CHAPTER 487. FINANCIAL INSTITUTIONS THE MICHIGAN FINANCIAL INSTITUTIONS ACT Act ...

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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487.1-487.292 Repealed. 1962, Act 174, Eff.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487.301-487.598 Repealed. 1995, Act 202, Imd.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487.601-487.617 Repealed. 1962, Act 174, Eff.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487.621 Repealed. 1962, Act 174, Eff.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487.641 Repealed. 1962, Act 174, Eff.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487.651,487.652 Repealed. 2002, Act 323, Imd.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487.661 Repealed. 1962, Act 174, Eff.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487.671 Repealed. 1962, Act 174, Eff.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487.681,487.682 Repealed. 1962, Act 174, Eff.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.
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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.
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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
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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.
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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
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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,
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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.
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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.
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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.
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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.
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