Bill Text: MI SB0086 | 2011-2012 | 96th Legislature | Introduced

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Bill Title: Financial institutions; savings banks; overdraft fees; regulate. Amends 1996 PA 354 (MCL 487.3101 - 487.3804) by adding sec. 401a.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2011-01-27 - Referred To Committee On Banking And Financial Institutions [SB0086 Detail]

Download: Michigan-2011-SB0086-Introduced.html

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SENATE BILL No. 86

 

 

January 27, 2011, Introduced by Senators WHITMER, HUNTER, GLEASON, HOPGOOD and ANDERSON and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1996 PA 354, entitled

 

"Savings bank act,"

 

(MCL 487.3101 to 487.3804) by adding section 401a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 401a. (1) A savings bank shall not charge an account

 

holder more than 1 overdraft fee in any 24-hour period.

 

     (2) A savings bank shall publish on an internet website

 

available to the public the amount of its overdraft fees and the

 

criteria it uses to determine the amount of its overdraft fees.

 

     (3) If a savings bank receives more than 1 item to charge to

 

an account of a customer on the same banking day, the savings bank

 

shall charge the smallest item to the account first and charge each

 

additional item to the account in order by amount, from smallest to

 

largest.

 

     (4) As used in this section:

 

     (a) "Banking day" means that term as defined in section 4104

 

of the uniform commercial code, 1962 PA 174, MCL 440.4104.

 

     (b) "Item" means that term as defined in section 4104 of the

 

uniform commercial code, 1962 PA 174, MCL 440.4104.

 

     (c) "Overdraft fee" means any fee or charge imposed in

 

connection with an account on which a check or other debit is paid

 

by the savings bank in which that account is held even though there

 

are insufficient funds in the account to cover that check or other

 

debit.