Sec. 20e.
(1) An investment fiduciary may loan bonds, stocks, or other securities if at the time the loan is executed, at least 102% of the full market value of the security loaned is secured by collateral of cash to be invested in 1 or more of the following:
(a) Securities graded in the top 4 major grades as determined by at least 1 national rating service, but not graded below the top 4 grades as determined by any of the national rating services, or determined by the investment fiduciary to be of comparable quality in the case of unrated securities.
(b) Repurchase agreements collateralized by securities graded in the top 4 major grades as determined by at least 1 national rating service, but not graded below the top 4 grades as determined by any of the national rating services, or determined by the investment fiduciary to be of comparable quality in the case of unrated securities.
(c) Irrevocable bank letters of credit.
(d) Securities issued or guaranteed by the United States government or an agency of the United States government.
(2) At all times during the term of a loan under subsection (1), the collateral shall be equal to not less than 100% of the full market value of the security loaned.
History: Add. 1982, Act 55, Imd. Eff. Apr. 6, 1982 ;-- Am. 1996, Act 485, Imd. Eff. Dec. 27, 1996 ;-- Am. 2000, Act 307, Imd. Eff. Oct. 16, 2000
Structure Michigan Compiled Laws
Chapter 38 - Civil Service and Retirement
Act 314 of 1965 - Public Employee Retirement System Investment Act (38.1121 - 38.1141)
Section 38.1121-38.1131 - Repealed. 1982, Act 55, Imd. Eff. Apr. 6, 1982.
Section 38.1132 - Short Title; Meanings of Words and Phrases.
Section 38.1132a - Definitions; A.
Section 38.1132b - Definitions; D to G.
Section 38.1132c - Definitions; I to L.
Section 38.1132d - Definitions; N to P.
Section 38.1132e - Definitions; S.
Section 38.1132f - Definitions; V.
Section 38.1133b - Repealed. 1993, Act 214, Imd. Eff. Oct. 27, 1993.
Section 38.1134 - Investment in Stock or Global Security.
Section 38.1135 - Investment in Investment Companies.
Section 38.1137 - Other Authorized Investments; Prohibited Investments.
Section 38.1138 - Investment in Real Estate or Mortgages on Certain Leased Real Property.
Section 38.1139 - Investment in Real Estate Investment Trust or Real or Personal Property.
Section 38.1140b - Deposits by Investment Fiduciary.
Section 38.1140d - Investments Not Qualified Under Act.
Section 38.1140e - Loan of Securities by Investment Fiduciary.
Section 38.1140f - Transferring and Holding Securities.
Section 38.1140g - Investment in Securities Exempt From Taxes.
Section 38.1140i - Repealed. 2000, Act 307, Imd. Eff. Oct. 16, 2000.
Section 38.1140j - Investment in Derivatives.
Section 38.1140k - Investment in Global Securities; Prohibited Conduct.
Section 38.1140l - Financial or Proprietary Information.