SENATE BILL NO. 596


   May 11, 1999, Introduced by Senators JOHNSON, STEIL, MC COTTER,
        SHUGARS, GAST, DUNASKISS, SIKKEMA, MILLER and HAMMERSTROM 
        and referred to the Committee on Financial Services.



        A bill to amend 1925 PA 285, entitled

   "An act to provide for the organization, operation, and supervi-
   sion of credit unions; to provide for the conversion of a state
   credit union into a federal credit union or a credit union orga-
   nized and supervised under the laws of any other state or terri-
   tory of the United States and for the conversion of a federal
   credit union or a credit union organized and supervised under the
   laws of any other state or territory of the United States into a
   state credit union; and to provide for the merger of credit
   unions organized and supervised under the laws of this state,
   credit unions organized and supervised under the laws of any
   other state or territory of the United States, and federal credit
   unions,"

   by amending section 8 (MCL 490.8), as amended by 1992 PA 246.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 8.  (1) The organizational meeting OF A CREDIT UNION

 2    shall be the first annual meeting OF THE MEMBERS.  At the annual

 3    meeting the credit union shall elect a board of directors of not

 4    less than 5 members to hold office for  such  terms
             as the bylaws

 5    provide and until successors qualify.



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 1         (2) If the bylaws provide for a credit committee or a

 2    supervisory committee, the committee shall have at least 3 mem-

 3    bers, may have alternate members, and shall be appointed by the

 4    board of directors or elected by the members in  such
              numbers

 5    and for  such  terms as the bylaws provide.  The
             credit committee

 6    and the supervisory committee shall have and perform such duties

 7    as this act and the bylaws provide.  If the bylaws do not provide

 8    for a credit committee or a supervisory committee, the board of

 9    directors shall perform the duties of the credit committee or the

10    supervisory committee or delegate those duties as it considers

11    advisable.  A member of  WHILE SERVING ON the
             supervisory

12    committee, THE MEMBER shall not be a director, officer, loan

13    officer, credit committee member, or other employee of the credit

14    union.  while serving on the supervisory committee.

15          (2) All of the members of the board of directors, the
                       super-

16     visory committee, if any, and the credit committee, if any,
                       of a

17     corporate central credit union shall be residents of this
                       state. 

18         (3) A record of the names and addresses of the members of

19    the board and the members of the credit and supervisory commit-

20    tees, if any, shall be filed with the commissioner within 10 days

21    of their election.

22         (4) A member of the board of directors or the credit or

23    supervisory committee shall hold at least 1 share fully paid in.

24         (5) If the commissioner considers it expedient, the commis-

25    sioner may call a meeting of the board of directors of a credit

26    union, for any purpose, by giving a notice of the time, place,

27    and purpose of the meeting at least 3 days prior to the meeting



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 1    to the directors either by personal service or by registered or

 2    certified mail sent to their last known addresses as shown by the

 3    books of the credit union.


















































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