HB-4976, As Passed Senate, April 27, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 4976

     A bill to amend 1978 PA 232, entitled

"An act to permit banks and savings and loan associations to

suspend business in the event of an existing or impending

emergency; to prescribe the powers and duties of bank and savings

and loan association officers and certain state officials; and to

declare the legal effect of the suspensions of business authorized

by this act,"

by amending the title and sections 1, 2, 3, 4, 5, and 6 (MCL

487.941, 487.942, 487.943, 487.944, 487.945, and 487.946).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     An act to permit  banks and savings and loan associations

financial institutions to suspend business in the event of an

existing or impending emergency; to prescribe the powers and duties

of  bank and savings and loan association  financial institution

officers and certain state agencies and officials; and to declare

the legal effect of the suspensions of business authorized by this

act.

     Sec. 1. As used in this act:

     (a) "Commissioner" means the commissioner of the  financial

institutions bureau of the department of commerce or his or her

authorized representative office of financial and insurance

services in the department of labor and economic growth.

      (b) "Bank" means a bank organized or reorganized under Act

No. 319 of the Public Acts of 1969, as amended, being sections

487.301 to 487.598 of the Michigan Compiled Laws, or an industrial

bank or trust company incorporated under previously existing state

law, a branch or agency of a foreign banking organization, and, to

the extent that this act is not inconsistent with and does not

infringe upon paramount federal law, includes a national bank.

     (c) "Association" means a state chartered savings and loan

association and to the extent that this act is not inconsistent

with and does not infringe upon paramount federal law, includes a

federal savings and loan association.

     (d) "Officer" means a person designated by the board of

directors of a bank or association to carry out this act.

     (e) "Office" means a place at which a bank or association

transacts its business or conducts operations related to its

business.

(b)  (f)  "Emergency" means a condition or occurrence  which

that has or may, directly or indirectly, interfere physically with

the conduct of normal business operations  at an office of a bank

or association of 1 or more offices of a financial institution, or

which poses an imminent or existing threat to the safety and

security of a person or property, or both. An emergency may arise

as a result of a fire,  ; a  flood,  ; an  earthquake,  ; a

hurricane,  ; a  tornado,  ; a  wind, rain,  or snow storm; a

snowstorm, labor dispute or strike,  ; a  power failure,  ; a

transportation failure,  ; an fuel shortage, interruption of a

communication facility,  ; a  shortage of  fuel,  housing  , or

food,  or transportation; a  robbery or attempted robbery,  ; an

actual or threatened enemy or terrorist attack,  ; an  epidemic or

other catastrophe,  ; a  riot, civil commotion,  and or any other

act of lawlessness or violence.

(c) "Financial institution" means a state chartered bank,

savings bank, credit union, or savings and loan association over

which the commissioner has regulatory authority for purposes of

this act.

(d) "Office" means a place at which a financial institution

transacts its business or conducts operations related to its

business.

(e) "Officer" means a person designated by the board of

directors of a financial institution to carry out this act.

     Sec. 2. (1) The commissioner may  , by proclamation, authorize

banks or associations authorize or order a financial institution

to close an office  when it appears to  or offices if the

commissioner determines that the action is required because an

emergency exists  , or may be impending.  , in this state which

directly or indirectly, may interfere with the conduct of normal

operations of a bank or association in the affected area.  The

House Bill No. 4976 (H-1) as amended January 24, 2006

office  so or offices closed shall remain closed until the

commissioner  proclaims  determines that the emergency is ended and

authorizes [or orders] the financial institution to open the office or

offices.

In connection with a proclamation issued under this section, the

The commissioner shall promptly advise the governor of the issuance

of  such a proclamation  a determination under this subsection.

     (2) The commissioner may authorize  banks and associations a

financial institution to close on a day designated by proclamation

of the president of the United States or the governor of this state

as a day of national mourning, rejoicing, or other special

observance.  The governor of this state by proclamation, in

connection with a day of national mourning, rejoicing, or other

special observance, may authorize banks and associations to close

on a day the governor designates.

     Sec. 3.  When the chief executive officer  If the commissioner

has not made a determination under section 2(1) and the chief

executive officer of a  bank or association, or, in his absence the

officer serving as chief executive officer is of the opinion

financial institution or another officer designated by the

financial institution for purposes of this act determines that an

emergency exists  ,  or is impending,  which affects, or may affect

its offices, the officer may determine, in the reasonable and

proper exercise of the officer's discretion, not to open the office

on a business or banking day or, if having opened, to close the

office during the continuation of the emergency, even if the

commissioner has not issued and does not issue a proclamation of

emergency. The office so closed shall remain closed until the chief

executive officer of a bank or association, or, in his absence the

officer serving as chief executive officer determines that the

emergency has ended the officer may order that an office or

offices of the financial institution be closed or not open.

     Sec. 4. (1) A  bank or association financial institution

closing or not opening an office  pursuant to this act or offices

under section 3 shall give  as prompt  notice  of its action, as

conditions permit and by any means available,  to the commissioner

, or, in the case of a national bank, to the comptroller of the

currency, or, in the case of a federal association, to the federal

home loan bank board and any other appropriate governmental entity

as required by law.

     (2) A financial institution that closes or does not open an

office or offices under section 3 shall reopen the office or

offices as soon as the chief executive officer or other designated

officer determines that the emergency is ended or as authorized or

ordered by the commissioner.

     Sec. 5. The period during which a  bank or association is

closed pursuant to the authorization granted financial institution

is closed under this act  shall be is a legal holiday.  and a

bill, check, or note otherwise presentable for acceptance of

payment shall be deemed to be payable and presentable for

acceptance or payment on the next secular or business day following

the holiday.

     Sec. 6. This act  shall not be construed to does not alter

any of the obligations under law of a  bank or association

financial institution to its employees or to the employees of

another employer.