Bill Text: MI HB6440 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: State financing and management; other; state deposits in banks not participating in certain MSHDA programs; prohibit. Amends 1855 PA 105 (MCL 21.141 - 21.147) by adding sec. 2g.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced - Dead) 2010-09-16 - Printed Bill Filed 09/16/2010 [HB6440 Detail]

Download: Michigan-2009-HB6440-Introduced.html

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HOUSE BILL No. 6440

 

September 15, 2010, Introduced by Reps. Melton, Nathan, Valentine, Bettie Scott, Leland, Johnson and Jackson and referred to the Committee on Banking and 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,"

 

(MCL 21.141 to 21.147) by adding section 2g.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2g. (1) Beginning January 1, 2011, the state treasurer

 

shall not invest surplus funds in or deposit surplus funds in a

 

financial institution unless that financial institution is a

 

participating servicer under the Michigan helping hardest hit

 

homeowners plan operated by the Michigan state housing development

 

authority created under the state housing development authority act

 

of 1966, 1966 PA 346, MCL 125.1401 to 125.1499c, that is funded and

 

operated by the United States department of treasury and the

 

department of housing and urban development.

 

     (2) Except as otherwise provided in this subsection, not later

 

than April 1, 2011, the state treasurer shall divest this state of

 

any investment of surplus funds in a financial institution and

 

shall remove or withdraw all surplus funds in a financial

 

institution if that financial institution is not a participating

 

servicer under the Michigan helping hardest hit homeowners plan

 

described in subsection (1). This subsection does not apply if the

 

state treasurer determines that divesting, removing, or withdrawing

 

surplus funds will cause a financial loss to this state as

 

determined by the state treasurer.