Banking Act

• The Banking Code of 1999 explicitly legislates the activities a bank and its officers can perform. It specifically grants chartered banks the right to make deposits and withdrawals from a checking account and provide receipts for all transactions made at the institution. It grants banks the right to open new checking accounts, and requires customers to create a signature card for every account opened. A signature card is a document that lists the customer's personal and account information with a signature acknowledging that the customer understands the financial transaction he just performed.
  
  

Lending

• The Banking Code legislates how much a bank in Michigan can lend against checking account deposits. According to section 487.14108, a bank's deposits must equal a minimum of 10 percent of the value of all loans made. This limits the amount of risk a bank exposes itself to through excessive lending and ensures that a bank has enough capital to regularly honor withdrawal requests. The section also prohibits banks from showing a preference in how it manages the deposits of customers. All deposit money must be used the same way.
  
  

Credit Unions

• The Credit Union Act of 2003 defines the general activities a credit union can carry out for Michigan checking account customers. A credit union can open and maintain checking accounts in much the same way a bank can, but the law provides additional restrictions on the check cashing fees a credit union can charge. Fees cannot exceed 5 percent of a payroll check, 7 percent of a check from an insurance company or 10 percent of a personal check or money order.
  
  

Electronic Transfers

• The Electronic Transfer Act of 1978 regulates how banks process electronic transfers, and handles customer disputes with such transactions. Eligible transactions include those done with an ATM or debit card. The law requires ATM terminals to process transfers in a uniform way across the state and mandates that ATM fees apply equally to all customers. Banks must respond to electronic-transfer disputes from customers immediately, and customers must be given a receipt for all electronic transactions.