Financial institutions: credit unions; insurance from a qualified private insurance organization; allow for domestic credit unions. Amends sec. 387 of 2003 PA 215 (MCL 490.387). TIE BAR WITH: HB 5779'26, HB 5780'26, HB 5781'26, HB 5783'26

HB-5782, As Passed House, June 17, 2026

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SUBSTITUTE FOR
HOUSE BILL NO. 5782
A bill to amend 2003 PA 215, entitled
"Credit union act,"
by amending section 387 (MCL 490.387).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 387. (1) A domestic credit union that is not a corporate 1
credit union shall apply for and maintain insurance of member its 2
share accounts and member deposit accounts from an agency of the 3
federal government that provides that insurance.a federal agency 4
authorized to insure share and deposit accounts or from a qualified 5
private insurance organization. 6
(2) A credit union that is denied a commitment for insurance 7
of its share and deposit accounts by the an insuring federal agency 8
or qualified private insurance organization, or that is given 9
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notice by the an insuring federal agency or qualified private 1
insurance organization of the agency's insurer's intent to 2
terminate insurance of the credit union's shares and deposits, 3
shall either dissolve, merge with another credit union that is 4
insured by an agency of the federal government, in accordance with 5
subsection (1), or apply in writing to the commissioner within 6
director not later than 30 days after the denial or notice for 7
additional time to obtain an insurance commitment. 8
(3) The commissioner director shall grant a credit union 9
described in subsection (2) 1 or more additional periods of time to 10
obtain or reinstate an insurance commitment if the commissioner 11
director receives satisfactory evidence that the credit union has 12
made or is making a substantial effort to meet the conditions 13
required by the an insuring federal agency or qualified private 14
insurance organization for issuance of an insurance commitment. 15
(4) A credit union may contract with an insurance carrier 16
licensed to do business in this state for insurance of the balances 17
of its accounts that exceed the amount insured by the an insuring 18
federal agency or qualified private insurance organization. 19
(5) An insurance carrier that is licensed to do business in 20
this state may submit an application to the department for 21
authorization to provide insurance under this section as a 22
qualified private insurance organization. The application must be 23
on a form prescribed by the director. The director shall develop 24
and implement the form of application and the standards for 25
authorization under this subsection. 26
(6) The director may deny or revoke an insurance carrier's 27
authorization as a qualified private insurance organization if the 28
director finds that the insurance carrier lacks the resources, 29
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governance, or management to adequately protect the share and 1
deposit accounts of credit unions. 2
(7) A credit union that converts to primary share or deposit 3
insurance from a qualified private insurance organization must 4
comply with state and federal law applicable to the conversion and 5
must provide notice to the credit union's members as required under 6
section 43 of the federal deposit insurance act, 12 USC 1831t, and 7
12 CFR part 708b. 8
(8) As used in this section: 9
(a) "Primary share or deposit insurance" means insurance of a 10
share or deposit account of a credit union up to the same amount 11
that is insurable by a federal agency authorized to insure share 12
and deposit accounts. 13
(b) "Qualified private insurance organization" means an 14
insurance carrier that is licensed to do business in this state and 15
is authorized by the director to provide primary share or deposit 16
insurance under this section. 17
Enacting section 1. This amendatory act does not take effect 18
unless all of the following bills of the 103rd Legislature are 19
enacted into law: 20
(a) House Bill No. 5779. 21
(b) House Bill No. 5780. 22
(c) House Bill No. 5781. 23
(d) House Bill No. 5783. 24