HOUSE BILL No. 4889


     September 28, 1999, Introduced by Reps. Vear, DeHart, Gieleghem and Daniels and
referred to the Committee on Insurance and Financial Services.


        A bill to amend 1925 PA 285, entitled

   "An act to provide for the organization, operation, and supervi-
   sion of credit unions; to provide for the conversion of a state
   credit union into a federal credit union or a credit union orga-
   nized and supervised under the laws of any other state or terri-
   tory of the United States and for the conversion of a federal
   credit union or a credit union organized and supervised under the
   laws of any other state or territory of the United States into a
   state credit union; and to provide for the merger of credit
   unions organized and supervised under the laws of this state,
   credit unions organized and supervised under the laws of any
   other state or territory of the United States, and federal credit
   unions,"

   (MCL 490.1 to 490.31) by adding section 14a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 14A.  IF A CREDIT UNION REQUIRES AS A CONDITION OF PRO-

 2    VIDING A LOAN THAT THE BORROWER ESTABLISH AND DEPOSIT FUNDS INTO

 3    AN ESCROW ACCOUNT MAINTAINED BY THE CREDIT UNION, THE CREDIT

 4    UNION SHALL PAY THE SAME RATE OF INTEREST ON THE DEPOSITED FUNDS





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 1    AS THE CREDIT UNION PAYS ON ITS BASIC SAVINGS OR SHARE DEPOSIT

 2    ACCOUNTS.




















































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