555.101 Short title; definitions. Sec. 1. (1) This act shall be known and may be cited as the “collective investment funds act”. (2) As used in this act: (a) “Collective investment fund” means a fund maintained by a financial institution or by 1 or more affiliated financial institutions that consists solely of assets of retirement, […]
555.102 Funds; financial institution may establish, maintain, and administer. Sec. 2. A financial institution may establish, maintain, and administer 1 or more funds. History: 1941, Act 174, Eff. Jan. 10, 1942 ;– CL 1948, 555.102 ;– Am. 2004, Act 586, Imd. Eff. Jan. 4, 2005 Popular Name: Common Trust Fund Act
555.103 Funds; financial institution may invest as fiduciary. Sec. 3. A financial institution in its capacity as a fiduciary or cofiduciary may invest funds that it lawfully holds for investment in that capacity in interests or participations in 1 or more common trust funds, if the investment is not prohibited by the instrument, judgment, decree, […]
555.104 Funds; establishment and maintenance of plan; provisions; availability for inspection. Sec. 4. (1) A financial institution shall establish and maintain a fund in accordance with a written plan approved by resolution of the board of directors of the financial institution or by a committee authorized by the board. The plan shall contain full and […]
555.104a Audit; financial report; contents; items to be excluded from report; availability; advertising common trust fund. Sec. 4a. (1) At least once during each 12-month period, a financial institution administering a fund shall arrange for an audit of the fund by auditors responsible only to the board of directors of the financial institution. (2) At […]
555.105 Common trust funds; funds investment. Sec. 5. A financial institution may invest and reinvest the assets of a fund in accordance with the plan for that fund. History: 1941, Act 174, Eff. Jan. 10, 1942 ;– CL 1948, 555.105 ;– Am. 2004, Act 586, Imd. Eff. Jan. 4, 2005 Popular Name: Common Trust Fund […]
555.105a Interest in fund other than fiduciary; prohibition; restrictions. Sec. 5a. (1) A financial institution administering a fund shall not have an interest in that fund other than in its fiduciary capacity. If, because of a creditor relationship or otherwise, a financial institution acquires an interest in a participating account, the financial institution shall withdraw […]
555.106 Common trust funds; participation; certificate. Sec. 6. (1) A financial institution administering a fund shall not issue a certificate or other document representing a direct or indirect interest in the fund, except to provide a withdrawing account with a record of an interest in a segregated investment. (2) An account owning or holding an […]
555.107 Common trust funds; management; control; ownership. Sec. 7. A financial institution has exclusive management and control of a fund administered by it and the sole right at any time to sell, convert, exchange, transfer, or otherwise change or dispose of the assets comprising the fund. Exclusive management and control include, but are not limited […]
555.108 Common trust funds; assets valuation; admission and withdrawal; basis; distribution. Sec. 8. (1) A financial institution administering a fund that is not invested primarily in real estate or other assets that are not readily marketable shall determine the value of the fund’s assets at least every 3 months. A financial institution administering a fund […]
555.109 Common trust funds; management fee; expenses. Sec. 9. (1) A financial institution administering a fund may charge a reasonable management fee that does not exceed an amount equal to the value of legitimate services of tangible benefit to the participating accounts that would not have been provided to the accounts were they not invested […]
555.110 Common trust funds; mistakes in administration; effect. Sec. 10. A mistake made in good faith and in the exercise of due care in connection with the administration of a fund is not a violation of this act or any rules or regulations issued under this act, if promptly after discovery of the mistake the […]
555.111 Common trust funds; rules regulating administration. Sec. 11. The commissioner of the office of financial and insurance services may promulgate and enforce rules regulating the administration of funds under this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328. History: 1941, Act 174, Eff. Jan. 10, 1942 […]
555.112 Common trust funds; additional investments. Sec. 12. (1) In addition to investing assets in a fund, a financial institution may invest assets that it holds as fiduciary in any of the following, to the extent not prohibited by applicable law: (a) In any of the following loans or obligations, if the financial institution’s only […]
555.113 Common trust funds; court accountings; jurisdiction of probate court. Sec. 13. Unless ordered by a court of competent jurisdiction, a financial institution administering a fund is not required to provide an accounting to a court with regard to the fund. By application to the state probate court with jurisdiction for a county in this […]
