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Can you summarize MICL Chapter 490?
Michigan Compiled Laws > CREDIT UNIONS
Short Summary
The first legal provision governs the conduct of business by foreign credit unions in the state of Michigan. It requires foreign credit unions (other than federal credit unions) to obtain written approval from the commissioner to operate as a credit union in Michigan. Approval is granted if the foreign credit union meets certain requirements, including being organized under a similar law, being financially solvent, having federal government insurance, being supervised by the relevant authority in its home state or territory, and adequately serving its members in Michigan. The foreign credit union must also agree to various conditions, such as complying with consumer protection laws, designating an agent for service of process, allowing examinations by the commissioner, and meeting other requirements imposed on domestic credit unions. Approval is not granted if the credit union’s home state or territory does not permit Michigan credit unions to do business there. The second legal provision pertains to the rights of owners and beneficiaries of credit union beneficiary accounts in Michigan. It states that during the lifetime of one or more owners, all rights to the money in the account belong to the owners. Upon the death of the owner or the last surviving owner, ownership interests in the account pass to the designated beneficiaries. If no beneficiary is living at the time of the owner’s death, the account becomes part of the owner’s estate. If there are multiple beneficiaries, the account is divided equally among them. The passage of ownership rights to the account is not subject to change by will. The third legal provision encompasses the regulations and provisions governing credit unions in the state of Michigan. It covers various aspects of credit union organization and operation, including chartering and field of membership, bylaws, interest refunds, contractual agreements, provision of services, inspection of records, fees, employee benefits, suretyship or guaranty agreements, loans and lines of credit, loan participations, purchase and sale of eligible obligations, loans to other credit unions, nondiscrimination in real estate-related loans, acceptance of payments on shares, reimbursement and indemnification of officials and employees, low-income status designation, occupancy and disposal of premises, Treasury tax and loan depositaries, borrowing of funds, statutory lien on shares and dividends, authorities and duties of directors, notification of proposed changes, share accounts, and chartering and field of membership policies. These regulations and provisions apply to credit unions operating in Michigan. The fourth legal provision focuses on the regulations and provisions related to credit union multiple-party accounts. It grants credit unions the authority to enter into multiple-party accounts to the same extent as single-party accounts. Payments from multiple-party accounts can be made to any one or more of the parties, unless the account terms require joint signatures. Credit unions are not obligated to inquire about the source of funds deposited into a multiple-party account or the proposed use of withdrawn funds. The document also allows credit unions to create multiple-party accounts with any person designated by a credit union member. However, joint tenants are restricted from voting, obtaining loans, or holding office unless they are within the credit union’s field of membership and are qualified members.
Whom does it apply to?
Foreign credit unions (other than federal credit unions) conducting business in Michigan, owners and beneficiaries of credit union beneficiary accounts in Michigan, credit unions operating in Michigan, individuals or entities involved in transactions with credit unions in Michigan
What does it govern?
Conduct of business by foreign credit unions in the state of Michigan, rights of owners to the money in a credit union beneficiary account, regulations and provisions governing credit unions in the state of Michigan, regulations and provisions related to credit union multiple-party accounts
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Michigan