Michigan Credit Unions Private Deposit Insurance Petition

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Give State Chartered Michigan Credit Unions the Option of Private Deposit Insurance

We, the undersigned State Chartered Credit Unions of Michigan, request that Director Anita Fox, State of Michigan, Director of Department of Insurance and Financial Services take those actions necessary to amend Section 490.387 of the Michigan State Credit Union Act to permit credit unions under its jurisdiction to evaluate private deposit insurance options as alternative options to NCUSIF.

We would submit that provided the option of choice we would regain authority over NCUA decisions impacting the use of credit union capital for purposes that are of little or no benefit to Michigan state-chartered credit unions. Any available private insurance options would require the approval of both Michigan insurance and credit union regulators and be subject to the review and audit requirements of the appropriate regulator. This action would also provide parity with the credit union authorities of our bordering states, Indiana and Ohio and support growing interest in branching reciprocity.

It would also address the growing concern of federal insurance requirements that overstep and preempt the authorities of our chosen state charter and the regulations that our owners have selected under the constitutional principles of dual chartering. Our credit unions and our members enjoy those advantages provided by a Michigan State charter and want to foster the continuing modernization and cooperative advantages of that member/owner decision.

Thank you for your consideration.

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