April 27, 2010, Introduced by Senators NOFS, RICHARDVILLE, THOMAS, SANBORN and WHITMER and referred to the Committee on Banking and Financial Institutions.
A bill to amend 2003 PA 215, entitled
"Credit union act,"
by amending section 102 (MCL 490.102), as amended by 2004 PA 471.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 102. As used in this act:
(a) "Affiliate" means a person, other than an individual or
governmental entity, to which any of the following apply:
(i) A credit union directly or indirectly owns or controls a
majority of the person's voting shares or other voting ownership
interests.
(ii) A credit union directly or indirectly owns or controls
more than 50% of the number of shares or other ownership interests
voted at the most recent election for the election of its
directors, trustees, or other individuals who exercise similar
functions.
(iii) A credit union has the power to directly or indirectly
elect a majority of the person's directors, trustees, or other
individuals who exercise similar functions.
(iv) A majority of a credit union board constitutes a majority
of the directors, trustees, or other persons exercising similar
functions of the person.
(b) "Alien credit union" means a credit union organized under
the laws of a country other than the United States.
(c) "Bank" means a bank that is organized under the laws of
this state, any other state, the District of Columbia, or a
territory or protectorate of the United States, or a national
banking association chartered by the federal government under the
national bank act, chapter 106, 13 Stat. 99, and whose deposits are
insured by an agency of the federal government.
(d) "Borrower" means a member who obtains a loan from a
domestic credit union.
(e) "Branch" means a place of business, other than the
principal place of business, that is owned or leased by a credit
union and where the credit union transacts business authorized by
the credit union board.
(f) "Commissioner" means the commissioner of the office of
financial
and insurance services regulation
in the department of
energy, labor, and economic growth.
(g) "Corporate credit union" means a credit union whose field
of membership consists primarily of other credit unions.
(h) "Credit union" means a domestic or foreign credit union.
(i) "Credit union board" means a board of directors, board of
trustees, or other governing body of a credit union.
(j) "Credit union service organization" means a corporation or
other organization that is engaged primarily in providing 1 or more
of the products or services described in section 407 to credit
unions or their members and that a domestic credit union may
organize, invest in, or lend to under section 401(2)(gg).
(k)
"Debt management" means that term as defined in section 2
of
the debt management act, 1975 PA 148, MCL 451.412 the planning
and management of the financial affairs of a debtor and the receipt
of money from the debtor for distribution to a creditor in payment
or partial payment of the debtor's obligations.
(l) "Domestic credit union" means a cooperative, nonprofit
entity organized under this act for the purposes of encouraging
thrift among its members, providing a variety of financial services
to its members, and providing an opportunity for its members to use
and control their own money on a democratic basis in order to
improve their economic and social condition.
(m) "Eligibility record date" means a record date that is 1
year or more before the adoption of a plan of conversion by a
credit union board and is set forth in a plan of conversion for
determining eligible members of a converting credit union.
(n) "Emergency" means a condition, event, or occurrence that
meets both of the following:
(i) It has or may interfere with the conduct of normal business
operations, or poses an imminent or existing threat to the safety
and security of a person or property, at the principal place of
business or 1 or more branches of a credit union.
(ii) It is the result of a fire, flood, earthquake, hurricane,
tornado, wind, rain, snowstorm, labor dispute or strike, power
failure, transportation failure, fuel shortage, interruption of a
communication facility, shortage of housing, epidemic or other
natural or manmade catastrophe, riot, civil commotion, or any other
act of lawlessness or violence.
(o) "Federal credit union" means a credit union organized
under the laws of the United States.
(p) "Field of membership" means that term as established under
section 352.
(q) "Financial institution" means a credit union, bank,
savings bank, or savings and loan association.
(r) "Foreign credit union" means a credit union organized
under the laws of another state or territory of the United States
or a federal credit union.
(s) "Insolvent" means a credit union that meets either of the
following:
(i) It is not able to pay its debts and other obligations,
including those related to member shares, as they become due.
(ii) Its liabilities exceed its assets.
Enacting section 1. This amendatory act takes effect 12 months
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No. 1288
of the 95th Legislature is enacted into law.