HOUSE BILL No. 5152


     October 9, 2001, Introduced by Reps. Sanborn and Richner and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1996 PA 354, entitled

   "Savings bank act,"

   (MCL 487.3101 to 487.3804) by adding section 706a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1
           SEC. 706A.  (1) AS USED IN THIS SECTION:

 2
           (A) "EXISTING MUTUAL SAVINGS BANK" MEANS A MUTUAL SAVINGS

 3
      BANK ENGAGED IN THE SAVINGS BANK BUSINESS BEFORE REORGANIZATION

 4
      UNDER THIS SECTION.

 5
           (B) "MUTUAL HOLDING COMPANY" MEANS THAT TERM AS DEFINED IN

 6
      SECTION 10A(o) OF THE HOME OWNER'S LOAN ACT, CHAPTER 64, TITLE

 7
      III AND IX OF PUBLIC LAW 101-73, 12 U.S.C. 1467A, AND OTS REGULA-

 8
      TIONS GOVERNING MUTUAL HOLDING COMPANIES.

 9
           (C) "NEW SAVINGS BANK" MEANS A SAVINGS BANK NOT ENGAGED IN

10
      THE SAVINGS BANK BUSINESS BEFORE THE REORGANIZATION PROVIDED IN

11
      THIS SECTION.


   03197'01                                                 SAT                                   2

 1
           (D) "OTS" MEANS THE OFFICE OF THRIFT SUPERVISION, UNITED

 2
      STATES DEPARTMENT OF THE TREASURY.

 3
           (2) AN EXISTING MUTUAL SAVINGS BANK MAY REORGANIZE TO ESTAB-

 4
      LISH A MUTUAL HOLDING COMPANY OR SUBSIDIARY HOLDING COMPANY, IF

 5
      ALL OF THE FOLLOWING REQUIREMENTS ARE MET:

 6
           (A) THE REORGANIZATION PLAN COMPLIES IN ALL RESPECTS WITH

 7
      OTS MUTUAL HOLDING COMPANY LAWS AND RECEIVES THE APPROVAL OF THE

 8
      OTS, AND THE OTS GRANTS A FEDERAL CHARTER TO THE NEWLY CREATED

 9
      MUTUAL HOLDING COMPANY.

10
           (B) THE REORGANIZATION PLAN RECEIVES THE APPROVAL OF THE

11
      OFFICE OF FINANCIAL AND INSURANCE SERVICES.

12
           (C) THE BOARD OF DIRECTORS OF THE EXISTING MUTUAL SAVINGS

13
      BANK HAS APPROVED THE PLAN OF REORGANIZATION AT A MEETING CALLED

14
      IN ACCORDANCE WITH THE BANK'S ARTICLES OF INCORPORATION AND

15
      BYLAWS.

16
           (D) A MAJORITY OF THE MEMBERS OF THE EXISTING MUTUAL SAVINGS

17
      BANK SHALL HAVE APPROVED THE PLAN OF REORGANIZATION AFTER A MEM-

18
      BERSHIP MEETING CALLED IN ACCORDANCE WITH THE BANK'S ARTICLES OF

19
      INCORPORATION AND BYLAWS.

20
           (3) PERSONS AS PROVIDED IN SECTION 301 MAY ORGANIZE AND

21
      INCORPORATE AS THE INCORPORATOR OR INCORPORATORS ANY NEW SAVINGS

22
      BANK SUBSIDIARY OF THE EXISTING MUTUAL SAVINGS BANK, HAVING ITS

23
      PRINCIPAL OFFICE IN THE SAME CITY OR VILLAGE AS THE PRINCIPAL

24
      OFFICE OF THE EXISTING MUTUAL SAVINGS BANK, IF THE NEW SAVINGS

25
      BANK IS ORGANIZED FOR THE SOLE PURPOSE OF EFFECTING A REORGANIZA-

26
      TION PLAN IN ACCORDANCE WITH THIS SECTION.





   03197'01                                   3

 1
           (4) THE ASSETS, LIABILITIES, AND BANKING BUSINESS OF THE

 2
      EXISTING MUTUAL SAVINGS BANK SHALL NOT BE TRANSFERRED TO ANY NEW

 3
      SAVINGS BANK SUBSIDIARY UNDER THE REORGANIZATION PLAN UNTIL THE

 4
      OFFICE OF FINANCIAL AND INSURANCE SERVICES APPROVES A CHARTER FOR

 5
      THE SUBSIDIARY TO OPERATE AS A SAVINGS BANK.

 6
           (5) UNLESS THE OFFICE OF FINANCIAL AND INSURANCE SERVICES

 7
      DETERMINES IN WRITING THAT THE SUBSIDIARY CHARTER APPLICATION

 8
      DOES NOT MEET THE REQUIREMENTS FOR A SAVINGS BANKS SET FORTH IN

 9
      THIS ACT, THE OFFICE OF FINANCIAL AND INSURANCE SERVICES SHALL

10
      APPROVE THE SUBSIDIARY'S CHARTER APPLICATION IF THE APPLICANT

11
      REPRESENTS AND THE COMMISSIONER BELIEVES THE SUBSIDIARY WILL CON-

12
      DUCT SUBSTANTIALLY THE SAME BANKING BUSINESS AS THE EXISTING

13
      MUTUAL SAVINGS BANK.































   03197'01          Final page.                            SAT