House Introduced Bill 6329

HOUSE BILL No. 6329


     September 17, 2002, Introduced by Rep. Hummel and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1978 PA 232, entitled

   "An act to permit banks and savings and loan associations to sus-
   pend business in the event of an existing or impending emergency;
   to prescribe the powers and duties of bank and savings and loan
   association officers and certain state officials; and to declare
   the legal effect of the suspensions of business authorized by
   this act,"

   by amending the title and sections 1, 2, 3, 4, 5, and 6

   (MCL 487.941, 487.942, 487.943, 487.944, 487.945, and 487.946).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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                                      TITLE

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             An act to permit  banks and savings and loan associations

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        FINANCIAL INSTITUTIONS to suspend business in the event of an

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        existing or impending emergency; to prescribe the powers and

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        duties of  bank and savings and loan association  FINANCIAL

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        INSTITUTION officers and certain state AGENCIES AND officials;





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        and to declare the legal effect of the suspensions of business

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        authorized by this act.

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             Sec. 1.  As used in this act:

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             (a) "Commissioner" means the commissioner of the  financial

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        institutions bureau of the department of commerce or his or her

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        authorized representative  OFFICE OF FINANCIAL AND INSURANCE

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        SERVICES IN THE DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES.

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              (b) "Bank" means a bank organized or reorganized under Act

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        No. 319 of the Public Acts of 1969, as amended, being sections

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        487.301 to 487.598 of the Michigan Compiled Laws, or an indus-

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        trial bank or trust company incorporated under previously exist-

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        ing state law, a branch or agency of a foreign banking organiza-

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        tion, and, to the extent that this act is not inconsistent with

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        and does not infringe upon paramount federal law, includes a

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        national bank.

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             (c) "Association" means a state chartered savings and loan

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        association and to the extent that this act is not inconsistent

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        with and does not infringe upon paramount federal law, includes a

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        federal savings and loan association.

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             (d) "Officer" means a person designated by the board of

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        directors of a bank or association to carry out this act.

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             (e) "Office" means a place at which a bank or association

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        transacts its business or conducts operations related to its

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        business.

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             (B)  (f)  "Emergency" means a condition or occurrence

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         which  THAT HAS OR may interfere physically with the conduct of

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        normal business operations  at an office of a bank or



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        association  OF 1 OR MORE OFFICES OF A FINANCIAL INSTITUTION, or

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        which poses an imminent or existing threat to the safety and

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        security of a person or property, or both.  An emergency may

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        arise as a result of a fire,  ; a  flood,  ; an  earthquake,
     ;

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        a  hurricane,  ; a  tornado,  ; a  wind, rain,
     or snow storm; a

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        SNOWSTORM, labor dispute or strike,  ; a  power failure,  ; a

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        transportation failure,  ; an  FUEL SHORTAGE, interruption of a

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        communication facility,  ; a  shortage of  fuel,  housing
     ,  OR

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        food,  or transportation; a  robbery or attempted robbery,  ; an

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        actual or threatened enemy OR TERRORISM attack,  ; an  epidemic

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        or other catastrophe,  ; a  riot, civil commotion,  and  OR ANY

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        other act of lawlessness or violence.

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             (C) "FINANCIAL INSTITUTION" MEANS A NATIONALLY, FEDERALLY,

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        OR STATE CHARTERED BANK, SAVINGS BANK, CREDIT UNION, OR SAVINGS

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        AND LOAN ASSOCIATION.

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             (D) "OFFICE" MEANS A PLACE AT WHICH A FINANCIAL INSTITUTION

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        TRANSACTS ITS BUSINESS OR CONDUCTS OPERATIONS RELATED TO ITS

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        BUSINESS.

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             (E) "OFFICER" MEANS A PERSON DESIGNATED BY THE BOARD OF

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        DIRECTORS OF A BANK OR ASSOCIATION TO CARRY OUT THIS ACT.

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             Sec. 2.  (1) The commissioner may  ,  by proclamation  ,

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        authorize  banks or associations  A FINANCIAL INSTITUTION to

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        close an office OR OFFICES when it appears to the commissioner

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        that the action is required because an emergency exists.  , or

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        may be impending, in this state which directly or indirectly, may

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        interfere with the conduct of normal operations of a bank or

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        association in the affected area.  The office  so  OR OFFICES



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        closed shall remain closed until the commissioner proclaims that

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        the emergency is ended.   In connection with a proclamation

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        issued under this section, the  THE commissioner shall promptly

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        advise the governor of the issuance of  such a  THE proclamation

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        UNDER THIS ACT.

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             (2) The commissioner may authorize  banks and associations

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        A FINANCIAL INSTITUTION to close on a day designated by proclama-

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        tion of the president of the United States or the governor of

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        this state as a day of national mourning, rejoicing, or other

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        special observance.   The governor of this state by proclamation,

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        in connection with a day of national mourning, rejoicing, or

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        other special observance, may authorize banks and associations to

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        close on a day the governor designates.

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             Sec. 3.   When the chief executive  IF THE COMMISSIONER HAS

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        NOT ISSUED AND DOES NOT ISSUE A PROCLAMATION OF EMERGENCY AND THE

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        DESIGNATED officer of a  bank or association, or, in his absence

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        the officer serving as chief executive officer is of the opinion

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        FINANCIAL INSTITUTION HAS DETERMINED that an emergency exists,

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         or is impending, which affects, or may affect its offices, the

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        officer may determine, in the reasonable and proper exercise of

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        the officer's discretion, not to open the office on a business or

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        banking day or, if having opened, to close the office during the

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        continuation of the emergency, even if the commissioner has not

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        issued and does not issue a proclamation of emergency.  The

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        office so closed shall remain closed until the chief executive

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        officer of a bank or association, or, in his absence the officer

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        serving as chief executive officer determines that the emergency



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        has ended  THE OFFICER MAY ORDER THAT AN OFFICE OR OFFICES OF THE

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        FINANCIAL INSTITUTION BE CLOSED OR NOT OPEN.

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             Sec. 4.  A  bank or association  FINANCIAL INSTITUTION clos-

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        ing an office  pursuant to this act  OR OFFICES UNDER SECTION 3

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        shall give  as prompt  notice  of its action, as conditions

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        permit and by any means available,  to the commissioner  , or, in

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        the case of a national bank, to the comptroller of the currency,

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        or, in the case of a federal association, to the federal home

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        loan bank board  AND ANY OTHER APPROPRIATE GOVERNMENTAL ENTITY AS

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        REQUIRED BY LAW.

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             Sec. 5.  The period during which a  bank or association is

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        closed pursuant to the authorization granted  FINANCIAL INSTITU-

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        TION IS CLOSED under this act  shall be  IS a legal holiday and a

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        bill, check, or note otherwise presentable for acceptance of pay-

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        ment  shall be deemed to be  IS CONSIDERED payable and present-

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        able for acceptance or payment on the next  secular or  business

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        day following the holiday.

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             Sec. 6.  This act  shall not be construed to  DOES NOT alter

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        any of the obligations under law of a  bank or association

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        FINANCIAL INSTITUTION to its employees or to the employees of

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        another employer.















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