Michigan Senate Gets State's Credit Union Act

LANSING, Mich. – Michigan’s credit unions moved closer to having broader fields-of-membership and the ability to provide same-day loans after the state Senate Banking and Financial Institutions Committee passed the Michigan Credit Union Act on June 19. SB 496, introduced in May by state Sen. Shirley Johnson (R-Royal Oak) was sent to the full Senate which is expected to vote on the measure before adjourning for the summer recess. SB 496 would modernize the current state credit union act that was first written in 1925. Among its provisions, it would: * allow greater flexibility for credit unions to expand their FOMs; * permit CUs to serve non-members with basic essential financial services such as check cashing, wire transfers, money orders, and traveler’s checks; * allow credit unions to offer members small, short-term loans, up to $1,000, payable within 30 days; * allow a CU to conduct business by mail or electronically.