Credit Union FAQ
- What is the process for amending my state-chartered credit union bylaws?
First, determine what changes are needed. In most cases, there are standard bylaws or options available that will cover the credit union’s needs. If your credit union’s needs will not be met by a standard or option we have previously used, custom bylaws may be considered. Please contact Office of Credit Unions (OCU) Corporate Review at 517-284-8822 in regard to determining what custom bylaws might be permitted.
After the proposed changes have been reviewed and approved, OCU will forward the amendment forms to the credit union. Most credit unions' bylaws address approval of amendments in Article XII. The credit union must provide the proposed bylaw amendment and notification of voting to either the membership or board of directors as specified in Article XII. The signed forms must be returned to OCU and receive final approval from OCU prior to the bylaw amendment becoming operative.
- Can I amend my bylaws using my own forms or forms provided by my legal counsel?
No. OCU will generate the bylaw amendment forms as well as the new bylaw pages in order to ensure that our files accurately reflect the bylaws of the credit union. Sections 301(6) and 201(5) of the Michigan Credit Union Act directs OCU to prepare approved forms of bylaws and supply them to credit unions without charge.
- What if I discover an error on my credit union's call report after submitting it to OCU?
Corrected reports should be submitted using the NCUA CU Online process for all online filers. The original 5300 report filer at the credit union can re-open the specific period call report and resubmit the report once all the changes are made. Manual filers should send OCU a complete copy of the 5300 specifically outlining all amended line items and mail or fax the information to the OCU at 517-284-8846. Hardcopy submission of 5300 amendments will only be accepted for those institutions exempted from online filing (i.e. those identified as manual filers).
- My credit union is going to move its principal office. How do I officially change the address?
Send a letter to OCU in advance of the move informing us of your new address. If a modification to your Certificate of Organization is necessary, we will send the appropriate forms for your board's approval.
- I have noticed that my credit union's Certificate of Organization lists a different city from where we are located. How do I change this?
A credit union's Certificate of Organization must reflect the location of its current principal office. Various circumstances could have resulted in a principal office change which may require amending the Certificate of Organization. In any case, inform our office that a correction needs to be made to the certificate, and we will send the appropriate forms for your board's approval.
- My credit union has opened (or closed) a branch. Do I have to notify OCU?
Yes. In addition to a written notification, those credit unions with an Article III bylaw using language similar to "Employees or members of employer groups or other organized groups which are located within 25 miles of the credit union's main office or a branch office" to define their field of membership must amend Article III of the credit union bylaws to reflect the new (or closed) location.
- My credit union wishes to merge with another credit union. What do we do?
There are several steps to the process. First, download or print out form FIS 1057 Application for Permission to Merge a Credit Union with Another Credit Union. You should also read Section 371 of the Michigan Credit Union Act regarding mergers.
If your credit union is absorbing or merging into a Federally-chartered credit union, merger applications must be filled out for both OCU and the NCUA. If two Michigan state-chartered credit unions are merging, then only a single merger package is necessary, and a copy should be sent to the NCUA at the same time. Be advised, the NCUA may still request/require additional information.
Merging a state-chartered credit union into a state-chartered credit union from a different state can be very complicated due to possible differences in state laws, and you should contact OCU to discuss the matter.
The merger application should be filed with OCU in a timely manner so that it may be analyzed and a decision reached prior to the proposed merger date. Approximately 45-90 days should be allowed for processing. It is important to include all the required items in the merger package, as additional requests from OCU will delay the process.
OCU will review and analyze the merger package and the examination reports to reach a decision. If approved, the credit unions have 60 days to merge; however, if the planned merger date is later, a credit union may request an extension of time to complete the merger.
After the merger has taken place, the surviving credit union must supply written notification of the completion of the merger, a balance sheet reflecting the combined credit union's financial condition as of the merger date and a completed copy of the NCUA profile. After OCU receives the combined balance sheet, a final Certificate of Merger will be issued. At this time, the surviving credit union should also request modification of Article III of its bylaws to reflect the addition of the merged credit union's field of membership, if necessary.
- We have decided to change the name of our credit union. What do we do?
A request for a name change should be sent to OCU. Sometimes a change in field of membership will be accompanied by a requested name change, particularly if the old name would no longer accurately reflect the new field of membership. It is the responsibility of the credit union's management to ensure their new name is not copyrighted, trademarked or otherwise in use or protected. OCU will do a preliminary review for any conflicts, and we will alert you to any potential problems we find. However, by granting permission for the use of a name, OCU is not guaranteeing immunity from future civil action. You should discuss potential name changes with your legal counsel.
As of the effective date, the new title must be used on all signage, forms, documents, letterheads, checks and other material issued by or identifying the credit union. Your depository bank, bonding company and other creditors should also be advised of the name change.
- Our board has decided to increase/decrease the number of directors. How do we do this?
A credit union should refer to Article VI, Section 1 of their bylaws for the process to increase/decrease the number of directors. In most cases, the board must pass a resolution changing the number of directors and then send OCU a copy. OCU will then send a letter indicating that we have updated your bylaws.
- How do I submit changes in credit union officials or branches and comply with the MCUA regulatory requirements?
All changes in branch locations or officials should be presented to OCU by mail or fax on credit union letterhead. Changes in the CEO or general manager of a credit union should include the board resolution appointing the candidate to the position. Any changes reflecting data included in the NCUA CU Profile section of the Credit Union Online application must be immediately submitted through that application as well.
- My credit union had to close a branch due to an emergency. Do I have to notify OCU?
Yes. You may notify OCU by email at DIFS-OCU@michigan.gov or fax us to 517-284-8846.
The answers provided are not meant to be a substitute for legal advice.