NORTH BRANCH, Mich. -- A 10-year-old boy who is accused of bringing a handgun to school on Friday has been charged with two felonies of carrying a concealed weapon and larceny of a weapon.

Police in North Branch said the 10-year-old elementary school student was caught with an unloaded semiautomatic handgun in his backpack.

A staff member at Ruth Fox Elementary found the unloaded gun and 26 rounds of ammunition hidden inside of a black pencil carrier while checking the boy's locker for a lost CD player and cell phone.

The grandmother, who owns the gun, may be face charges for allowing him to have access to the gun, police said.

The boy remains under house arrest in a community about 60 miles north of Detroit.

His mother has hired a lawyer and they will not allow the boy to speak with the media.

Police said the boy just transferred to the school two days ago.

School officials said he has been expelled from school.