April 9, 1997, Introduced by Rep. Gernaat and referred to the Committee on Commerce. A bill to amend 1980 PA 307, entitled "Savings and loan act of 1980," by amending section 606 (MCL 491.606), as amended by 1987 PA 106. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 606. An association or a federal association may con- 2 tract for the issuance of the following types of savings 3 accounts, which may be subject to the transaction charges as the 4 association's board prescribes: 5 (a) Accounts pursuant to UNDER which the association is 6 trustee or custodian within the contemplation of the 7 self-employed individuals tax retirement act of 1962, Public Law 8 87-792, 76 Stat. 809, and the employee retirement income 9 security act of 1974, Public Law 93-406, 88 Stat. 829, and as 10 trustee, custodian, or manager of an investment fund the 03111'97 SAT 2 1 authorized investments of which includes, savings accounts or 2 real estate loans, and the beneficial interests which may be rep- 3 resented by transferable shares or certificates. An association 4 exercising the limited trust powers provided in this subdivision 5 shall keep separate books and records of the detailed transac- 6 tions made for each distinct investment fund held in a fiduciary 7 capacity and for each beneficial owner's interest in the fund, 8 and may commingle the investment funds held in a fiduciary capac- 9 ity for purposes of investment. A fund held in a fiduciary 10 capacity shall not be used by an association in the conduct of 11 its business, although the funds may be invested in savings 12 accounts of the association if the trust, plan, or other govern- 13 ing instrument does not prohibit that investment. In the exer- 14 cise of the trust powers authorized by this subdivision, an asso- 15 ciation shall be exempt from all other statutes of this state 16 regulating trusts or trustees. 17 (b) Accounts for issuance to federal, state, political sub- 18 division, or other governmental units or agencies, or school 19 districts, or OTHER authorities created by statute in connection 20 with the deposit of public or state money or federal taxes. 21 Depositors of public or state money or federal taxes shall not be 22 considered members of an association. An association or federal 23 association may contract with the depositor of public or state 24 money or federal taxes to provide for the withdrawal of public or 25 state money or federal taxes without previous notice of 26 withdrawal. An association or federal association, with the 27 written consent of the supervisor or pursuant to UNDER rules 03111'97 3 1 promulgated by the supervisor, may pledge its assets in an amount 2 not to exceed 10% of the association's savings liability to 3 secure deposits by or for the credit of any of the following: 4 (i) The United States or any officer, instrumentality, or 5 agency of the United States. 6 (ii) The courts of the United States or any trustee or 7 receiver acting under authority granted by the courts of the 8 United States. 9 (iii) The state treasurer. 10 (iv) The Mackinac bridge authority UNDER 1950 (EX SESS) PA 11 21, MCL 254.301 TO 254.304. 12 (v) The international bridge authority UNDER 1954 PA 99, MCL 13 254.221 TO 254.240. 14 (vi) The Michigan state housing development authority UNDER 15 THE STATE HOUSING DEVELOPMENT AUTHORITY ACT OF 1966, 1966 PA 346, 16 MCL 125.1401 TO 125.1499C. 17 (vii) The Michigan employment security commission. 18 (viii) FUNDS BELONGING TO ANY POLITICAL SUBDIVISION OF THIS 19 STATE. 20 (c) Accounts pursuant to UNDER which the association may 21 participate and implement a thrift or savings plan at a public or 22 nonpublic elementary or secondary school or institution of higher 23 education, a public or charitable institution caring for minors, 24 or an institution or facility engaged in housing or caring for 25 the aged or infirm. An association may accept deposits to the 26 savings accounts at the site of a school, institution, or 27 facility either by the association's own employees or by a 03111'97 4 1 representative of the school, institution, or facility who is 2 designated as the association's agent for that purpose, without 3 prior approval by the supervisor. 4 (d) Accounts of the classification, in the form, and under 5 the terms and conditions as may be established, and which may 6 provide for the transfer of funds from the account to third par- 7 ties upon order or authorization, which third party transfer 8 orders or authorizations shall be nonnegotiable. An association 9 may provide that an order or authorization for withdrawal or 10 transfer of funds from an account to third parties may be nego- 11 tiable or transferable. 03111'97 Final page. SAT