Michigan has signed a cooperative agreement with 11 other states, which officials say will make interstate branching for state-chartered credit unions more accessible.
Patrick McPharlin, director of the Michigan Department of Insurance and Financial Services, on Thursday said the Great Lakes State signed the Southeast Interstate Branching Agreement. Michigan joins Alabama, Florida, Georgia, Illinois, Mississippi, Missouri, North Carolina, Tennessee, Texas, South Carolina and Washington as signatories.
Michigan previously signed on to the Midwest-Northwest Agreement, which is comprised of Idaho, Illinois, Indiana, Kentucky, Michigan, Ohio, Oregon, Texas, Washington, West Virginia and Wisconsin.
With the latest move, Michigan became the fourth state to be a party to both multi-state agreements.
The National Association of State Credit Union Supervisors, headquartered in Arlington, Va., said both agreements were developed by NASCUS with input from engaged states.
“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,” Lucy Ito, president and CEO of NASCUS, said in a statement.
According to organizers, 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 said, 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.”
“Joining the Southeast Branching Agreement will be a great benefit to Michigan credit unions,” said McPharlin of the Michigan DIFS. “The partnerships with other states removes barriers and positions our credit unions for growth.”
