Michigan Laws 490.402 – Corporate credit union; additional powers
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Terms Used In Michigan Laws 490.402
- Alien credit union: means a credit union that is organized under the laws of a country other than the United States. See Michigan Laws 490.102
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Bank: means a bank that is organized under the laws of this state, any other state, the District of Columbia, or a territory or protectorate of the United States, or a national banking association chartered by the federal government under the national bank act, 12 USC 21 to 216d, and whose deposits are insured by an agency of the federal government. See Michigan Laws 490.102
- Commissioner: means the director. See Michigan Laws 490.102
- Contract: A legal written agreement that becomes binding when signed.
- Corporate credit union: means a credit union whose field of membership consists primarily of other credit unions. See Michigan Laws 490.102
- Credit union: means a domestic or foreign credit union. See Michigan Laws 490.102
- Credit union board: means a board of directors, board of trustees, or other governing body of a credit union. See Michigan Laws 490.102
- Domestic credit union: means a cooperative, nonprofit entity organized under this act for the purposes of encouraging thrift among its members, providing a variety of financial services to its members, and providing an opportunity for its members to use and control their own money on a democratic basis in order to improve their economic and social condition. See Michigan Laws 490.102
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Person: means an individual, corporation, partnership, limited liability company, association, governmental entity, or any other legal entity. See Michigan Laws 490.103
- Savings and loan association: means a savings association that is organized under the laws of this state, a savings and loan association, building and loan association, or homestead association that is organized under the laws of any other state, the District of Columbia, or a territory or protectorate of the United States, or a federal savings association organized under the home owners' loan act, 12 USC 1461 to 1470, and whose deposits are insured by an agency of the federal government. See Michigan Laws 490.103
- Savings bank: means a savings bank that is organized under the laws of this state, any other state, the District of Columbia, a territory or protectorate of the United States, or of the United States, and whose deposits are insured by an agency of the federal government. See Michigan Laws 490.103
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) A corporate credit union organized under this act has all of the following powers in addition to the powers granted by this act to all domestic credit unions:
(a) To accept funds, either as shares or deposits, from a domestic, foreign, or alien credit union, whether or not that credit union is a member of the corporate credit union.
(b) To make loans to or investments or deposits in a credit union, whether or not that credit union is a member of the corporate credit union.
(c) To make loans to or place deposits in a bank, savings bank, trust company, or savings and loan association chartered by this state, by another state or territory of the United States, or by the United States.
(d) To place deposits in a bank chartered under the laws of Canada or a member state of the European Union.
(e) To borrow from any source.
(f) To act as a fiscal agent for the United States, a state, or an agency or political subdivision of the United States or a state.
(g) To participate with any other credit union in making loans to its members or to members of the other participating credit union, on the terms and conditions to which the participating credit unions agree.
(h) To purchase, sell, and hold investment securities that are marketable obligations in the form of bonds, notes, or debentures and that are salable under ordinary circumstances. A corporate credit union board shall adopt a written investment policy and the corporate credit union shall make all investments and related contracts and agreements under this subdivision in accordance with that policy.
(i) To contract for penalties for loans paid before their scheduled maturity.
(j) To act as an intermediary of member and credit union funds.
(k) To act as an agent to pay, receive, and transfer assets and liabilities.
(l) To receive and hold securities and other assets.
(m) To provide payment systems services in conjunction with financial institutions or other vendors, or other correspondent services.
(n) To provide services to members involving investments and liquidity management.
(o) To engage in repurchase agreement transactions with broker-dealers.
(p) To purchase, sell, and hold financial derivatives.
(q) To exercise any other power approved by the commissioner by rule, order, or declaratory ruling.
(2) This act does not permit a corporate credit union organized under this act to make or participate in a loan to a natural person that has terms and conditions that would not otherwise be authorized for a loan to a natural person made by another domestic credit union.