Section 487.12202 - Examination of institution, its subsidiaries, and service entities. - Michigan Statutes

BANKING CODE OF 1999 (EXCERPT)
Act 276 of 1999

487.12202 Examination of institution, its subsidiaries, and service entities.

Sec. 2202.

(1) Each institution together with its subsidiaries and service entities shall be subject to examination of its condition and affairs by the commissioner or the commissioner's authorized agent not less frequently than once every 18 months.

(2) The commissioner shall examine an institution under the commissioner's jurisdiction when requested by its board of directors. In connection with an examination, the commissioner, or the commissioner's authorized agent, may examine on oath a director, officer, agent, employee, or shareholder of an institution concerning the affairs and business of the institution. The commissioner shall ascertain whether the institution transacts its business in the manner prescribed by law and the rules promulgated under law. The commissioner, or the commissioner's authorized agent, may make an examination of an affiliate, bank holding company, subsidiary, or service entity necessary to disclose fully the relation between an institution and the affiliate, holding company, subsidiary, or service entity and the effect of the relation upon the institution.

(3) The commissioner may examine the branch or branches located in this state of an out-of-state bank as permitted by the federal deposit insurance act.

(4) In fulfilling the requirements of subsections (1) and (2), the commissioner may use an examination made under the federal reserve act, the federal deposit insurance act, or the law of another state governing the activities of out-of-state banks in that state. The commissioner may require the institution to furnish a copy of any report required by a federal or state bank regulatory agency.

(5) An examination required by this section may include the fiduciary activities of the institution.

(6) The commissioner may contract with other state bank regulatory agencies to assist in the conduct of examinations of banks with 1 or more branches located in other states and in examinations of out-of-state banks with 1 or more branches located in this state.

(7) The contents of a report of examination of a bank and examination-related documents prepared or obtained under this section remain the property of the bureau. Dissemination of all or part of a bank's report of examination for purposes other than the legitimate business purposes of the bank or as otherwise authorized by this act shall be a violation of this act subject to the administrative remedies granted the commissioner under sections 2304 through 2314.

History: 1999, Act 276, Eff. Mar. 1, 2000