HOUSE BILL No. 4594


     April 9, 1997, Introduced by Reps. Callahan, Griffin and Kaza and referred to the Committee on Commerce.


        A bill to amend 1965 PA 314, entitled

   "An act to authorize the investment of assets of public employee
   retirement systems or plans created and established by the state
   or any political subdivision; to provide for the payment of cer-
   tain costs and investment expenses; to authorize investment in
   variable rate interest loans; to define and limit the investments
   which may be made by an investment fiduciary with the assets of a
   public employee retirement system; and to prescribe the powers
   and duties of investment fiduciaries and certain state depart-
   ments and officers,"

   by amending section 20c (MCL 38.1140c), as amended by 1996 PA

   485.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 20c.  (1) A  state chartered bank, a national bank, a

 2     trust company, or  FINANCIAL INSTITUTION, a management company

 3    qualified under section 15, or any affiliate of a person

 4    described in this  sentence  SECTION if that affiliate qualifies

 5    as an investment fiduciary under section 13(8)(a), retained to

 6    act as an investment fiduciary may invest the assets of a system


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 1    in any collective investment fund, common trust fund, or pooled

 2    fund that is established and maintained for investment of those

 3    assets by the  bank, trust company,  FINANCIAL INSTITUTION or

 4    management company  pursuant to  UNDER federal or state statutes

 5    or rules or regulations.  An investment in a collective invest-

 6    ment fund, common trust fund, or pooled fund shall be considered

 7    an investment in the underlying asset.

 8         (2) AS USED IN THIS SECTION, "FINANCIAL INSTITUTION" MEANS A

 9    STATE OR NATIONALLY CHARTERED BANK, SAVINGS AND LOAN ASSOCIATION,

10    SAVINGS BANK, OR CREDIT UNION WHOSE DEPOSITS ARE INSURED BY AN

11    AGENCY OF THE UNITED STATES GOVERNMENT AND WHICH MAINTAINS A

12    PRINCIPAL OFFICE OR BRANCH OFFICE LOCATED IN MICHIGAN UNDER THE

13    AUTHORITY OF THE LAWS OF MICHIGAN OR OF THE UNITED STATES.































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