HOUSE BILL No. 4888


     September 28, 1999, Introduced by Reps. Vear, DeHart, Gieleghem and Daniels 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 430a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 430A.  IF A SAVINGS BANK REQUIRES AS A CONDITION OF

 2    PROVIDING A LOAN THAT THE BORROWER ESTABLISH AND DEPOSIT FUNDS

 3    INTO AN ESCROW ACCOUNT MAINTAINED BY THE SAVINGS BANK, THE SAV-

 4    INGS BANK SHALL PAY THE SAME RATE OF INTEREST ON THE DEPOSITED

 5    FUNDS AS THE SAVINGS BANK PAYS ON ITS BASIC SAVINGS DEPOSIT

 6    ACCOUNTS.












   00379'99 b          Final page.                          SAT