September 8, 2016, Introduced by Reps. Howrylak and Somerville and referred to the Committee on 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,"
by amending section 1 (MCL 21.141), as amended by 2015 PA 116.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
1. (1) The state treasurer community
bank of Michigan
shall make a loan from surplus funds deposited or invested in the
community bank of Michigan under section 3a to an eligible
municipality, as municipality is defined in section 1 of the
emergency municipal loan act, 1980 PA 243, MCL 141.931, if the loan
is approved under the emergency municipal loan act, 1980 PA 243,
MCL 141.931 to 141.942.
(2) A loan made under subsection (1) shall comply with the
requirements of the emergency municipal loan act, 1980 PA 243, MCL
141.931 to 141.942, relating to the terms, conditions, rate of
interest, and amount of the loan.
(3) Upon approval of a loan by the board and execution of a
note of indebtedness to this state by an authorized representative
of the municipality, including, but not limited to, an emergency
manager for the municipality if the municipality is in receivership
under the local financial stability and choice act, 2012 PA 436,
MCL 141.1541 to 141.1575, the state treasurer shall issue a warrant
to the municipality in an amount equal to the amount of the loan.
(4) For state fiscal years beginning before October 1, 2011,
the total amount of loans made from surplus funds pursuant to this
section in any 1 state fiscal year shall not exceed $5,000,000.00
plus the amount of any loans authorized by section 3(2) of the
emergency municipal loan act, 1980 PA 243, MCL 141.933. For state
fiscal years beginning after September 30, 2018, the total amount
of loans made from surplus funds pursuant to this section in any 1
state fiscal year shall not exceed $10,000,000.00 plus the amount
of any loans authorized by section 3(2) of the emergency municipal
loan act, 1980 PA 243, MCL 141.933, with no loan to a single
municipality exceeding $4,000,000.00 in a state fiscal year. For
the period beginning on October 1, 2011 and ending on September 30,
2018, loans made from surplus funds pursuant to this section may
include both of the following:
(a) Loans to municipalities other than school districts in
amounts authorized under section 3(1)(a) of the emergency municipal
loan act, 1980 PA 243, MCL 141.933.
(b) Loans to school districts in amounts authorized under
section 3(1)(b) of the emergency municipal loan act, 1980 PA 243,
MCL 141.933.
(5)
The state treasurer community
bank of Michigan may sell,
assign, transfer, or repurchase loans made from surplus funds under
this section or from the proceeds of the sale, assignment, or
transfer of a loan under section 6a of the emergency municipal loan
act,
1980 PA 243, MCL 141.936a. The state treasurer community bank
of Michigan shall use surplus funds to repurchase a loan under this
subsection.
(6) As used in this section, "board" means the local emergency
financial assistance loan board created pursuant to the emergency
municipal loan act, 1980 PA 243, MCL 141.931 to 141.942.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 98th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No.____ (request no.
03498'15 *).
(b) Senate Bill No.____ or House Bill No.____ (request no.
04587'15).