SENATE BILL NO. 751 September 28, 1999, Introduced by Senators STEIL, MILLER and SHUGARS and referred to the Committee on Banking and Financial Institutions. A bill to amend 1996 PA 354, entitled "Savings bank act," by amending section 102 (MCL 487.3102). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 102. As used in this act: 2 (a) "Agency office" means a place at which the business of a 3 savings bank is conducted other than by regularly employed per- 4 sonnel of the savings bank, as provided under section 417(6). 5 (b) "Articles" means articles of incorporation, all amend- 6 ments to articles of incorporation, and agreements of consolida- 7 tion and merger. 8 (c) "Approved by the members", for a mutual savings bank, 9 means approved by a majority of all votes cast at a duly held 10 regular meeting or special meeting. 01361'99 f SAT 2 1 (d) "Affiliate" means a corporation, business trust, 2 association, or an organization to which 1 or more of the 3 following apply: 4 (i) A savings bank, directly or indirectly, owns or controls 5 either a majority of its voting shares or more than 50% of the 6 number of shares voted for the election of its directors, trust- 7 ees, or other persons exercising similar functions at the preced- 8 ing election, or controls in any manner the election of a major- 9 ity of its directors, trustees, or other persons exercising simi- 10 lar functions. 11 (ii) Control of the organization is held, directly or indi- 12 rectly, through stock ownership or in any other manner, by the 13 shareholders of a savings bank who own or control either a major- 14 ity of the shares of that savings bank or more than 50% of the 15 number of shares voted for the election of directors of that sav- 16 ings bank at the preceding election, or by trustees for the bene- 17 fit of the shareholders of that savings bank, or by members of 18 the savings bank if it is a mutual savings bank. 19 (iii) A majority of its directors, trustees, or other per- 20 sons holding similar positions are directors of any 1 savings 21 bank. 22 (iv) Owns or controls, directly or indirectly, either a 23 majority of the shares of capital stock of any 1 savings bank or 24 more than 50% of the number of shares voted for the election of 25 directors of that savings bank at the preceding election, or con- 26 trols in any manner the election of a majority of the directors 27 of that savings bank, or for the benefit of whose shareholders 01361'99 f 3 1 all or substantially all the capital stock of that savings bank 2 is held by trustees. 3 (e) "Association" means a federal savings association orga- 4 nized under section 5 of the home owners' loan act, chapter 64, 5 48 Stat. 132, 12 U.S.C. 1464, or a savings and loan association, 6 building and loan association, or homestead association, that is 7 organized under the laws of a state or the District of Columbia 8 and whose deposits are insured by the federal deposit insurance 9 corporation. 10 (f) "Bank" means a state banking corporation organized or 11 reorganized underthe provisions ofthe banking code of1969,12Act No. 319 of the Public Acts of 1969, being sections 487.301 to13487.598 of the Michigan Compiled Laws1999, MCL 487.11101 TO 14 487.15101, or organized underthe provisions ofany law of this 15 state enacted beforeAugust 20, 1969THE EFFECTIVE DATE OF THAT 16 ACT. 17 (g) "Bank holding company" means a stock or mutual company 18 as defined in the bank holding company act of 1956, chapter 240, 19 70 Stat. 133, or a company defined as a savings and loan holding 20 company in the home owners' loan act, chapter 64, 48 Stat. 128, 21 that is not a savings bank, national banking association, or 22 association. 23 (h) "Branch" means a place of business, other than the prin- 24 cipal office of a savings bank, at which the savings bank trans- 25 acts business that may be conducted at its principal office. 26 Branch does not include a subsidiary, service entity, agency 27 office, loan production office, place where only records are 01361'99 f 4 1 made, posted, or kept, place of business of a financial 2 institution with which the savings bank has an agency relation- 3 ship under section 401, or an automated teller machine if it is 4 made available to 2 or more federal or state chartered financial 5 institutions under a state statute which regulates electronic 6 funds transfer facilities. The acceptance of deposits in fur- 7 therance of a school thrift or savings plan by an officer, 8 employee, or agent of a savings bank at any school is not the 9 establishment or operation of a branch. The receipt of deposits 10 by a messenger service or the delivery by messenger service of 11 items representing deposit account withdrawals or of loan pro- 12 ceeds is not the establishment or operation of a branch, whether 13 or not the messenger service is owned or operated by the savings 14 bank. 15 (i) "Bureau" means the financial institutions bureau in the 16 department of consumer and industry services. 17 (j) "Capital" means the stated par value of issued and out- 18 standing unimpaired common stock and the stated par value of 19 issued and outstanding unimpaired preferred stock. 20 (k) "Commissioner" means the commissioner of the financial 21 institutions bureau. 22 (l) "Compliance review committee" means both of the 23 following: 24 (i) One or more persons assigned by management or appointed 25 by the board of directors or other governing body of a depository 26 institution, or of a subsidiary of a depository institution, or 01361'99 f 5 1 of a service corporation or other service entity of a depository 2 institution, for the purposes set forth in section 339. 3 (ii) Any other person to the extent the person acts in an 4 investigatory capacity at the direction of a compliance review 5 committee. 6 (m) "Compliance review documents" means documents prepared 7 in connection with a review or evaluation conducted by or for a 8 compliance review committee. 9 (n) "Consolidate", "consolidated", "consolidating", and 10 "consolidation" mean the consolidation or merger of 2 or more 11 depository institutions. 12 (o) "Consolidated savings bank" means a savings bank that 13 results from a consolidation between a savings bank and 1 or more 14 banks, out-of-state banks, national banks, associations, or sav- 15 ings banks. 16 (p) "Consolidated organization" means an organization that 17 results from a consolidation of consolidating organizations. 18 (q) "Consolidating organizations" means any combination of 19 banks, out-of-state banks, national banks, associations, savings 20 banks, or state or federal credit unions that have consolidated 21 or are in the process of consolidation as provided in section 701 22 or 702. 23 (r) "Depository institution" means a bank, out-of-state 24 bank, national bank, association, savings bank, cooperative bank, 25 industrial bank, or credit union organized under the laws of this 26 state, another state, the District of Columbia, the United 27 States, or a territory or protectorate of the United States. 01361'99 f 6 1 (s) "Director" means a director, trustee, or other person 2 holding a similar position with respect to an organization 3 whether incorporated or unincorporated. Director does not 4 include an advisory director, honorary director, director emeri- 5 tus, or similar person, unless the person is otherwise performing 6 functions similar to those of a director. 7 (t) "Federal reserve act" means the federal reserve act, 8 chapter 6, 38 Stat. 251. 9 (u) "Fiduciary" means a trustee, executor, administrator, 10 guardian, conservator, agent, receiver, trustee in bankruptcy, 11 assignee for creditors, or any holder of a similar position of 12 trust. It also describes the relationship of a director to a 13 savings bank as stipulated in section 323 of this act. 14 (v) "Foreign country" means a country other than the United 15 States and includes a colony, dependency, or possession of a 16 country other than the United States. 17 (w) "Impairment" means a condition in which the value of the 18 savings bank's assets is less than the aggregate amount of the 19 savings bank's liabilities to creditors and depositors, less its 20 capital, if the savings bank is a stock savings bank, or a condi- 21 tion in which the value of the savings bank's assets is less than 22 the aggregate amount of the savings bank's liabilities to credi- 23 tors and members, if the savings bank is a mutual savings bank. 24 (x) "Incorporator" means a person who signed the original 25 articles of incorporation. 26 Enacting section 1. This amendatory act does not take 27 effect unless Senate Bill No. 745 01361'99 f 7 1 of the 90th Legislature is enacted into 2 law. 01361'99 f Final page. SAT