Bill Text: MI HB5834 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Financial institutions; other; investments of surplus funds in the state-owned bank; require. Amends title & sec. 7 of 1855 PA 105 (MCL 21.147) & adds sec. 3a. TIE BAR WITH: HB 5833'16
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2016-09-13 - Bill Electronically Reproduced 09/08/2016 [HB5834 Detail]
Download: Michigan-2015-HB5834-Introduced.html
HOUSE BILL No. 5834
September 8, 2016, Introduced by Reps. Somerville, Lucido and Howrylak and referred to the Committee on Financial Services.
A bill to amend 1855 PA 105, entitled
"An act to regulate the disposition of the surplus funds in the
state treasury; to provide for the deposit of surplus funds in
certain financial institutions; to lend surplus funds pursuant to
loan agreements secured by certain commercial, agricultural, or
industrial real and personal property; to authorize the loan of
surplus funds to certain municipalities; to authorize the
participation in certain loan programs; to authorize an
appropriation; and to prescribe the duties of certain state
agencies,"
by amending the title and section 7 (MCL 21.147), the title as
amended by 1993 PA 44 and section 7 as amended by 2000 PA 280, and
by adding section 3a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to regulate the disposition of the surplus funds in the
state treasury; to provide for the deposit of surplus funds in
certain financial institutions and the community bank of Michigan;
to lend surplus funds pursuant to loan agreements secured by
certain
commercial, agricultural, or
industrial real and personal
property;
to authorize the loan of surplus funds to certain
municipalities;
to authorize the participation in certain loan
programs; to authorize an appropriation; and to prescribe the
duties of certain state agencies.
Sec. 3a. The state treasurer shall deposit or invest at least
90% of surplus funds in the community bank of Michigan. The state
treasurer shall not loan, invest, or deposit in financial
institutions more than 10% of surplus funds for purposes of section
1, 2a, 2b, 2c, 2d, 2e, 2f, or 3.
Sec. 7. As used in this act:
(a)
"Commissioner" means the commissioner of the office of
financial
and insurance services of the department of consumer and
industry
services.director of the
department of insurance and
financial services.
(b) "Community bank of Michigan" means the community bank of
Michigan established in section 5 of the bank of Michigan act.
(c) (b)
"Deposit" includes the
purchase of, or investment in,
shares of credit unions.
(d) (c)
Except as otherwise provided by
this subdivision,
"financial institution" means a state or nationally chartered bank
or a state or federally chartered savings and loan association,
savings bank, or credit union whose deposits are insured by an
agency of the United States government and which maintains a
principal office or branch office located in this state under the
laws of this state or the United States. For the purpose of
repurchase agreements, "financial institution" means a state or
nationally chartered bank or state or federally chartered savings
and loan association, savings bank, or credit union whose deposits
are insured by an agency of the United States government under the
laws of this state or the United States. Financial institution does
not include the community bank of Michigan.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless Senate Bill No.____ or House Bill No.____ (request no.
03498'15) of the 98th Legislature is enacted into law.
