State Codes and Statutes

Statutes > Wyoming > Title13 > Chapter7

CHAPTER 7 - SAVINGS AND LOAN OPERATIONS

 

ARTICLE 1 - POWERS

 

13-7-101. Generally.

 

(a) Except as otherwise provided any association shall have thepowers provided for in the general laws of this state relating to the creationand regulation of private corporations and in addition thereto shall havepower, subject to the terms and conditions contained in the articles ofincorporation and bylaws to:

 

(i) Issue stock to its members, to assess and collect from itsmembers reasonable membership fees, withdrawal fees, dues, premiums and fines;

 

(ii) Permit its members to withdraw any or all of their stockdeposits upon equitable terms;

 

(iii) Hold and convey such property as is necessary for itsaccommodation and the transaction of its business, mortgaged in good faith byway of security for debts duly contracted, conveyed to it in satisfaction ofdebts previously contracted in the course of its dealings, purchased at salesunder judgments, decrees or mortgages held by it, or purchased to secure debtsdue to it;

 

(iv) Make loans to its members upon ample real estate orpersonal property security, unencumbered except by prior loans from theassociation, or upon the stock of the association to the extent of itswithdrawal value;

 

(v) Make annual or semiannual distributions of its earnings;and

 

(vi) Do all other things that may be necessary to effect itspurposes and conduct its authorized business.

 

13-7-102. Associations organized according to office of thriftsupervision requirements.

 

(a) It is the purpose of this section to authorize theorganization and operation of state savings and loan associations according tothe laws of the state of Wyoming which have the same powers and are subject tothe restrictions provided for by the laws of the United States and the rules,regulations and requirements of the office of thrift supervision and insuranceof the shares and deposits of the associations by the federal deposit insurancecorporation.

 

(b) Repealed by Laws 1993, ch. 115, 3.

 

13-7-103. Reports; examinations; membership in federal home loan bank.

 

(a) Any state savings and loan association may furnish to theoffice of thrift supervision reports of examinations of the association made bythe state banking commissioner and may consent to an examination to be made bythe office of thrift supervision or the federal deposit insurance corporation.

 

(b) A state savings and loan association may do all thingsnecessary to obtain and to continue membership in the federal home loan bankand to obtain advances from it.

 

13-7-104. Real estate and personal property.

 

(a) Except as provided in W.S. 13-7-102, any association mayacquire, hold, encumber and convey real estate and personal property necessaryfor the transaction of its business or necessary to enforce or to protect itssecurities but it shall not otherwise acquire or deal in real estate. Noassociation shall use more than ten percent (10%) of its assets at any time inacquiring real estate for its business location.

 

(b) All real estate, except that used for its businesslocation, shall be entered on the books as other real estate at not more thanacquisition cost or appraised fair market value, whichever is less, and shallbe sold within five (5) years after title to the property is acquired exceptthat the association may:

 

(i) Hold real estate, other than agricultural real estate, fora period not to exceed ten (10) years from the date of acquisition if theassociation charges off the real estate at a rate not less than that requiredto annually amortize the balance over fifteen (15) years or less;

 

(ii) Hold agricultural real estate for more than five (5) yearsafter the date of acquisition only if a written waiver is granted by the statebanking commissioner. A waiver may be granted under this paragraph for notmore than one (1) year at a time and not more than three (3) times.

 

(c) No exchange of real estate shall be made by any associationunless authorized by a vote of two-thirds (2/3) of its directors.

 

(d) Any appraisal required under subsection (b) of this sectionshall be conducted by a qualified appraiser who is not an officer or directorof the association and whose reports are acceptable to the state bankingcommissioner.

 

ARTICLE 2 - INTEREST AND DIVIDENDS

 

13-7-201. "Member" defined.

 

Amember of a state savings and loan association is any person owning a savingsaccount or investment certificate or any person borrowing from or assuming aloan held by an association or obligated upon a loan held by an associationthrough purchase. Savings and investment account holders have no vote in theoperations of the association.

 

13-7-202. Interest and earnings.

 

Interestreceivable on all loans shall be accrued monthly and an interest due andaccrued account shall be maintained equivalent to all accrued and uncollectedinterest. By each closing date, after payment or provision for all expenses andappropriate transfers to reserves, the remainder of net earnings for the periodshall be credited to the undivided profits account or to an unallocated reserveaccount.

 

13-7-203. Dividends.

 

(a) Guaranty capital stock is not entitled to any dividenduntil all expenses and losses have been paid and reserves have been provided asrequired by law and all interest has been paid on all savings and investmentaccounts.

 

(b) Following compliance with subsection (a) of this sectionall liabilities, earnings and undivided profits are available for dividends onthe guaranty capital stock. In liquidation, after payment of all liabilitiesand savings and investment account holders at par with interest, any excessshall be paid to the guaranty capital stockholders pro rata.

 

ARTICLE 3 - OPERATIONS

 

13-7-301. Savings and investment accounts.

 

Statesavings and loan associations may accept savings and issue savings accountbooks or investment certificates as evidence of savings and shall creditinterest or pay interest in cash periodically at least annually, if earned.Savings and investment accounts are ownership accounts in the association andnot creditor liabilities and shall bear interest at a rate prescribed by thedirectors of the association for the period. If a rate is not specified priorto any period then accounts shall receive the rate prevailing the previousperiod. Interest shall be payable only if available from current earnings orundivided profits.

 

13-7-302. Accounts of minors; joint accounts.

 

(a) Any association may accept the following accounts whenprovided by its bylaws:

 

(i) Accounts in the name of any minor which shall be held forhis exclusive right and benefit and free from the control or lien of all otherpersons. The accumulated savings together with the interest shall be paid tothe person in whose name the account is held. The receipt of the minor releasesthe association for accumulated savings and dividends credited thereon;

 

(ii) An account in the name of two (2) or more persons iswithdrawable by any one of them and the receipt of any one of the persons is avalid and sufficient release to the association for the withdrawals regardlessof the death or disability of any other joint shareholder.

 

13-7-303. Demand, commercial or checking accounts.

 

Exceptas provided in W.S. 13-7-102, no savings and loan association shall accept fordeposit any demand, commercial or checking account.

 

13-7-304. Withdrawals.

 

(a) Any savings or investment account holder may at any timepresent a written application for withdrawal of all or any part of hisaccounts. No member shall have on file in any one association more than one (1)application at a time. Every application shall request immediate withdrawal ofa stated amount in accordance with this section. Any member may cancel hisapplication at any time in whole or in part by a writing. Each associationshall pay or number, date, and file in the order of actual receipt everywithdrawal application. Withdrawals shall be made in the order of actualreceipt of applications except as provided in this section. Upon withdrawal, anassociation shall pay the value of any account, as determined by the board ofdirectors, but not in excess of the withdrawal value. If any association soelects, it may at any time pay in full each application as presented. It shallnot, however, pay some in full unless it pays every application on file in fullexcept by paying all applications on file on the rotation plan prescribed inthis section. The board of directors shall, however, have an absolute right topay upon any application not exceeding two hundred dollars ($200.00) to any one(1) account holder in any one (1) month in any order. No association canobligate itself to pay withdrawals on any plan other than as provided in thissection. Account holders who have filed written application for withdrawalshall remain account members so long as their applications remain on file. Nodividends shall be declared upon that portion of an account which has beennoticed for withdrawal which for dividend purposes is required to be deductedfrom the latest previous additions to the account so long as the application ison file.

 

(b) The rotation plan of payment of withdrawals is as follows:

 

(i) On the first day of each month, each application which hasbeen on file since the first day of the preceding month and which is reached inorder shall be paid one thousand dollars ($1,000.00) on account, or in full ifthe amount noticed for withdrawal or the unpaid balance of the application isless than one thousand dollars ($1,000.00). Each application for more than onethousand dollars ($1,000.00) so paid shall be deemed refiled as if filed onthat day. The limited payment on the first day of each month and renumberingshall take place on the first day of each subsequent month as long as there areapplications unpaid. At least one-third (1/3) of the receipts of an associationfrom its members during the preceding calendar month shall be applied on thefirst day of each month to the payment of applications which have been on filesince the first day of the preceding month. Any association may apply towithdrawals an amount larger than one-third (1/3) of the receipts, but cannotobligate itself to do so. When an application to withdraw is reached forpayment as above provided, a written notice shall be sent to the applicant bymail at his last address recorded on the books and unless the applicant appliesin person or in writing for withdrawal within thirty (30) days from the date ofthe notice, no payment on account of the application shall be made and theapplication shall be cancelled.

 

13-7-305. Right to redeem savings or investment accounts.

 

(a) The association may redeem by lot or otherwise, asdetermined by the board of directors, any part of any of its savings orinvestment accounts on a dividend date by giving thirty (30) days' notice byregistered mail when funds are available for that purpose. An association shallnot redeem any of its accounts when the association is in an impaired conditionor when it has applications for withdrawal which have been on file more thanthirty (30) days and have not been reached for payment. The redemption price ofaccounts redeemed shall be the full value of the account redeemed, as determinedby the board of directors, but in no event shall the redemption price be lessthan the withdrawal value. If the notice of redemption has been duly given, andif on or before the redemption date the funds necessary for the redemption havebeen set aside to be available for the redemption, dividends upon the accountscalled for redemption shall cease to accrue from and after the dividend datespecified as the redemption date and all rights with respect to accounts shallterminate immediately after the redemption date, except only the right of theaccount holder of record to receive the redemption price without interest.

 

(b) All account books or certificates evidencing accounts whichhave been validly called for redemption must be tendered for payment within ten(10) years from the date of redemption designated in the redemption noticeotherwise they shall be cancelled and all claims of the account holders againstthe association are barred.

 

ARTICLE 4 - BORROWING

 

13-7-401. Debenture bonds.

 

(a) Except as provided in W.S. 13-7-102, any savings and loanassociation may issue its debenture bonds maturing not later than five (5)years from the date of issue and bearing interest not exceeding six percent(6%) per annum. No bonds shall be issued unless there are sufficient funds onhand or receivable in time to meet approved applications for loans or for thepayment of withdrawals of accounts. Debenture bonds may be retired by action ofthe board of directors at any time after one (1) year from date of issue by thesecretary of the association giving notice in writing sixty (60) days or moreprior to the next interest date to the recorded holders of the bonds. On returnof the retired bonds together with any coupons, holders shall receive the parvalue of the bonds. At the expiration of the next interest period the bondscalled shall cease to draw interest.

 

(b) Whenever the state banking commissioner deems anyindebtedness incurred under the provisions of this section to be detrimental tothe interest of the association, he shall notify the association to reduce itsindebtedness to an amount he considers reasonable, giving the associationreasonable time to effect the reduction of indebtedness.

 

13-7-402. Borrowing from federal home loan bank.

 

(a) Any state savings and loan association may borrow moneyfrom the federal home loan bank, when authorized by resolution of its board ofdirectors, upon terms and rates of interest as may be agreed upon. It mayassign and pledge its notes, bonds, mortgages or other property and repledgethe shares of stock or savings certificates pledged to it as collateralsecurity without securing the consent of the owner as security for therepayment of its indebtedness. Any lawful holder of any evidence ofindebtedness due to an association may enforce, in his own name or in the nameof the association, all appropriate remedies to enforce collection, whether ornot the stock or savings certificate described in connection with the note isheld by the pledgee or holder.

 

(b) Any obligation incurred or loan made by an associationconstitutes a claim against the corporate assets and is payable in advance of,and by preference over, all claims or rights of the shareholders or holders ofsavings certificates in any of the assets of the association. These obligationsare senior to any demand for the withdrawal or cancellation of all classes ofshares or savings certificates in the association including matured shares orsavings certificates.

 

(c) The existence of a withdrawal list consisting of membersdesiring to withdraw from the association does not prevent the board ofdirectors of the association from borrowing money from the federal home loanbank to be used solely for the purpose of making mortgage loans to the membersof the association, but all borrowed money shall be exclusively used for thepurpose borrowed. A savings and loan association shall not at any time borrowmoney from the federal home loan bank in an amount exceeding any limit fixed bythe laws of this state.

 

ARTICLE 5 - LOANS

 

13-7-501. General requirements.

 

Forevery loan made, except a loan from one (1) association to another, a note orbond specifying the amount loaned and the rate of interest and premium to bepaid, secured by first mortgage on improved real estate, shall be taken. Acomplete abstract of title for the real estate signed by the person orcorporation furnishing the abstract which shall be examined by a competentattorney-at-law and his opinion furnished approving the title and showing thatthe mortgage is a first lien, or a policy of title insurance of a reliabletitle insurance company authorized to issue insurance on titles within thisstate, or a duplicate certificate of ownership issued by a registrar of titles,shall be furnished. No mortgage loan shall be made except upon the report inwriting of an appraiser or a committee of appraisers appointed by the board ofdirectors which shall state the conservative value of the mortgage security.The directors may also loan upon the security of savings on deposit in theassociation to the amount of ninety percent (90%) of their withdrawal value,and may loan upon or invest in bonds of the United States and the state ofWyoming, in real property loans insured by the federal housing administration orguaranteed by the veterans administration, and in classes of bonds and warrantsof the counties, school districts and other municipalities, as well as localimprovement districts in this state, as the state banking commissioner may fromtime to time approve but no association shall loan any of its funds to anofficer or director of the association.

 

13-7-502. Repealed by Laws 1993, ch. 115, 3.

 

ARTICLE 6 - SUPERVISION BY STATE BANKING COMMISSIONER

 

13-7-601. Annual statement by associations.

 

Eachsavings and loan association doing business within this state shall on January1, of each year, or within sixty (60) days after January 1, file with the statebanking commissioner a full and detailed statement of its financial conditionon the preceding year ending December 31 and of the business transacted duringthe preceding year. The statement shall set forth the amount and character ofits assets, liabilities, receipts and disbursements, shall contain such otherinformation as the state banking commissioner may prescribe and shall besubscribed and sworn to by the president and secretary of the association.

 

13-7-602. Duties generally; examinations.

 

(a) The state banking commissioner shall supervise andadminister the laws with respect to all state savings and loan associationsdoing business in this state. He shall make at least an annual examination intothe affairs of all savings and loan associations. All examinations shall befull and complete and he may compel the production of all books, papers, moneysand records of the association under examination and may administer oaths toand examine the officers of the association or any person connected with it asto its business and affairs. Any willful false swearing is perjury.

 

(b) The state banking commissioner shall collect from theassociation examined an amount equal to the total cost of the examinationconducted. The fees and expenses collected shall be remitted to the statetreasurer and credited to the financial institutions administration account.Expenditures shall be made from the account by warrants drawn by the stateauditor, upon vouchers issued and signed by the director or commissioner. Fundsfrom the account shall be expended only to carry out the duties of thecommissioner or the state banking board.

 

(c) The state banking commissioner shall report the conditionof each association to the governor with recommendations. If the association isfound to be in an unsafe condition, its charter may be suspended until thematters complained of by the state banking commissioner have been remedied.

 

13-7-603. Supervision fees.

 

(a) Repealed by Laws 1994, ch. 14, 2.

 

(b) The state banking commissioner shall collect from eachsavings and loan association chartered by this state for supervision an amountbased upon the total assets of the association as reflected by the monthlyreport of financial data for the end of June and December of each year. Theamount shall be adjusted by regulation issued by the state banking commissionerto assure consistency with the cost of supervision. Any adjustments shall bemade by regulation issued by the state banking commissioner subject to theprovisions of the Wyoming Administrative Procedure Act. Each savings and loanassociation shall, not later than the last day of January and July, compute thesemiannual supervisory fee based upon the report of condition next precedingupon forms provided by the state banking commissioner and shall submit thereport together with payment to the state banking commissioner.

 

(c) Repealed By Laws 2001, Ch. 156, 3.

 

13-7-604. Examination at request of members or shareholders.

 

(a) Any association is subject to examination by the statebanking commissioner upon the application of three (3) or more of its membersin addition to examinations pursuant to W.S. 13-7-602. If it appears to thestate banking commissioner that the association is violating any of theprovisions of this act or is conducting its business in an unsafe orunauthorized manner, he shall direct the discontinuance of any illegal orunsafe practices. If the association fails to comply with the order, or failsto make reports as required, the state banking commissioner shall notify theattorney general who shall institute proceedings as the case requires.

 

(b) Upon request in writing of any number of shareholdersrepresenting at least one thousand (1,000) shares of stock the state bankingcommissioner may examine the affairs of the association. If the association isinsolvent the examiner shall assume temporary control of the associationpursuant to law.

 

State Codes and Statutes

Statutes > Wyoming > Title13 > Chapter7

CHAPTER 7 - SAVINGS AND LOAN OPERATIONS

 

ARTICLE 1 - POWERS

 

13-7-101. Generally.

 

(a) Except as otherwise provided any association shall have thepowers provided for in the general laws of this state relating to the creationand regulation of private corporations and in addition thereto shall havepower, subject to the terms and conditions contained in the articles ofincorporation and bylaws to:

 

(i) Issue stock to its members, to assess and collect from itsmembers reasonable membership fees, withdrawal fees, dues, premiums and fines;

 

(ii) Permit its members to withdraw any or all of their stockdeposits upon equitable terms;

 

(iii) Hold and convey such property as is necessary for itsaccommodation and the transaction of its business, mortgaged in good faith byway of security for debts duly contracted, conveyed to it in satisfaction ofdebts previously contracted in the course of its dealings, purchased at salesunder judgments, decrees or mortgages held by it, or purchased to secure debtsdue to it;

 

(iv) Make loans to its members upon ample real estate orpersonal property security, unencumbered except by prior loans from theassociation, or upon the stock of the association to the extent of itswithdrawal value;

 

(v) Make annual or semiannual distributions of its earnings;and

 

(vi) Do all other things that may be necessary to effect itspurposes and conduct its authorized business.

 

13-7-102. Associations organized according to office of thriftsupervision requirements.

 

(a) It is the purpose of this section to authorize theorganization and operation of state savings and loan associations according tothe laws of the state of Wyoming which have the same powers and are subject tothe restrictions provided for by the laws of the United States and the rules,regulations and requirements of the office of thrift supervision and insuranceof the shares and deposits of the associations by the federal deposit insurancecorporation.

 

(b) Repealed by Laws 1993, ch. 115, 3.

 

13-7-103. Reports; examinations; membership in federal home loan bank.

 

(a) Any state savings and loan association may furnish to theoffice of thrift supervision reports of examinations of the association made bythe state banking commissioner and may consent to an examination to be made bythe office of thrift supervision or the federal deposit insurance corporation.

 

(b) A state savings and loan association may do all thingsnecessary to obtain and to continue membership in the federal home loan bankand to obtain advances from it.

 

13-7-104. Real estate and personal property.

 

(a) Except as provided in W.S. 13-7-102, any association mayacquire, hold, encumber and convey real estate and personal property necessaryfor the transaction of its business or necessary to enforce or to protect itssecurities but it shall not otherwise acquire or deal in real estate. Noassociation shall use more than ten percent (10%) of its assets at any time inacquiring real estate for its business location.

 

(b) All real estate, except that used for its businesslocation, shall be entered on the books as other real estate at not more thanacquisition cost or appraised fair market value, whichever is less, and shallbe sold within five (5) years after title to the property is acquired exceptthat the association may:

 

(i) Hold real estate, other than agricultural real estate, fora period not to exceed ten (10) years from the date of acquisition if theassociation charges off the real estate at a rate not less than that requiredto annually amortize the balance over fifteen (15) years or less;

 

(ii) Hold agricultural real estate for more than five (5) yearsafter the date of acquisition only if a written waiver is granted by the statebanking commissioner. A waiver may be granted under this paragraph for notmore than one (1) year at a time and not more than three (3) times.

 

(c) No exchange of real estate shall be made by any associationunless authorized by a vote of two-thirds (2/3) of its directors.

 

(d) Any appraisal required under subsection (b) of this sectionshall be conducted by a qualified appraiser who is not an officer or directorof the association and whose reports are acceptable to the state bankingcommissioner.

 

ARTICLE 2 - INTEREST AND DIVIDENDS

 

13-7-201. "Member" defined.

 

Amember of a state savings and loan association is any person owning a savingsaccount or investment certificate or any person borrowing from or assuming aloan held by an association or obligated upon a loan held by an associationthrough purchase. Savings and investment account holders have no vote in theoperations of the association.

 

13-7-202. Interest and earnings.

 

Interestreceivable on all loans shall be accrued monthly and an interest due andaccrued account shall be maintained equivalent to all accrued and uncollectedinterest. By each closing date, after payment or provision for all expenses andappropriate transfers to reserves, the remainder of net earnings for the periodshall be credited to the undivided profits account or to an unallocated reserveaccount.

 

13-7-203. Dividends.

 

(a) Guaranty capital stock is not entitled to any dividenduntil all expenses and losses have been paid and reserves have been provided asrequired by law and all interest has been paid on all savings and investmentaccounts.

 

(b) Following compliance with subsection (a) of this sectionall liabilities, earnings and undivided profits are available for dividends onthe guaranty capital stock. In liquidation, after payment of all liabilitiesand savings and investment account holders at par with interest, any excessshall be paid to the guaranty capital stockholders pro rata.

 

ARTICLE 3 - OPERATIONS

 

13-7-301. Savings and investment accounts.

 

Statesavings and loan associations may accept savings and issue savings accountbooks or investment certificates as evidence of savings and shall creditinterest or pay interest in cash periodically at least annually, if earned.Savings and investment accounts are ownership accounts in the association andnot creditor liabilities and shall bear interest at a rate prescribed by thedirectors of the association for the period. If a rate is not specified priorto any period then accounts shall receive the rate prevailing the previousperiod. Interest shall be payable only if available from current earnings orundivided profits.

 

13-7-302. Accounts of minors; joint accounts.

 

(a) Any association may accept the following accounts whenprovided by its bylaws:

 

(i) Accounts in the name of any minor which shall be held forhis exclusive right and benefit and free from the control or lien of all otherpersons. The accumulated savings together with the interest shall be paid tothe person in whose name the account is held. The receipt of the minor releasesthe association for accumulated savings and dividends credited thereon;

 

(ii) An account in the name of two (2) or more persons iswithdrawable by any one of them and the receipt of any one of the persons is avalid and sufficient release to the association for the withdrawals regardlessof the death or disability of any other joint shareholder.

 

13-7-303. Demand, commercial or checking accounts.

 

Exceptas provided in W.S. 13-7-102, no savings and loan association shall accept fordeposit any demand, commercial or checking account.

 

13-7-304. Withdrawals.

 

(a) Any savings or investment account holder may at any timepresent a written application for withdrawal of all or any part of hisaccounts. No member shall have on file in any one association more than one (1)application at a time. Every application shall request immediate withdrawal ofa stated amount in accordance with this section. Any member may cancel hisapplication at any time in whole or in part by a writing. Each associationshall pay or number, date, and file in the order of actual receipt everywithdrawal application. Withdrawals shall be made in the order of actualreceipt of applications except as provided in this section. Upon withdrawal, anassociation shall pay the value of any account, as determined by the board ofdirectors, but not in excess of the withdrawal value. If any association soelects, it may at any time pay in full each application as presented. It shallnot, however, pay some in full unless it pays every application on file in fullexcept by paying all applications on file on the rotation plan prescribed inthis section. The board of directors shall, however, have an absolute right topay upon any application not exceeding two hundred dollars ($200.00) to any one(1) account holder in any one (1) month in any order. No association canobligate itself to pay withdrawals on any plan other than as provided in thissection. Account holders who have filed written application for withdrawalshall remain account members so long as their applications remain on file. Nodividends shall be declared upon that portion of an account which has beennoticed for withdrawal which for dividend purposes is required to be deductedfrom the latest previous additions to the account so long as the application ison file.

 

(b) The rotation plan of payment of withdrawals is as follows:

 

(i) On the first day of each month, each application which hasbeen on file since the first day of the preceding month and which is reached inorder shall be paid one thousand dollars ($1,000.00) on account, or in full ifthe amount noticed for withdrawal or the unpaid balance of the application isless than one thousand dollars ($1,000.00). Each application for more than onethousand dollars ($1,000.00) so paid shall be deemed refiled as if filed onthat day. The limited payment on the first day of each month and renumberingshall take place on the first day of each subsequent month as long as there areapplications unpaid. At least one-third (1/3) of the receipts of an associationfrom its members during the preceding calendar month shall be applied on thefirst day of each month to the payment of applications which have been on filesince the first day of the preceding month. Any association may apply towithdrawals an amount larger than one-third (1/3) of the receipts, but cannotobligate itself to do so. When an application to withdraw is reached forpayment as above provided, a written notice shall be sent to the applicant bymail at his last address recorded on the books and unless the applicant appliesin person or in writing for withdrawal within thirty (30) days from the date ofthe notice, no payment on account of the application shall be made and theapplication shall be cancelled.

 

13-7-305. Right to redeem savings or investment accounts.

 

(a) The association may redeem by lot or otherwise, asdetermined by the board of directors, any part of any of its savings orinvestment accounts on a dividend date by giving thirty (30) days' notice byregistered mail when funds are available for that purpose. An association shallnot redeem any of its accounts when the association is in an impaired conditionor when it has applications for withdrawal which have been on file more thanthirty (30) days and have not been reached for payment. The redemption price ofaccounts redeemed shall be the full value of the account redeemed, as determinedby the board of directors, but in no event shall the redemption price be lessthan the withdrawal value. If the notice of redemption has been duly given, andif on or before the redemption date the funds necessary for the redemption havebeen set aside to be available for the redemption, dividends upon the accountscalled for redemption shall cease to accrue from and after the dividend datespecified as the redemption date and all rights with respect to accounts shallterminate immediately after the redemption date, except only the right of theaccount holder of record to receive the redemption price without interest.

 

(b) All account books or certificates evidencing accounts whichhave been validly called for redemption must be tendered for payment within ten(10) years from the date of redemption designated in the redemption noticeotherwise they shall be cancelled and all claims of the account holders againstthe association are barred.

 

ARTICLE 4 - BORROWING

 

13-7-401. Debenture bonds.

 

(a) Except as provided in W.S. 13-7-102, any savings and loanassociation may issue its debenture bonds maturing not later than five (5)years from the date of issue and bearing interest not exceeding six percent(6%) per annum. No bonds shall be issued unless there are sufficient funds onhand or receivable in time to meet approved applications for loans or for thepayment of withdrawals of accounts. Debenture bonds may be retired by action ofthe board of directors at any time after one (1) year from date of issue by thesecretary of the association giving notice in writing sixty (60) days or moreprior to the next interest date to the recorded holders of the bonds. On returnof the retired bonds together with any coupons, holders shall receive the parvalue of the bonds. At the expiration of the next interest period the bondscalled shall cease to draw interest.

 

(b) Whenever the state banking commissioner deems anyindebtedness incurred under the provisions of this section to be detrimental tothe interest of the association, he shall notify the association to reduce itsindebtedness to an amount he considers reasonable, giving the associationreasonable time to effect the reduction of indebtedness.

 

13-7-402. Borrowing from federal home loan bank.

 

(a) Any state savings and loan association may borrow moneyfrom the federal home loan bank, when authorized by resolution of its board ofdirectors, upon terms and rates of interest as may be agreed upon. It mayassign and pledge its notes, bonds, mortgages or other property and repledgethe shares of stock or savings certificates pledged to it as collateralsecurity without securing the consent of the owner as security for therepayment of its indebtedness. Any lawful holder of any evidence ofindebtedness due to an association may enforce, in his own name or in the nameof the association, all appropriate remedies to enforce collection, whether ornot the stock or savings certificate described in connection with the note isheld by the pledgee or holder.

 

(b) Any obligation incurred or loan made by an associationconstitutes a claim against the corporate assets and is payable in advance of,and by preference over, all claims or rights of the shareholders or holders ofsavings certificates in any of the assets of the association. These obligationsare senior to any demand for the withdrawal or cancellation of all classes ofshares or savings certificates in the association including matured shares orsavings certificates.

 

(c) The existence of a withdrawal list consisting of membersdesiring to withdraw from the association does not prevent the board ofdirectors of the association from borrowing money from the federal home loanbank to be used solely for the purpose of making mortgage loans to the membersof the association, but all borrowed money shall be exclusively used for thepurpose borrowed. A savings and loan association shall not at any time borrowmoney from the federal home loan bank in an amount exceeding any limit fixed bythe laws of this state.

 

ARTICLE 5 - LOANS

 

13-7-501. General requirements.

 

Forevery loan made, except a loan from one (1) association to another, a note orbond specifying the amount loaned and the rate of interest and premium to bepaid, secured by first mortgage on improved real estate, shall be taken. Acomplete abstract of title for the real estate signed by the person orcorporation furnishing the abstract which shall be examined by a competentattorney-at-law and his opinion furnished approving the title and showing thatthe mortgage is a first lien, or a policy of title insurance of a reliabletitle insurance company authorized to issue insurance on titles within thisstate, or a duplicate certificate of ownership issued by a registrar of titles,shall be furnished. No mortgage loan shall be made except upon the report inwriting of an appraiser or a committee of appraisers appointed by the board ofdirectors which shall state the conservative value of the mortgage security.The directors may also loan upon the security of savings on deposit in theassociation to the amount of ninety percent (90%) of their withdrawal value,and may loan upon or invest in bonds of the United States and the state ofWyoming, in real property loans insured by the federal housing administration orguaranteed by the veterans administration, and in classes of bonds and warrantsof the counties, school districts and other municipalities, as well as localimprovement districts in this state, as the state banking commissioner may fromtime to time approve but no association shall loan any of its funds to anofficer or director of the association.

 

13-7-502. Repealed by Laws 1993, ch. 115, 3.

 

ARTICLE 6 - SUPERVISION BY STATE BANKING COMMISSIONER

 

13-7-601. Annual statement by associations.

 

Eachsavings and loan association doing business within this state shall on January1, of each year, or within sixty (60) days after January 1, file with the statebanking commissioner a full and detailed statement of its financial conditionon the preceding year ending December 31 and of the business transacted duringthe preceding year. The statement shall set forth the amount and character ofits assets, liabilities, receipts and disbursements, shall contain such otherinformation as the state banking commissioner may prescribe and shall besubscribed and sworn to by the president and secretary of the association.

 

13-7-602. Duties generally; examinations.

 

(a) The state banking commissioner shall supervise andadminister the laws with respect to all state savings and loan associationsdoing business in this state. He shall make at least an annual examination intothe affairs of all savings and loan associations. All examinations shall befull and complete and he may compel the production of all books, papers, moneysand records of the association under examination and may administer oaths toand examine the officers of the association or any person connected with it asto its business and affairs. Any willful false swearing is perjury.

 

(b) The state banking commissioner shall collect from theassociation examined an amount equal to the total cost of the examinationconducted. The fees and expenses collected shall be remitted to the statetreasurer and credited to the financial institutions administration account.Expenditures shall be made from the account by warrants drawn by the stateauditor, upon vouchers issued and signed by the director or commissioner. Fundsfrom the account shall be expended only to carry out the duties of thecommissioner or the state banking board.

 

(c) The state banking commissioner shall report the conditionof each association to the governor with recommendations. If the association isfound to be in an unsafe condition, its charter may be suspended until thematters complained of by the state banking commissioner have been remedied.

 

13-7-603. Supervision fees.

 

(a) Repealed by Laws 1994, ch. 14, 2.

 

(b) The state banking commissioner shall collect from eachsavings and loan association chartered by this state for supervision an amountbased upon the total assets of the association as reflected by the monthlyreport of financial data for the end of June and December of each year. Theamount shall be adjusted by regulation issued by the state banking commissionerto assure consistency with the cost of supervision. Any adjustments shall bemade by regulation issued by the state banking commissioner subject to theprovisions of the Wyoming Administrative Procedure Act. Each savings and loanassociation shall, not later than the last day of January and July, compute thesemiannual supervisory fee based upon the report of condition next precedingupon forms provided by the state banking commissioner and shall submit thereport together with payment to the state banking commissioner.

 

(c) Repealed By Laws 2001, Ch. 156, 3.

 

13-7-604. Examination at request of members or shareholders.

 

(a) Any association is subject to examination by the statebanking commissioner upon the application of three (3) or more of its membersin addition to examinations pursuant to W.S. 13-7-602. If it appears to thestate banking commissioner that the association is violating any of theprovisions of this act or is conducting its business in an unsafe orunauthorized manner, he shall direct the discontinuance of any illegal orunsafe practices. If the association fails to comply with the order, or failsto make reports as required, the state banking commissioner shall notify theattorney general who shall institute proceedings as the case requires.

 

(b) Upon request in writing of any number of shareholdersrepresenting at least one thousand (1,000) shares of stock the state bankingcommissioner may examine the affairs of the association. If the association isinsolvent the examiner shall assume temporary control of the associationpursuant to law.

 


State Codes and Statutes

State Codes and Statutes

Statutes > Wyoming > Title13 > Chapter7

CHAPTER 7 - SAVINGS AND LOAN OPERATIONS

 

ARTICLE 1 - POWERS

 

13-7-101. Generally.

 

(a) Except as otherwise provided any association shall have thepowers provided for in the general laws of this state relating to the creationand regulation of private corporations and in addition thereto shall havepower, subject to the terms and conditions contained in the articles ofincorporation and bylaws to:

 

(i) Issue stock to its members, to assess and collect from itsmembers reasonable membership fees, withdrawal fees, dues, premiums and fines;

 

(ii) Permit its members to withdraw any or all of their stockdeposits upon equitable terms;

 

(iii) Hold and convey such property as is necessary for itsaccommodation and the transaction of its business, mortgaged in good faith byway of security for debts duly contracted, conveyed to it in satisfaction ofdebts previously contracted in the course of its dealings, purchased at salesunder judgments, decrees or mortgages held by it, or purchased to secure debtsdue to it;

 

(iv) Make loans to its members upon ample real estate orpersonal property security, unencumbered except by prior loans from theassociation, or upon the stock of the association to the extent of itswithdrawal value;

 

(v) Make annual or semiannual distributions of its earnings;and

 

(vi) Do all other things that may be necessary to effect itspurposes and conduct its authorized business.

 

13-7-102. Associations organized according to office of thriftsupervision requirements.

 

(a) It is the purpose of this section to authorize theorganization and operation of state savings and loan associations according tothe laws of the state of Wyoming which have the same powers and are subject tothe restrictions provided for by the laws of the United States and the rules,regulations and requirements of the office of thrift supervision and insuranceof the shares and deposits of the associations by the federal deposit insurancecorporation.

 

(b) Repealed by Laws 1993, ch. 115, 3.

 

13-7-103. Reports; examinations; membership in federal home loan bank.

 

(a) Any state savings and loan association may furnish to theoffice of thrift supervision reports of examinations of the association made bythe state banking commissioner and may consent to an examination to be made bythe office of thrift supervision or the federal deposit insurance corporation.

 

(b) A state savings and loan association may do all thingsnecessary to obtain and to continue membership in the federal home loan bankand to obtain advances from it.

 

13-7-104. Real estate and personal property.

 

(a) Except as provided in W.S. 13-7-102, any association mayacquire, hold, encumber and convey real estate and personal property necessaryfor the transaction of its business or necessary to enforce or to protect itssecurities but it shall not otherwise acquire or deal in real estate. Noassociation shall use more than ten percent (10%) of its assets at any time inacquiring real estate for its business location.

 

(b) All real estate, except that used for its businesslocation, shall be entered on the books as other real estate at not more thanacquisition cost or appraised fair market value, whichever is less, and shallbe sold within five (5) years after title to the property is acquired exceptthat the association may:

 

(i) Hold real estate, other than agricultural real estate, fora period not to exceed ten (10) years from the date of acquisition if theassociation charges off the real estate at a rate not less than that requiredto annually amortize the balance over fifteen (15) years or less;

 

(ii) Hold agricultural real estate for more than five (5) yearsafter the date of acquisition only if a written waiver is granted by the statebanking commissioner. A waiver may be granted under this paragraph for notmore than one (1) year at a time and not more than three (3) times.

 

(c) No exchange of real estate shall be made by any associationunless authorized by a vote of two-thirds (2/3) of its directors.

 

(d) Any appraisal required under subsection (b) of this sectionshall be conducted by a qualified appraiser who is not an officer or directorof the association and whose reports are acceptable to the state bankingcommissioner.

 

ARTICLE 2 - INTEREST AND DIVIDENDS

 

13-7-201. "Member" defined.

 

Amember of a state savings and loan association is any person owning a savingsaccount or investment certificate or any person borrowing from or assuming aloan held by an association or obligated upon a loan held by an associationthrough purchase. Savings and investment account holders have no vote in theoperations of the association.

 

13-7-202. Interest and earnings.

 

Interestreceivable on all loans shall be accrued monthly and an interest due andaccrued account shall be maintained equivalent to all accrued and uncollectedinterest. By each closing date, after payment or provision for all expenses andappropriate transfers to reserves, the remainder of net earnings for the periodshall be credited to the undivided profits account or to an unallocated reserveaccount.

 

13-7-203. Dividends.

 

(a) Guaranty capital stock is not entitled to any dividenduntil all expenses and losses have been paid and reserves have been provided asrequired by law and all interest has been paid on all savings and investmentaccounts.

 

(b) Following compliance with subsection (a) of this sectionall liabilities, earnings and undivided profits are available for dividends onthe guaranty capital stock. In liquidation, after payment of all liabilitiesand savings and investment account holders at par with interest, any excessshall be paid to the guaranty capital stockholders pro rata.

 

ARTICLE 3 - OPERATIONS

 

13-7-301. Savings and investment accounts.

 

Statesavings and loan associations may accept savings and issue savings accountbooks or investment certificates as evidence of savings and shall creditinterest or pay interest in cash periodically at least annually, if earned.Savings and investment accounts are ownership accounts in the association andnot creditor liabilities and shall bear interest at a rate prescribed by thedirectors of the association for the period. If a rate is not specified priorto any period then accounts shall receive the rate prevailing the previousperiod. Interest shall be payable only if available from current earnings orundivided profits.

 

13-7-302. Accounts of minors; joint accounts.

 

(a) Any association may accept the following accounts whenprovided by its bylaws:

 

(i) Accounts in the name of any minor which shall be held forhis exclusive right and benefit and free from the control or lien of all otherpersons. The accumulated savings together with the interest shall be paid tothe person in whose name the account is held. The receipt of the minor releasesthe association for accumulated savings and dividends credited thereon;

 

(ii) An account in the name of two (2) or more persons iswithdrawable by any one of them and the receipt of any one of the persons is avalid and sufficient release to the association for the withdrawals regardlessof the death or disability of any other joint shareholder.

 

13-7-303. Demand, commercial or checking accounts.

 

Exceptas provided in W.S. 13-7-102, no savings and loan association shall accept fordeposit any demand, commercial or checking account.

 

13-7-304. Withdrawals.

 

(a) Any savings or investment account holder may at any timepresent a written application for withdrawal of all or any part of hisaccounts. No member shall have on file in any one association more than one (1)application at a time. Every application shall request immediate withdrawal ofa stated amount in accordance with this section. Any member may cancel hisapplication at any time in whole or in part by a writing. Each associationshall pay or number, date, and file in the order of actual receipt everywithdrawal application. Withdrawals shall be made in the order of actualreceipt of applications except as provided in this section. Upon withdrawal, anassociation shall pay the value of any account, as determined by the board ofdirectors, but not in excess of the withdrawal value. If any association soelects, it may at any time pay in full each application as presented. It shallnot, however, pay some in full unless it pays every application on file in fullexcept by paying all applications on file on the rotation plan prescribed inthis section. The board of directors shall, however, have an absolute right topay upon any application not exceeding two hundred dollars ($200.00) to any one(1) account holder in any one (1) month in any order. No association canobligate itself to pay withdrawals on any plan other than as provided in thissection. Account holders who have filed written application for withdrawalshall remain account members so long as their applications remain on file. Nodividends shall be declared upon that portion of an account which has beennoticed for withdrawal which for dividend purposes is required to be deductedfrom the latest previous additions to the account so long as the application ison file.

 

(b) The rotation plan of payment of withdrawals is as follows:

 

(i) On the first day of each month, each application which hasbeen on file since the first day of the preceding month and which is reached inorder shall be paid one thousand dollars ($1,000.00) on account, or in full ifthe amount noticed for withdrawal or the unpaid balance of the application isless than one thousand dollars ($1,000.00). Each application for more than onethousand dollars ($1,000.00) so paid shall be deemed refiled as if filed onthat day. The limited payment on the first day of each month and renumberingshall take place on the first day of each subsequent month as long as there areapplications unpaid. At least one-third (1/3) of the receipts of an associationfrom its members during the preceding calendar month shall be applied on thefirst day of each month to the payment of applications which have been on filesince the first day of the preceding month. Any association may apply towithdrawals an amount larger than one-third (1/3) of the receipts, but cannotobligate itself to do so. When an application to withdraw is reached forpayment as above provided, a written notice shall be sent to the applicant bymail at his last address recorded on the books and unless the applicant appliesin person or in writing for withdrawal within thirty (30) days from the date ofthe notice, no payment on account of the application shall be made and theapplication shall be cancelled.

 

13-7-305. Right to redeem savings or investment accounts.

 

(a) The association may redeem by lot or otherwise, asdetermined by the board of directors, any part of any of its savings orinvestment accounts on a dividend date by giving thirty (30) days' notice byregistered mail when funds are available for that purpose. An association shallnot redeem any of its accounts when the association is in an impaired conditionor when it has applications for withdrawal which have been on file more thanthirty (30) days and have not been reached for payment. The redemption price ofaccounts redeemed shall be the full value of the account redeemed, as determinedby the board of directors, but in no event shall the redemption price be lessthan the withdrawal value. If the notice of redemption has been duly given, andif on or before the redemption date the funds necessary for the redemption havebeen set aside to be available for the redemption, dividends upon the accountscalled for redemption shall cease to accrue from and after the dividend datespecified as the redemption date and all rights with respect to accounts shallterminate immediately after the redemption date, except only the right of theaccount holder of record to receive the redemption price without interest.

 

(b) All account books or certificates evidencing accounts whichhave been validly called for redemption must be tendered for payment within ten(10) years from the date of redemption designated in the redemption noticeotherwise they shall be cancelled and all claims of the account holders againstthe association are barred.

 

ARTICLE 4 - BORROWING

 

13-7-401. Debenture bonds.

 

(a) Except as provided in W.S. 13-7-102, any savings and loanassociation may issue its debenture bonds maturing not later than five (5)years from the date of issue and bearing interest not exceeding six percent(6%) per annum. No bonds shall be issued unless there are sufficient funds onhand or receivable in time to meet approved applications for loans or for thepayment of withdrawals of accounts. Debenture bonds may be retired by action ofthe board of directors at any time after one (1) year from date of issue by thesecretary of the association giving notice in writing sixty (60) days or moreprior to the next interest date to the recorded holders of the bonds. On returnof the retired bonds together with any coupons, holders shall receive the parvalue of the bonds. At the expiration of the next interest period the bondscalled shall cease to draw interest.

 

(b) Whenever the state banking commissioner deems anyindebtedness incurred under the provisions of this section to be detrimental tothe interest of the association, he shall notify the association to reduce itsindebtedness to an amount he considers reasonable, giving the associationreasonable time to effect the reduction of indebtedness.

 

13-7-402. Borrowing from federal home loan bank.

 

(a) Any state savings and loan association may borrow moneyfrom the federal home loan bank, when authorized by resolution of its board ofdirectors, upon terms and rates of interest as may be agreed upon. It mayassign and pledge its notes, bonds, mortgages or other property and repledgethe shares of stock or savings certificates pledged to it as collateralsecurity without securing the consent of the owner as security for therepayment of its indebtedness. Any lawful holder of any evidence ofindebtedness due to an association may enforce, in his own name or in the nameof the association, all appropriate remedies to enforce collection, whether ornot the stock or savings certificate described in connection with the note isheld by the pledgee or holder.

 

(b) Any obligation incurred or loan made by an associationconstitutes a claim against the corporate assets and is payable in advance of,and by preference over, all claims or rights of the shareholders or holders ofsavings certificates in any of the assets of the association. These obligationsare senior to any demand for the withdrawal or cancellation of all classes ofshares or savings certificates in the association including matured shares orsavings certificates.

 

(c) The existence of a withdrawal list consisting of membersdesiring to withdraw from the association does not prevent the board ofdirectors of the association from borrowing money from the federal home loanbank to be used solely for the purpose of making mortgage loans to the membersof the association, but all borrowed money shall be exclusively used for thepurpose borrowed. A savings and loan association shall not at any time borrowmoney from the federal home loan bank in an amount exceeding any limit fixed bythe laws of this state.

 

ARTICLE 5 - LOANS

 

13-7-501. General requirements.

 

Forevery loan made, except a loan from one (1) association to another, a note orbond specifying the amount loaned and the rate of interest and premium to bepaid, secured by first mortgage on improved real estate, shall be taken. Acomplete abstract of title for the real estate signed by the person orcorporation furnishing the abstract which shall be examined by a competentattorney-at-law and his opinion furnished approving the title and showing thatthe mortgage is a first lien, or a policy of title insurance of a reliabletitle insurance company authorized to issue insurance on titles within thisstate, or a duplicate certificate of ownership issued by a registrar of titles,shall be furnished. No mortgage loan shall be made except upon the report inwriting of an appraiser or a committee of appraisers appointed by the board ofdirectors which shall state the conservative value of the mortgage security.The directors may also loan upon the security of savings on deposit in theassociation to the amount of ninety percent (90%) of their withdrawal value,and may loan upon or invest in bonds of the United States and the state ofWyoming, in real property loans insured by the federal housing administration orguaranteed by the veterans administration, and in classes of bonds and warrantsof the counties, school districts and other municipalities, as well as localimprovement districts in this state, as the state banking commissioner may fromtime to time approve but no association shall loan any of its funds to anofficer or director of the association.

 

13-7-502. Repealed by Laws 1993, ch. 115, 3.

 

ARTICLE 6 - SUPERVISION BY STATE BANKING COMMISSIONER

 

13-7-601. Annual statement by associations.

 

Eachsavings and loan association doing business within this state shall on January1, of each year, or within sixty (60) days after January 1, file with the statebanking commissioner a full and detailed statement of its financial conditionon the preceding year ending December 31 and of the business transacted duringthe preceding year. The statement shall set forth the amount and character ofits assets, liabilities, receipts and disbursements, shall contain such otherinformation as the state banking commissioner may prescribe and shall besubscribed and sworn to by the president and secretary of the association.

 

13-7-602. Duties generally; examinations.

 

(a) The state banking commissioner shall supervise andadminister the laws with respect to all state savings and loan associationsdoing business in this state. He shall make at least an annual examination intothe affairs of all savings and loan associations. All examinations shall befull and complete and he may compel the production of all books, papers, moneysand records of the association under examination and may administer oaths toand examine the officers of the association or any person connected with it asto its business and affairs. Any willful false swearing is perjury.

 

(b) The state banking commissioner shall collect from theassociation examined an amount equal to the total cost of the examinationconducted. The fees and expenses collected shall be remitted to the statetreasurer and credited to the financial institutions administration account.Expenditures shall be made from the account by warrants drawn by the stateauditor, upon vouchers issued and signed by the director or commissioner. Fundsfrom the account shall be expended only to carry out the duties of thecommissioner or the state banking board.

 

(c) The state banking commissioner shall report the conditionof each association to the governor with recommendations. If the association isfound to be in an unsafe condition, its charter may be suspended until thematters complained of by the state banking commissioner have been remedied.

 

13-7-603. Supervision fees.

 

(a) Repealed by Laws 1994, ch. 14, 2.

 

(b) The state banking commissioner shall collect from eachsavings and loan association chartered by this state for supervision an amountbased upon the total assets of the association as reflected by the monthlyreport of financial data for the end of June and December of each year. Theamount shall be adjusted by regulation issued by the state banking commissionerto assure consistency with the cost of supervision. Any adjustments shall bemade by regulation issued by the state banking commissioner subject to theprovisions of the Wyoming Administrative Procedure Act. Each savings and loanassociation shall, not later than the last day of January and July, compute thesemiannual supervisory fee based upon the report of condition next precedingupon forms provided by the state banking commissioner and shall submit thereport together with payment to the state banking commissioner.

 

(c) Repealed By Laws 2001, Ch. 156, 3.

 

13-7-604. Examination at request of members or shareholders.

 

(a) Any association is subject to examination by the statebanking commissioner upon the application of three (3) or more of its membersin addition to examinations pursuant to W.S. 13-7-602. If it appears to thestate banking commissioner that the association is violating any of theprovisions of this act or is conducting its business in an unsafe orunauthorized manner, he shall direct the discontinuance of any illegal orunsafe practices. If the association fails to comply with the order, or failsto make reports as required, the state banking commissioner shall notify theattorney general who shall institute proceedings as the case requires.

 

(b) Upon request in writing of any number of shareholdersrepresenting at least one thousand (1,000) shares of stock the state bankingcommissioner may examine the affairs of the association. If the association isinsolvent the examiner shall assume temporary control of the associationpursuant to law.

 

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