MI HB4398

Authorizes public corporations to invest funds in certificates of deposit through financial institutions that arrange placement in insured depository institutions or insured credit unions, with full principal and interest insured by a U.S. agency.

Requires the initial financial institution to be eligible as a state depository and act as custodian for the certificates of deposit.

Mandates that at the time of deposit, the financial institution receive deposits from other customers equal to or greater than the amount initially invested by the public corporation.

Allows public corporations using financial institutions with offices in Michigan to invest in certificates of deposit under these conditions without restriction.

Defines "financial institution" as state or nationally chartered banks, savings and loan associations, savings banks, or credit unions with U.S.-insured deposits and offices in Michigan.