Bill > HB5781

This bill amends the Credit Union Act to allow foreign credit unions, which are credit unions chartered in another state or country, to operate in Michigan. Currently, only federal credit unions are permitted to do so without specific approval. Under this bill, the director of the Office of Financial Institutions (replacing the term "commissioner") would have the authority to grant approval to foreign credit unions if they meet several criteria, including being financially solvent, having their member accounts insured by an authorized federal agency or a qualified private insurance organization (defined elsewhere in the law), and being supervised by their home state or territory's authority. Additionally, foreign credit unions seeking to operate in Michigan would have to agree to adhere to Michigan's interest rate limits for loans, comply with consumer protection laws, maintain a local agent for legal matters, file required reports, and allow for examinations by the director, mirroring the requirements placed on domestic credit unions. The bill also includes a reciprocity clause, meaning Michigan will not allow a foreign credit union to operate if that foreign credit union's home state or territory does not permit Michigan credit unions to do business there. This legislation is tied to several other bills, meaning it will only become law if those other bills are also enacted.