221.0302 Branch banks and other facilities.

(1g) Definitions. In this section:

(a) “Affiliate" means any company that directly or indirectly controls, or is under common control with, another company.

(b) “Bank holding company" has the meaning given in 12 USC 1841 (a).

(c) “Commercial activities" means those activities in which a bank holding company, financial holding company, national bank, state bank, as defined in s. 221.0903 (1) (e), or state bank certified under ch. 222 as a universal bank are not authorized to engage under federal or state law.

(d) “Company" has the meaning given in s. 221.0901 (2) (f).

(e) “Financial holding company" has the meaning given in 12 USC 1841 (p).

(1m) Establishment. A bank may establish and maintain a branch bank or joint branch bank with the approval of the division.

(2) Conversion. A bank may be converted to a branch bank of the surviving bank of a merger or consolidation under s. 221.0702. A branch of a bank converted into a branch bank becomes a branch of the surviving bank.

(3) Transfer. A bank may transfer a branch bank to any other bank located in this state with the approval of the division. A bank may transfer a branch bank to a bank located in another state only if the division has determined under s. 221.0904 (3) (b) that the state's laws are reciprocal regarding establishing branches.

(4) Out-of-state branches. A bank may establish a branch bank in another state with the approval of the division.

(5) Activities not considered branch banking. The following activities do not constitute the establishment or maintenance of a branch bank or a joint branch bank:

(a) Picking up deposits and delivering money to bank customers at locations designated by the bank.

(b) Establishing or maintaining a facility under s. 221.0301 (7).

(c) Acting as an agent, or having another bank act as agent, under s. 221.0301 (8).

(d) Operating a trust service office under s. 221.0316 (4).

(6) Application. A bank shall apply for the establishment or transfer of a branch bank under this section to the division on a form furnished by the division. The application shall be accompanied by a fee determined by the division.

(7) Standards for approval.

(a) General. Except as provided in par. (b), the division shall approve the establishment of a branch bank under sub. (1m) or the conversion of a bank to a branch bank under sub. (2) if the financial and managerial resources and future prospects of the bank establishing a branch bank, or the surviving bank of a merger or consolidation, are satisfactory to the division.

(b) Location restrictions; certification of compliance. The division may not approve the establishment of a branch bank under sub. (1m), the conversion of a bank to a branch bank under sub. (2), or the transfer of a branch bank under sub. (3) if the establishment, conversion, or transfer would violate sub. (8m). Each bank shall certify to the division that the location of a branch bank complies with sub. (8m).

(8) Applicability of laws and rules governing banks. Branch banks are subject to all laws and rules applicable to banks generally.

(8m) Location restrictions for branch banks. Except as provided in sub. (10) (b), no bank may directly or indirectly establish or maintain in this state a branch bank that is located within a 1.5-mile radius of premises or property owned, leased, or otherwise controlled, directly or indirectly, by an affiliate of the bank that engages in commercial activities. No bank may circumvent the prohibition in this subsection by first establishing a branch bank and then locating, or attempting to influence or facilitate the location of, an office of the bank's affiliate engaged in commercial activities within a 1.5-mile radius of the location of the branch bank.

(9) Closure of branch banks. At least 30 days before closing a branch bank, a bank shall notify the division in writing and post a notice of the closing in the lobby of the bank and the lobby of the branch bank to be closed.

(10) Exemptions.

(a) Grandfathered branch banks. Every branch bank, branch office, or bank station existing on August 1, 1989, is considered to be a branch bank approved by the division under this paragraph.

(b) Exemption from location restrictions. Subsections (7) (b) and (8m) do not apply to any bank branch approved by the division on or before April 2, 2008.

History: 1995 a. 336; 1997 a. 146; 2005 a. 217; 2007 a. 112.