JOINT ACCOUNTS: WRITTEN DISCLOSURE S.B. 456 (S-1) & 460 (S-1):
FLOOR SUMMARY
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Senate Bill 456 (Substitute S-1 as reported)
Senate Bill 460 (Substitute S-1 as reported)
Sponsor: Senator Coleman Young II
Committee: Families, Seniors, and Human Services
CONTENT
Senate Bill 456 (S-1) would amend the Savings Bank Act and Senate Bill 460 (S-1) would amend Public Act 41 of 1968 (which regulates credit union multiple-party accounts) to require a savings bank or a credit union to disclose all of the following information to each of the proposed account holders, in writing, if one or more people applied to establish a joint account:
-- That each account holder would be the owner of the money in a joint account.
-- That each joint account holder would have the authority to deposit or withdraw any or all of the money in a joint account.
-- That if one of the owners of a joint account died, the other owners of the account would continue as the owners of that account and would continue to have access to the money in the account.
A savings bank or credit union could include the disclosure and acknowledgment in a separate document, or as part of another document the financial institution provided to or required from the account holders in connection with a joint account.
Senate Bill 460 (S-1) also would define "joint account" as a multiple-party account in the name of two or more individuals, each of whom has an undivided right to the entire balance.
Proposed MCL 487.3435 (S.B. 456) Legislative Analyst: Patrick Affholter
Proposed MCL 490.64b (S.B. 460)
FISCAL IMPACT
The bills would have no fiscal impact on State or local government.
Date Completed: 10-27-11 Fiscal Analyst: Josh Sefton
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb456&460/1112