From the main stage at the Michigan Credit Union League and CU Solutions Group’s annual convention and exposition, Gov. Rick Snyder this week signed into law the first comprehensive update to the Michigan Credit Union Act in 13 years.
Before a crowd of 1,000, Snyder signed the six-bill package into law flanked by representatives from the league, Michigan’s Department of Insurance and Financial Services and credit union supporters.
Among the bill’s provisions:
• Eliminates cap on fixed assets for strongly capitalized credit unions;
• Protects against enforcement of examiner "best practices;"
• Creates the Credit Union Regulatory Fund, which protects state exam fees;
• Allows ability to offer loan promotions and provide prize incentives for refinancing loans;
• Reduces number of required board meetings to 6 times a year;
• Allows anyone to serve as a co-signer, co-borrower or guarantor of a loan; and
• Permits pre-payment penalties for commercial loans.
This marks Snyder’s third visit to the league’s AC&E during his five years in office. He commended the credit union system for its partnership in supporting the Michigan economy, increasing the number of people in the labor force, and raising personal income growth.