reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-2 - Part 2 Receivers (490.231...490.235) › Section 490.233 - Receiver; Duties; Powers.

490.233 Receiver; duties; powers.
Sec. 233.
(1) Subject to court approval, a receiver appointed under this part shall do all of the following:
(a) Take possession of the books, records, and assets of the domestic credit union and collect all debts, dues, and claims belonging to the domestic credit union.
(b) Sue and defend, compromise, and settle all claims involving the domestic credit union.
(c) Sell all real and personal property of the domestic credit union.
(d) Exercise all fiduciary functions of the domestic credit union as of the date of the commencement of the receivership.
(e) Pay all administrative expenses of the receivership. The administrative expenses are a first charge on the assets of the domestic credit union and the receiver shall pay those expenses before any final distribution or payment of dividends to creditors or members.
(f) Except as provided in this subdivision, pay ratably the debts of the domestic credit union. The receiver may pay any debt that does not exceed $500.00 in full, but the holder of that debt is not entitled to payment of interest on the debt.
(g) After paying or providing for payment of all the administrative expenses and debts under subdivisions (e) and (f), pay ratably to the members of the domestic credit union the balance of the net assets of the domestic credit union, in proportion to the number of shares held and owned by each.
(h) Have all the powers of the directors, officers, and members of the domestic credit union necessary to support an action taken on behalf of the domestic credit union.
(i) Hold title to the domestic credit union's property, contracts, and rights of action, beginning on the date the domestic credit union is ordered in receivership.
(2) Subject to court approval, a receiver may do any of the following:
(a) Borrow money as necessary or expedient to aid in the liquidation of the domestic credit union and secure the borrowing by the pledge of or lien, security interest, or mortgage on the assets of the domestic credit union.
(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 office of financial and insurance services if the receiver considers the employment to be advantageous or desirable. The expense of employing personnel of the office of financial and insurance services is an administrative expense of the liquidation that is payable to the office of financial and insurance services.
(c) Exercise other powers and duties ordered by a circuit court under the laws of this state applicable to the appointment of receivers by the circuit court.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-2 - Part 2 Receivers (490.231...490.235) › Section 490.235 - Disposal of Obsolete and Unnecessary Records; Maintenance Methods; Reservation, Deposit, and Use of Assets.

490.235 Disposal of obsolete and unnecessary records; maintenance methods; reservation, deposit, and use of assets.
Sec. 235.
(1) If approved by the court, a receiver appointed under this part may dispose of records of a domestic credit union in receivership that are obsolete and unnecessary to the continued administration of the receivership proceeding and retain the remaining records of the domestic credit union and the receivership for a period of time as ordered by the court.
(2) A receiver appointed under this part may devise a method for the effective, efficient, and economical maintenance of the records of the domestic credit union and of the receiver's office, including maintaining those records on any medium approved by the court.
(3) A receiver appointed under this part may reserve assets of a liquidated domestic credit union, deposit them in an account, and use them to maintain the records of a liquidated domestic credit union after the closing of the receivership proceeding.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-3 - Part 3 Conservatorships (490.241...490.245) › Section 490.241 - Appointment of Conservator; Grounds; Bond and Security; Qualifications; Payment of Administrative Expenses.

490.241 Appointment of conservator; grounds; bond and security; qualifications; payment of administrative expenses.
Sec. 241.
(1) If any of the grounds under section 232 authorizing the appointment of a receiver exist or if the commissioner considers it necessary in order to conserve the assets of a domestic credit union for the benefit of the members and depositors and other creditors of the domestic credit union, the commissioner may appoint a conservator for the domestic credit union 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 office of financial and insurance services or any other competent and disinterested person. The conservator shall reimburse the office of financial and insurance services out of the assets of the conservatorship for all sums expended by it in connection with the conservatorship as administrative expenses. The conservator shall pay all administrative expenses of the conservatorship out of the assets of the domestic credit union, upon the approval of the commissioner. The administrative expenses are a first charge on the assets of the domestic credit union and the conservator shall pay the administrative expenses in full before any final distribution or payment of dividends to creditors or members.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-3 - Part 3 Conservatorships (490.241...490.245) › Section 490.242 - Possession of Books, Records, and Assets; Rights of Parties; Discharge of Real Estate Mortgage.

490.242 Possession of books, records, and assets; rights of parties; discharge of real estate mortgage.
Sec. 242.
(1) Under the direction of the commissioner, a conservator appointed under this part shall take possession of the books, records, and assets of the domestic credit union and take any action necessary to conserve the assets of the domestic credit union pending liquidation under part 2 of this article or further disposition of its business as provided by law. The conservator has all the rights, powers, and privileges of a receiver appointed under part 2 of this article, except the power to liquidate a domestic credit union, and is subject to those obligations and penalties to which a receiver is subject that are not inconsistent with this part with respect to conservators.
(2) While a conservator remains in possession of the domestic credit union under this part, the rights of all parties with respect to the domestic credit union, subject to the other provisions of this part with respect to conservators, are the same as if a receiver had been appointed under part 2 of this article.
(3) A conservator appointed under this part may execute the discharge of any real estate mortgage held as part of the assets of the domestic credit union.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-3 - Part 3 Conservatorships (490.241...490.245) › Section 490.243 - Withdrawal by Members and Depositors and Payment to Other Creditors; Availability of Amounts; Receipt of Shares and Deposits; Actions; Return of Control to Credit Union Board; Notice.

490.243 Withdrawal by members and depositors and payment to other creditors; availability of amounts; receipt of shares and deposits; actions; return of control to credit union board; notice.
Sec. 243.
(1) While a domestic credit union is in conservatorship under this part, the commissioner may require the conservator to set aside and make available for withdrawal by members and 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 a conservator appointed under this part to receive shares and deposits.
(3) Shares and deposits received while a domestic credit union is in conservatorship under this part are not subject to any limitation as to payment or withdrawal. The conservator shall segregate those shares and deposits and any new assets acquired on account of the shares and deposits and shall not use those shares, deposits, and assets to liquidate any indebtedness of the domestic credit union existing at the time that the conservator was appointed or for any subsequent indebtedness incurred for the purpose of liquidating any indebtedness of the domestic credit union existing at the time the conservator was appointed.
(4) Any action taken by a conservator under subsection (3) may not remain in effect for more than 15 days after the date that the conservator returns control of the domestic credit union to the credit union board.
(5) A conservator appointed under this part shall keep any shares and deposits received while the domestic credit union is in conservatorship 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 a domestic credit union to the credit union board, a conservator appointed under this part shall publish a notice, in form approved by the commissioner, stating the date on which the affairs of the domestic credit union will be returned to the credit union board and that the provisions of subsection (3) will not apply after 15 days from that date. The conservator shall send a copy of the notice to every person who purchased shares or deposited money in the domestic credit union after the appointment of the conservator and before the time when control of the domestic credit union is returned to the credit union board.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-3 - Part 3 Conservatorships (490.241...490.245) › Section 490.244 - Authority of Commissioner to Borrow Money; Conditions; Secured Loans.

490.244 Authority of commissioner to borrow money; conditions; secured loans.
Sec. 244.
With the prior approval of the commissioner, a conservator appointed under this part may borrow money necessary or expedient to aid in the operation or reorganization of the domestic credit union and may secure the loans by the pledge of or lien, security interest, or mortgage on the assets of the domestic credit union.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-3 - Part 3 Conservatorships (490.241...490.245) › Section 490.245 - Termination of Conservatorship; Determination by Commissioner; Resumption of Business Transactions by Domestic Credit Union; Appointment of Receiver; Liquidation.

490.245 Termination of conservatorship; determination by commissioner; resumption of business transactions by domestic credit union; appointment of receiver; liquidation.
Sec. 245.
(1) If satisfied that it may be done safely and that it is in the public interest, the commissioner may terminate a conservatorship under this part and permit the domestic credit union to resume the transaction of its business subject to terms, conditions, restrictions, and limitations that he or she prescribes.
(2) Subject to subsection (3), if the commissioner determines that it is in the public interest, the commissioner may terminate a conservatorship under this part and apply for the appointment of a receiver for the domestic credit union as provided in part 2 of this article.
(3) If the commissioner determines that liquidation of a domestic credit union is in the public interest, the commissioner shall terminate a conservatorship under this part and apply for the appointment of a receiver for the domestic credit union as provided in part 2 of this article.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 2 - Supervision by Commissioner (490.201...490.251) › 215-2003-2-4 - Part 4 Involuntary Mergers or Sales (490.251...490.251) › Section 490.251 - Merger or Sale; Determination by Commissioner; Order; “Distressed Credit Union” Defined.

490.251 Merger or sale; determination by commissioner; order; “distressed credit union” defined.
Sec. 251.
(1) The commissioner may order the merger or sale of a domestic credit union under this section if the commissioner determines that all of the following are met:
(a) The domestic credit union is in danger of insolvency, in an unsafe or unsound condition, or in danger of becoming in an unsafe or unsound condition.
(b) That expeditious action is required by the commissioner to deal with a condition described in subdivision (a).
(c) That other actions available to the commissioner under this act are not reasonably available to the commissioner with respect to the credit union described in subdivision (a).
(2) The commissioner may initiate and order an involuntary merger of a distressed credit union with another credit union if both of the following are met:
(a) The other credit union agrees to a merger.
(b) If the other credit union is a foreign credit union, it is authorized to complete the merger under any state or federal law applicable to it.
(3) The commissioner may initiate and order an involuntary merger of a distressed credit union with a financial institution other than a credit union if all of the following are met:
(a) The commissioner is unable to complete an involuntary merger under subsection (2).
(b) The other financial institution agrees to a merger.
(c) The other financial institution is authorized to complete the merger under any state or federal law applicable to it.
(4) As used in this section, “distressed credit union” means a domestic credit union that the commissioner determines is insolvent, in danger of insolvency, in an unsafe or unsound condition, or in danger of becoming in an unsafe or unsound condition under subsection (1).
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-1 - Part 1 Formation and Operation (490.301...490.307) › Section 490.302 - Organization of Credit Union by 2 or More Credit Unions.

490.302 Organization of credit union by 2 or more credit unions.
Sec. 302.
Two or more credit unions may file an application to organize a corporate credit union under this act.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2004, Act 471, Imd. Eff. Dec. 28, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-1 - Part 1 Formation and Operation (490.301...490.307) › Section 490.303 - Amendment to Certificate of Organization or Bylaws.

490.303 Amendment to certificate of organization or bylaws.
Sec. 303.
(1) If approved by a majority of the members present at a duly constituted annual or special meeting of the members, the membership may amend the certificate of organization or bylaws of a domestic credit union or delegate authority to the credit union board, or rescind the authority of the credit union board, to amend the certificate of organization or bylaws.
(2) Any proposed action to amend the certificate of organization or the bylaws or to delegate authority to amend the certificate of organization or bylaws to the credit union board under subsection (1) shall be stated in a notice of the meeting.
(3) An amendment to the certificate of organization or bylaws of a domestic credit union is not effective unless it is submitted to the director for review and approved by the director.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2016, Act 153, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-1 - Part 1 Formation and Operation (490.301...490.307) › Section 490.304 - Principal Place of Business; Notice of Change in Location; Establishment and Maintenance of Branches; Service Centers; Assumed Names.

490.304 Principal place of business; notice of change in location; establishment and maintenance of branches; service centers; assumed names.
Sec. 304.
(1) If a domestic credit union changes the location of its principal place of business in this state, the domestic credit union must provide the director with written notice at least 7 days before the change of location.
(2) A domestic credit union shall file the address of the principal place of business and the names and titles of the officials and senior management employees of the domestic credit union with the director on a form prescribed by the director. If the name or title of an official or senior management employee of a domestic credit union changes, the credit union shall provide the director with written notice of the change within 7 days after the change.
(3) A domestic credit union may establish and maintain branches. The credit union shall provide written notice to the director of the location of a branch before establishing the branch.
(4) A domestic credit union and 1 or more domestic or foreign credit unions or other financial organizations may establish and maintain service centers. One or more of the financial organizations that establish a service center may operate the service center, or the financial organizations organizing the service center may contract with another person to operate the service center. A domestic credit union may refer to a service center as a branch.
(5) Subject to all of the following, a domestic credit union may adopt or change 1 or more assumed names:
(a) The domestic credit union shall give written notice of a proposed assumed name to the director at least 30 days before using the assumed name.
(b) The director may deny a domestic credit union the right to use an assumed name or terminate a credit union's right to use an assumed name if the director determines that the assumed name is confusing or misleading or for any other reason.
(c) A domestic credit union using an assumed name shall clearly and conspicuously disclose the name of the credit union and the assumed name in all signs, advertising, mailings, and similar materials and shall clearly and conspicuously disclose the assumed name and the name of the credit union in all legal documents, certificates of deposit, signature cards, loan agreements, account statements, checks, drafts, and other similar documents.
(d) An assumed name may contain the phrase "credit union".
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2004, Act 471, Imd. Eff. Dec. 28, 2004 ;-- Am. 2016, Act 152, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-1 - Part 1 Formation and Operation (490.301...490.307) › Section 490.305 - Books and Records; Availability; Court Order.

490.305 Books and records; availability; court order.
Sec. 305.
(1) A domestic credit union shall maintain its books and records at its principal place of business filed with the director under section 304 and make the books and records available for examination by the director or his or her authorized agent, except as follows:
(a) A credit union may maintain specified books and records at a location in this state other than its principal place of business if it gives notice to the director of the location of the specified books and records and can produce those books and records at its principal place of business within 3 business days after a request from the commissioner to examine them.
(b) Except as required by other applicable law, a credit union may store records at an off-site facility or on alternative storage media if the records are available for examination by the director or his or her appointed agent.
(c) A domestic credit union may maintain records specific to a branch located outside of this state at that branch if the credit union can make the originals of those records available to the director within this state within 3 business days after a request from the director to examine them. If a law applicable in the state where the branch is located prohibits the removal of the original records from that state, the credit union shall notify the director of that law and provide copies of the records to the director.
(2) If a domestic credit union does not make its books and records available to the director or his or her authorized agent in the manner described in subsection (1), the director may obtain an order from the circuit court of the county in which the credit union is located that requires the credit union to produce the books and records for examination.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2016, Act 152, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-1 - Part 1 Formation and Operation (490.301...490.307) › Section 490.306 - Conducting Business by Mail or Electronic Communication.

490.306 Conducting business by mail or electronic communication.
Sec. 306.
With prior written notice to the director, a domestic credit union may conduct its business solely by mail or through electronic communication without having a physical location where members may transact business with the credit union. A domestic credit union conducting business under this section shall maintain a principal place of business in this state.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2016, Act 153, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-1 - Part 1 Formation and Operation (490.301...490.307) › Section 490.307 - Repealed. 2005, Act 194, Imd. Eff. Nov. 7, 2005.

490.307 Repealed. 2005, Act 194, Imd. Eff. Nov. 7, 2005.
Compiler's Notes:
The repealed section pertained to filing of a supicious activity report by a domestic credit union with a federal agency.
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-3 - Part 3 Officer, Officials, and Directors (490.341...490.345) › Section 490.343 - Suspension or Removal of Members; Majority of Remaining Members as Quorum; Appointment of Temporary Members.

490.343 Suspension or removal of members; majority of remaining members as quorum; appointment of temporary members.
Sec. 343.
If 1 or more directors of a domestic credit union board are suspended or removed under this act, a majority of the remaining members of the board, including any replacement directors, constitute a quorum of the credit union board. If all of the directors of a domestic credit union are suspended or removed under this act, the commissioner shall appoint individuals to serve temporarily as directors until the suspensions or removals are terminated or until their successors are elected and take office.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-3 - Part 3 Officer, Officials, and Directors (490.341...490.345) › Section 490.345 - Supervisory Committee; Duties; Vacancies.

490.345 Supervisory committee; duties; vacancies.
Sec. 345.
(1) A domestic credit union may have a supervisory committee. If authorized by the bylaws, 1 board member who is not an officer of the domestic credit union may serve as a member of the supervisory committee. Otherwise, a board member may not serve as a member of the supervisory committee.
(2) If a domestic credit union has a supervisory committee, the supervisory committee may do any of the following:
(a) By majority vote, call a special meeting of the members to consider any matter submitted to the special meeting of the members by the committee.
(b) By a unanimous vote, suspend any member of the credit committee and report the suspension and the reason for the suspension to the credit union board. At its next meeting, the credit union board shall vote on whether to remove or reinstate the suspended credit committee member. A 2/3 vote of the credit union board is required to remove the suspended credit committee member.
(c) By a unanimous vote, suspend a member of the credit union board for cause.
(d) Access any credit union records.
(3) If a domestic credit union has a supervisory committee and the members elect the supervisory committee, the committee shall fill vacancies on the supervisory committee. If a domestic credit union has a supervisory committee and the credit union board appoints the supervisory committee, the credit union board shall fill vacancies on the supervisory committee. An individual appointed to fill a vacancy on the supervisory committee under this subsection shall serve for the remainder of the term of the vacant position.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2004, Act 471, Imd. Eff. Dec. 28, 2004 ;-- Am. 2016, Act 152, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-4 - Part 4 Members (490.351...490.357) › Section 490.351 - Annual Meeting; Special Meeting; Voting; Removal of Member.

490.351 Annual meeting; special meeting; voting; removal of member.
Sec. 351.
(1) A domestic credit union shall hold an annual meeting of the members each calendar year in the manner indicated in the bylaws. The members shall elect the credit union board at the annual meeting.
(2) A domestic credit union may hold a special meeting of the members in the manner indicated in the bylaws.
(3) At any meeting of the members, a member with 1 or more shares has 1 vote on any matter submitted to the members. A member may not vote by proxy. A member who is not a natural person may vote through an agent with authority to vote on that member's behalf.
(4) The members of a domestic credit union may remove a member of the credit union board or a credit or supervisory committee member elected by the members of the domestic credit union from office but only at a special meeting of the members called for that purpose.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-4 - Part 4 Members (490.351...490.357) › Section 490.353 - Membership; Conditions.

490.353 Membership; conditions.
Sec. 353.
(1) Except as provided in this part, ownership of a share is a condition of membership in a domestic credit union. A domestic credit union may require ownership of a membership share rather than a share as a condition of membership. Except as provided in this section, a member may own only 1 membership share.
(2) A domestic credit union may accept and maintain deposits under section 401(2)(x) without the depositor subscribing to or paying for a share in the domestic credit union.
(3) If it is composed for the most part of the same general group as the membership of the domestic credit union, a domestic credit union may accept a legal entity as a member of a domestic credit union.
(4) If the domestic credit union elects, a single account jointly owned by 2 or more individuals may serve as the basis for membership of any of those individual owners who are otherwise eligible for membership if the account contains at least 1 share for each of them.
(5) If an individual was a member of the domestic credit union at the time of his or her death, a domestic credit union may accept the estate of the individual as a member.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2016, Act 152, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-4 - Part 4 Members (490.351...490.357) › Section 490.354 - Acceptance of Trust as Member; Conditions.

490.354 Acceptance of trust as member; conditions.
Sec. 354.
(1) A domestic credit union may accept a trust as a member if any of the settlors living at the time of application are eligible for membership, or if none of the settlors are living at the time of application and 1 or more beneficiaries are eligible for membership.
(2) An account owned by 1 or more individuals may be titled or retitled in the name of a trust and not in the name of the individuals if all of the following are met:
(a) The trust is eligible for membership in the domestic credit union under subsection (1).
(b) Each owner consents in writing to titling or retitling the account in the name of the trust.
(c) Any beneficiaries listed on the account are removed as beneficiaries by the owners.
(d) The account is not an account that provides tax deferrals or any other tax benefit under state or federal law.
(3) If an account is retitled in the name of a trust under subsection (2), the membership of any individual or individuals who had owned all or an interest in the account is terminated unless he or she is a member based on ownership of another account, or he or she qualifies for, applies for, and is accepted into membership.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-4 - Part 4 Members (490.351...490.357) › Section 490.355 - Designation as Inactive Account.

490.355 Designation as inactive account.
Sec. 355.
A domestic credit union may allow a member to designate an account on which his or her membership is based as inactive. If the account is the basis for the membership of more than 1 individual, each individual must agree to the designation. While an account is inactive, the member involved shall retain his or her membership but is not entitled to any of the privileges of membership. While an account is inactive, the domestic credit union shall not charge any fees to the account. The member who designated an account as inactive may remove the designation of inactive at any time. If the inactive designation is not removed within 3 years, the domestic credit union shall deliver all money or other property in the account to the department of treasury under the uniform unclaimed property act, 1995 PA 29, MCL 567.221 to 567.265, and terminate any membership based on the account.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2016, Act 152, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-4 - Part 4 Members (490.351...490.357) › Section 490.356 - Minor; Deposit, Investment, or Withdrawal.

490.356 Minor; deposit, investment, or withdrawal.
Sec. 356.
A domestic credit union may issue shares to and receive deposits from a minor. The minor may withdraw the deposits or shares and any dividends or interest on the deposits or shares. A deposit, investment in a share, or withdrawal under this section by a minor is valid and enforceable and the minor is considered an adult with respect to that deposit, investment, or withdrawal.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-4 - Part 4 Members (490.351...490.357) › Section 490.357 - Suspension of Services or Termination or Withdrawal of Membership.

490.357 Suspension of services or termination or withdrawal of membership.
Sec. 357.
(1) The general manager or chief executive officer of a domestic credit union, or his or her designee, may suspend some or all services to a member, or terminate the membership of any person, that does any of the following:
(a) Causes a loss to the domestic credit union.
(b) Commits fraud or another misdeed against the domestic credit union or against a person on the premises of the domestic credit union.
(c) Engages in inappropriate behavior involving another individual, such as physical or verbal abuse of another member or an employee of the credit union.
(2) A member that has its services suspended or a person that has its membership terminated under subsection (1) may appeal the suspension or termination to the credit union board within 90 days after the date of the suspension or termination. The credit union board has final authority to resolve an appeal under this subsection.
(3) A member may withdraw from a domestic credit union at any time, but the domestic credit union may require a notice of withdrawal from the withdrawing member as a condition of withdrawal.
(4) When money becomes available, and after deducting all amounts owed to the domestic credit union by the member, a domestic credit union shall pay a person whose membership is terminated or that is a withdrawing member any amounts paid on shares or as deposits of the member and any dividends or interest accrued on the shares or deposits before the date of payment.
(5) Unless the withdrawal of a member occurs on a maturity date or within 7 days after a maturity date, a domestic credit union may require that a withdrawing member give a 60-day notice of intention to withdraw shares or a 30-day notice of intention to withdraw deposits. A domestic credit union that requires a notice of intention to withdraw may wait until the expiration of the applicable notice period before complying with subsection (4). A domestic credit union may waive an applicable notice period for a specific member or account in writing.
(6) After a termination or withdrawal under this section, a former member has no rights in a domestic credit union, but the termination or withdrawal does not release the former member from any remaining liability to the domestic credit union.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2004, Act 471, Imd. Eff. Dec. 28, 2004 ;-- Am. 2016, Act 152, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-5 - Part 5 Capital (490.361...490.363) › Section 490.361 - Capital; Share Payments; Entrance Fee; Secondary Capital; Liability of Member for Acts, Debts, or Obligations of Domestic Credit Union; Placement of Lien on Member Account.

490.361 Capital; share payments; entrance fee; secondary capital; liability of member for acts, debts, or obligations of domestic credit union; placement of lien on member account.
Sec. 361.
(1) The capital of a domestic credit union consists of the payments that have been made to it by the members for shares. If authorized by the bylaws, a domestic credit union may charge an entrance fee.
(2) If at any time after the effective date of this act a federal credit union is authorized by the federal regulatory authority with jurisdiction and by federal law to utilize 1 or more forms of secondary capital other than capital stock, the commissioner may by rule, order, or declaratory ruling allow a domestic credit union to utilize 1 or more forms of secondary capital other than capital stock. The rule, order, or declaratory ruling must include disclosure requirements concerning the conditions for return of the secondary capital and its liquidation priority.
(3) Unless otherwise provided by law or by agreement between the member and the domestic credit union, a member of a domestic credit union is not liable for the acts, debts, or obligations of the domestic credit union.
(4) Except as provided in this subsection or where prohibited by applicable state or federal law or otherwise agreed by contract, a domestic credit union has a lien on any share of a member, or any deposit account from which a member may withdraw for his or her own benefit without the consent of another person, for any obligation owed to the domestic credit union by that member or for any loan cosigned or guaranteed by that member. A domestic credit union does not have a lien on any individual retirement account or other account permitting tax deferrals or providing other tax benefits under state or federal law. A domestic credit union may refuse to allow a withdrawal from any account on which it has a lien if the member is delinquent in any outstanding obligation to the domestic credit union at the time of the withdrawal.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-5 - Part 5 Capital (490.361...490.363) › Section 490.362 - Dividend; Declaration; Payment; Rate; Amount.

490.362 Dividend; declaration; payment; rate; amount.
Sec. 362.
A credit union board may declare and pay a dividend on shares from current or accumulated net earnings, or both, but only after providing for required reserves, accrued and unpaid expenses, and established loan and lease losses. A domestic credit union may pay a dividend on partial or full shares and may pay the dividend at differing levels and at differing intervals based on the type of share accounts owned by a member, the liquidation priority of the share accounts, and the balances of the member's share accounts. A domestic credit union may determine the rate and amount of a dividend before the end of the dividend period involved. A domestic credit union shall not pay a dividend if payment would result in the insolvency of the domestic credit union.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-5 - Part 5 Capital (490.361...490.363) › Section 490.363 - Payment to General Administrator or Executor of Deceased Out-of-State Resident.

490.363 Payment to general administrator or executor of deceased out-of-state resident.
Sec. 363.
(1) If a deceased individual who resided in another state or country owns a share or deposit account in a domestic credit union, the credit union may pay all or part of the balance of the account to the special or general administrator or executor appointed in the state or country where the account holder resided at the time of death if the administrator or executor provides both of the following to the credit union:
(a) Authenticated copies of the letter or order of appointment authorizing him or her to collect, receive, and remove assets of the estate of the decedent.
(b) An affidavit by the administrator or executor that he or she is the representative of the estate of the decedent, that no proceeding is pending in any state with respect to the question of domicile of the decedent, and that to his or her knowledge and belief no letters or orders of appointment are outstanding in this state, no proceeding is pending in this state for the appointment of a fiduciary for the estate in this state, and there are no creditors of the estate in this state.
(2) A credit union that makes a payment to an administrator or executor under this section after receiving the affidavit and authenticated copies described in subsection (1) is released and discharged from liability to the same extent as if the credit union made the payment to a legally qualified resident executor or administrator.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-6 - Part 6 Merger, Consolidation, Conversion (490.371...490.376) › Section 490.375 - Rights, Obligations, Relationships, and Trusts of Converting Credit Union.

490.375 Rights, obligations, relationships, and trusts of converting credit union.
Sec. 375.
(1) Except as provided in subsection (2), if a conversion becomes effective under section 372, 373, or 374, the converted entity is a continuation of the converting credit union and all the property and interests in property and every cause of action, right, privilege, interest, and asset of the converting credit union is immediately and without any conveyance, transfer, or other action vested in the converted organization. Every right, obligation, and relationship of the converting credit union to or in respect to any person, estate, creditor, member, depositor, trust, trustee, collective bargaining agreement, or beneficiary of any trust or fiduciary function continue unimpaired. The converted organization shall continue to hold all the rights, obligations, relationships, and trusts, and the duties and liabilities connected with them, and shall execute and perform each and every trust and relationship in the same manner as if the credit union had not converted. The conversion does not release the converted organization from its obligations to pay and discharge all the liabilities created by law or incurred by the converting credit union before the conversion, or any tax imposed by the laws of this state up to the day of the conversion in proportion to the time that has elapsed since the last preceding tax payment, or any assessment, penalty, or forfeiture imposed or incurred under the laws of this state before the date of the conversion.
(2) Within 1 year after the conversion, the commissioner may for good cause require a converting credit union to divest itself of an asset that does not conform to the legal requirements relative to assets acquired and held by the converted organization.
(3) If a converting credit union was appointed in a fiduciary capacity by a court or governmental tribunal, agency, or officer, the converted organization shall file an affidavit with the appointing authority setting forth the fact of conversion, the name and address of the converted organization, and the amount of its capital and surplus. A converted organization acting as a fiduciary by appointment of a court is subject to removal by a court of competent jurisdiction.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-7 - Part 7 Administration (490.381...490.387) › Section 490.381 - Disclosure of Confidential Information.

490.381 Disclosure of confidential information.
Sec. 381.
Except as otherwise required by law, a director, officer, member of a committee, or employee of a domestic credit union shall not disclose any confidential information related to the conduct of the business of the domestic credit union that he or she has a duty not to disclose, including, but not limited to, personnel matters, matters involving actual or potential litigation or real estate transactions, or other matters related to strategic business endeavors of the domestic credit union, and shall not disclose any information concerning transactions between the domestic credit union and either its members or other persons. This subsection does not apply to any disclosure necessary to the conduct of the business of the domestic credit union.
History:
2003, Act 215, Eff. June 1, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-7 - Part 7 Administration (490.381...490.387) › Section 490.382 - Fiscal Year; Accounting Principles.

490.382 Fiscal year; accounting principles.
Sec. 382.
(1) A domestic credit union shall use the calendar year as its fiscal year.
(2) A domestic credit union shall follow generally accepted accounting principles in its accounting, unless a different accounting standard is required by state or federal statute, rule, or regulation.
History:
2003, Act 215, Eff. June 1, 2004 ;-- Am. 2004, Act 471, Imd. Eff. Dec. 28, 2004
2023 Michigan Compiled Laws › Chapter 490 - Credit Unions › Act 215 of 2003 - Credit Union Act (490.101 - 490.601) › Article 3 - Domestic Credit Union Organization and Structure (490.301...490.387) › 215-2003-3-7 - Part 7 Administration (490.381...490.387) › Section 490.384 - Participation in Deliberation or Board Action.

490.384 Participation in deliberation or board action.
Sec. 384.
(1) Unless the matter involves setting dividends, loan rates, or fees for services or other general policy applicable to all members of the domestic credit union, a director, committee member, officer, or employee of a domestic credit union shall not in any manner, directly or indirectly, participate in the deliberation or board action on any matter that affects his or her pecuniary interest or the pecuniary interest of an entity other than the domestic credit union in which he or she is interested.
(2) If 1 or more directors are disqualified from participating in a matter before the credit union board pursuant to subsection (1), the remaining qualified directors present at the meeting, if constituting a quorum with the disqualified directors, may by majority vote exercise all the powers of the board with respect to the matter under consideration. If all of the directors are disqualified, the members of the domestic credit union shall act on the matter.
(3) If 1 or more committee members are disqualified from participating in a matter before the committee pursuant to subsection (1), the remaining qualified committee members, if constituting a quorum with the disqualified committee members, may by majority vote exercise all the powers of the committee with respect to the matter under consideration. If all of the committee members are disqualified, the credit union board shall act on the matter.
(4) As used in this section, an individual is “interested” in an entity if he or she meets any of the following:
(a) Serves as a director, officer, or employee of the entity.
(b) Has a business or deposit relationship with the entity.
(c) Has an ownership interest in the entity that is more than a 10% equity interest.
(d) Has a business, financial, or familial relationship with an individual who he or she knows has a pecuniary interest in the entity.
History:
2003, Act 215, Eff. June 1, 2004