HOUSE BILL No. 4599


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


        A bill to amend 1934 (1st Ex Sess) PA 23, entitled

   "An act authorizing the investment in bonds of the home owners'
   loan corporation and bonds of federal home loan banks by the
   state and all its departments and political subdivisions, includ-
   ing municipal corporations, and instrumentalities, and by any
   insurance company, building and loan association or company, sav-
   ings and loan association or company, bank, trust company or
   other financial institution, and by any executor, administrator,
   guardian, trustee or fiduciary; authorizing the use of such bonds
   as security by any depository of funds; and authorizing certain
   deposits with the state treasurer to be in such bonds,"

   by amending section 1 (MCL 129.81).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 1.  (1)  It shall be lawful for the state of Michigan 

 2    THIS STATE  AND ANY OF ITS DEPARTMENTS OR POLITICAL SUBDIVISIONS,

 3    INCLUDING MUNICIPAL CORPORATIONS, OR INSTRUMENTALITIES, OR ANY

 4    INSURANCE COMPANY, BUILDING AND LOAN ASSOCIATION OR COMPANY, SAV-

 5    INGS AND LOAN ASSOCIATION OR COMPANY, BANK, TRUST COMPANY, or

 6    other financial institution  authorized by the laws of this state



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 1    to operate in the state of Michigan,  or  for  any executor,

 2    administrator, guardian, trustee, or other fiduciary  , and they

 3     are hereby authorized, to  MAY invest their funds  ,  or moneys

 4     in their custody,  OR MONEY in the bonds of the home owners' loan

 5    corporation or in the bonds of any federal home loan bank or in

 6    certificates of deposit or depository receipts of any  bank which

 7     is a member of the federal deposit insurance corporation 

 8    FINANCIAL INSTITUTION.

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

10    FUNDS UNDER THIS ACT ARE CONSIDERED ACCEPTABLE TO THE STATE TREA-

11    SURER UNDER SECTION 3 OF 1855 PA 105, MCL 21.143, TO SECURE

12    DEPOSITS OF STATE SURPLUS FUNDS.

13         (3) AS USED IN THIS SECTION, "FINANCIAL INSTITUTION" MEANS A

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

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

16    AGENCY OF THE UNITED STATES GOVERNMENT AND WHICH MAINTAINS A

17    PRINCIPAL OFFICE OR BRANCH OFFICE LOCATED IN MICHIGAN UNDER THE

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





















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