MI HB5434

Replaces the State Treasurer with the Community Bank of Michigan as the entity authorized to make loans from surplus funds to eligible municipalities under the Emergency Municipal Loan Act, 1980 PA 243.

Authorizes loans from surplus funds deposited or invested in the Community Bank of Michigan, subject to approval under the Emergency Municipal Loan Act and compliance with its terms, conditions, interest rates, and loan amounts.

Sets loan limits: $5,000,000 per fiscal year before October 1, 2011; $10,000,000 per fiscal year after September 30, 2018, with a single municipality cap of $4,000,000 per fiscal year; during October 1, 2011 to September 30, 2018, allows loans to both municipalities and school districts.

Permits the Community Bank of Michigan to sell, assign, transfer, or repurchase loans made under this section and from proceeds of loan sales under the Emergency Municipal Loan Act.

Takes effect 90 days after enactment, contingent on passage of House Bills 5431 and 5432 by the 99th Legislature.