MI SB0455

Governing bodies of local public entities must adopt resolutions designating one or more financial institutions as depositories for public funds, with consideration of treasurer recommendations using banking procurement best practices.

Financial institutions must maintain a principal office or branch in Michigan, or alternatively maintain an office in a bordering state if the local entity borders another state and no Michigan-based institution is available.

Treasurers and their sureties are not liable for losses from designated financial institution failures, but remain liable for any public money not deposited according to the act's requirements.

Assets acceptable for pledging to secure public deposits include those accepted by the state treasurer, securities from Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, and Government National Mortgage Association, or other mutually agreed securities.

Repeals section 5 of 1932 PA 40 and all of 1909 PA 99; takes effect 90 days after enactment (March 29, 2019).