Read the full stored bill text
JJB S06249'26_SB1030_INTR_1 9xpydm
SENATE BILL NO. 1030
A bill to amend 2003 PA 215, entitled
"Credit union act,"
by amending section 371 (MCL 490.371), as amended by 2016 PA 156.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 371. (1) Two or more domestic credit unions may merge 1
into 1 of the credit unions, or into a newly formed domestic credit 2
union, if all of the following are met: 3
(a) The credit union board of each constituent credit union by 4
majority vote adopts a plan of merger that includes all of the 5
following: 6
June 10, 2026, Introduced by Senators HOITENGA, KLINEFELT, BELLINO, WOJNO,
CAVANAGH, CHANG and JOHNSON and referred to Committee on Finance, Insurance, and
Consumer Protection.
2
JJB S06249'26_SB1030_INTR_1 9xpydm
(i) The name of each constituent credit union and the name of 1
the surviving credit union. 2
(ii) The terms and conditions of the proposed merger, including 3
the manner and basis of converting the member shares in each 4
constituent credit union into member shares in the surviving credit 5
union, or into cash or other property, or into a combination of 6
shares, cash, or other property. 7
(iii) A statement of any amendment to the certificate of 8
organization of the surviving credit union affected by the merger 9
or a statement that no changes are to be made in the certificate of 10
organization of the surviving credit union. 11
(iv) Any other provisions concerning the proposed merger that 12
the constituent credit unions consider necessary or desirable. 13
(b) If the credit union board of each constituent credit union 14
adopts the plan of merger, the constituent credit unions submit the 15
plan of merger to the director. Each constituent credit union shall 16
submit the time and place of the meeting of the credit union board 17
at which it approved the plan, the vote of the board members on 18
approving the plan, and a copy of the resolution of the credit 19
union board approving the plan to the director with the plan of 20
merger. 21
(c) Subject to subsection (6), the members of each constituent 22
credit union except the surviving credit union approve the plan of 23
merger , at a special membership meeting called for that purpose or 24
by mail ballot. If the vote is held at a special membership 25
meeting, the credit union board shall provide each member with 26
written notice of the meeting that states the purpose of the 27
meeting , at least 7 not less than 45 days and not more than 30 90 28
days before the meeting. The plan of merger is approved if a 29
3
JJB S06249'26_SB1030_INTR_1 9xpydm
majority of the members of the constituent credit union that vote 1
on the merger vote in favor of the merger. 2
(d) If the membership of a constituent credit union approves 3
of a plan of merger under subdivision (c), the credit union shall 4
notify the director that the plan of merger is approved, the vote 5
by which the members approved the plan, and a copy of the meeting 6
notice if the plan was approved at a special membership meeting or 7
the ballot and mailing date and closing date if the plan was 8
approved by mail ballot of the members. 9
(e) The director grants final approval of the plan of merger. 10
The director shall grant final approval of the plan if all of the 11
requirements of subdivisions (a) to (d) are met. 12
(2) One or more domestic credit unions may merge with 1 or 13
more foreign credit unions if both of the following are satisfied: 14
(a) The merger is permitted by the law of the jurisdiction 15
under whose law each foreign constituent credit union is organized 16
and each foreign constituent credit union complies with that law in 17
effecting the merger. 18
(b) Each domestic constituent credit union complies with 19
subsection (1). 20
(3) If a plan of merger under subsection (1) or (2) is 21
approved, each constituent credit union shall execute and file a 22
certificate of merger with the director that contains all of the 23
following: 24
(a) The statements required in subsection (1)(a)(i) and (iii). 25
(b) A statement that the plan of merger has been approved by 26
the members of the constituent credit unions required to vote under 27
subsection (1)(c). 28
(c) A statement of any assumed names the surviving credit 29
4
JJB S06249'26_SB1030_INTR_1 9xpydm
union will use in this state if the director approves. The 1
statement shall must specify each new assumed name of the surviving 2
credit union, each current assumed name the surviving entity 3
retains, and each assumed name transferred to the surviving entity 4
from another constituent credit union. 5
(d) The proposed effective date of the merger. 6
(4) When a merger takes effect, all of the following apply: 7
(a) Every other constituent credit union merges into the 8
surviving credit union and the separate existence of every 9
constituent credit union except the surviving credit union ceases. 10
(b) All property, debts, causes of action, and other interests 11
of, belonging to, or due to each constituent credit union are 12
vested in the surviving credit union without further act or deed 13
and without reversion or impairment. 14
(c) The surviving credit union has all of the liabilities of 15
each constituent credit union. 16
(d) A proceeding pending against any constituent credit union 17
may be continued as if the merger had not occurred or the surviving 18
credit union may be substituted in the proceeding for the 19
constituent credit union if the existence of the constituent credit 20
union ceased. 21
(e) The certificate of organization of the surviving credit 22
union is amended to the extent provided in the certificate of 23
merger. 24
(f) The membership shares in each constituent credit union are 25
converted into membership shares in the surviving credit union, 26
cash, or other property as provided in the plan of merger. If a 27
person is a member of more than 1 of the constituent credit unions, 28
the person is entitled to only 1 membership in the surviving credit 29
5
Final Page
JJB S06249'26_SB1030_INTR_1 9xpydm
union. 1
(g) The surviving credit union is liable for, and is subject 2
to service of process in a proceeding in this state for the 3
enforcement of, any obligation of a domestic constituent credit 4
union. 5
(5) If the surviving credit union in a merger under subsection 6
(2) is a foreign credit union, and the surviving credit union 7
transacts business in this state, it the surviving credit union 8
shall comply with the provisions of this act concerning foreign 9
credit unions. 10
(6) The director may waive the membership vote described in 11
subsection (1)(c) for a constituent credit union if he or she the 12
director determines that it the proposed merger is in the best 13
interests of the membership of the constituent credit union or that 14
the constituent credit union is insolvent or in imminent danger of 15
becoming insolvent. 16
(7) Credit unions with different fields of membership may 17
merge under this section. 18