{"data":{"id":"us-mi/mich.-comp.-laws-555.112","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 555.112","heading":"Common trust funds; additional investments.","body":"Sec. 12.\n\n(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:\n\n(a) In any of the following loans or obligations, if the financial institution's only interest in the loans or obligations is its capacity as fiduciary:\n\n( i ) A single real estate loan, a direct obligation of the United States, or an obligation fully guaranteed by the United States or a single fixed amount security, obligation, or other property, either real, personal, or mixed, of a single issuer.\n\n( ii ) A variable amount note of a borrower of prime credit, if the financial institution uses the note solely for investment of funds held in its fiduciary accounts.\n\n(b) In a fund maintained by the financial institution for the collective investment of cash balances received or held by a financial institution in its capacity as trustee, personal representative, executor, administrator, guardian, or custodian under a uniform gifts or transfers to minors act of any state that the financial institution considers too small to be invested separately to advantage. The total assets in a fund described in this subdivision shall not exceed $1,000,000.00 and the number of participating accounts shall not exceed 100.\n\n(c) In any investment specifically authorized by the instrument creating the fiduciary account or in a court order, in the case of trusts created by a corporation, including its affiliates and subsidiaries, or by several individual settlors who are closely related.\n\n(d) In any collective investment authorized by applicable law, including, but not limited to, an investment under a preneed funeral statute of any state.\n\n(e) In any other manner described by the financial institution in a written plan approved by the financial institution's state or federal regulator. In order to obtain a special exemption, a financial institution shall submit to its regulator a written plan that sets forth all of the following:\n\n( i ) The reason that the proposed fund requires a special exemption.\n\n( ii ) The provisions of the proposed fund that are inconsistent with this act.\n\n( iii ) The provisions of this act for which the financial institution seeks an exemption.\n\n( iv ) The manner in which the proposed fund addresses the rights and interests of the participating accounts.\n\n(2) For purposes of this section, a financial institution acts as a fiduciary if the financial institution acts as any of the following:\n\n(a) A trustee, personal representative, executor, administrator, registrar of stocks and bonds, transfer agent, guardian, assignee, receiver, or custodian under a uniform gifts or transfers to minors act of any state.\n\n(b) An investment adviser, if the financial institution receives a fee for its investment advice.\n\n(c) In any capacity in which the financial institution possesses investment discretion on behalf of another.\n\n(d) In any similar capacity that a federal banking agency having authority over the financial institution may authorize from time to time.","path":["MI Code","Chapter 555","Act Act-174-of-1941"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-555-112","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"e403ec9ee9617d5aa170c3dcce2ace2aa0039e6fd9b5c35757236aadc0a71469","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-555.111","next":"us-mi/mich.-comp.-laws-555.113"},"notice":"GroundRules: Original legal text. Not legal advice."}