reglab/housing_qa huggingface dataset:
MI Comp L § 487.13806 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-8 - Part 8 Capital (487.13801...487.13808)|Section 487.13806 - Dividends.

487.13806 Dividends. Sec. 3806.  (1) From time to time, the board of directors of a bank may declare and pay dividends on the common stock of the bank consistent with this section.  (2) A cash dividend or dividend in kind shall not be declared or paid unless the bank will have a surplus amounting to not less than 20% of its capital after the payment of the dividend.  (3) A cash dividend or dividend in kind shall not be declared by a bank except out of net income then on hand after deducting its losses and bad debts. Unless the debts due the bank on which interest is past due and unpaid for a period of 6 months are well secured and in process of collection or the debts constitute claims against solvent estates in probate, all debts shall be considered bad debts within the meaning of this section.  (4) A cash dividend or dividend in kind shall not be declared or paid until the cumulative dividends on preferred stock, if any, have been paid in full. By their unanimous vote, the preferred shareholders may waive their right to any amount of the accumulated but unpaid dividends.  (5) If at any time the surplus of a bank is less than the amount of its capital, before the declaration of a cash dividend or dividend in kind, it shall transfer to surplus not less than 10% of its net income of the preceding 6 months in the case of quarterly or semiannual dividends, or not less than 10% of its net income of the preceding 2 consecutive 6-month periods in the case of annual dividends. For the purpose of this section, any amounts transferred to a fund for the retirement of any preferred stock of the bank out of its net income for the periods are considered to be additions to its surplus, if, upon the retirement of the preferred stock, the amounts credited into the retirement fund may then properly be carried to surplus. In this case, the bank shall be obligated to credit to surplus the amounts transferred into the retirement fund on account of the preferred stock as the stock is retired.  (6) Without regard to the limitations of this section and section 3804, a bank, with the approval of the commissioner, and by vote of shareholders owning 2/3 of the stock entitled to vote, may amend its articles to increase its capital stock by declaration of a stock dividend on the capital stock. After the increase, the surplus of the bank shall be at least equal to 20% of the capital stock as increased.  (7) A bank may pay dividends on its preferred stock at the applicable rate without regard to subsections (1) through (6).  (8) Dividends paid to shareholders under a dividend reinvestment plan shall be subject to this act relative to payment of dividends.  (9) A dividend shall not be paid from capital or surplus of the bank. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13807 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-8 - Part 8 Capital (487.13801...487.13808)|Section 487.13807 - Deficiency; Steps to Make Assessment or Dissolution; Extension.

487.13807 Deficiency; steps to make assessment or dissolution; extension. Sec. 3807.  (1) If, in the opinion of the commissioner, the capital of a bank has become impaired, the commissioner shall notify the bank of his or her determination and require the directors to meet the deficiency in the capital within a 2-month period. The directors shall meet the deficiency by either making a pro rata assessment upon the stock held by each shareholder, or taking steps to dissolve the bank. The 2-month period may be extended by order of the commissioner, if in his or her discretion an extension is necessary to allow the directors to meet the deficiency.  (2) Before an assessment may be made by the directors, each shareholder, secured party, and pledgee indicated on the books of the bank as holding an interest in the stock shall be provided with written notice in a manner reasonably calculated to give actual notice of the determination made by the commissioner that the capital of the bank is impaired and the amount of the assessment that each shareholder must pay.  (3) If a shareholder refuses or neglects to pay an assessment levied by the directors within 30 days from the date notice was provided, the directors shall sell all or part of the shareholder's shares to the highest bidder in a manner provided in section 3808. Upon expiration of the 30-day period and refusal or neglect by a shareholder to pay the assessment, a security interest in favor of the bank in the amount of the assessment shall attach to all of the shareholder's shares for the sole purpose of satisfying the assessment levied. The security interest shall have priority over any other security interests perfected by a creditor or otherwise granted by the shareholder in shares issued after the effective date of this act.  (4) If the directors fail to restore the capital of the bank or take steps to dissolve the bank during the 2-month period following notice from the commissioner and any extension granted under subsection (1), the commissioner may appoint a receiver for the bank in accordance with this act.  (5) If any part of the capital of a bank consists of preferred stock, the determination of whether the capital of the bank is impaired and the amount of the impairment shall be based upon the par value of its stock even though the amount that the holders of the preferred stock shall be entitled to receive in the event of retirement or dissolution shall be in excess of the par value of the preferred stock.  (6) The holders of preferred stock shall not be liable for assessments to restore impairment in the capital of a bank. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13808 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-8 - Part 8 Capital (487.13801...487.13808)|Section 487.13808 - Distribution of Sale Proceeds; Issuance of New Certificates; Effect of Uniform Commercial Code.

487.13808 Distribution of sale proceeds; issuance of new certificates; effect of uniform commercial code. Sec. 3808.  (1) If, 30 days after notice as provided in section 3807, a shareholder has refused or neglected to pay an assessment levied on the shares held by the shareholder, the directors may sell any or all of the shareholder's shares to satisfy the assessment. The proceeds of the sale shall be distributed in the following order:  (a) The reasonable expenses of holding for sale and selling the stock in a manner not prohibited by law, including reasonable attorney fees and legal expenses incurred by the bank.  (b) The satisfaction of the assessment levied by the directors.  (c) The satisfaction of an indebtedness secured by any security interest in the stock if written notification demanding proceeds is received by the bank before distribution of the proceeds is completed. Unless the holder of a security interest provides reasonable proof of the interest, the bank does not have to comply with this subdivision.  (d) Any remaining surplus shall be distributed to the shareholder.  (2) Disposition of the stock may be at a public or private sale at any time and on any terms, but every aspect of the disposition including the method, manner, time, place, and terms shall be commercially reasonable and reasonably calculated to meet the deficiency.  (3) A sale of stock as provided in this section shall effect an absolute cancellation of any outstanding certificates evidencing the stock sold and any security interest granted or pledge made in stock issued after the effective date of this act. Upon full payment of the stock sold, the bank shall issue new certificates to the purchaser.  (4) The purchaser takes the stock free of any rights or interests the shareholder may have based on an unintentional failure by the bank to comply with this section or section 3807 if all of the following apply:  (a) The purchaser has no knowledge of any defect in the proceedings.  (b) The purchaser does not act in collusion with any shareholders of the bank, a secured party, other bidders, or the bank.  (c) The purchaser makes the purchase in good faith.  (5) The ability of a bank to make an assessment under section 3807 or to sell the stock of a shareholder under this section is not limited by the uniform commercial code. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13901 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13901 - Repayment of Deposits.

487.13901 Repayment of deposits. Sec. 3901.  Deposits shall be repaid to the depositor, or the depositor's lawful representatives, according to the terms of the agreement between the depositor and the bank. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13902 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13902 - Compliance Review Committee.

487.13902 Compliance review committee. Sec. 3902.  (1) An officer or the board of directors of a bank may appoint a compliance review committee to evaluate loan underwriting standards, asset quality, financial reporting to federal or state regulatory agencies, compliance with the bank's policies, compliance with federal or state statutory or regulatory requirements, or other related matters.  (2) Any documents, data, compilations, analyses, or other information and material gathered, generated, created, produced, developed, or prepared by or for a compliance review committee by 1 or more employees of the bank or by 1 or more other persons retained by the bank to assist the compliance review committee in performing its functions shall be considered compliance review material.  (3) A document, compilation, analysis, or item of information, data, or material remains compliance review material under this section even if it is delivered or disclosed to employees of the bank who are not members of the compliance review committee or to attorneys, accountants, auditors, consultants, or other professional advisers retained by the bank or to 1 or more other persons retained by the bank to assist the committee in performing its functions or to evaluate the committee.  (4) Except as provided in subsection (5), compliance review material is confidential and is not discoverable or admissible in evidence in any civil action.  (5) Subsection (4) does not apply to any information required by statute or regulation to be maintained by or provided to a governmental entity to the extent that law requires the governmental entity to disclose the information for discovery or admission into evidence. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13903 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13903 - Surety Bond.

487.13903 Surety bond. Sec. 3903.  (1) The board of directors shall require every employee involved in the handling of money, accounts, or securities of the bank to be bonded by a surety company authorized to do business in this state in an amount determined by the board. The bank shall pay for any surety bonds required of its employees.  (2) Every bank shall maintain a financial institution bond sufficient to protect against loss. If a bank refuses to comply with this requirement, the commissioner may contract for the bond and charge the cost to the bank. If the charge is not paid, the commissioner may collect the charge in an action instituted by the attorney general. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13905 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13905 - Indemnification; Expenses and Amounts.

487.13905 Indemnification; expenses and amounts. Sec. 3905.  (1) To the extent that a director, officer, employee, or agent of a bank has been successful on the merits or otherwise in defense of an action, suit, or proceeding described in section 3904, or in defense of a claim, issue, or matter in the action, suit, or proceeding, he or she shall be indemnified against actual and reasonable expenses, including attorney fees, incurred by him or her in connection with the action, suit, or proceeding and an action, suit, or proceeding brought to enforce the mandatory indemnification provided in this subsection.  (2) An indemnification under section 3904, unless ordered by the court, shall be made by the bank only as authorized in the specific case upon a determination that indemnification of the director, officer, employee, or agent is proper in the circumstances because he or she has met the applicable standard of conduct set forth in section 3904 and upon an evaluation of the reasonableness of expenses and amounts paid in settlement. This determination and evaluation shall be made in any of the following ways:  (a) By a majority vote of a quorum of the board consisting of directors who are not parties or threatened to be made parties to the action, suit, or proceeding.  (b) If the quorum described in subdivision (a) is not obtainable, by majority vote of a committee duly designated by the board and consisting solely of 2 or more directors not at the time parties or threatened to be made parties to the action, suit, or proceeding.  (c) By independent legal counsel in a written opinion, which counsel shall be selected in 1 of the following ways:  (i) By the board or its committee in the manner prescribed in subdivision (a) or (b).  (ii) If a quorum of the board cannot be obtained under subdivision (a) and a committee cannot be designated under subdivision (b), by the board.  (d) By all independent directors who are not parties or threatened to be made parties to the action, suit, or proceeding.  (e) By the shareholders, but shares held by directors, officers, employees, or agents who are parties or threatened to be made parties to the action, suit, or proceeding may not be voted.  (3) All directors may participate in the designation of a committee under subsection (2)(b) or in the selection of independent legal counsel under subsection (2)(c)(ii).  (4) If a person is entitled to indemnification under section 3904 for a portion of expenses, including reasonable attorney fees, judgments, penalties, fines, and amounts paid in settlement, but not for the total amount of the expenses, the bank may indemnify the person for the portion of the expenses, judgments, penalties, fines, or amounts paid in settlement for which the person is entitled to be indemnified. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13906 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13906 - Director, Officer, Employee, or Agent as Party to Action; Reimbursement.

487.13906 Director, officer, employee, or agent as party to action; reimbursement. Sec. 3906.  A bank may pay or reimburse the reasonable expenses incurred by a director, officer, employee, or agent who is a party or threatened to be made a party to an action, suit, or proceeding described in section 3904 in advance of the final disposition of the action, suit, or proceeding if all of the following apply:  (a) The person furnishes the bank a written affirmation of his or her good faith belief that he or she has met the applicable standard of conduct set forth in section 3904.  (b) The person furnishes the bank a written undertaking executed personally or on his or her behalf to repay the advance if it is ultimately determined that he or she did not meet the standard of conduct. The undertaking shall be by unlimited general obligation of the person on whose behalf advances are made but need not be secured.  (c) A determination is made that the facts then known to those making the determination would not preclude indemnification under this act. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13907 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13907 - Other Rights to Indemnification or Advancement; Limitation.

487.13907 Other rights to indemnification or advancement; limitation. Sec. 3907.  The indemnification or advancement of expenses provided by or granted under sections 3904, 3905, and 3906 are not exclusive of other rights to which a person seeking indemnification or advancement of expenses may be entitled under the articles of incorporation, the bylaws, or a contractual agreement. The total amount of expenses advanced or indemnified from all sources combined shall not exceed the amount of actual expenses incurred by the person seeking indemnification or advancement of expenses. The indemnification provided for in sections 3904, 3905, and 3906 continues as to a person who ceases to be a director, officer, employee, or agent and shall inure to the benefit of the heirs, executors, and administrators of the person. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13908 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13908 - Liability Insurance or Trust Fund.

487.13908 Liability insurance or trust fund. Sec. 3908.  A bank has the power to purchase and maintain insurance or create a trust fund or other form of funded arrangement on behalf of any person who is or was a director, officer, employee, or agent of the bank or is or was serving at the request of the bank as a director, officer, partner, trustee, employee, or agent of another foreign or domestic corporation, partnership, joint venture, trust, or other enterprise, whether for profit or not, against any liability asserted against him or her and incurred by him or her in that capacity or arising out of his or her status in that capacity, whether or not the bank has the power to indemnify him or her against the liability under sections 3904, 3905, 3906, and 3907. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13909 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13909 - Consolidation or Merger; Position of Director, Officer, Employee, or Agent of Absorbed Depository Institution.

487.13909 Consolidation or merger; position of director, officer, employee, or agent of absorbed depository institution. Sec. 3909.  For purposes of this section and sections 3904, 3905, 3906, 3907, 3908, and 3910, a person who is or was a director, officer, employee, or agent of a depository institution absorbed in a consolidation or merger or is or was serving at the request of the depository institution as a director, officer, partner, trustee, employee, or agent of another depository institution, foreign or domestic corporation, partnership, joint venture, trust, or other enterprise, whether for profit or not, shall hold the same position with respect to the consolidated bank as he or she would if he or she had served the consolidated bank in that capacity. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13910 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13910 - Definitions; Person Acting in Best Interests of Bank or Shareholders.

487.13910 Definitions; person acting in best interests of bank or shareholders. Sec. 3910.  (1) For the purposes of sections 3904, 3905, 3906, 3907, 3908, and 3909:  (a) "Fines" includes any excise taxes assessed on a person with respect to an employee benefit plan.  (b) "Other enterprise" includes employee benefit plans.  (c) "Serving at the request of the bank" includes any service as a director, officer, employee, or agent of the bank that imposes duties on, or involves services by, the director, officer, employee, or agent with respect to an employee benefit plan, its participants, or its beneficiaries.  (2) A person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be considered to have acted in a manner not opposed to the best interests of the bank or its shareholders as referred to in section 3904. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13911 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13911 - Reports.

487.13911 Reports. Sec. 3911.  (1) The commissioner may require reports from any bank if, in the commissioner's judgment, they are necessary to inform the commissioner fully as to the condition of the bank. The commissioner shall give a bank at least 30 days' notice in writing of the date by which the report is to be submitted to the bureau.  (2) A bank that fails to make, and transmit, any report required under this section shall be subject to a penalty established by the commissioner not to exceed $1,000.00 for each day after the date for making the report established by the commissioner in subsection (1). The commissioner may maintain an action against a bank for the recovery of the penalty.  (3) A penalty assessed under this section shall be paid into the state treasury to the credit of the bureau and used only for the operation of the bureau. History: 1999, Act 276, Eff. Mar. 1, 2000
MI Comp L § 487.13912 (2021)
2021 Michigan Compiled Laws|Chapter 487 - Financial Institutions|Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105)|276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913)|276-1999-3-9 - Part 9 Administration (487.13901...487.13913)|Section 487.13912 - Attachment or Execution.

487.13912 Attachment or execution. Sec. 3912.  Attachment or execution shall not be issued against a bank or its property before final judgment in any suit, action, or proceeding involving the bank in any court. History: 1999, Act 276, Eff. Mar. 1, 2000