HOUSE BILL No. 4610


     April 10, 1997, Introduced by Rep. Nye and referred to the Committee on Commerce.


        A bill to amend 1932 (1st Ex Sess) PA 40, entitled

   "An act to provide for the designation of depositories for public
   moneys; to prescribe the effect thereof on the liability for such
   deposits; to suspend the requirement of surety bonds from deposi-
   tories of public moneys; and to repeal all acts and parts of acts
   inconsistent with the provisions of this act,"

   by amending section 2 (MCL 129.12).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec.  2.  (1) The county board of commissioners or board of

 2    county auditors  ,  in  those counties  A COUNTY in which there

 3    is a board of county auditors, the township board of a township,

 4    the district board, or board of education of a school district,

 5    or the legislative body of a city or village shall provide by

 6    resolution for the deposit of public money, including tax money,

 7    coming into the possession of the county treasurer, township

 8    treasurer, school district treasurer, city treasurer or tax

 9    collector, or village treasurer, respectively, in 1 or more


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 1    banks, savings and loan associations, or credit unions  having

 2     their principal office in this state,  to be designated in the

 3    resolution, and in the proportion and manner  as may be  provided

 4    in the resolution.  EXCEPT AS PROVIDED IN SUBSECTION (2), A BANK,

 5    SAVINGS AND LOAN ASSOCIATION, OR CREDIT UNION DESIGNATED AS A

 6    DEPOSITORY FOR PUBLIC MONEY UNDER THIS SECTION SHALL HAVE ITS

 7    PRINCIPAL OFFICE IN THIS STATE. All proceedings in connection

 8    with the deposit of PUBLIC money shall be conducted and be gov-

 9    erned pursuant to section 4 and applicable law not in conflict

10    with this act.  Upon designation of a depository or depositories

11    in compliance with this act, the treasurer or tax collector shall

12    deposit all funds coming into the treasurer's possession, includ-

13    ing tax money in the treasurer's name as treasurer or tax collec-

14    tor,  and  in the proportion and manner  as may be  provided by

15    the resolution.  As to a deposit or deposits made in a designated

16    bank, savings and loan association, or credit union in accordance

17    with the resolution, neither the treasurer or tax collector, nor

18    the sureties on their respective bonds, shall be liable for a

19    loss occasioned or sustained by the failure or default of the

20    designated depository or depositories.  This exemption from

21    liability shall apply even though a requirement of a statute pro-

22    vides for the furnishing of a bond by depositories of public

23    money.  The treasurer or tax collector and the sureties on their

24    respective bonds shall be liable for all money not deposited

25    under this act.

26         (2) A GOVERNMENTAL UNIT DESCRIBED IN SUBSECTION (1) MAY

27    DESIGNATE A BANK, SAVINGS AND LOAN ASSOCIATION, OR CREDIT UNION



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 1    AS A DEPOSITORY FOR PUBLIC MONEY UNDER SUBSECTION (1) THAT HAS

 2    ITS PRINCIPAL OFFICE IN ANOTHER STATE IF BOTH OF THE FOLLOWING

 3    APPLY:

 4         (A) THE GOVERNMENTAL UNIT BORDERS ANOTHER STATE.

 5         (B) THERE IS NO BANK, SAVINGS AND LOAN ASSOCIATION, OR

 6    CREDIT UNION LOCATED IN THE GOVERNMENTAL UNIT.












































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