(1) Subject to subsection (2), before executing an order to purchase or trade the funds of a public corporation, a financial intermediary, broker, or dealer shall be provided with a copy of the public corporation's investment policy and shall do both of the following:

    (a) Acknowledge receipt of the investment policy.

    (b) Agree to comply with the terms of the investment policy regarding the buying or selling of securities.

    (2) A public corporation is subject to subsection (1) beginning on the date that the investment policy of a public corporation takes effect or 180 days after the end of the public corporation's first fiscal year ending after the effective date of the amendatory act that repealed section 2, whichever is earlier.

    (3) The investment officer shall provide quarterly a written report to the governing body concerning the investment of the funds.