Bill Text: MI SB0605 | 2011-2012 | 96th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Financial institutions; savings and loan associations; written disclosure of rights of account holders; require for joint accounts. Amends 1980 PA 307 (MCL 491.102 - 491.1202) by adding sec. 629.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Engrossed - Dead) 2011-11-03 - Referred To Committee On Banking And Financial Services [SB0605 Detail]

Download: Michigan-2011-SB0605-Introduced.html

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SENATE BILL No. 605

 

 

September 7, 2011, Introduced by Senators BIEDA and YOUNG and referred to the Committee on Banking and Financial Institutions.

 

 

 

     A bill to amend 1980 PA 307, entitled

 

"Savings and loan act of 1980,"

 

(MCL 491.102 to 491.1202) by adding section 629.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 629. (1) If 1 or more customers apply to establish a

 

joint account at an association, the association shall do all of

 

the following before opening the account:

 

     (a) Provide each joint account holder with the following

 

disclosure in writing:

 

     "A joint account means that each account holder is the owner

 

of the money in this account. This means that you and each of the

 

other account holders have the authority to deposit or withdraw

 

money from this account at any time.

 

     If that is not your intention, you should not open this

 

account.

 

     If it is your intention that the other account holder or

 

account holders receive the money in the account only when you die,

 

there are other types of accounts available that designate other

 

individuals as beneficiaries of the account and do not allow them

 

access to the money in the account during your lifetime.

 

     If it is your intention to open an account that designates 1

 

or more individuals as beneficiaries of your account when you die,

 

and not to create a joint account, there are other types of

 

accounts available.".

 

     (b) Require that each joint account holder sign and deliver to

 

the association a written acknowledgment that the account holder

 

has read and understands the disclosure described in subdivision

 

(a).

 

     (2) An association may include the disclosure and

 

acknowledgment described in subsection (1) on or with any signature

 

card required by the association from the joint account holders in

 

connection with an account.