CHAPTER 487. FINANCIAL INSTITUTIONS THE MICHIGAN FINANCIAL INSTITUTIONS ACT Act 341 of 1937 487.1-487.292 Repealed. 1962, Act 174, Eff. Jan. 1, 1964;—1969, Act 319, Imd. Eff. Aug. 20, 1969. BANKING CODE OF 1969 Act 319 of 1969 487.301-487.598 Repealed. 1995, Act 202, Imd. Eff. Nov. 29, 1995;—1988, Act 200, Eff. Aug. 1, 1988 ;—1996, Act 405, Imd. Eff. Oct. 21, 1996;—1999, Act 276, Eff. Mar. 1, 2000. THE BANK COLLECTION CODE Act 240 of 1931 487.601-487.617 Repealed. 1962, Act 174, Eff. Jan. 1, 1964. PAPER PRESENTED ONE YEAR AFTER DATE Act 390 of 1925 487.621 Repealed. 1962, Act 174, Eff. Jan. 1, 1964. FORWARDING OF NEGOTIABLE PAPER Act 386 of 1919 487.641 Repealed. 1962, Act 174, Eff. Jan. 1, 1964. MARKING COUNTERFEIT, ALTERED, OR WORTHLESS BILLS Act 165 of 1865 487.651,487.652 Repealed. 2002, Act 323, Imd. Eff. May 23, 2002. FORGED OR RAISED CHECKS Act 95 of 1907 487.661 Repealed. 1962, Act 174, Eff. Jan. 1, 1964. NONPAYMENT OF CHECK Act 378 of 1919 487.671 Repealed. 1962, Act 174, Eff. Jan. 1, 1964. REVOCATION, COUNTERMAND, OR STOP-PAYMENT ORDER Act 348 of 1925 487.681,487.682 Repealed. 1962, Act 174, Eff. Jan. 1, 1964. Rendered Tuesday, November 13, 2018 Page 1 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov ADVERSE CLAIM TO BANK DEPOSIT Act 349 of 1925 AN ACT relative to notice of adverse claim to a bank deposit and to prescribe the procedure necessary to make such claim effective to cause recognition of the adverse claimant. History: 1925, Act 349, Eff. Aug. 27, 1925. The People of the State of Michigan enact: 487.691 Adverse claim to bank deposit; notice; restraining order; exception. Sec. 1. Notice to any bank or trust company doing business in this state of an adverse claim to a deposit standing on its books to the credit of any person shall not be effectual to cause said bank to recognize said adverse claimant unless said adverse claimant shall also either procure a restraining order, injunction or other appropriate process against said bank from a court of competent jurisdiction in a cause therein instituted by him wherein the person to whose credit the deposit stands is made a party and served with summons, or shall execute to said bank, in form and with sureties acceptable to it a bond, indemnifying said bank from any and all liability, loss, damage, costs and expenses for and on account of the payment of such adverse claim or the dishonor of the check or other order of the person to whose credit the deposit stands on the books of said bank: Provided, That this law shall not apply in any instance where the person to whose credit the deposit stands is a fiduciary for such adverse claimant, and the facts constituting such relationship, as also the facts showing reasonable cause of belief on the part of the said claimant that the said fiduciary is about to misappropriate said deposit, are made to appear by the affidavit of such claimant. History: 1925, Act 349, Eff. Aug. 27, 1925;(cid:190)CL 1929, 12068;(cid:190)CL 1948, 487.691. Rendered Tuesday, November 13, 2018 Page 2 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov PAYMENT OF DEPOSITS Act 248 of 1909 AN ACT in relation to the payment of deposits of money in banks and trust companies by minors, trust deposits, and deposits in the names of more than 1 person. History: 1909, Act 248, Eff. Sept. 1, 1909. The People of the State of Michigan enact: 487.701 Minor's deposit; payment; receipt or acquittance sufficient. Sec. 1. When any deposit of money shall be made in any bank or trust company by or in the name of any minor, the same shall be held for the exclusive right and benefit of such minor, and shall be paid, together with the dividends and interest thereon to the person in whose name the deposit shall have been made, and the receipt or acquittance of such minor shall be a valid and sufficient release and discharge for such deposit, or any part thereof to the corporation. History: 1909, Act 248, Eff. Sept. 1, 1909;(cid:190)CL 1915, 8038;(cid:190)CL 1929, 12061;(cid:190)CL 1948, 487.701. 487.702 Trust deposit; death of trustees; payment of deposit; receipt or acquittance as release and discharge. Sec. 2. (1) If a deposit of money shall be made in a bank or trust company by a person in trust for another, and no other or further notice of the existence and terms of a legal and valid trust shall have been given in writing to the bank, if the trustee dies, or if there is more than 1 trustee, all of the trustees have died, the deposited money, together with the dividends or interest on the money, shall be paid to the person for whom the deposit was made. (2) If the balance of the deposit exceeds $5,000.00 and the person to whom the payment is to be made is under the age of 18 years, the deposit shall be paid only to his or her legally appointed guardian. (3) If the balance of the deposit is less than $5,000.00 and the person to whom the payment is to be made is under the age of 18 years, the deposit shall be paid to the minor if the minor is married, a parent, or a person having the care and custody of a minor child under a court order and with whom the child resides. If the minor does not meet the requirements of this subsection, then the deposit shall be paid only to his or her legally appointed guardian. (4) The receipt or acquittance by the beneficiary or guardian to whom the payment is made shall be a valid and sufficient release and discharge to the depository for all payments made. History: 1909, Act 248, Eff. Sept. 1, 1909;(cid:190)CL 1915, 8039;(cid:190)Am. 1929, Act 145, Eff. Aug. 28, 1929;(cid:190)CL 1929, 12062;(cid:190)CL 1948, 487.702;(cid:190)Am. 1991, Act 41, Imd. Eff. June 14, 1991. 487.703 Deposit in name of joint beneficiaries; payment; receipt sufficient; deposits made payable to survivor; prima facie evidence. Sec. 3. When a deposit shall be made, in any bank by any person in the name of such depositor or any other person, and in form to be paid to either or the survivor of them, such deposits thereupon and any additions thereto, made by either of such persons, upon the making thereof, shall become the property of such persons as joint tenants, and the same together with all interest thereon, shall be held for the exclusive use of the persons so named and may be paid to either during the lifetime of both, or to the survivor after the death of 1 of them, and such payment and the receipt or acquittance of the same to whom such payment is made shall be a valid and sufficient release and discharge to said banking institution for all payments made on account of such deposits prior to the receipt by said bank of notice in writing not to pay such deposit in accordance with the terms thereof. When a deposit has been made, or shall hereafter be made, in any banking institution transacting business in this state, in the names of 2 or more persons, payable to either or the survivor or survivors, such deposit or any part thereof or any interest or dividend thereon and any additions thereto, made by any 1 of the said persons, shall become the property of such persons as joint tenants, and the same shall be held for the exclusive use of the persons so named and may be paid to any 1 of said persons during the lifetime of said persons or to the survivor or survivors after the death of 1 of them, and such payment and the receipt or acquittance of the same to whom such payment is made shall be a valid and sufficient release and discharge to said banking institution for all payments made on account of such deposits prior to the receipt by said bank of notice in writing not to pay such deposit in accordance with the terms thereof. The making of the deposit in such form shall, in the absence of fraud or undue influence, be prima facie evidence, in any action or proceeding, to which either such banking institution or surviving depositor or Rendered Tuesday, November 13, 2018 Page 3 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov depositors is a party, of the intention of such depositors to vest title to such deposit and the additions thereto in such survivor or survivors. History: 1909, Act 248, Eff. Sept. 1, 1909;(cid:190)CL 1915, 8040;(cid:190)CL 1929, 12063;(cid:190)Am. 1937, Act 286, Imd. Eff. July 23, 1937;(cid:190)CL 1948, 487.703. Rendered Tuesday, November 13, 2018 Page 4 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov STATUTORY JOINT ACCOUNT ACT Act 53 of 1978 AN ACT to define the rights and obligations of parties and financial institutions in connection with funds on deposit therein in which 2 or more persons have an interest by way of right of withdrawal or ownership. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. The People of the State of Michigan enact: 487.711 Short title. Sec. 1. This act shall be known and may be cited as the “statutory joint account act”. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. 487.712 Meanings of words and phrases. Sec. 2. For the purposes of this act, the words and phrases defined in sections 3 and 4 have the meaning ascribed to them in those sections. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. 487.713 Definitions. Sec. 3. (a) “Deposits” means funds on deposit in a financial institution, including interest. (b) “Joint account” means a deposit in a financial institution in which 2 or more persons have an interest, either by way of ownership or right of withdrawal. (c) “Statutory joint account” means a joint account as to which a statutory joint account contract, as provided in this act, has been signed by a person having a right of withdrawal on the account. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. 487.714 Additional definitions. Sec. 4. (a) “Financial institution” means a state or nationally chartered bank or a state or federally chartered savings and loan association, savings bank, or credit union whose deposits are insured by an agency of the United States government and which maintains a principal office or branch office located in this state under the laws of this state or the United States. (b) “Person” means an individual, corporation, partnership, association, governmental entity, or any other legal entity. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978;(cid:190)Am. 1997, Act 35, Imd. Eff. June 30, 1997. 487.715 Statutory joint account; creation; signing contract; form of contract; acknowledging receipt of contract; adding additional parties; modifying form of contract. Sec. 5. One or more persons may create a statutory joint account by signing a statutory joint account contract with a financial institution that is agreeable to the contract with indicated insertions in form substantially as follows: FORM OF STATUTORY JOINT ACCOUNT CONTRACT 1. Name of financial institution: 2. Nature of Account: Check______Savings Account; ______Commercial Account; ______Certificate of Deposit; ______Other Credits (describe): 3. Name and address of person designated as A: 4. Name and address of person designated as B: 5. Who may withdraw funds during lifetime of A and B: Check______A;______B;______Either A or B; ______Signatures of both A and B. 6. Who may revoke this contract by written notice to the Rendered Tuesday, November 13, 2018 Page 5 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov financial institution: Check______A;______B;______Either A or B; ______Signatures of both A and B. In the event of revocation, the right to withdraw funds shall be determined by designation of ownership in item 7. 7. Who owns the funds during the lifetime of A and B: Check______A;______B;______Equally by A and B; Other proportions (describe):______ 8. Who owns the funds and has the right to withdraw if A dies first: Check______B;______A's estate;______Equally by B and A's estate; Other proportions (describe):______. 9. Who owns the funds and has the right to withdraw if B dies first: Check______A;______B's estate;______Equally by A and B's estate; Other proportions (describe):______. 10. If A and B should die simultaneously without proof of who survives, which provision shall control: Check______Item 8 above;______Item 9 above. 11. Signature of persons having right of withdrawal:______. 12. Date of signature:______. Note: (1) Each person who signs this contract shall receive a copy of this contract and their signature shall constitute acknowledgement of receipt. (2) When more than 2 persons are involved, additional parties may be added by designation of "C", etc. and the form of this contract shall be modified to conform therewith. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. 487.716 Nature and effect of statutory joint accounts; failure to answer question in contract. Sec. 6. The creation of a statutory joint account is a contract as to ownership of the deposits and is effective pursuant to its terms without regard to requirements of testamentary dispositions. The rights of persons in joint accounts which are not statutory joint accounts are not affected by this act. The failure to answer a question in a statutory joint account contract shall not invalidate the contract, but it shall be enforceable pursuant to its terms as to the questions answered and pursuant to the common law as to any unanswered question or ambiguities, with the purpose of effectuating the intent of the parties. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. 487.717 Withdrawals of funds; liability of financial institution; deposits subject to setoff. Sec. 7. (1) Financial institutions shall honor withdrawals of funds pursuant to the withdrawal provisions of the statutory joint account contract. In so doing, they shall be relieved of liability to persons having a claim to ownership of the funds. A financial institution shall not be chargeable with changes in rights of withdrawal due to death or incompetency in absence of actual knowledge thereof. (2) Deposits in statutory joint accounts shall be subject to setoff for obligations to the financial institution by persons designated in the statutory joint account contract as owners of the funds to the extent of the ownership at the date of setoff. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. 487.718 Deposits subject to rights of creditors; laws applicable to transfers in fraud of creditors; claims against insolvent estate of deceased owner of statutory joint account. Sec. 8. Deposits in a statutory joint account shall be subject to the rights of creditors of the persons designated in the statutory joint account contract as owners of the funds to the extent of the ownership, except that the funds shall remain subject to laws applicable to transfers in fraud of creditors. If in his or her lifetime, Rendered Tuesday, November 13, 2018 Page 6 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov a deceased person was an owner of a statutory joint account, the estate, in event of its insolvency, may recover from the surviving owner so much of the deposits as were owned by the deceased person immediately before the deceased person's death to the extent required to satisfy claims against the estate. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. 487.719 Payment of widow's allowance or allowance for dependent children upon death of person owning deposits in statutory joint account. Sec. 9. Upon the death of a person who in his or her lifetime owned the deposits in a statutory joint account, to the extent of the decedent's ownership immediately before his or her death, the rights of the owners of the deposits after the death shall be subject to the right of recovery by the estate of the deceased person to the extent that the assets of the estate are insufficient for the payment of the widow's allowance or allowance for dependent children ordered by a court of competent jurisdiction; or in an intestate estate or where the widow exercised her right to take against the will, the assets of the estate are insufficient for the payment of the widow's share of the estate if the deposits were included as part of the estate. History: 1978, Act 53, Imd. Eff. Mar. 9, 1978. Rendered Tuesday, November 13, 2018 Page 7 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov JOINT SAFE DEPOSIT BOX Act 330 of 1939 AN ACT to provide for access to, removal of contents from, surrender of, and discharge of liability of lessor of safe deposit boxes or compartments rented to 2 or more persons by either or any 1 of such persons or the survivor or survivors of them, unless otherwise provided in the safe deposit box or compartment rental agreement. History: 1939, Act 330, Eff. Sept. 29, 1939. The People of the State of Michigan enact: 487.721 Safe deposit box rented to joint holders; rights of various holders and survivors; exceptions. Sec. 1. (1) Subject to subsection (3), if 2 or more persons rent a safe deposit box or compartment, any 1 of them, or the survivor or survivors of them, unless it is otherwise provided in the safe deposit box or compartment rental agreement, has a right to all of the following: (a) To access to the safe deposit box or compartment for any purpose. (b) To remove or exchange any contents of the safe deposit box or compartment. (c) To surrender the safe deposit box or compartment, terminate the rental contract, and discharge the lessor of the safe deposit box or compartment from liability arising from its rental. (2) The safe deposit and collateral company, bank, industrial bank, trust company, or other lessor of the safe deposit box or compartment is protected against all renters of the safe deposit box or compartment, their assigns, heirs, executors, and administrators in recognizing the rights described in subsection (1). However, subsection (1) does not effect a transfer of title to any contents of a box or compartment from 1 renter to another. (3) The survivor or survivors of a renter who died before October 1, 1993 has no right of access to the safe deposit box or compartment until the provisions of section 9 of the Michigan estate tax act, Act No. 188 of the Public Acts of 1899, as amended, being section 205.209 of the Michigan Compiled Laws, has been complied with. History: 1939, Act 330, Eff. Sept. 29, 1939;(cid:190)CL 1948, 487.721;(cid:190)Am. 1994, Act 370, Imd. Eff. Dec. 27, 1994. Compiler's note: For provisions of section 9 of Act 188 of 1899, referred to in this section, see MCL 205.209. Rendered Tuesday, November 13, 2018 Page 8 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov U.S. DEFENSE SAVINGS BONDS Act 146 of 1941 AN ACT to authorize banks, industrial banks and trust companies to qualify as issuing agents for the sale of United States defense savings bonds, debentures, notes or other similar obligations of the United States of America and, if required, to pledge assets for the purpose of qualifying as such agents. History: 1941, Act 146, Imd. Eff. May 29, 1941. The People of the State of Michigan enact: 487.731 U.S. defense savings bonds; banks and trust companies authorized as issuing agent for sale of; deposit or pledge of assets. Sec. 1. Any bank, any industrial bank and any trust company is authorized to qualify as issuing agent for the sale of United States defense savings bonds, debentures, notes or other similar obligations of the United States of America and may, subject to the approval of the commissioner of the banking department, deposit and/or pledge assets as may be required for the purpose of qualifying as such agent. History: 1941, Act 146, Imd. Eff. May 29, 1941;(cid:190)CL 1948, 487.731. 487.732 Pledging of assets; limitation of financial institutions act not otherwise affected. Sec. 2. This act shall not affect the limitations and restrictions of Act No. 341 of the Public Acts of 1937, as amended, with respect to the pledge of assets of the institutions herein named, except in so far as provided in this act. History: 1941, Act 146, Imd. Eff. May 29, 1941;(cid:190)CL 1948, 487.732. Compiler's note: Act 341 of 1937, referred to in this section, was repealed by Act 174 of 1962 and Act 319 of 1969. Rendered Tuesday, November 13, 2018 Page 9 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov LOANS UNDER NATIONAL HOUSING ACT Act 2 of 1935 AN ACT to authorize loans, advances of credit and purchases in accordance with the provisions of an act of Congress, entitled “National Housing Act,” approved by the President on June 27, 1934, and any acts amendatory thereof or supplemental thereto; and prescribing the effect of this act. History: 1935, Act 2, Imd. Eff. Feb. 20, 1935. The People of the State of Michigan enact: 487.751 National housing act; state financial institutes' authorized transactions; collateral. Sec. 1. Subject to such regulations as may be prescribed by the proper state supervising authority, banks, trust companies, building and loan associations, insurance companies, finance companies and other lending agencies, the character, extent or incidents of whose loans are subject to the law of this state, are authorized: (a) To make such loans and advances of credit and purchases of obligations representing loans and advances of credit as are eligible for insurance by the federal housing administrator, and to obtain such insurance. (b) To make such loans secured by mortgages on real property as are eligible for insurance by the federal housing administrator, and to obtain such insurance. (c) To purchase, invest in, and dispose of, bonds or notes secured by mortgage or trust deed insured by the federal housing administrator or debentures issued by the federal housing administrator or securities issued by national mortgage associations. Wherever, by statute of this state, collateral is required as security for the deposit of public or other funds, or deposits are required to be made with any public official or department, or any investment of capital or surplus, or a reserve or other fund, is required to be maintained consisting of designated securities, notes or bonds secured by mortgage or trust deed insured by the federal housing administrator, debentures issued by the federal housing administrator, and obligations of national mortgage associations shall be eligible for such purposes. History: 1935, Act 2, Imd. Eff. Feb. 20, 1935;(cid:190)Am. 1937, Act 245, Imd. Eff. July 21, 1937;(cid:190)CL 1948, 487.751. Compiler's note: For provisions of National Housing Act, see 12 U.S.C. § 1703 et seq. 487.752 Construction of act as to effect of state laws. Sec. 2. No law of this state prescribing the nature, amount or form of security or deposit, or requiring security upon which loans or advances of credit may be made, or prescribing or limiting interest rates upon loans or advances of credit, or prescribing or limiting the period for which loans or advances of credit may be made, or prescribing or limiting the investment in loans or advances of credit, shall be deemed to apply to security given, furnished or accepted, or to loans, advances of credit, or purchases made, pursuant to section 1 of this act: Provided, however, That nothing contained in this act shall, directly or indirectly, authorize or permit any institution subject to its terms to invest in loans or make advances of credit or purchase securities pursuant to section 1 hereof in an amount greater than now authorized by the respective statutes which govern the organization and management of such institutions. History: 1935, Act 2, Imd. Eff. Feb. 20, 1935;(cid:190)CL 1948, 487.752. 487.753 Declaration of necessity. Sec. 3. This act is immediately necessary for the preservation of the public welfare, peace, health and safety. History: 1935, Act 2, Imd. Eff. Feb. 20, 1935;(cid:190)CL 1948, 487.753. RECEIVER OF PRIVATE BANK Act 29 of 1932 (1st Ex. Sess.) 487.761 Repealed. 1964, Act 256, Eff. Aug. 28, 1964. Rendered Tuesday, November 13, 2018 Page 10 Michigan Compiled Laws Complete Through PA 348 of 2018 (cid:211) Legislative Council, State of Michigan Courtesy of www.legislature.mi.gov