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Michigan Compiled Laws Complete Through PA 255 of 2017
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Senate: Adjourned until Thursday, January 18, 2018 10:00:00 AM

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Act 276 of 1999 - BANKING CODE OF 1999 (487.11101 - 487.15105)
276‑1999‑1 ‑ CHAPTER 1 (487.11101...487.11203)
     276‑1999‑1‑1 ‑ PART 1 SHORT TITLE AND GENERAL PROVISIONS (487.11101...487.11107)
          Section 487.11101 ‑ Short title.
          Section 487.11102 ‑ Supervision and regulation of banking organizations; state policy.
          Section 487.11103 ‑ Filing of documents as constructive notice of contents; limitation.
          Section 487.11104 ‑ Remedies; construction of act.
          Section 487.11105 ‑ Person engaged in business of banking; corporation as fiduciary.
          Section 487.11106 ‑ Use of designation or name.
          Section 487.11107 ‑ Tax exemptions.
     276‑1999‑1‑2 ‑ PART 2 DEFINITIONS (487.11201...487.11203)
          Section 487.11201 ‑ Definitions; A to F.
          Section 487.11202 ‑ Definitions; F to P.
          Section 487.11203 ‑ Definitions; S to V.
276‑1999‑2 ‑ CHAPTER 2 FINANCIAL INSTITUTIONS BUREAU (487.12101...487.12410)
     276‑1999‑2‑1 ‑ PART 1 ADMINISTRATION (487.12101...487.12109)
          Section 487.12101 ‑ Financial institutions bureau; creation; jurisdiction; commissioner; appointment; duties; seal; other employment.
          Section 487.12102 ‑ Purpose of act.
          Section 487.12103 ‑ Powers and duties vested under former act; transfer of property, books, and other papers; effect of orders and rules.
          Section 487.12104 ‑ Deputies; appointment by commissioner; duties; revocation.
          Section 487.12105 ‑ Employees; appointment by commissioner; compensation; duties; revocation.
          Section 487.12106 ‑ Commissioner, deputy commissioner, or examiner; prohibited conduct.
          Section 487.12107 ‑ Liability; immunity.
          Section 487.12108 ‑ Annual report.
          Section 487.12109 ‑ Confidentiality; disclosures.
     276‑1999‑2‑2 ‑ PART 2 GENERAL POWERS (487.12201...487.12204)
          Section 487.12201 ‑ Rules.
          Section 487.12202 ‑ Examination of institution, its subsidiaries, and service entities.
          Section 487.12203 ‑ Fees; state bank regulatory fund.
          Section 487.12204 ‑ Declaratory rulings, orders, or determinations.
     276‑1999‑2‑3 ‑ PART 3 ENFORCMENT POWERS (487.12301...487.12315)
          Section 487.12301 ‑ Subpoena powers.
          Section 487.12302 ‑ Application.
          Section 487.12303 ‑ Reconsideration of order, ruling, or finding; hearing.
          Section 487.12304 ‑ Notice of charges; hearing; issuance of order to cease and desist; enforcement; notice to comptroller of currency and attorney general.
          Section 487.12305 ‑ Temporary cease and desist order.
          Section 487.12306 ‑ Conduct constituting breach of fiduciary duty; order of removal or prohibition.
          Section 487.12307 ‑ Stay of suspension or prohibition; issuance by court.
          Section 487.12308 ‑ Conduct involving felony or misdemeanor charge; order of removal or prohibition.
          Section 487.12309 ‑ Quorum of board of directors.
          Section 487.12310 ‑ Hearing; decision; review; consent order; modification, termination, or setting aside order.
          Section 487.12311 ‑ Enforcement powers; jurisdiction of court.
          Section 487.12312 ‑ Prohibited conduct; fine.
          Section 487.12313 ‑ Service of notice or order.
          Section 487.12314 ‑ Notice to federal supervisory authorities.
          Section 487.12315 ‑ Foreign bank; prohibited conduct.
     276‑1999‑2‑4 ‑ PART 4 RECEIVERSHIPS AND CONSERVATORSHIPS (487.12401...487.12410)
          Section 487.12401 ‑ Liquidation; receiver or other liquidating agent.
          Section 487.12402 ‑ Appointment of receiver; conditions; procedures.
          Section 487.12403 ‑ Receiver; duties; powers.
          Section 487.12404 ‑ Lien on property or assets; voidable transfer.
          Section 487.12405 ‑ Records.
          Section 487.12406 ‑ Conservator; appointment; bond and security; qualifications; expenses.
          Section 487.12407 ‑ Conservator; rights, powers, and privileges.
          Section 487.12408 ‑ Deposits received while bank in conservatorship.
          Section 487.12409 ‑ Authority of conservator to borrow money; purpose.
          Section 487.12410 ‑ Termination of conservatorship.
276‑1999‑3 ‑ CHAPTER 3 BANK ORGANIZATION AND STRUCTURE (487.13101...487.13913)
     276‑1999‑3‑1 ‑ PART 1 FORMATION (487.13101...487.13108)
          Section 487.13101 ‑ Bank organization generally.
          Section 487.13102 ‑ Bank organization; application.
          Section 487.13103 ‑ Organization of depository institutions generally.
          Section 487.13104 ‑ Expenses of incorporators; reimbursement.
          Section 487.13105 ‑ Bank as body corporate; authorization.
          Section 487.13106 ‑ Commencement of business.
          Section 487.13107 ‑ Organization meeting; notice.
          Section 487.13108 ‑ Capital adequacy; requirements.
     276‑1999‑3‑2 ‑ PART 2 ARTICLES OF INCORPORATION (487.13201...487.13203)
          Section 487.13201 ‑ Articles of incorporation; approval generally.
          Section 487.13202 ‑ Articles of incorporation; contents.
          Section 487.13203 ‑ Articles of incorporation; amendments.
     276‑1999‑3‑3 ‑ PART 3 DISSOLUTION (487.13301...487.13307)
          Section 487.13301 ‑ Proposed resolution of dissolution; certificate of termination; designation of liquidating agent or committee; reports; examination by commissioner; filing of certificate; termination.
          Section 487.13302 ‑ Bank in dissolution as body corporate.
          Section 487.13303 ‑ Bank in dissolution; function of officers, directors, and shareholders.
          Section 487.13304 ‑ “Existing claim” and “existing claimant” defined; notice to depositors and creditors; existing claims; effective date of written notice.
          Section 487.13305 ‑ “Claim” and “claimant” defined; notice of dissolution; publication; requirements.
          Section 487.13306 ‑ Court supervision of bank in dissolution.
          Section 487.13307 ‑ Debts, obligations, and liabilities.
     276‑1999‑3‑4 ‑ PART 4 TERM EXTENSION (487.13401...487.13401)
          Section 487.13401 ‑ Expiration of corporate term; extension.
     276‑1999‑3‑5 ‑ PART 5 OFFICERS AND DIRECTORS (487.13501...487.13507)
          Section 487.13501 ‑ Board of directors; election; appointment of officers; meetings.
          Section 487.13502 ‑ Board of directors; oath.
          Section 487.13503 ‑ Sale or purchase of securities or property.
          Section 487.13504 ‑ Discharge of duties; liability; commencement of action; violation; statute of limitations.
          Section 487.13505 ‑ Removal of director.
          Section 487.13506 ‑ Sale of stock or securities; officer or employee as agent prohibited.
          Section 487.13507 ‑ Procurement of loan; receipt of gratuity or consideration prohibited.
     276‑1999‑3‑6 ‑ PART 6 SHAREHOLDERS (487.13601...487.13604)
          Section 487.13601 ‑ Meeting of shareholders.
          Section 487.13602 ‑ Meeting called by commissioner.
          Section 487.13603 ‑ Names and addresses of shareholders; record.
          Section 487.13604 ‑ Provisions applicable to voting stock.
     276‑1999‑3‑7 ‑ PART 7 CONSOLIDATION AND CONVERSION (487.13701...487.13714)
          Section 487.13701 ‑ Consolidated bank; formation.
          Section 487.13702 ‑ Consolidated organization.
          Section 487.13703 ‑ Consolidated bank; rights, privileges, and powers.
          Section 487.13704 ‑ Service of process.
          Section 487.13705 ‑ Notice of operation.
          Section 487.13706 ‑ Definitions; applicable provisions.
          Section 487.13707 ‑ Definitions; consolidation agreement; approval of terms and conditions.
          Section 487.13708 ‑ Conversion of bank into stock association, stock savings bank, or national banking association.
          Section 487.13709 ‑ Conversion of depository institution.
          Section 487.13710 ‑ Effect of conversion.
          Section 487.13711 ‑ Branch services.
          Section 487.13712 ‑ Discontinuing branch operations; transfer of functions to principal office.
          Section 487.13713 ‑ Principal office; relocation.
          Section 487.13714 ‑ Branch office in foreign country; applicable provisions.
     276‑1999‑3‑8 ‑ PART 8 CAPITAL (487.13801...487.13808)
          Section 487.13801 ‑ Issuance of capital notes, debentures, or other instrument of indebtedness.
          Section 487.13802 ‑ Issuance of shares; number; classes; designations.
          Section 487.13803 ‑ Stock certificates.
          Section 487.13804 ‑ Capital stock; increase.
          Section 487.13805 ‑ Capital stock; reduction.
          Section 487.13806 ‑ Dividends.
          Section 487.13807 ‑ Deficiency; steps to make assessment or dissolution; extension.
          Section 487.13808 ‑ Distribution of sale proceeds; issuance of new certificates; effect of uniform commercial code.
     276‑1999‑3‑9 ‑ PART 9 ADMINISTRATION (487.13901...487.13913)
          Section 487.13901 ‑ Repayment of deposits.
          Section 487.13902 ‑ Compliance review committee.
          Section 487.13903 ‑ Surety bond.
          Section 487.13904 ‑ Indemnification.
          Section 487.13905 ‑ Indemnification; expenses and amounts.
          Section 487.13906 ‑ Director, officer, employee, or agent as party to action; reimbursement.
          Section 487.13907 ‑ Other rights to indemnification or advancement; limitation.
          Section 487.13908 ‑ Liability insurance or trust fund.
          Section 487.13909 ‑ Consolidation or merger; position of director, officer, employee, or agent of absorbed depository institution.
          Section 487.13910 ‑ Definitions; person acting in best interests of bank or shareholders.
          Section 487.13911 ‑ Reports.
          Section 487.13912 ‑ Attachment or execution.
          Section 487.13913 ‑ Action taken or event occurring on or before November 29, 1995.
276‑1999‑4 ‑ CHAPTER 4 BANKING POWERS (487.14101...487.14406)
     276‑1999‑4‑1 ‑ PART 1 GENERAL PROVISIONS (487.14101...487.14111)
          Section 487.14101 ‑ Banking powers generally.
          Section 487.14102 ‑ Safe deposit and storage department; lien for unpaid rental and storage charges.
          Section 487.14103 ‑ Drafts or bills of exchange.
          Section 487.14104 ‑ Real estate brokerage.
          Section 487.14105 ‑ Permitted services or activities.
          Section 487.14106 ‑ Purchase or sale of assets; powers of bank.
          Section 487.14107 ‑ Sale or purchase of bank branch.
          Section 487.14108 ‑ Pledging bank assets as collateral security.
          Section 487.14109 ‑ Bank agent; activities.
          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.
          Section 487.14111 ‑ Loan promotion raffle or savings promotion raffle.
     276‑1999‑4‑2 ‑ PART 2 LOANS (487.14201...487.14205)
          Section 487.14201 ‑ Loans and credit extensions; interest and charges.
          Section 487.14202 ‑ Total loans and credit extensions; limitation; exceptions; limitations based upon capital and surplus.
          Section 487.14203 ‑ Financing real or personal property; use of proceeds for purchase, design, manufacture, construction, repair, modification, or improvement; liability for defect.
          Section 487.14204 ‑ Insurance; hazard; property and casualty.
          Section 487.14205 ‑ Allowance for bank loan and lease losses; charge off of debt.
     276‑1999‑4‑3 ‑ PART 3 INVESTMENTS (487.14301...487.14310)
          Section 487.14301 ‑ Purchasing, selling, underwriting, and holding investment securities.
          Section 487.14302 ‑ Purchase of investment securities.
          Section 487.14303 ‑ Investment in other assets.
          Section 487.14304 ‑ Bank investment authority; purchasing or holding shares of stock or other equity interests.
          Section 487.14305 ‑ Venture capital investments.
          Section 487.14306 ‑ Lease, purchase, holding, and conveyance of real property.
          Section 487.14307 ‑ Acquisition, development, or improvement of real property for sale.
          Section 487.14308 ‑ Acquisition of real property for use of customer; loan secured by real property.
          Section 487.14309 ‑ Acquisition of personal property for use of customer; loan secured by personal property.
          Section 487.14310 ‑ Investment in service entity.
     276‑1999‑4‑4 ‑ PART 4 TRUSTS (487.14401...487.14406)
          Section 487.14401 ‑ Trust powers; conditions, limitations, and restrictions.
          Section 487.14402 ‑ Definitions; trust service agreement.
          Section 487.14403 ‑ Trust powers; segregation of assets held in fiduciary capacity; separate books and records; commingling and consolidation.
          Section 487.14404 ‑ Application for full fiduciary powers; considerations; limited trust power.
          Section 487.14405 ‑ Investment of trust funds or property; "registered investment company" defined; bank considered as fiduciary.
          Section 487.14406 ‑ Repealed. 2005, Act 195, Imd. Eff. Nov. 7, 2005.
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.
          Section 487.15102 ‑ Conversion of state agency or state foreign bank branch into federal agency or federal branch.
          Section 487.15103 ‑ Termination of authority to operate state agency or state foreign bank branch.
          Section 487.15104 ‑ Reports.
          Section 487.15105 ‑ Operations of foreign bank at state foreign bank branch or state agency.

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