LANSING, Mich.–The Michigan Senate, by a vote of 37-0 has passed a six-bill package that modernizes the Michigan Credit Union Act. It is the first time the Act has been updated since 2003.
“The bills will have a positive impact on Michigan credit unions’ daily operations by removing regulatory hurdles that will better allow them to serve the state’s 4.8 million credit union members,” Michigan CU League EVP/COO Ken Ross said in a statement published by the Michigan league.
According to the Michigan league, the package of bills amends the state charter in dozens of ways, including:
- Authorizing credit unions to offer Trust services through a CUSO
- Eliminating cap on fixed assets for strongly capitalized credit unions
- Protecting against enforcement of examiner "best practices"
- Creating the Credit Union Regulatory Fund, which protects state exam fees
- Allowing ability to offer loan promotions and provide prize incentives for refinancing loans
- Reducing number of required board meetings to 6 times a year
- Allowing anyone to serve as a co-signer, co-borrower or guarantor of a loan
- Permitting pre-payment penalties for commercial loans
The bills will now move back to the State House, which has already approved the package. The league said Gov. Rick Snyder is expected to sign the bills into law by mid-June. The amendments will go into effect 90 days later.