Bailout Sleuth, a blog that chronicles every aspect of the Treasury Department’s bailout program, reports that one Michigan bank that qualified for TARP funds has turned them down:
 

A sixth bank, Chemical Financial Corp. of Midland, Mich., said it was approved for $84 million but declined the money.

“While Chemical Financial Corporation strongly supports the overall purpose and design of the Capital Purchase Program, our board and management felt that the CPP features did not align with our strategic goals,” said David B. Ramaker, the company’s chairman and chief executive.

Chemical Financial’s management and board of directors decided that the restrictions imposed on companies getting government investment, and the potential dilution to existing shareholders, outweighed any potential benefits, Ramaker said in a statement.

In order to receive those funds, the banks must agree to swap a block of preferred stock shares to the government. Doing so can diminish the value of existing shares and the preferred stock is required to pay dividends of 5% for the first five years and 9% thereafter in order to pay back the loan to the government.