HOUSE BILL No. 4602


     April 9, 1997, Introduced by Reps. Rhead, Kukuk, Gernaat, Walberg, Richner, Kaza and Jaye and referred to the Committee on Commerce.


        A bill to amend 1982 PA 367, entitled

   "Surplus funds investment pool act,"

   by amending section 2 (MCL 129.112).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec.  2.  (1) As used in this act:

 2         (a) "Depository" means that department of the financial

 3    institution which is responsible for managing, investing, and

 4    reinvesting funds placed in an investment pool.

 5         (b) "Financial institution" means a  bank, savings and loan

 6     association, or credit union which is insured by an agency or

 7     instrumentality of the federal government  STATE OR NATIONALLY

 8    CHARTERED BANK, SAVINGS AND LOAN ASSOCIATION, SAVINGS BANK, OR

 9    CREDIT UNION WHOSE DEPOSITS ARE INSURED BY AN AGENCY OF THE

10    UNITED STATES GOVERNMENT AND WHICH MAINTAINS A PRINCIPAL OFFICE

11    OR BRANCH OFFICE LOCATED IN MICHIGAN UNDER THE AUTHORITY OF THE


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 1    LAWS OF MICHIGAN OR OF THE UNITED STATES and which is eligible to

 2    be a depository of surplus funds belonging to the state under

 3    sections  5 and  6 of  Act No.  105 of the Public Acts of 1855,

 4     as amended, being sections 21.145 and 21.146 of the Michigan

 5     Compiled Laws  1855 PA 105, MCL 21.146.

 6         (c) "Local unit" means a county, city, village, township,

 7    school district, authority, or any other political subdivision

 8    organized under the laws of this state.

 9         (d) "Participant" means a local unit which has entered into

10    a contract with a financial institution and has placed funds in

11    an investment pool managed by that financial institution.

12         (e) "Surplus funds" means money which belongs to or is under

13    the control of the local unit and is available for investment,

14    not being required by law or agreement with bondholders to be

15    segregated and invested in a specified manner.

16         (2) ASSETS ACCEPTABLE FOR PLEDGING TO SECURE DEPOSITS OF

17    LOCAL UNIT FUNDS ARE CONSIDERED ACCEPTABLE TO THE STATE TREASURER

18    UNDER SECTION 3 OF 1855 PA 105, MCL 21.143, TO SECURE DEPOSITS OF

19    STATE SURPLUS FUNDS.



















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