2003 Senate Bill 496 ↩

Senate Roll Call 473: Passed

To revise and update the Michigan Credit Union Act. In addition to revising many technical regulatory requirements and procedures, and clarifying the powers of the state with regard to failing or struggling credit unions, the bill would allow credit unions to offer more services and have more flexible field of membership (FOM) requirements. A credit union would be allowed to recruit members from several different organizations. (Under current law, a credit union my only serve one specific group, such as a particular town or company.) It could make 30-day, $1,000 loans to members, similar to "payday loans," with restrictions such as a 10 percent ceiling on interest, fees and other costs. Unlike banks, credit unions are tax-exempt non-profit entities. The bill is part of a legislative package comprised of Senate Bills 490 to 496. Senate Bill 496 is the lead bill; the same legislation is contained in House Bills 4694 to 4700.