June 21, 2005, Introduced by Reps. Mayes, Dillon, Cushingberry, McDowell, Hunter, Clemente, Condino, Leland, Farrah, Lipsey, Espinoza, Gillard, Accavitti, Kolb, Alma Smith, Tobocman, Green, Gonzales, Moore, Kathleen Law, Murphy, Bieda, Sheltrown and Angerer and referred to the Committee on Banking and Financial Services.
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
office
so or offices closed shall remain closed until the
commissioner proclaims
determines that the emergency is ended and
authorizes
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 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.