HB-4749, As Passed Senate, June 24, 2009

SUBSTITUTE FOR

HOUSE BILL NO. 4749

     A bill to amend 1996 PA 354, entitled

"Savings bank act,"

by amending section 512 (MCL 487.3512).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 512. (1) An overdraft existing for 90 days shall be

charged off to the profit and loss account of the savings bank at

the expiration of that time.

     (2) A director or executive officer of a savings bank shall

not knowingly overdraw his or her account.

     (3) All debts due to a savings bank on which interest Unless a

debt constitutes a claim against a solvent estate in probate, if

the interest on a debt held by a savings bank is past due and

unpaid for a period of 6 12 months, unless the debts are well

secured and in process of collection or the debts constitute claims

against solvent estates in probate, shall be charged off to the

reserve for bad debts or the profit and loss account of the savings

bank at the expiration of that time the savings bank shall charge

off to its allowance for loan and lease losses the portion of the

debt that is not well secured.