§ 2-241. Investment powers.

(a)

The board shall have full power to invest and reinvest the funds of the retirement system subject to all terms, conditions, limitations and restrictions imposed by the laws of the state as set forth in Act No. 314 of the Public Acts of Michigan of 1965 (MCL 38.1132 et seq., MSA 3.981(112) et seq.), as amended.

(b)

The board shall have full power to hold, purchase, sell, assign, transfer and dispose of any of the securities and investments in which any of the funds of the retirement system have been invested, as well as the proceeds of such investments and any moneys belonging to the retirement system.

(c)

The board shall have the authority to employ an investment fiduciary as defined in Act No. 314 of the Public Acts of Michigan of 1965 (MCL 38.1132 et seq., MSA 3.981(112) et seq.), as amended, an investment manager and a custodian for the funds of the system. Such investment fiduciary, investment manager or custodian shall have such investment powers as delegated by the board and shall have the responsibility on a day-to-day basis for the management of the funds of the system.

(d)

In the proper administration and management of the funds and investments of the retirement system, the board shall have the following additional powers as may be limited by Act No. 314 of the Public Acts of Michigan of 1965 (MCL 38.1132 et seq., MSA 3.981(112) et seq.), as amended:

(1)

To sell, either for cash or part cash and part deferred payments, option, plat, subdivide, convey, exchange, lease (for any length of time), mortgage, pledge, partition, or otherwise dispose of all the assets in such funds or any part thereof, at such time and in such manner, either at public or private sale and upon such terms as in its absolute and uncontrolled discretion the board may deem expedient and proper and unaffected by any of the Charter limitations applicable to other funds or city property.

(2)

To borrow on the general credit of the fund or to pledge or mortgage the fund or any part thereof as security for the repayment of such loan and to renew any indebtedness incurred by the fund.

(3)

To exercise any option or privilege to convert bonds, notes, stocks or other securities belonging to such funds into other bonds, notes, stocks or other securities; to exercise any privilege to subscribe for additional or other bonds, notes, stocks or other securities; to make such conversions and subscriptions, to make payments therefor, option, privilege or right to retain such bonds, notes, stocks and other securities so acquired as investments for such fund.

(4)

To unite with other owners of property or securities similar to any plan for the consolidation or merger, dissolution or liquidation, foreclosure, sale or lease of the property of, incorporation or reincorporation, reorganization or readjustment of the capital or financial structure of any corporation, company, or association, the securities of which may form a part of such fund; to deposit any such securities in accordance with such plan; to pay any assessments, expenses and sums of money which the board may deem expedient, or which may be required for the protection or furtherance of the interest of said fund with reference to any such plan; and to receive and retain as investments of such fund, any new securities issued as a result of the execution of such plan.

(5)

To enforce, abandon, adjust, arbitrate, compromise, sue on or defend, and otherwise deal with and settle claims in favor of or against the fund as the board may deem best, and its decision shall be final and binding upon all parties in interest.

(6)

To exercise any other power or authority granted by state or federal law.

(e)

No loans, secured or unsecured, shall be made to a member nor to any elected or appointed official of the city. All funds of the retirement system shall be held for the sole purpose of meeting disbursements for retirement allowances, and other payments authorized by the provisions of this division, and shall be used for no other purpose. The description of the various funds of the retirement system shall be interpreted to refer to the accounting records of the retirement system, and not to the segregation of moneys in the funds of the retirement system.

(Ord. No. 1523, § 1.734, 6-8-92)