Michigan Credit Union Reform Measures Signed into Law

LANSING, Mich. – Michigan Gov. Jennifer Granholm signed several new laws that modernize the regulation and chartering of state-chartered credit unions. The new laws, says the Michigan Credit Union League, represent the first major changes to the Michigan Credit Union Act since 1986. Among the new laws’ provisions are: *modernizing and clarifying the powers of the Commissioner of the Office of Financial and Insurance Services to charter state credit unions; *allowing state-chartered credit unions to make short-term, 30-day loans to members for up to $1,000 at a rate not more than 10% of the principal amount of the loan in interest and fees; *providing for an examination of state-chartered credit unions at least once every 18 months; * allowing the boards of state-chartered credit unions to determine their CU’s field-of-membership with certain restrictions and subject to review by the Commissioner; *allowing for the merger of state-chartered CUs with other credit unions or thrifts; and *expanding the ability of CUs to provide certain services to nonmembers in underserved areas. In signing the measures, Gov. Granholm said they “accommodate changes in technology and business and allow credit unions to provide new services. Consumers will have more choices under these new laws when it comes to seeking and securing financial services through credit unions.”