(1) The depository shall manage, invest, and reinvest the money in an investment pool on behalf of each participant. Subject to the scope of investments allowed by subsection (2), a depository may combine money in an investment pool with other funds the depository may have available for investment.
  (2) The depository may invest and reinvest the money in the investment pool only in the manner permitted in section 1 of Act No. 20 of the Public Acts of 1943, as amended, being section 129.91 of the Michigan Compiled Laws.

Terms Used In Michigan Laws 129.116

  • Depository: means that department of the financial institution which is responsible for managing, investing, and reinvesting funds placed in an investment pool. See Michigan Laws 129.112
  • Participant: means a local unit which has entered into a contract with a financial institution and has placed funds in an investment pool managed by that financial institution. See Michigan Laws 129.112
  • person: may extend and be applied to bodies politic and corporate, as well as to individuals. See Michigan Laws 8.3l
  (3) The depository shall invest the money in the investment pool with the degree of judgment and care which a person of prudence, discretion, and intelligence exercises in the management of his or her own affairs, not for speculation, but for investment, considering the probable safety of his or her capital as well as the probable income to be derived from an investment of his or her capital.
  Previous section
Next section  
 Act 367 of 1982 Contents