reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-3 - Chapter 3 Bank Organization and Structure (487.13101...487.13913) › 276-1999-3-9 - Part 9 Administration (487.13901...487.13913) › Section 487.13905 - Indemnification; Expenses and Amounts.

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

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

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

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

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

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

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

487.13912 Attachment or execution.
Sec. 3912.
Attachment or execution shall not be issued against a bank or its property before final judgment in any suit, action, or proceeding involving the bank in any court.
History:
1999, Act 276, Eff. Mar. 1, 2000
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) › 276-1999-3-9 - Part 9 Administration (487.13901...487.13913) › Section 487.13913 - Action Taken or Event Occurring on or Before November 29, 1995.

487.13913 Action taken or event occurring on or before November 29, 1995.
Sec. 3913.
A written agreement entered into under section 130b of former 1969 PA 319 shall remain in effect with regard to actions taken and events occurring on or before November 29, 1995. A cause of action shall not accrue under an agreement for an action taken or event occurring after November 29, 1995.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14102 - Safe Deposit and Storage Department; Lien for Unpaid Rental and Storage Charges.

487.14102 Safe deposit and storage department; lien for unpaid rental and storage charges.
Sec. 4102.
(1) If a bank operates a safe deposit and storage department, the legal liability of the bank on account of any loss to a customer shall not exceed the sum of $10,000.00 for any 1 box or compartment, including all property accepted for storage outside of the box or compartment. The bank may contract with the renter to have the renter assume all risks arising from the use of the box, compartment, or storage.
(2) The bank shall have a lien for unpaid rental and storage charges on the contents of any box or compartment and any property accepted for storage outside of the box or compartment. If the charges are not paid within 1 year from the date of accrual, the bank may sell the property at public auction upon like notice as is required by law for sales on execution. After retaining from the proceeds of sale the amount of all charges due and owing at the time of the sale, and the reasonable expenses of the sale, the bank shall pay the balance, if any, upon proper showing to the persons entitled to the balance. The bank may fairly and in good faith purchase all or any part of the property at the sale.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14103 - Drafts or Bills of Exchange.

487.14103 Drafts or bills of exchange.
Sec. 4103.
(1) A bank may accept drafts or bills of exchange drawn upon it having not more than 6 months' sight to run, exclusive of days of grace, if 1 or more of the following apply:
(a) The drafts or bills of exchange grow out of transactions involving the importation or exportation of goods.
(b) The drafts or bills of exchange grow out of transactions involving the domestic shipment of goods.
(c) The drafts or bills of exchange are secured at the time of acceptance by a warehouse receipt or other document conveying or securing title covering readily marketable staples.
(2) Except as provided in subsection (3), a bank shall not accept bills of exchange, or be obligated for a participation share in bills of exchange, in an amount equal at any time in the aggregate to more than 150% of its capital and surplus.
(3) The commissioner, under conditions as the commissioner may prescribe, may authorize by order or declaratory ruling any bank to accept bills of exchange, or be obligated for a participation share in bills of exchange, in an amount not exceeding at any time in the aggregate 200% of its capital and surplus.
(4) Notwithstanding subsections (2) and (3), with respect to any bank, the aggregate acceptances, including obligations for a participation share in acceptances, growing out of domestic transactions shall not exceed 50% of the aggregate of all acceptances, including obligations for a participation share in acceptances, authorized for the bank under this section.
(5) A bank shall not accept bills, or be obligated for a participation share in bills of exchange, whether in a foreign or domestic transaction, for any 1 person, partnership, corporation, association, or other entity in an amount equal at any time in the aggregate to more than 10% of its capital and surplus, unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance.
(6) With respect to a bank that issues an acceptance, the limitations contained in this section do not apply to that portion of an acceptance that is issued by the bank and that is covered by a participation agreement sold to another bank, out-of-state bank, or national bank.
(7) In order to carry out the purposes of this section, the commissioner may define any of the terms used in 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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14105 - Permitted Services or Activities.

487.14105 Permitted services or activities.
Sec. 4105.
A bank may perform for others 1 or more of the following services or activities, and any other services or activities permitted by order or declaratory ruling of the commissioner:
(a) Provide life, health, and casualty insurance for officers and employees of financial institutions and operate bonus plans and retirement benefit plans for those officers and employees.
(b) Service mortgages and land contracts.
(c) Originate and service mortgage loans, mortgages, and land contracts, on behalf of financial institutions, corporations, and state or federal agencies or instrumentalities.
(d) Act as escrow agent or depository for other escrow agents or fiduciaries.
(e) Conduct credit analysis, appraising, construction loan inspection, and abstracting.
(f) Conduct research, studies, and surveys.
(g) Develop and operate storage facilities for microfilm or other duplicate records.
(h) Advertise, broker, and conduct other activities to procure and retain both deposits and loans, but not pool deposits or solicit or promote pooled deposits.
(i) Provide liquidity management, investment, advisory, and consulting services.
(j) Establish, own, lease, operate, or maintain electronic funds transfer terminals.
(k) Purchase office supplies, furniture, and equipment.
(l) Prepare local, state, and federal tax returns.
(m) Perform data processing services.
(n) Subject to applicable state or federal law, provide brokerage services for the offer, sale, or purchase of a security or commodity contract.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14106 - Purchase or Sale of Assets; Powers of Bank.

487.14106 Purchase or sale of assets; powers of bank.
Sec. 4106.
(1) With the approval of the commissioner, based upon an examination or other appropriate analysis of either the buying or selling organization, or both, and upon the affirmative vote of a majority of the members of its board of directors and of the holders of 2/3 of its stock entitled to vote, a bank may do either or both of the following:
(a) Sell all or substantially all of its assets of every kind, character, and description and assign its liabilities to any depository institution.
(b) Purchase all or substantially all of the assets of every kind, character, and description and assume the liabilities of another depository institution.
(2) The consideration for a purchase and sale under this section may include shares of stock of the purchasing bank, out-of-state bank, national bank, association, or savings bank.
(3) A purchase and sale shall not be made to defeat or defraud any of the creditors of the depository institutions.
(4) Certified copies of all shareholders' and directors' proceedings under this section shall be submitted to the commissioner and shall contain the terms of the sale and purchase, including a copy of the agreement of sale and purchase.
(5) The liability of a depository institution or of its shareholders, directors, or officers, or the rights of creditors of, or other persons transacting business with, the depository institution shall not be lessened or impaired as the result of a sale of assets under this section.
(6) Notwithstanding any other provision of this act, a bank that purchases or assumes all or substantially all of the assets or liabilities of a depository institution may retain, maintain, and operate the principal office or branches of the depository institution as branches of the purchasing bank without providing notice to the commissioner under section 3711(1) provided it assumes the deposit liabilities of the depository institution maintained at the principal office or branches.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14107 - Sale or Purchase of Bank Branch.

487.14107 Sale or purchase of bank branch.
Sec. 4107.
(1) A bank may sell 1 or more of its branches, without selling all or substantially all of the bank, to another depository institution located in this state or in a state whose laws would permit a bank to purchase 1 or more branches in that state of the purchasing depository institution.
(2) A bank may purchase 1 or more branches of another depository institution, without purchasing all or substantially all of the depository institution.
(3) A bank that proposes to purchase 1 or more branches under subsection (2) shall provide notice to the commissioner under section 3711 before operating the purchased branch or branches.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14109 - Bank Agent; Activities.

487.14109 Bank agent; activities.
Sec. 4109.
An agent of a bank described in section 4101(1)(e) may engage in any of the following activities:
(a) Accept a deposit to an existing account and record the addition to the account or give other evidence of receipt as prescribed by the bank.
(b) Accept a withdrawal form and other evidence required by the bank from an account holder for transmission to the bank.
(c) Solicit and accept a new account. Evidence of account ownership shall be issued only by authority of the bank. An agent may obtain signature cards from the bank for the account holder. An agent of a bank shall not possess an unissued or blank authenticated savings account passbook or certificate or other evidence of account ownership.
(d) Solicit and accept an application for a loan or for a land contract purchase. The agent shall submit the application to the bank for processing and approval.
(e) Disburse withdrawn or loaned funds, upon approval of each disbursement by the bank.
(f) Accept payment on a loan or on a land contract and issue evidence of receipt as prescribed by the bank.
(g) Any other services as approved by order or declaratory ruling 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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14110 - Automatic Teller Machine Located on Premises of Casino, Casino Enterprise, Liquor Store, or Adult Entertainment Establishment; Preventing Access to Cash Benefits From Michigan Bridge Card; Definitions.

487.14110 Automatic teller machine located on premises of casino, casino enterprise, liquor store, or adult entertainment establishment; preventing access to cash benefits from Michigan bridge card; definitions.
Sec. 4110.
(1) A bank that owns, operates, or manages an automated teller machine located on the premises of a casino, casino enterprise, liquor store, or adult entertainment establishment shall work with the department of human services to ensure that the automated teller machine does not allow an individual access to cash benefits from a Michigan bridge card.
(2) As used in this section:
(a) "Adult entertainment establishment" means any of the following:
(i) An on-premises licensee that holds a topless activity permit described in section 916(3) of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1916.
(ii) Any other retail establishment that provides adult-oriented entertainment in which performers disrobe or perform in an unclothed state for entertainment.
(b) "Alcoholic liquor" means that term as defined in section 105 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1105.
(c) Subject to subsection (3), "casino" means that term as defined in section 2 of the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.202.
(d) Subject to subsection (3), "casino enterprise" means that term as defined in section 2 of the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.202.
(e) "Gaming" means that term as defined in section 2 of the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.202.
(f) "Liquor store" means a retailer, as defined in section 111 of the Michigan liquor control code of 1998, 1998 PA 58, MCL 436.1111, that is exclusively or primarily engaged in the sale of alcoholic liquor. The term does not include a retailer that is a retail food store.
(g) "Michigan bridge card" means the card that is used to distribute cash benefits by the department of human services.
(h) "Retail food store" means that term as defined in 7 USC 2012.
(3) As used in this section, the terms casino and casino enterprise do not include any of the following:
(a) A grocery store that sells groceries, including staple foods, and is located in a casino or a casino enterprise.
(b) Any other business establishment that offers gaming that is incidental to the principal purpose of that establishment.
History:
Add. 2013, Act 195, Eff. Feb. 1, 2014
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-1 - Part 1 General Provisions (487.14101...487.14111) › Section 487.14111 - Loan Promotion Raffle or Savings Promotion Raffle.

487.14111 Loan promotion raffle or savings promotion raffle.
Sec. 4111.
(1) If authorized by its board of directors, a bank may conduct a loan promotion raffle or savings promotion raffle. The bank shall conduct a loan promotion raffle or savings promotion raffle so that each token or ticket representing an entry in the raffle has an equal chance of being drawn. A bank shall not conduct a loan promotion raffle or savings promotion raffle in a manner that jeopardizes the bank's safety and soundness, misleads its customers, or violates federal law.
(2) A bank shall maintain records sufficient to facilitate an examination of a loan promotion raffle or savings promotion raffle.
(3) As used in this section:
(a) "Loan promotion raffle" means a raffle conducted by a bank where the sole consideration required for a chance of winning designated prizes is the closing on a loan with the bank of at least a specified amount.
(b) "Savings promotion raffle" means a raffle conducted by a bank where the sole consideration required for a chance of winning designated prizes is the deposit of at least a specified amount of money in a savings account or other savings program offered by the bank.
History:
Add. 2014, Act 399, Imd. Eff. Dec. 29, 2014 ;-- Am. 2016, Act 162, Eff. Sept. 7, 2016
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-2 - Part 2 Loans (487.14201...487.14205) › Section 487.14201 - Loans and Credit Extensions; Interest and Charges.

487.14201 Loans and credit extensions; interest and charges.
Sec. 4201.
(1) A bank may collect interest and charges on loans and extensions of credit as permitted by the laws of this state or of the United States to any person.
(2) A bank may charge a discount on obligations purchased 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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-2 - Part 2 Loans (487.14201...487.14205) › Section 487.14203 - Financing Real or Personal Property; Use of Proceeds for Purchase, Design, Manufacture, Construction, Repair, Modification, or Improvement; Liability for Defect.

487.14203 Financing real or personal property; use of proceeds for purchase, design, manufacture, construction, repair, modification, or improvement; liability for defect.
Sec. 4203.
A bank that makes a loan, the proceeds of which are used or may be used by the borrower to finance the purchase, design, manufacture, construction, repair, modification, or improvement of real or personal property, shall not be liable for any defect in the property purchased, designed, manufactured, constructed, repaired, modified, or improved or for any loss or damage resulting from the failure of the borrower or any agent or other person employed by the borrower to use due care in the examination, design, manufacture, construction, repair, modification, or improvement of the property.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-2 - Part 2 Loans (487.14201...487.14205) › Section 487.14204 - Insurance; Hazard; Property and Casualty.

487.14204 Insurance; hazard; property and casualty.
Sec. 4204.
(1) A bank that requires a mortgagor to maintain hazard insurance as a condition of receiving a mortgage loan shall not require the amount of the hazard insurance to be greater than the replacement cost of the mortgaged building or buildings.
(2) A bank may require an amount of property and casualty insurance that is required of the bank as a condition of sale, transfer, or assignment of all or part of the mortgage to a third party. This subsection does not require that the bank anticipate a sale, transfer, or assignment at the time the mortgage is made.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-2 - Part 2 Loans (487.14201...487.14205) › Section 487.14205 - Allowance for Bank Loan and Lease Losses; Charge Off of Debt.

487.14205 Allowance for bank loan and lease losses; charge off of debt.
Sec. 4205.
Unless a debt constitutes a claim against a solvent estate in probate, if the interest on a debt held by a bank is past due and unpaid for a period of 12 months, the bank shall charge off to its allowance for loan and lease losses the portion of the debt that is not well secured.
History:
1999, Act 276, Eff. Mar. 1, 2000 ;-- Am. 2009, Act 59, Imd. Eff. July 2, 2009
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14302 - Purchase of Investment Securities.

487.14302 Purchase of investment securities.
Sec. 4302.
(1) A bank may purchase investment securities for its own account when in its prudent banking judgment, which may be based in part upon estimates that it believes to be reliable, it determines that there is adequate evidence that the obligor will be able to perform all it undertakes to perform in connection with the securities, including all debt service requirements, and that the securities may be sold with reasonable promptness at a price that corresponds to their fair value.
(2) A bank shall not purchase investment securities in which the investment characteristics are considered distinctly or predominantly speculative, or purchase investment securities that are in default, whether as to principal or interest.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14303 - Investment in Other Assets.

487.14303 Investment in other assets.
Sec. 4303.
Notwithstanding any other section of this act, a bank may invest in other assets authorized by order or declaratory ruling 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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14305 - Venture Capital Investments.

487.14305 Venture capital investments.
Sec. 4305.
(1) Except as otherwise provided by this act, a bank may make venture capital investments, and may invest in equity securities of a professional investor a majority of whose assets consists of venture capital investments.
(2) If a bank makes a venture capital investment under subsection (1), an officer or director of the bank shall not hold an equity position in the financed company, and the bank shall own less than 50% of the company.
(3) A bank's investment under subsection (1) in any 1 entity shall not exceed an amount equal to 5% of the capital and surplus of the bank, and all investments under subsection (1) shall not exceed an amount equal to 10% of the capital and surplus of the bank.
(4) This section does not limit the authority of a bank to exercise lending or investment powers which are otherwise authorized by law.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14306 - Lease, Purchase, Holding, and Conveyance of Real Property.

487.14306 Lease, purchase, holding, and conveyance of real property.
Sec. 4306.
A bank may lease, purchase, hold, and convey any of the following real property:
(a) As necessary for the convenient transaction of its business, including space within its banking office buildings to rent as lessor to third parties.
(b) As conveyed to it in satisfaction of debts previously contracted in the course of its business.
(c) As it purchases at sales under judgments, decrees, or mortgages held by the bank or to secure debts due to it.
(d) As it legally owned on the effective date of this act.
(e) As conveyed to it under sections 4401 to 4405.
(f) As it may acquire in connection with the purchase by it of a land contract, but the purchase of the land contract constitutes a loan secured by real property for purposes of section 4202.
(g) For any other purpose as may be permitted by this act or by order or declaratory ruling 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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14307 - Acquisition, Development, or Improvement of Real Property for Sale.

487.14307 Acquisition, development, or improvement of real property for sale.
Sec. 4307.
A bank may invest not more than 10% of its total assets in the acquisition and development of real property for sale, or for the improvement of real property by construction or rehabilitation of residential or commercial units for sale or rental purposes. For purposes of this section, a bank may purchase, take, lease as lessee, or otherwise acquire, and own, hold, use, sell, lease as lessor, pledge, grant a security interest in, convey, or otherwise dispose of real property. The investment by a bank may be direct, or indirect as a stockholder in a corporation, member of a limited liability company, or limited partner in a partnership or limited liability partnership.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14308 - Acquisition of Real Property for Use of Customer; Loan Secured by Real Property.

487.14308 Acquisition of real property for use of customer; loan secured by real property.
Sec. 4308.
(1) A bank may lease, purchase, hold, and convey real property for the use of a customer by lease arrangement with the bank, but the acquisition of real property and leasing to a customer constitutes a loan secured by real property for purposes of section 4202.
(2) A bank may incur additional obligations incident to becoming an owner or lessor of real property acquired for the use of a customer.
(3) Inventory of real property held under this section and not leased shall not exceed 25% of the bank's capital and surplus.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14309 - Acquisition of Personal Property for Use of Customer; Loan Secured by Personal Property.

487.14309 Acquisition of personal property for use of customer; loan secured by personal property.
Sec. 4309.
(1) A bank may lease, purchase, hold, and convey personal property for the use of a customer by lease arrangement with the bank, but the acquisition of personal property and leasing to a customer constitutes a loan secured by personal property under section 4202.
(2) A bank may incur additional obligations incident to becoming an owner or lessor of personal property acquired for the use of a customer.
(3) Inventory of personal property held under this section and not leased shall not exceed 25% of the bank's capital and surplus.
(4) Personal property of a bank that is leased, loaned, or otherwise made available to and used by a person in connection with a business conducted for profit shall be subject to taxation in the same amount and to the same extent as though the lessee or user were the owner of the property. When due, the taxes shall constitute a debt due from the lessee or user to the unit of government for which the taxes were assessed.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-3 - Part 3 Investments (487.14301...487.14310) › Section 487.14310 - Investment in Service Entity.

487.14310 Investment in service entity.
Sec. 4310.
(1) As authorized by order or declaratory ruling of the commissioner, a bank may invest in service entities that engage in activities in which a bank is not authorized to engage.
(2) The maximum aggregate investment by a bank in service entities shall be the lesser of 5% of the bank's total assets or 75% of its capital and surplus.
(3) The commissioner shall give notice to all banks of orders and declaratory rulings issued under this section.
(4) For purposes of subsection (2), investment in a service entity shall include loans by a bank or its subsidiary to a service entity.
(5) Subject to the investment limit in subsection (2), a bank or its subsidiary that has made an initial investment in a service entity may make additional investments in that service entity without notice to 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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-4 - Part 4 Trusts (487.14401...487.14406) › Section 487.14403 - Trust Powers; Segregation of Assets Held in Fiduciary Capacity; Separate Books and Records; Commingling and Consolidation.

487.14403 Trust powers; segregation of assets held in fiduciary capacity; separate books and records; commingling and consolidation.
Sec. 4403.
(1) A bank exercising a trust power as provided in this section and sections 4401, 4402, 4404, and 4405 shall segregate all assets held in a fiduciary capacity from the general assets of the bank, shall keep a separate set of books and records showing in proper detail all transactions engaged in under the authority of this section and sections 4401, 4402, 4404, and 4405, and at all times shall keep the bank's trust department business separate and distinct from the bank's commercial banking business.
(2) Funds, at any time and from time to time, held in trust by the bank awaiting investment or other disposition, may be commingled and consolidated, and may be deposited in other banks as designated by the board of directors or may be held at any time and from time to time by the bank under a deposit relationship and used by the bank in the conduct of the bank's individual corporate business, but only to the extent and when the bank shall set aside for the protection of the owners of the funds obligations of the United States, obligations that are guaranteed fully as to principal and interest by the United States, general obligations of this state or of any political subdivision of this state, surety bonds, or other securities approved by the commissioner equal at face value to the amount of the funds held and so used less the amount of the funds that are insured by the federal deposit insurance corporation. If the bank fails, the owners of the funds held in trust, awaiting investment or other disposition, shall have a lien on the securities set apart in addition to any other claims against 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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-4 - Part 4 Trusts (487.14401...487.14406) › Section 487.14404 - Application for Full Fiduciary Powers; Considerations; Limited Trust Power.

487.14404 Application for full fiduciary powers; considerations; limited trust power.
Sec. 4404.
(1) In acting upon applications for permission to exercise full fiduciary powers as provided in section 4401, the commissioner shall take into consideration the sufficiency of the capital and surplus of the applying bank and any other facts or circumstances the commissioner considers proper.
(2) Without regard to the capital and surplus requirements specified in subsection (1), the commissioner may grant to a bank the limited trust power to act as executor, administrator, or guardian and to serve as a testamentary trustee.
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) › 276-1999-4 - Chapter 4 Banking Powers (487.14101...487.14406) › 276-1999-4-4 - Part 4 Trusts (487.14401...487.14406) › Section 487.14406 - Repealed. 2005, Act 195, Imd. Eff. Nov. 7, 2005.

487.14406 Repealed. 2005, Act 195, Imd. Eff. Nov. 7, 2005.
Compiler's Notes:
The repealed section pertained to filing suspicious activity report by bank with federal agency.
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 276 of 1999 - Banking Code of 1999 (487.11101 - 487.15105) › 276-1999-5 - Chapter 5 Foreign Banks (487.15101...487.15105) › 276-1999-5-STRUCTURE - Structure (487.15101...487.15105) › Section 487.15101 - State Agency or State Foreign Bank Branch; Establishment and Operation by State Foreign Bank Branch.

487.15101 State agency or state foreign bank branch; establishment and operation by state foreign bank branch.
Sec. 5101.
(1) With the written approval of the commissioner, a foreign bank may establish and operate a state agency or state foreign bank branch in this state if all of the following apply to the foreign bank:
(a) It is authorized by its charter or articles of incorporation to engage in the business of banking.
(b) It has complied with the laws of the foreign country in which it is chartered or incorporated.
(c) In the case of a state agency, the foreign bank does not operate a federal agency in this state.
(d) In the case of a state foreign bank branch, the foreign bank has not previously designated any other state as its home state under the international banking act of 1978.
(2) The commissioner shall examine the information and statements contained in the application submitted under subsection (1) and make any investigation considered necessary regarding the financial and managerial resources of the applicant. The commissioner shall also consider whether there exists an opportunity for a bank having its principal place of business in this state to conduct business in the foreign country in which the applicant is chartered or incorporated.
(3) Upon written notification to the commissioner, a foreign bank authorized by its charter or articles of incorporation to engage in the business of banking, and that has complied with the applicable laws of the jurisdiction in which it is chartered or incorporated, may establish and operate a foreign bank representative office in this state.
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) › 276-1999-5 - Chapter 5 Foreign Banks (487.15101...487.15105) › 276-1999-5-STRUCTURE - Structure (487.15101...487.15105) › Section 487.15102 - Conversion of State Agency or State Foreign Bank Branch Into Federal Agency or Federal Branch.

487.15102 Conversion of state agency or state foreign bank branch into federal agency or federal branch.
Sec. 5102.
(1) A state agency or state foreign bank branch may be converted into a federal agency or federal branch under the international banking act of 1978.
(2) A federal agency or federal branch located in this state may be converted, with the written approval of the commissioner, into a state agency or state foreign bank branch. If the converted state agency or state foreign bank branch succeeds to assets in which it does not have the legal power to invest, or liabilities that it does not have power to incur, those assets or liabilities shall be disposed of within the next 12 calendar months of the date of the conversion, except that the commissioner may extend this period in the interest of an orderly disposition of those assets or liabilities. The disposition period shall not exceed 3 years.
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) › 276-1999-5 - Chapter 5 Foreign Banks (487.15101...487.15105) › 276-1999-5-STRUCTURE - Structure (487.15101...487.15105) › Section 487.15103 - Termination of Authority to Operate State Agency or State Foreign Bank Branch.

487.15103 Termination of authority to operate state agency or state foreign bank branch.
Sec. 5103.
Authority to operate a state agency, state foreign bank branch, or foreign bank representative office shall terminate upon dissolution of the foreign bank, or the commissioner's revocation of the foreign bank's authority to operate in this state. Upon termination of the authority to operate a state agency or state foreign bank branch, the commissioner shall become agent for the foreign bank for service of process and shall exercise the same powers, including the right to appoint a receiver, over the assets and liabilities of the state agency or state foreign bank branch as are permitted over a state chartered bank in liquidation or dissolution under sections 2401 to 2410 and 3301 to 3307.
History:
1999, Act 276, Eff. Mar. 1, 2000