Section 38.1134 - Investment in stock.
PUBLIC EMPLOYEE RETIREMENT SYSTEM INVESTMENT ACT (EXCERPT)
Act 314 of 1965
38.1134 Investment in stock.
Sec. 14.
(1) An investment fiduciary may invest not more than 70% of a system's assets in stock. An investment fiduciary shall not invest in more than 5% of the outstanding stock of any 1 corporation, or invest more than 5% of a system's assets in the stock of any 1 corporation, unless otherwise provided in this act.
(2) Stock invested in under this section shall meet 1 of the following requirements:
(a) Be registered on a national securities exchange regulated under title I of the securities exchange act of 1934, chapter 404, 48 Stat. 881, 15 U.S.C. 78a to 78l, 78m to 78o, 78o-3 to 78dd-1, 78ee to 78hh, and 78kk to 78 ll.
(b) Be on the national association of securities dealers automated quotation system or a successor to this system.
(c) Be issued pursuant to rule 144a under the securities act of 1933, 17 C.F.R. 230.144a.
(3) Notwithstanding subsection (2), an investment fiduciary may designate an American depository receipt that satisfies the requirements of subsection (2) as an investment qualified under this section or as an investment in foreign securities qualified under section 20k.
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