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HB-5780, As Passed House, June 17, 2026
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HOUSE BILL NO. 5780
A bill to amend 2003 PA 215, entitled
"Credit union act,"
by amending section 373 (MCL 490.373), as amended by 2004 PA 471.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 373. (1) A domestic credit union may convert into a 1
mutual savings bank or mutual savings association if all of the 2
following are met: 3
(a) At least 30 days before voting on a plan of conversion 4
under subdivision (b), the credit union board gives written notice 5
April 14, 2026, Introduced by Reps. McFall, Harris, Woolford, DeBoyer, Bierlein and BeGole
and referred to Committee on Insurance.
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to the credit union's members that it is considering a conversion. 1
The credit union board shall mail the notice to the credit union's 2
members and shall not include any other mailing with the notice. 3
The notice shall must include all of the following: 4
(i) A brief statement of why the credit union board is 5
considering the conversion. 6
(ii) A brief statement of the major positive and negative 7
effects of the proposed conversion. 8
(iii) A request for members' written comments on the proposed 9
conversion. 10
(b) The credit union board approves of a plan of conversion 11
and files the plan of conversion with the commissioner. director. 12
An affirmative vote of 2/3 of the entire credit union board is 13
required to approve a plan of conversion. The plan of conversion 14
shall must meet all of the following: 15
(i) The conversion plan of conversion discloses to the members 16
information concerning the advantages and disadvantages of the 17
proposed conversion and contains a statement indicating any 18
material differences in powers between a credit union and a mutual 19
savings bank or mutual savings association. 20
(ii) The conversion is not intended to circumvent a pending 21
supervisory action initiated by the commissioner director or 22
another regulatory agency because of a concern over the safety and 23
soundness of the credit union. 24
(iii) The conversion plan of conversion does not provide any 25
official of the converting credit union with any remuneration or 26
other economic benefit in connection with the conversion. 27
(iv) After conversion, the mutual savings bank or mutual 28
savings association is likely to be economically viable. 29
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(c) The credit union board shall call a special meeting of the 1
members to vote on the conversion plan of conversion and mail to 2
each member notice of the meeting and proposed conversion 90 days 3
before the date of the special meeting. The notice shall must 4
include all of the following: 5
(i) A summary of the positive and negative effects of the 6
proposed conversion. 7
(ii) A statement that the officials will not receive any 8
remuneration or other economic benefit in connection with the 9
conversion of the domestic credit union. 10
(iii) A statement that any interested person may obtain more 11
detailed information about the conversion from the domestic credit 12
union at its principal place of business, or by any method approved 13
in advance by the commissioner.director. 14
(iv) A statement that the credit union board may substantively 15
amend the proposed plan of conversion before the special meeting 16
based on comments from regulatory authorities or any other reason 17
and that the credit union board may terminate the proposed plan of 18
conversion. 19
(v) Instructions for obtaining a copy of the conversion plan 20
of conversion. 21
(vi) The date of the special meeting and a statement that the 22
vote on the conversion will close on that date. 23
(vii) Any other information required by the 24
commissioner.director. 25
(d) At least 60 days before the special meeting described in 26
subdivision (c), the credit union board posts a copy of the notice 27
required in subdivision (c) in each branch, service center, or 28
other location in this state where members may transact business 29
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with the credit union, in at least 12-point type, displayed 1
prominently in an area visible to members before they transact 2
business. 3
(e) At least 60 days before the special meeting described in 4
subdivision (c), if the credit union conducts any member 5
transactions through the use of an internet website, the credit 6
union board displays the information included in the notice 7
required in subdivision (c) in a conspicuous location on that 8
website. 9
(f) Thirty days before the special meeting of the members, the 10
credit union board mails a notice of the meeting and proposed 11
conversion. The notice shall must include all of the information 12
described in subdivision (c) for the 90-day notice and shall must 13
include the date, time, and place of the special member meeting, a 14
ballot and postage-paid return envelope, and a summary of the 15
methods permitted for casting votes. 16
(g) If the plan of conversion is substantively amended by the 17
credit union board, at least 30 days before the vote of the members 18
on the plan of conversion, the credit union board shall mail a 19
notice to each member. The notice shall must contain the 20
information concerning the amended plan of conversion described in 21
subdivision (c) for a notice under that subdivision. 22
(h) At a special meeting of members, the members, by a 2/3 23
vote of members voting, approve of the conversion and the plan of 24
conversion. A member may vote in person or by mail. With the prior 25
approval of the commissioner, director, a domestic credit union may 26
accept member votes by an alternative method that is reasonably 27
calculated to ensure each member has an opportunity to vote. 28
(i) The domestic credit union files with the commissioner 29
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director all of the following: 1
(i) Certified copies of records of all proceedings held by the 2
credit union board and members of the domestic credit union. 3
(ii) Copies of member comments submitted to the domestic credit 4
union under subdivision (a)(iii). 5
(iii) If that consent or approval is required, a certified copy 6
of the consent or approval of any state or federal regulatory 7
authority with jurisdiction over the mutual savings bank or mutual 8
savings association after the conversion and, if a holding company 9
is to be formed in connection with the conversion, the regulations 10
of the federal reserve board of governors Board of Governors of the 11
Federal Reserve System or of the office of thrift supervision 12
Office of Thrift Supervision applicable to holding companies. 13
(iv) Verification that deposits in the converted mutual savings 14
bank or mutual savings association qualify for federal insurance 15
from a federal agency authorized to insure share and deposit 16
accounts or from a qualified private insurance organization as that 17
term is defined in section 387. 18
(2) If the requirements of this section are met and the 19
commissioner director determines that the notices to members were 20
accurate, timely, and not misleading, and that conduct of the vote 21
on the conversion plan of conversion was fair and lawful, the 22
commissioner director shall approve the conversion and the 23
conversion is effective. 24
(3) Except as otherwise required by the commissioner, 25
director, this section does not apply to a domestic credit union 26
that submitted to the commissioner director a plan of conversion 27
into a mutual savings bank or mutual savings association before the 28
effective date of this act. 29
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Final Page
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Enacting section 1. This amendatory act does not take effect 1
unless all of the following bills of the 103rd Legislature are 2
enacted into law: 3
(a) Senate Bill No. ____ (request no. S05525'25) or House Bill 4
No. 5779 (request no. H05525'25). 5
(b) Senate Bill No. ____ (request no. S05544'25) or House Bill 6
No. 5782 (request no. H05544'25). 7
(c) Senate Bill No. ____ (request no. S05545'25) or House Bill 8
No. 5781 (request no. H05545'25). 9
(d) Senate Bill No. ____ (request no. S06228'26) or House Bill 10
No. 5783 (request no. H06228'26). 11