HOUSE BILL No. 4604 April 9, 1997, Introduced by Rep. Griffin and referred to the Committee on Commerce. A bill to amend 1996 PA 354, entitled "Savings bank act," by amending section 508 (MCL 487.3508). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 508. (1) Except as otherwise provided in this section, 2 a savings bank or savings bank officer shall not give preference 3 to a depositor or creditor by pledging the assets of the savings 4 bank as collateral security or otherwise. 5 (2) A savings bank, with the written consent of the commis- 6 sioner, may pledge its assets in an amount not in excess of 10% 7 of its total deposits for the purpose of securing the following: 8 (a) Funds belonging to the United States or belonging to or 9 being administered by an officer, instrumentality, or agent of 10 the United States, funds of estates being administered by a 11 federal court under a federal bankruptcy law, and other funds 03037'97 SAT 2 1 when required or permitted to do so under the laws of the United 2 States or an order of a federal court. 3 (b) Surplus funds of the state held by the state treasurer. 4 (c) Funds of the Mackinac bridge authority, which is 5 declared to be a political subdivision of this state, underAct6No. 21 of the Public Acts of the Extra Session of 1950, being7sections 254.301 to 254.304 of the Michigan Compiled Laws1950 8 (EX SESS) PA 21, MCL 254.301 TO 254.304. 9 (d) Funds of the international bridge authority, which is 10 declared to be a political subdivision of this state, underAct11No. 99 of the Public Acts of 1954, being sections 254.221 to12254.240 of the Michigan Compiled Laws1954 PA 99, MCL 254.221 TO 13 254.240. 14 (e) Funds on deposit underAct No. 205 of the Public Acts15of 1941, being sections 252.51 to 252.64 of the Michigan Compiled16Laws1941 PA 205, MCL 252.51 TO 252.64, providing for limited 17 access highways. 18 (f) Funds on deposit to the credit of the Michigan employ- 19 ment security commission. 20 (g) Funds of the Michigan state housing development author- 21 ity constituting proceeds of the sale of the authority's notes 22 and bonds and repayments of those notes and bonds, under the 23 state housing development authority act of 1966,Act No. 346 of24the Public Acts of 1966, being sections 125.1401 to 125.1499c of25the Michigan Compiled Laws1966 PA 346, MCL 125.1401 TO 26 125.1499C. 03037'97 3 1 (H)(3) A savings bank shall not pledge its assets for the2purpose of securing fundsFUNDS belonging to anyother3 political subdivision of this state. 4 (3)(4)The requirements, restrictions, and limitations 5 imposed by this section shall not apply to the pledging of an 6 obligation of the United States, direct or fully guaranteed, or 7 both, for the purpose of securing a deposit of the United States 8 when the deposit is established coincidentally with the purchase 9 of an obligation of the United States by or through an 10 institution. 11 (4)(5)A savings bank may pledge its assets to secure 12 liabilities of all of the following types: 13 (a) In the case of member banks, liabilities incurred under 14 the federal reserve act, chapter 6, 38 Stat. 251. In the case of 15 nonmember banks, liabilities incurred through borrowing under the 16 same conditions as are imposed upon members of the federal 17 reserve system by the federal reserve act, chapter 6, 38 18 Stat. 251. 19 (b) In the case of federal home loan bank members, liabili- 20 ties incurred under the federal home loan bank act, chapter 522, 21 47 Stat. 725. 22 (c) Liabilities incurred under former section 202 of title 23 II of the federal farm loan act. 24 (d) Liabilities incurred on account of a loan made with the 25 express approval of the commissioner under section 433(c). 03037'97 4 1 (e) Liabilities incurred on account of borrowings from 1 2 business day to the next under section 19 of the federal reserve 3 act, chapter 6, 38 Stat. 251. 4 (f) Liabilities incurred on account of securities sold under 5 a repurchase agreement. 03037'97 Final page. SAT