Michigan Laws 565.1009 – Financial institution duties and responsibilities
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Terms Used In Michigan Laws 565.1009
- account: means an account with a financial institution that an account holder designates as a first-time home buyer savings account on his or her income tax return pursuant to this act for the purpose of paying or reimbursing eligible costs for the purchase of a single-family residence in this state by a qualified beneficiary. See Michigan Laws 565.1003
- Account holder: means an individual who establishes, individually or jointly with 1 or more other individuals, an account with a financial institution for which the account holder claims a first-time home buyer savings account status on his or her income tax return. See Michigan Laws 565.1003
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the department of treasury. See Michigan Laws 565.1003
- Financial institution: means any bank, trust company, savings institution, industrial loan association, consumer finance company, credit union, or any benefit association, insurance company, safe deposit company, money market mutual fund, broker, or similar entity authorized to do business in this state. See Michigan Laws 565.1003
- First-time home buyer: means an individual who is a resident of this state and has not owned or purchased, either individually or jointly, a single-family residence during a period of 3 years prior to the date of the purchase of a single-family residence. See Michigan Laws 565.1003
(1) A financial institution is not required to do any of the following:
(a) Designate an account as a first-time home buyer savings account, or designate the qualified beneficiaries of an account, in the financial institution’s account contracts or systems or in any other way.
(b) Track the use of money withdrawn from a first-time home buyer savings account.
(c) Allocate funds in a first-time home buyer savings account among joint account holders or multiple qualified beneficiaries.
(d) Report any information to the department that is not otherwise required by law.
(2) A financial institution is not responsible or liable for any of the following:
(a) Determining or ensuring that an account satisfies the requirements to be a first-time home buyer savings account.
(b) Determining or ensuring that funds in a first-time home buyer savings account are used for eligible cost.
(c) Reporting or remitting taxes or penalties related to the use of a first-time home buyer savings account.
(3) Upon being furnished proof of the death of the account holder and any other information required by the contract governing the first-time home buyer savings account, a financial institution shall distribute the principal and accumulated interest or other income in the account in accordance with the terms of the contract governing the account.