SENATE BILL No. 366

 

 

May 21, 2013, Introduced by Senator WHITMER and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1999 PA 276, entitled

 

"Banking code of 1999,"

 

(MCL 487.11101 to 487.15105) by adding section 4101a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 4101a. (1) A bank shall not charge an account holder more

 

than 1 overdraft fee in any 24-hour period.

 

     (2) A bank shall publish on an internet website available to

 

the public the amount of its overdraft fees and the criteria it

 

uses to determine the amount of its overdraft fees.

 

     (3) If a bank receives more than 1 item to charge to an

 

account of a customer on the same banking day, the bank shall

 

charge the smallest item to the account first and charge each

 

additional item to the account in order by amount, from smallest to

 

largest.


 

     (4) As used in this section:

 

     (a) "Banking day" means that term as defined in section 4104

 

of the uniform commercial code, 1962 PA 174, MCL 440.4104.

 

     (b) "Item" means that term as defined in section 4104 of the

 

uniform commercial code, 1962 PA 174, MCL 440.4104.

 

     (c) "Overdraft fee" means any fee or charge imposed in

 

connection with an account on which a check or other debit is paid

 

by the bank in which that account is held even though there are

 

insufficient funds in the account to cover that check or other

 

debit.