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MI HB5019
Bill
Status
6/9/2016
Primary Sponsor
Paul Clemente
Click for details
AI Summary
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Amends MCL 490.407 to authorize domestic credit unions to organize, invest in, or loan money to credit union service organizations providing specified products and services to credit unions and their members.
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Expands permissible credit union service organization activities to include trust services if the organization is a state bank, savings bank, or authorized fiduciary under Michigan banking law, or if providing trust services as a host bank under specified agreements.
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Requires credit union service organizations to maintain adequate capitalization, operate as separate legal entities, obtain annual audits by certified public accountants, provide quarterly financial statements, and comply with applicable federal and state laws.
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Establishes investment restrictions including limits on credit union risk exposure to any single entity (25% of net worth), requirements for written legal opinions limiting liability, and prohibition of senior management salary or compensation from affiliated service organizations.
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Takes effect September 7, 2016, conditioned on simultaneous enactment of HB 5017, HB 5018, HB 5020, HB 5021, and HB 5022.
Legislative Description
Financial institutions; credit unions; authority to organize or invest in credit union service organizations that provide trust services and other services; revise. Amends sec. 407 of 2003 PA 215 (MCL 490.407). TIE BAR WITH: HB 5017'15, HB 5018'15, HB 5020'15, HB 5021'15, HB 5022'15
State agencies (existing): insurance and financial services
Last Action
Assigned Pa 154'16 With Immediate Effect
6/9/2016