JOINT BANK ACCOUNT DISCLOSURE FORM

House Bill 4622

Sponsor:  Rep. Gino Polidori

House Bill 4623

Sponsor: Rep. Marc Corriveau

House Bill 4624

Sponsor:  Rep. Mary Valentine

House Bill 4625

Sponsor:  Rep. Robert Dean

Committee:  Senior Health, Security and Retirement

Complete to 6-1-10

A SUMMARY OF HOUSE BILLS 4622-4625 AS INTRODUCED 3-18-09

House Bill 4622 would amend the Savings Banks Act (MCL 487.3101 et a1.). House Bill 4623 would amend Public Act 41 of 1968, which deals with multi-party accounts at credit unions, (MCL 490.51 et al.). House Bill 4624 would amend the Banking Code of 1999 (MCL 487.11101 et al.). House Bill 4625 would amend the Savings and Loan Act of 1980 (MCL 491.102 et a1.).

The bills would require financial institutions, if one or more customers apply to establish a joint account (or apply to establish a multiple-party account), to do all of the following before opening an account:

Provide each account holder with the following disclosure in writing:

"A joint account means that each account holder is the owner of the money in this account. This means that you and each of the other account holders have the authority to deposit or withdraw money from this account at any time.  If that is not your intention, you should not open this account.

 

If it is your intention that the other account holder(s) receive the money in the account only when you die, there are other types of accounts available that designate other individuals as beneficiaries of the account and do not allow  them access to the money in the account during your lifetime.

 

If it is your intention to open an account that designates one ore more individuals as beneficiaries of your account when you die, and not to create a joint account, there are other accounts available."

Under the bills, a financial institution would also require each account holder to sign and deliver to the financial institution a written acknowledgement that he or she had read and understands the disclosure.  A financial institution could include the disclosure and notice on or with any signature card it required from the joint account holders in connection with the account.

FISCAL IMPACT:  

The bills would have no apparent fiscal impact on state or local government.

                                                                                           Legislative Analyst:   E. Best

                                                                                                  Fiscal Analyst:   Mark Wolf

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.