Section DFI-SB 3.07 - Annual reports on interests and involvements in business ventures(1) DEFINITIONS. In this section:(a) "Business venture" means any partnership, joint venture, corporation or similar entity, but does not include any non-profit, religious, charitable or fraternal organization or a corporation in which the savings bank has been authorized to invest by the division.(b) "Employee" means a person who is any of the following: 1. Employed by a savings bank and is directly involved in approving loans made by the savings bank or determining the terms or conditions under which any specific loan is made.2. Employed by a savings bank and is directly involved in approving transactions, or in determining the terms or conditions of transactions entered into by the savings bank.(c) "Officer" means the president, a vice president, the treasurer, the secretary and any other officer which the board designates by resolution, but does not include any assistant officer.(d) "Reportable interest" means an interest in debt or equity of a business venture other than an interest: 1. In debt of a business venture of not more than $10,000 or 5% of the assets of the business venture, whichever is greater; or2. Of 5% or less of the stock of a corporation; or3. Of 5% or less in a limited partnership.(2) REPORTING REQUIREMENTS. At least once each year the board of directors of each savings bank shall obtain from each of the savings bank's officers, directors and employees, other than persons serving solely as advisory directors, a sworn statement containing the information required by sub. (3). Each officer, director, and employee, other than persons serving solely as an advisory director, shall provide such a statement and shall disclose any new reportable interest to the board within one month after its acquisition.(3) INTEREST TO BE DISCLOSED. The statement required by sub. (2) shall identify for each director, officer and employee and his or her spouse and persons treated as dependents under section 151 (c) of the federal internal revenue code:(a) Their reportable interests; and(b) Each position they hold as a director, officer or salaried employee of a business venture.(4) VALUATION OF REPORTABLE INTERESTS. In determining whether an interest is reportable under sub. (3):(a) The value of unlisted securities traded in the over-the-counter market is the average of the bid and asked price.(b) The value of securities for which no market information is readily available is: 1. For common stock or equivalent securities, net worth divided by the number of outstanding voting shares times the number of shares held.2. For preferred stock, redemption price, or par or stated value if not redeemable.3. For debt securities, the unpaid balance.4. For an interest in the capital of a partnership, the net worth of the partnership multiplied by the percentage of interest held.(5) NATURE OF DISCLOSURE. Statements required under sub. (2) shall disclose the existence of any reportable interest, but are not required to disclose its specific value.Wis. Admin. Code Department of Financial Institutions DFI-SB 3.07
CR Register, February, 1994, No. 458, eff. 3-1-94. This section interprets or implements s. 214.345(2), Stats.
This rule is patterned after former s. S-L 9.04, effective from 1978 to 1989.