Bill > HB5781

This bill modifies the Credit Union Act to allow foreign credit unions, meaning those not chartered in Michigan, to operate within the state, provided they receive written approval from the director, who replaces the former commissioner in this role. To gain approval, these foreign credit unions must demonstrate they are organized under similar laws, are financially stable, have their member share and deposit accounts insured either by a federal agency or a qualified private insurance organization (defined elsewhere in the law), and are supervised by their home state's authority. Additionally, they must agree to adhere to Michigan's interest rate limits, consumer protection laws for loans and services made or provided within the state, maintain a local agent for legal notices, file required reports, and permit state examinations, mirroring the requirements placed on domestic credit unions. The bill also includes a reciprocity clause, preventing approval if Michigan credit unions are not allowed to operate in the foreign credit union's home state or territory, and clarifies that foreign credit unions must still comply with all other applicable Michigan laws.

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https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5781