Bill Text: MI SB0565 | 2013-2014 | 97th 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: Slight Partisan Bill (Democrat 2-1)

Status: (Introduced - Dead) 2013-10-01 - Referred To Committee On Banking And Financial Institutions [SB0565 Detail]

Download: Michigan-2013-SB0565-Introduced.html

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SENATE BILL No. 565

 

 

October 1, 2013, Introduced by Senators YOUNG, HOPGOOD and SCHUITMAKER and referred to the Committee on Banking and Financial Institutions.

 

 

 

     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 persons apply to establish a joint

 

account at a credit union, the credit union shall disclose all of

 

the following information to each of the proposed account holders

 

in writing:

 

     (a) That each account holder is the owner of the money in a

 

joint account.

 

     (b) That each joint account holder has the authority to

 

deposit or withdraw any or all of the money in a joint account.

 

     (c) That if 1 of the owners of a joint account dies, the other

 

owners of the account continue as the owners of the account and

 

continue to have access to the money in the account.

 

     (d) That money in a joint account may be subject to the claims

 

of creditors of any joint account holder.

 

     (2) A credit union may include the disclosure and

 

acknowledgment described in subsection (1) in a separate document,

 

or as part of another document the credit union provides to or

 

requires from the account holders in connection with a joint

 

account. If a minor is a joint account holder, the credit union may

 

deliver the disclosure to an adult acting on behalf of the minor.

 

     (3) As used in this section, "joint account" means a multiple-

 

party account in the name of 2 or more individuals, each of whom

 

has an undivided right to the entire balance.

 

     Enacting section 1. This amendatory act takes effect 1 year

 

after the date it is enacted into law.