Removing Barriers Blog

CU Act Recodification Enacted in Michigan
Posted June 10, 2016 by CUNA Advocacy

Michigan is the most recent state to enact an extensive credit union act modernization. The legislation is comprised of six bills and amends the Michigan Credit Union Act in a dozen ways, including:

  • Authorizing credit unions to offer trust services through a CUSO
  • Eliminating cap on fixed assets for strongly capitalized credit unions
  • Protecting against enforcement of examiner "best practices"
  • Creating the Credit Union Regulatory Fund, which protects state exam fees
  • Allowing ability to offer loan promotions and provide prize incentives for refinancing loans
  • Reducing number of required board meetings to 6 times a year
  • Allowing anyone to serve as a co-signer, co-borrower or guarantor of a loan
  • Permitting pre-payment penalties for commercial loans

The legislation is the result of an extensive drafting and lobbying effort by the League.