Michigan Laws 490.406 – Domestic credit union; powers authorized by credit union board; acquisition of interest in real property; definitions
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(1) If authorized by the credit union board, a domestic credit union may do any of the following:
(a) Assist in providing cooperative housing and related facilities for its members. A domestic credit union shall not invest more than 5% of its unimpaired share capital in programs described in this subdivision. This section does not authorize a domestic credit union to invest in the stock of a housing cooperative.
Terms Used In Michigan Laws 490.406
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(b) Assist in creating a housing cooperative for its members.
(c) Assist a housing cooperative composed of its members in selecting a housing site.
(2) If authorized by the credit union board, a domestic credit union may acquire any interest in real property if all of the following are met:
(a) The property is suitable for a housing cooperative and related facilities for its members.
(b) The domestic credit union will dispose of its interest in the property to a housing cooperative within 3 years.
(c) The purchase price of the property does not exceed the appraised value of the property as determined by a competent disinterested appraiser retained by the domestic credit union.
(d) Before the domestic credit union acquires its interest, if state or federal assistance is contemplated, the domestic credit union where possible obtains the approval of the state or federal agency that will assist the housing cooperative in determining the acceptability to that agency of the property for use as a cooperative housing site.
(3) If within a reasonable time after the domestic credit union acquires its interest in a housing cooperative it determines that the property is not suitable for cooperative housing for its members, the domestic credit union shall dispose of its interest in the manner most advantageous to the domestic credit union.
(4) A domestic credit union may employ consultants, appraisers, or other persons or organizations qualified by experience and training to provide advice and assistance in the acquisition of cooperative housing sites, the creation of housing cooperatives, the processing of applications for state or federal assistance, or the development of plans for the housing and financing, and may take any other action related to its authority under this section.
(5) As used in this section:
(a) “Domestic credit union” may include more than 1 domestic credit union acting in combination.
(b) “Housing cooperative” means a nonprofit housing cooperative corporation.