Bill Text: MI HB4623 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Financial institutions; credit unions; written disclosure of rights of account holders; require for joint accounts. Amends 1968 PA 41 (MCL 490.51 - 490.65) by adding sec. 14b.

Spectrum: Partisan Bill (Democrat 14-0)

Status: (Introduced - Dead) 2010-06-10 - Referred To Second Reading [HB4623 Detail]

Download: Michigan-2009-HB4623-Introduced.html

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HOUSE BILL No. 4623

 

March 18, 2009, Introduced by Reps. Corriveau, Liss, Constan, Bledsoe, Geiss, Robert Jones, Scripps, Switalski, Tlaib, Roberts, Slavens, Barnett, Bauer and Neumann and referred to the Committee on Senior Health, Security, and Retirement.

 

     A bill to amend 1968 PA 41, entitled

 

"An act to regulate credit union multiple-party accounts; and to

repeal certain acts and parts of acts,"

 

(MCL 490.51 to 490.65) by adding section 14b.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 14b. (1) If 1 or more customers apply to establish a

 

multiple-party account at a credit union, the credit union shall do

 

all of the following before opening the account:

 

     (a) Provide each account holder with the following disclosure

 

in writing:

 

     "A joint account means that each account holder is the owner

 

of the money in this account. This means that you and each of the

 

other account holders have the authority to deposit or withdraw

 

money from this account at any time.

 

     If that is not your intention, you should not open this

 

account.

 

     If it is your intention that the other account holder or

 

account holders receive the money in the account only when you die,

 

there are other types of accounts available that designate other

 

individuals as beneficiaries of the account and do not allow them

 

access to the money in the account during your lifetime.

 

     If it is your intention to open an account that designates 1

 

or more individuals as beneficiaries of your account when you die,

 

and not to create a joint account, there are other types of

 

accounts available.".

 

     (b) Require that each account holder sign and deliver to the

 

credit union a written acknowledgment that the account holder has

 

read and understands the disclosure described in subdivision (a).

 

     (2) A credit union may include the disclosure and

 

acknowledgment described in subsection (1) on or with any signature

 

card required by the credit union from the account holders in

 

connection with a multiple-party account.