of securities deposited or held under the control of the secretary of administration and of any substitutions or withdrawals and shall compare records at least annually.

(6)Transfer of securities. No transfer of a deposited security, whether voluntary or by operation of law, is valid unless approved in writing by the commissioner and countersigned by the secretary of administration.

(7)Not subject to levy. No judgment creditor or other person shall levy upon any deposit held under this section.

(8)Interest and substitutions. Subject to s. 16.401

(11), a depositor shall, while solvent and complying with the laws of this state, be entitled:

(a)To receive interest and cash dividends accruing on the securities held on deposit for its account; and

(b)To substitute for deposited securities other eligible securities, as expressly approved by the commissioner.