Sec. 430.
(1) Savings banks may collect interest and charges on loans and extensions of credit, including open-end credit to any person, as follows:
(a) As permitted by the credit reform act, 1995 PA 162, MCL 445.1851 to 445.1864.
(b) On obligations purchased by the savings bank, the savings bank may charge a discount.
(c) On a loan not covered by subdivision (a) or (b), a savings bank may charge, collect, and receive interest and other charges in the same manner and at up to maximum rate or amount permitted by law for the same type of loans made by national banking associations authorized to do business in this state.
(d) On a loan not covered by subdivision (a), (b), or (c), as otherwise permitted by law.
(2) A savings bank or any officer or employee of the savings bank shall not, directly or indirectly, take or receive more than the rate of interest allowed by law in advance on its loans and discounts.
(3) Except as otherwise provided by law, an investigation fee or handling charge in connection with any transaction shall not be considered as interest.
(4) A savings bank may pay interest on any deposit that is payable on demand, unless the commissioner by rule, or order, or declaratory ruling restricts the right of the savings bank to pay interest on demand deposits or unless restricted by federal law.
History: 1996, Act 354, Imd. Eff. July 1, 1996 ;-- Am. 2000, Act 482, Imd. Eff. Jan. 11, 2001
Structure Michigan Compiled Laws
Chapter 487 - Financial Institutions
Act 354 of 1996 - Savings Bank Act (487.3101 - 487.3804)
354-1996-4 - Chapter 4 Powers (487.3401...487.3436)
Section 487.3401 - Savings Bank; Powers.
Section 487.3404 - Purchase of Stock, or Loans To, Michigan Business Development Corporation.
Section 487.3406 - “Investment Security” and “Secretary” Defined; Purchase of Investment Securities.
Section 487.3408 - Services Performed by Savings Bank.
Section 487.3410 - Investment in Service Entities.
Section 487.3411 - Powers Granted in MCL 487.3401 and 487.3403 Construed.
Section 487.3412 - Change in Location of Principal Office.
Section 487.3415 - Savings Bank With Branch Offices in Foreign Country.
Section 487.3417 - Savings Bank With Branch in Another State.
Section 487.3418 - Loan Production Offices.
Section 487.3420 - Discontinuing Operations of Branch or Agency Office; Transfer of Functions.
Section 487.3421 - Trust Powers; Conditions, Limitations, and Restrictions.
Section 487.3422 - Definitions; Trust Service Agreements.
Section 487.3424 - Fiduciary Powers; Considerations.
Section 487.3425 - Repealed. 2000, Act 482, Imd. Eff. Jan. 11, 2001.
Section 487.3427 - Enforcement of MCL 487.3421 to 487.3426; Orders or Declaratory Rulings.
Section 487.3428 - Safe Deposit and Storage Department.
Section 487.3429 - Lease, Purchase, Holding, and Conveyance of Real Estate.
Section 487.3430 - Interest and Charges on Loans and Credit Extensions.
Section 487.3431 - Drafts or Bills of Exchange.
Section 487.3432 - Loans and Extensions of Credit and Leases; Limitations; Exceptions; Definitions.
Section 487.3433 - Loans and Extensions of Credit; Exceptions to Limitations.