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Michigan Credit Union League

New Powers and Codifications

The MCUA amendments were designed to create an environment that enables credit unions to foster lifelong partnerships with their members. To do so, credit unions must have an increased ability to provide a full array of financial service products to members. The update sought to expand powers and allow for the creation of a state-based trust services solution.

The following are specific updates made to the MCUA that are effective September 7, 2016:

New authority in law:

  • Trust Services
    Allows credit unions to form a CUSO to offer this member service, which adds to product diversity, as well as a future new revenue stream for credit unions interested in offering this service. This is part of a wealth management suite of services that would be particularly beneficial to small business members and those with more substantial assets.
  • Associate Board members
  • Investments deemed impermissible due to change in law or circumstance--Director may permit a credit union to divest in orderly manner over time
  • Educational scholarships
  • Charitable donation accounts
  • Financial counseling to any person
  • Loan promotion raffles
  • Add any person (member or not) to be a co-signer, guarantor or co-borrower on any loan
  • Prepayment penalties for commercial loans
  • CUSO owned by single CU to provide for audit as part of consolidated audit

New Codifications:

  • Codifies real estate and venture capital investment authority granted in bulletin
  • Codifies bulletin authority to purchase derivatives to hedge interest rate risk


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