MI HB5431

Establishes the Community Bank of Michigan (operating as "the Bank of Michigan") as a state-owned financial institution, with the Department of Insurance and Financial Services director overseeing its operation and management.

Creates a 7-member advisory board appointed by the governor, including at least 2 bank officers from state-resident-owned banks and at least 1 officer from a state or federally chartered financial institution, to recommend operational improvements and officer appointments.

Authorizes the bank to make loans to farmers, financial institutions, nonprofit organizations, rural businesses, state instrumentalities, and others, with specific lending parameters including mortgages up to 80% of agricultural property value and secured loans up to 90% of certificate/savings account value.

Requires the state treasurer to deposit all surplus funds in the bank and guarantees all bank deposits; exempts deposits from state and local taxation; allows the bank to provide fund transfer services and clearinghouse functions.

Subjects the bank to annual independent audits by the auditor general, department examinations at least every 24 months, and confidentiality protections for customer financial information under the Freedom of Information Act.