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CREDIT UNION ACT (490.101 - 490.601) > ARTICLE 3 DOMESTIC CREDIT UNION ORGANIZATION AND STRUCTURE (490.301...490.387)
Short Summary
The provided legal document content covers various aspects of administration in domestic credit unions under the Michigan Credit Union Act. It governs the insurance of member share accounts and member deposit accounts in domestic credit unions, requiring them to apply for and maintain insurance from a federal government agency. If insurance is denied or terminated, the credit union must dissolve, merge, or apply for additional time. Domestic credit unions are also required to establish and maintain reserves that qualify them for insurance and meet the commissioner’s requirements. They must establish allowances for loan and lease losses and create special reserves if required by the commissioner or deemed necessary. The discharge of duties by officials of domestic credit unions is also addressed, requiring them to act in good faith and with diligence, care, and skill. Officials may rely on legal counsel, appraisers, financial statements, or accountants. Domestic credit unions are allowed to indemnify officials, employees, or agents involved in legal actions if they acted in good faith and in the best interests of the credit union. The fiscal year for domestic credit unions is the calendar year, and they must follow generally accepted accounting principles. The documents also cover the refusal to make payments from accounts in case of uncertainty or dispute, allowing credit unions to withhold payments until all parties provide written consent or a court orders the payment. Confidentiality of information related to the conduct of business of domestic credit unions is required, with exceptions for necessary disclosures. Lastly, the participation in deliberation or board action by directors, committee members, officers, and employees of domestic credit unions is regulated, prohibiting individuals with a pecuniary interest from participating in certain matters. Disqualified members may be replaced by qualified members through majority vote. These documents apply to domestic credit unions, their officials, employees, agents, directors, committee members, account owners, beneficiaries, and interested parties.
Whom does it apply to?
Domestic credit unions, their officials, employees, agents, directors, committee members, account owners, beneficiaries, interested parties
What does it govern?
Administration in domestic credit unions under the Michigan Credit Union Act, insurance of member share accounts and member deposit accounts, establishment and maintenance of reserves, discharge of duties by officials, indemnification of officials, fiscal year and accounting principles, refusal to make payments, confidentiality of information, participation in deliberation or board action
What are exemptions?
No specific exemptions are mentioned in these sections.
What are the Penalties?
No specific penalties are mentioned in these sections.
Jurisdiction
Michigan