STATE OF MICHIGAN

FRANK J. KELLEY, ATTORNEY GENERAL

Opinion No. 5347

August 7, 1978

BANKS AND BANKING:

Transaction of business on legal holidays

SAVINGS AND LOAN ASSOCIATIONS:

Transaction of business on legal holidays

HOLIDAYS:

Transaction of business by banks and savings and loan associations

State chartered banks and savings and loan associations may do business on legal holidays.

Richard J. Francis

Commissioner

Financial Institutions Bureau

Department of Commerce

Law Building

Lansing, Michigan 48913

You have requested my opinion as to whether state chartered banks and savings and loan associations may transact business on the holidays designated in the legal holiday statute, 1865 PA 124, as amended, MCLA 435.101 et seq; MSA 18.861 et seq.

Your question is occasioned by OAG 1975-1976, No. 4958, p ___ (May 12, 1976), which declared that banks and savings and loan associations may operate on Sundays, providing appropriate amendments to the institutions' by-laws are made. The conclusion that such institutions may operate on Sundays was based on the repeal of the Sunday observation and Sunday contract statute, 1846 RS 43, MCLA 435.1 et seq; MSA 18.851 et seq, by 1962 PA 127. Reference in OAG 4958, supra, was made to the legal holiday statute, which identifies the days which shall be set aside and observed as holidays in the State of Michigan. That statute provides that the payment and presentation of negotiable instruments falling due on Sundays and holidays shall be deemed payable and presentable for payment on the next secular or business day. This provision protects banks and savings and loan associations from liability for a wrongful dishonor, and protects the holders of such instruments for failure to make presentment on a designated date.

In examining the Michigan Banking Code, 1969 PA 319, MCLA 487.301 et seq; MSA 23.710(1) et seq, and the Michigan Savings and Loan Association Act, 1964 PA 156, MCLA 489.501 et seq; MSA 23.540(101) et seq, I note that neither act contains a provision dealing with the hours or days of operations. Absent such an express provision, a bank and a savings and loan association may establish reasonable hours for the transaction of its business. In addition, the legal holiday statute, 1865 PA 124, supra, expressly provides that the identified days 'shall be treated and considered as the first day of the week, commonly called Sunday, as public holidays and half holidays.' On the basis of this language, and consistent with OAG 4958, supra, it is my opinion that state chartered banks and savings and loan associations may do business on legal holidays. Since such operation would be a significant deviation from the traditional operation of such institutions, their by-laws would have to be amended to authorize the transaction of business on holidays or Sundays. Similarly, in the absence of any statutory or regulatory prohibition, federally chartered banks and savings and loan associations may do business on legal holidays.

Frank J. Kelley