The Michigan State Senate unanimously passed a package of credit union bills on May 18 that amends the Michigan Credit Union Act for the first time since 2003.
The legislation creates the Credit Union Regulatory Fund, a body within the Michigan Dept. of Treasury, designed to "protect state exam fees."
Other aspects of the bills include provisions that would:
- Authorize credit unions to offer Trust services through CUSOs
- Eliminate the cap on fixed assets for highly capitalized CUs
- Give CUs the ability to offer loan promotions and refinancing incentives
- Reduce board meeting requirements to six times a year
- Allow anyone to serve as a co-signer, co-borrower or guarantor of a loan
- Allow pre-payment penalties for commercial loans
The bills will move to the State House, which had previously passed a similar package of bills. As a result, the Michigan CU League said it expects the House to send this suite of legislation on to Gov. Snyder, who, in turn, is expected to sign them into law by mid-June. The changes go into effect 90 days after signing.
"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," MCUL EVP/COO Ken Ross said in a statement.
