reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-3 - Part 3 Enforcment Powers (487.12301...487.12315) › Section 487.12315 - Foreign Bank; Prohibited Conduct.

487.12315 Foreign bank; prohibited conduct.
Sec. 2315.
(1) If, in the opinion of the commissioner, a foreign bank is engaging, has engaged, or is about to engage, in an unsafe or unsound practice in conducting the business of a state agency, state foreign bank branch, or foreign bank representative office, or is violating, has violated, or is about to violate, a state or federal law or a state or federal rule or regulation, the commissioner may issue and serve upon the foreign bank a notice of intent to revoke the foreign bank's authority to engage in the business of banking in this state. The notice shall contain a statement of the facts constituting the alleged unsafe or unsound practice or violation and inform the foreign bank of its right to request a hearing within 10 days.
(2) If the foreign bank timely requests a hearing, the commissioner shall hold a hearing in accordance with the administrative procedures act of 1969.
(3) Within 60 days after the date of the hearing, the commissioner shall file a written decision containing his or her findings and serve a copy upon the foreign bank.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12401 - Liquidation; Receiver or Other Liquidating Agent.

487.12401 Liquidation; receiver or other liquidating agent.
Sec. 2401.
(1) Except as provided in subsection (2), a bank subject to this act shall not be liquidated except as provided by this act. A receiver or other liquidating agent shall not be appointed for a bank or its assets and property except as provided in this act.
(2) If the federal deposit insurance corporation is appointed as receiver of a bank, the receivership procedures of the federal deposit insurance corporation shall govern the receivership.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12402 - Appointment of Receiver; Conditions; Procedures.

487.12402 Appointment of receiver; conditions; procedures.
Sec. 2402.
(1) If a bank has refused to pay its deposits or obligations in accordance with the terms under which the deposits or obligations were incurred, becomes insolvent, refuses to submit its books, papers, and records for inspection by the commissioner, or if the bank appears to the commissioner that the bank is in an unsafe or unsound condition, the commissioner shall either appoint a conservator under section 2406 or apply to the circuit court for Ingham county or for the county in which the bank is located for the appointment of a receiver for the bank.
(2) In any proceeding for the appointment of a receiver, the commissioner shall request that the court appoint the federal deposit insurance corporation as the receiver if the deposits in the bank are insured to any extent by the corporation. The court may act upon the application immediately and without notice to any person. If at any time it appears to the court that the claimed reasons for receivership do not exist, the court shall dissolve the receivership and terminate the proceedings.
(3) The federal deposit insurance corporation may act as receiver without bond. All other receivers, with the exception of the bureau employee appointed as receiver in his or her official capacity, shall post a bond in an amount to be determined by the court.
(4) If the deposits of a bank described in subsection (1) are not insured by the federal deposit insurance corporation, the commissioner may elect not to seek appointment of a receiver for the bank. If a receiver is not sought, the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098, governing insolvent business corporations, title 11 of the United States Code, being section 11 U.S.C. 101, governing bankruptcy, and sections 5201 to 5265 of the revised judicature act of 1961, MCL 600.5201 to 600.5265, governing assignments for the benefit of creditors, shall apply to the insolvent bank.
(5) The receiver shall on a regular basis report to the commissioner regarding all matters involving the receivership.
(6) If any bank has been closed and placed in receivership, and the federal deposit insurance corporation pays or makes available for payment the insured deposit liabilities of the closed bank, the corporation, whether or not it has become receiver of the bank, is subrogated to all of the rights of the owners of the deposits against the closed bank in the same manner and to the same extent as subrogation of the corporation is provided for in the federal deposit insurance act.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12403 - Receiver; Duties; Powers.

487.12403 Receiver; duties; powers.
Sec. 2403.
(1) Subject to court approval, a receiver shall do all of the following:
(a) Take possession of the books, records, and assets of the bank and collect all debts, dues, and claims belonging to the bank.
(b) Sue and defend, compromise, and settle all claims involving the bank.
(c) Sell all real and personal property.
(d) Exercise all fiduciary functions of the bank as of the date of the commencement of the receivership.
(e) Pay all administrative expenses of the receivership which shall be a first charge upon the assets of the bank and shall be fully paid before any final distribution or payment of dividends to creditors or shareholders.
(f) Pay ratably any and all debts of the bank, except that debts not exceeding $500.00 in amount may be paid in full but the holders of such debt shall not be entitled to interest on the debt.
(g) Repay ratably any amount which may have been paid in by any shareholder by reason of assessments made upon the stock of the bank by order of the commissioner in accordance with this act.
(h) Pay ratably to the shareholders of the bank in proportion to the number of shares held and owned by each the balance of the net assets of the bank after payment or provision for payments as provided in subdivisions (e), (f), and (g).
(i) Have all the powers of the directors, officers, and shareholders of the bank as necessary to support an action taken on behalf of the bank.
(j) Hold title to all the bank's property, contracts, and rights of action beginning on the date the bank is ordered in receivership.
(2) Subject to court approval, a receiver may do any of the following:
(a) Borrow money as necessary or expedient in aiding the liquidation of the bank and secure these borrowings by the pledge, hypothecation, or mortgage of the assets of the bank.
(b) Employ agents, legal counsel, accountants, appraisers, consultants, and other personnel the receiver considers necessary to assist in the performance of the receiver's duties. With the prior written approval of the commissioner, the receiver may employ personnel of the bureau if the receiver considers the employment to be advantageous or desirable. The expense of employing bureau personnel is an administrative expense of the liquidation that is payable to the bureau.
(c) Exercise other powers and duties as may be provided by the court under the laws of this state applicable to the appointment of receivers by the circuit court.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12404 - Lien on Property or Assets; Voidable Transfer.

487.12404 Lien on property or assets; voidable transfer.
Sec. 2404.
(1) A transfer of or lien on the property or assets of the bank is voidable by the receiver if the transfer or lien was 1 or more of the following:
(a) Made or created within 1 year before the date the bank is ordered in receivership if the receiving transferee or lien holder was at the time an affiliate, officer, director, employee, or principal shareholder of the bank or an affiliate of the bank.
(b) Made or created on or within 90 days before the date the bank is ordered in receivership with the intent of giving to a creditor or depositor, or enabling a creditor or depositor to obtain, a greater percentage of the claimant's debt than is given or obtained by another claimant of the same class.
(c) Accepted after the bank is ordered in receivership by a creditor or depositor having reasonable cause to believe that a preference will occur.
(d) Voidable by the bank and the bank may recover the property transferred or its value from the person to whom it was transferred or from a person who has received it, unless the transferee or recipient was a bona fide holder for value before the date the bank was ordered in receivership.
(2) For purposes of this section, "preference" means a transfer or grant of an interest in the property or assets of the bank that is either of the following:
(a) Made or incurred with the intent to hinder, delay, or defraud an entity to which, on or after the date that the transfer or grant of interest was made, the bank was or became indebted.
(b) Made or incurred for less than a reasonably equivalent value in exchange for the transfer or grant of interest if the bank was insolvent on the date that the transfer or grant of interest was made or became insolvent as a result of the transfer or grant of interest.
(3) A person acting on behalf of the bank, who knowingly has participated in implementing a voidable transfer or lien, and each person receiving property or the benefit of property of the bank as a result of the voidable transfer or lien, is personally liable for the property or benefit received and shall account to the receiver for the benefit of the bank.
(4) Notwithstanding any other provisions of this act, an otherwise voidable transfer under this section will not be voided by the receiver, if any of the following apply:
(a) The transfer or lien does not exceed the value of $1,000.00.
(b) The transfer or lien was received in good faith by a person, who is not a person described in subsection (1)(a), who gave value.
(c) The transfer of lien was intended by the bank and the transferee or lien holder to be, and in fact substantially was, a contemporaneous exchange for new value given to the bank.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12405 - Records.

487.12405 Records.
Sec. 2405.
(1) On approval by the court, the receiver may dispose of records of the bank in receivership that are obsolete and unnecessary to the continued administration of the receivership proceeding and retain the remaining records of the bank and the receivership for a period of time as ordered by the court.
(2) The receiver may devise a method for the effective, efficient, and economical maintenance of the records of the bank and of the receiver's office, including maintaining those records on any medium approved by the court.
(3) The receiver may reserve assets of an estate, deposit them in an account, and use them to maintain the records of a liquidated bank after the closing of the receivership proceeding.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12406 - Conservator; Appointment; Bond and Security; Qualifications; Expenses.

487.12406 Conservator; appointment; bond and security; qualifications; expenses.
Sec. 2406.
(1) If any of the grounds under section 2402 authorizing the appointment of a receiver exist or if the commissioner considers it necessary in order to conserve the assets of a bank for the benefit of the depositors and other creditors of the bank, the commissioner may appoint a conservator for the bank and require of the conservator a bond and security as determined by the commissioner.
(2) The commissioner may appoint as conservator an employee of the bureau or any other competent and disinterested person. The bureau shall be reimbursed out of the assets of the conservatorship for all sums expended by it in connection with the conservatorship as expenses. All expenses of any conservatorship shall be paid out of the assets of the bank, upon the approval of the commissioner, and shall be a first charge upon the assets and paid in full before any final distribution or payment of dividends to creditors or shareholders.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12407 - Conservator; Rights, Powers, and Privileges.

487.12407 Conservator; rights, powers, and privileges.
Sec. 2407.
(1) The conservator, under the direction of the commissioner, shall take possession of the books, records, and assets of the bank, and take any action necessary to conserve the assets of the bank pending further disposition of its business as provided by law. The conservator shall have all the rights, powers, and privileges of receivers of banks appointed under this act and shall be subject to the obligations and penalties to which receivers are subject which are not inconsistent with this act with respect to conservators.
(2) During the time that the conservator remains in possession of the bank, the rights of all parties with respect to the bank, subject to the other provisions of this act with respect to conservators, shall be the same as if a receiver had been appointed. The conservator may execute the discharge of any real estate mortgage held as part of the assets of the bank.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12408 - Deposits Received While Bank in Conservatorship.

487.12408 Deposits received while bank in conservatorship.
Sec. 2408.
(1) While a bank is in conservatorship, the commissioner may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors, on a ratable basis, amounts that in the opinion of the commissioner may be used safely for this purpose.
(2) The commissioner may permit the conservator to receive deposits.
(3) Deposits received while the bank is in conservatorship shall not be subject to any limitation as to payment or withdrawal. The deposits and any new assets acquired on account of the deposits shall be segregated and held especially for the new deposits and shall not be used to liquidate any indebtedness of the bank existing at the time that a conservator was appointed for it or any subsequent indebtedness incurred for the purpose of liquidating any indebtedness of the bank existing at the time the conservator was appointed.
(4) The requirements of subsection (3) shall remain in effect not more than 15 days following the date that the conservator returns control of the bank to its board of directors.
(5) Deposits received while the bank is in conservatorship shall be kept in cash, invested in the direct obligations of the United States, or deposited in depository institutions designated by the commissioner.
(6) Before returning control of the bank to its board of directors, the conservator shall publish a notice in form approved by the commissioner, stating the date on which the affairs of the bank will be returned to its board of directors and that the provisions of subsection (3) will not be in effect after 15 days from that date. The conservator shall send a copy of the notice to every person who deposited money in the bank after the appointment of the conservator and before the time when control of the bank is returned to its directors.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12409 - Authority of Conservator to Borrow Money; Purpose.

487.12409 Authority of conservator to borrow money; purpose.
Sec. 2409.
With the prior approval of the commissioner, the conservator of a bank may borrow money as necessary or expedient in aiding the operation, reorganization, or liquidation of the bank, including the payment of liquidating dividends, and may secure the loans by the pledge, hypothecation, or mortgage of the assets of the bank.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-2 - Chapter 2 Financial Institutions Bureau (487.12101...487.12410) › 276-1999-2-4 - Part 4 Receiverships and Conservatorships (487.12401...487.12410) › Section 487.12410 - Termination of Conservatorship.

487.12410 Termination of conservatorship.
Sec. 2410.
(1) If satisfied that it may be done safely and that it would be in the public interest, the commissioner may terminate a conservatorship and permit the bank to resume the transaction of its business subject to terms, conditions, restrictions, and limitations as he or she may prescribe.
(2) If the commissioner determines that it would be in the public interest, the commissioner may terminate a conservatorship and apply for the appointment of a receiver for the bank as provided in section 2402.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13101 - Bank Organization Generally.

487.13101 Bank organization generally.
Sec. 3101.
Not less than 5 natural persons, a majority of whom are residents of this state and citizens of the United States or its territories or possessions, or a bank holding company, may file an application to organize a bank under this act.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13102 - Bank Organization; Application.

487.13102 Bank organization; application.
Sec. 3102.
(1) An application to organize a bank under this act shall be in the form prescribed by the commissioner and shall set forth information as the commissioner may require.
(2) The commissioner shall examine the information and statements contained in the application and make any other investigation as to the persons, conditions, and circumstances surrounding, affecting, or pertaining to the organization of the bank, as is necessary to satisfy the commissioner as to all of the following:
(a) Whether the character, responsibility, and fitness of the incorporators, and of the proposed directors and officers, and their motives in seeking to organize the bank are such as to command the confidence of the community and to warrant the belief that the business of the proposed bank will be honestly and efficiently conducted.
(b) Whether the convenience and needs of the public will be served by the proposed bank.
(c) The likelihood of successful operation of the proposed bank, giving consideration to, but not limited to, both of the following:
(i) Economic and demographic characteristics of the area primarily to be served by the bank.
(ii) The competition offered by existing banks and other financial services providers.
(d) Whether the capital structure of the proposed bank is adequate for the conduct of its business.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13103 - Organization of Depository Institutions Generally.

487.13103 Organization of depository institutions generally.
Sec. 3103.
(1) Any number of depository institutions may apply to organize a bank exclusively to serve depository institutions or their officers, directors, employees, and affiliates.
(2) Any number of depository institutions may apply to organize a bank to engage exclusively in providing trust services and other services as may be authorized by order or declaratory ruling of the commissioner.
(3) A depository institution may apply to the commissioner for permission to organize a bank under this section. The application shall be in the form prescribed by the commissioner and set forth the information the commissioner requires.
(4) The commissioner shall examine the information contained in the application and make any other investigation the commissioner considers necessary pertaining to the organization of the new bank. The commissioner shall issue to the applicants, within the time period provided in section 2302, written notice of approval or disapproval of the application.
(5) A depository institution organized under this section is not subject to the provisions of section 3102, but shall comply with all other provisions of the act.
(6) The shares of stock of a bank organized under this section shall be owned exclusively by depository institutions.
(7) As used in this section, "applicant" means the depository institutions making an application under this section.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13104 - Expenses of Incorporators; Reimbursement.

487.13104 Expenses of incorporators; reimbursement.
Sec. 3104.
(1) Following the date authorized by the commissioner for the bank to commence business, a bank and its incorporators may jointly request permission from the commissioner for the bank to reimburse the incorporators for the incorporators' reasonable and necessary organizational expenses.
(2) A joint request by a bank and its incorporators shall include an accounting of the funds expended by the incorporators which shall be prepared by an independent certified public accountant in accordance with generally accepted accounting principles.
(3) If the commissioner determines that the accounting of funds expended is substantially similar to the amount disclosed in the application as estimated expenses of organization, the commissioner may authorize the bank to reimburse the incorporators.
(4) The commissioner may waive the requirements of this section if the expenses of organizing a bank will be paid by a bank holding company.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13105 - Bank as Body Corporate; Authorization.

487.13105 Bank as body corporate; authorization.
Sec. 3105.
If the commissioner approves the articles of incorporation as required by this act, the bank shall become a body corporate. A bank shall not transact any business, except as is incidental and necessarily preliminary to its organization, until it has been authorized by the commissioner to commence the business of banking.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13106 - Commencement of Business.

487.13106 Commencement of business.
Sec. 3106.
(1) Within 30 days after the approval of its articles of incorporation, or a later time not to exceed 1 year as approved by the commissioner, the bank shall notify the commissioner that all of its capital and surplus has been fully paid in and that it has complied with all of the required provisions of this act necessary to be authorized to commence the business of banking.
(2) The commissioner shall make examinations as he or she considers necessary to verify the conditions set forth in subsection (1), and if it appears that the bank is lawfully entitled to commence business, the commissioner, within 30 days after receiving the notice provided for in this section, shall give to the bank a certificate under the official seal of the bureau that the bank has complied with all of the required provisions and is authorized to commence business.
(3) The application is considered abandoned and of no further effect if the bank fails to furnish the notice provided for in this section within the specified time or fails to comply with the required provisions within the period of time determined by the commissioner.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13107 - Organization Meeting; Notice.

487.13107 Organization meeting; notice.
Sec. 3107.
The organizational meeting of every bank shall be called by a notice designating the time and place of the meeting and stating the purpose for which the meeting is called. The notice shall be served personally on all the incorporators at least 5 days before the date set for the meeting. If all the incorporators are present at the meeting or in writing waive notice, then no notice shall be required for the organizational meeting.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-1 - Part 1 Formation (487.13101...487.13108) › Section 487.13108 - Capital Adequacy; Requirements.

487.13108 Capital adequacy; requirements.
Sec. 3108.
(1) A bank organized under this act shall have capital in an amount the commissioner considers adequate to conduct its business.
(2) A bank shall not be authorized to commence business until it has surplus at least equal to 20% of its capital.
(3) After organization, each bank shall maintain an adequate capital structure appropriate to conduct its business and the protection of its depositors. The capital adequacy of a bank shall be analyzed and appraised in relation to the character of its management, the liquidity of assets, history of earnings and of the retention of earnings, the potential volatility of the deposit structure, and its risk management, with due regard to the bank's capacity to furnish the broadest service to the public.
(4) At all times a bank shall maintain surplus in an amount equal to at least the amount of its capital, except as provided in subsection (2) and except as provided in section 3806, and shall not reduce surplus without the approval of the commissioner.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-2 - Part 2 Articles of Incorporation (487.13201...487.13203) › Section 487.13201 - Articles of Incorporation; Approval Generally.

487.13201 Articles of incorporation; approval generally.
Sec. 3201.
(1) Upon approval of the application under section 3103 by the commissioner, at least 2 original articles of incorporation, executed by the incorporators, shall be submitted to the commissioner. The commissioner shall approve the articles if the articles conform to law. One of the original articles will be retained for the bureau's records and 1 of the original articles will be forwarded to the incorporators.
(2) Before approving, certifying, and distributing the articles of incorporation, the incorporators shall furnish evidence to the commissioner that a firm commitment to insure deposit accounts up to the maximum permitted by federal law has been issued by the federal deposit insurance corporation, unless the commissioner, for good cause shown, waives this requirement.
(3) Approval of articles of incorporation by the commissioner under this act does not indemnify the bank against claims for the improper use of the bank name stated in the articles.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-2 - Part 2 Articles of Incorporation (487.13201...487.13203) › Section 487.13202 - Articles of Incorporation; Contents.

487.13202 Articles of incorporation; contents.
Sec. 3202.
(1) The articles of incorporation shall specify all of the following:
(a) The name of the bank.
(b) The county and the city, village, or township where the principal office of the bank is to be located.
(c) The purpose or purposes of incorporation as provided in this act.
(d) The authorized number of shares of its capital stock, and 1 of the following:
(i) If the bank is to be authorized to issue only 1 class of stock, the total number of shares of stock that the bank may issue and the par value of each share.
(ii) If the bank is to be authorized to issue more than 1 class of stock, a statement of the total number of shares of all classes of stock that the bank may issue, the number of shares of each class, the par value of each share of each class, and a statement of all designations, powers, preferences, and rights and the qualifications, limitations, and restrictions of each class.
(e) The names of the incorporators.
(f) The period for which the bank is organized, which may be in perpetuity.
(g) That shareholders of the bank may be assessed a capital deficiency payment and that if such assessment is not paid the directors may sell any or all of the shares owned by the shareholder to satisfy the assessment.
(h) Any other provisions consistent with the laws of this state for regulating the business of banking and for the conduct of the affairs of the bank.
(2) Articles approved by the commissioner before the effective date of this act are considered to be in compliance with this section.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-2 - Part 2 Articles of Incorporation (487.13201...487.13203) › Section 487.13203 - Articles of Incorporation; Amendments.

487.13203 Articles of incorporation; amendments.
Sec. 3203.
(1) With the approval of the commissioner, and by vote of shareholders owning a majority of voting shares of the bank, a bank may amend its articles of incorporation in any manner not inconsistent with this act. An amendment, signed by an authorized officer or officers of the bank, shall be effective when approved by the commissioner.
(2) Notwithstanding subsection (1), an amendment that provides solely for a change in the name of the bank is not subject to the approval of the commissioner and shall be effective on the date it is received by the commissioner or at a later date specified by the bank.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-3 - Part 3 Dissolution (487.13301...487.13307) › Section 487.13302 - Bank in Dissolution as Body Corporate.

487.13302 Bank in dissolution as body corporate.
Sec. 3302.
(1) A bank that begins dissolution under section 3301 shall continue to be a body corporate until the commissioner certifies and files the certificate of termination under section 3301(9) for all of the following:
(a) Prosecuting and defending actions for or against the bank.
(b) Disposing of and conveying the bank's property.
(c) Dividing the bank's assets.
(d) Gradually settling and closing its affairs.
(2) Subject to section 3401, a bank in dissolution shall not continue to be a body corporate for the purpose of continuing the business for which it was organized.
(3) An action, suit, or proceeding commenced by or against the bank in dissolution must be commenced before the filing of the certificate of termination under section 3301(9).
(4) If the number of directors of a bank in dissolution is less than the full number of directors required or authorized by statute or by the bylaws of the bank, a majority of the remaining directors or the sole remaining director shall possess the same powers in acting for the bank in dissolution under this act as the duly authorized board of directors of the bank possessed before the commencement of dissolution.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-3 - Part 3 Dissolution (487.13301...487.13307) › Section 487.13303 - Bank in Dissolution; Function of Officers, Directors, and Shareholders.

487.13303 Bank in dissolution; function of officers, directors, and shareholders.
Sec. 3303.
(1) Subject to section 3302 or as otherwise provided by the commissioner, a bank in dissolution, it officers, directors, and shareholders shall continue to function in the same manner as if dissolution had not occurred.
(2) The directors of the bank in dissolution are not considered to be trustees of its assets and shall be held to no greater standard of conduct than that prescribed by section 3504.
(3) Title to the assets of a bank in dissolution remains in the bank until transferred.
(4) The dissolution of the bank does not change quorum or voting requirements for the board or shareholders, and does not alter provisions regarding election, appointment, resignation, or removal of, or filling vacancies among, directors or officers, or provisions regarding amendment or repeal of bylaws or adoption of new bylaws.
(5) Shares of the stock of a bank in dissolution may be transferred.
(6) The bank in dissolution may sue and be sued in its corporate name and process may issue by and against the bank in dissolution in the same manner as if dissolution had not occurred.
(7) An action brought against the bank before the commencement of its dissolution is not limited or affected because of the dissolution.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-3 - Part 3 Dissolution (487.13301...487.13307) › Section 487.13304 - “Existing Claim” and “Existing Claimant” Defined; Notice to Depositors and Creditors; Existing Claims; Effective Date of Written Notice.

487.13304 “Existing claim” and “existing claimant” defined; notice to depositors and creditors; existing claims; effective date of written notice.
Sec. 3304.
(1) As used in this section:
(a) "Existing claim" means a claim or right against the bank in dissolution, liquidated, or unliquidated. It does not include a contingent liability or a claim based on an event occurring after the commencement of dissolution.
(b) "Existing claimant" means a person holding an existing claim.
(2) The board of directors of a bank in dissolution shall notify the bank's depositors and creditors in writing of the dissolution within 30 days after submitting the certificate of termination under section 3301(4). The written notice shall include all of the following:
(a) A mailing address where an existing claim can be sent.
(b) A statement that the bank in dissolution may demand sufficient information to permit it to make a reasonable judgment whether the existing claim should be accepted or rejected.
(c) The deadline, not less than 3 months from the effective date of the written notice, by which the existing claim shall be received.
(d) A statement that the existing claim will be barred if not received by the deadline.
(3) The notice under subsection (2) does not constitute an acceptance that a person to whom the notice is directed has a valid existing claim against the bank in dissolution.
(4) An existing claim against the bank in dissolution is barred if either of the following applies:
(a) The existing claimant who was given written notice under subsection (2) does not file the claim with the bank by the deadline.
(b) The existing claimant who was given written notice under subsection (2) and whose existing claim was rejected in writing by the bank in dissolution does not commence a proceeding to enforce the existing claim within 90 days from the effective date of the written notice of rejection.
(5) The effective date of the written notice under this section is the earliest of the following:
(a) The date it is received.
(b) Five days after its deposit in the United States mail as evidenced by the postmark, if it is mailed postpaid and correctly addressed.
(c) The date shown on the return receipt, if the notice is sent by registered or certified mail, return receipt requested, and the receipt is signed by or on behalf of the addressee.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-3 - Part 3 Dissolution (487.13301...487.13307) › Section 487.13305 - “Claim” and “Claimant” Defined; Notice of Dissolution; Publication; Requirements.

487.13305 “Claim” and “claimant” defined; notice of dissolution; publication; requirements.
Sec. 3305.
(1) As used in this section:
(a) "Claim" means a claim or right against the bank in dissolution, liquidated or unliquidated, of a claimant that did not receive the written notice required by section 3304.
(b) "Claimant" means a person holding a claim.
(2) The board of directors of a bank in dissolution shall publish notice of dissolution. The first notice shall be published within 30 days after submitting the certificate of termination under section 3301(4) and request that persons with claims against the bank in dissolution present them as required by the notice.
(3) The notice shall comply with all of the following:
(a) Be published once each week for 8 consecutive weeks.
(b) Describe the information to be included in a claim and provide a mailing address where the claim is to be sent.
(c) Contain a statement that the bank in dissolution may demand sufficient information to permit it to make a reasonable judgment whether the claim should be accepted or rejected.
(d) State the deadline, not less than 6 months from the last publication date, by which the claim shall be received.
(e) State that a claim against the bank in dissolution will be barred unless a proceeding to enforce the claim is commenced within 6 months after the last publication date of the notice published under this section.
(4) A claim against the bank in dissolution is barred if any of the following apply:
(a) The claimant does not deliver a claim or commence a proceeding in an appropriate court to enforce the claim against the bank in dissolution within 6 months after the last publication date of the notice published under this section.
(b) The claimant whose claim was rejected in writing by the bank in dissolution does not commence a proceeding to enforce the claim within 90 days from the effective date of the written notice of rejection.
(c) The claimant, whose claim is contingent or based on an event occurring after the commencement of dissolution, that does not deliver a claim within 6 months after the last publication date of the notice published under this section or file an action in an appropriate court to enforce the claim against the bank in dissolution before the commissioner certifying and filing the certificate of termination under section 3301(9).
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-3 - Part 3 Dissolution (487.13301...487.13307) › Section 487.13306 - Court Supervision of Bank in Dissolution.

487.13306 Court supervision of bank in dissolution.
Sec. 3306.
(1) After a bank has commenced dissolution, the commissioner, the bank in dissolution, a creditor, or a shareholder may apply to an appropriate court for an order that the affairs of the bank in dissolution and the liquidation of its assets continue under supervision of the court. The court shall make orders and judgments as may be required, including, but not limited to, continuance of the liquidation of the assets of the bank in dissolution by its liquidating agent or committee under supervision of the court, or the appointment of a receiver of the bank in dissolution to be vested with powers as the court designates to liquidate the affairs of the bank.
(2) For good cause shown, and so long as a bank in dissolution has not made complete distribution of its assets, the court may permit a creditor who has not delivered his or her claim or commenced a proceeding to enforce his or her claim within the time limits provided in sections 3304 and 3305 to file the claim or to commence a proceeding within the time as the court directs.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-3 - Part 3 Dissolution (487.13301...487.13307) › Section 487.13307 - Debts, Obligations, and Liabilities.

487.13307 Debts, obligations, and liabilities.
Sec. 3307.
(1) A bank in dissolution or its liquidating agent or committee shall act on all claims filed and notify all claimants of the action taken or to be taken on their respective claims within 6 months of the last date for filing the claims.
(2) Before making a distribution of assets to shareholders, a bank in dissolution shall pay or make provision to satisfy its debts, obligations, and liabilities. Compliance with this section requires, to the extent a reasonable estimate is possible, that provision be made to satisfy those debts, obligations, and liabilities anticipated to arise after the date the certificate of termination is filed under section 3301(9).
(3) Provision need not be made to satisfy any debt, obligation, or liability that is or is reasonably anticipated to be barred under section 3304 or 3305.
(4) The fact that the assets provided by the bank in dissolution for the satisfaction of its debts, obligations, and liabilities are insufficient to satisfy claims arising after a certificate of termination is filed under section 3301(9) shall not create a presumption that the bank in dissolution has failed to comply with this section.
(5) After payment of or adequate provision to satisfy the debts, obligations, or liabilities of the bank in dissolution has been made, the remaining assets shall be distributed to shareholders according to their respective rights and interests. The distribution may be made in cash, in kind, or both.
History:
1999, Act 276, Eff. Mar. 1, 2000
2023 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) › 276-1999-3-4 - Part 4 Term Extension (487.13401...487.13401) › Section 487.13401 - Expiration of Corporate Term; Extension.

487.13401 Expiration of corporate term; extension.
Sec. 3401.
(1) A bank whose corporate term will expire by limitation may amend its articles to extend its corporate term for a limited period of time or in perpetuity.
(2) A bank whose term has expired, but which has not submitted a certificate of termination under section 3301 and has inadvertently continued its active business beyond the term, may adopt a resolution to amend its articles to renew its corporate existence. Notice shall be given to each shareholder of record in the manner provided in this act for the giving of notice of meetings of shareholders, and shall state that the purpose of the meeting is to vote on the renewal of corporate term. At the meeting a vote of the shareholders shall be taken on the proposed extension, which shall be adopted upon receiving the affirmative vote of holders of at least 2/3 of the outstanding shares.
(3) The officers and directors de facto of a bank whose corporate term has expired shall do and perform all acts required of officers and directors de jure with regard to calling a special meeting of the shareholders and submitting to them the question of renewing the corporate term. A bank de facto shall not be permitted to renew its corporate term unless the action is taken within 1 year after its corporate term has expired and renewal shall not relieve the bank from any penalties that may have accrued against it under law.
(4) A bank whose corporate term has been extended or renewed under this section shall be the same bank and shall have the same shareholders, directors, and officers, and enjoy all the rights, privileges, immunities, and powers and be subject to all the liabilities that it respectively possessed and was subject to before the expiration of its corporate term.
History:
1999, Act 276, Eff. Mar. 1, 2000