ARLINGTON, Va. – Interstate branching for Michigan’s state-chartered credit unions has become more accessible after the state entered into a cooperative agreement with 11 other states.
Michigan has joined Alabama, Florida, Georgia, Illinois, Mississippi, Missouri, North Carolina, Tennessee, Texas, South Carolina and Washington as a signatory to the Southeast Interstate Branching Agreement. Michigan previously signed on to the Midwest-Northwest Agreement, which is comprised of 11 states (Idaho, Illinois, Indiana, Kentucky, Michigan, Ohio, Oregon, Texas, Washington, West Virginia and Wisconsin). Michigan becomes the fourth state to be a party to both multistate agreements, according to the National Association of State Credit Union Supervisors (NASCUS).
Both agreements were developed by NASCUS with input from engaged states, the association said.
“By entering into this agreement, Michigan is promoting interstate commerce and cooperation on a reciprocal basis among the participating states, as well as fostering parity with the federal credit union charter for Michigan state-chartered credit unions,” said Lucy Ito, NASCUS president and CEO.
‘Fair and Equitable Commerce’
According to NASCUS, the goal of the 2009 Southeastern cooperative agreement is to “promote fair and equitable commerce among state chartered credit unions based upon reciprocity, subject to appropriate safety and soundness provisions, in order to best serve the consumers” of the respective states that enter into the agreement.
NASCUS’ Ito added that, in practice, the agreements ease the procedural impediments for credit unions and demonstrate “that this is a viable choice for them to extend their operations as state-chartered financial institutions, consistent with their strategic plans, should they choose to do so.”