HB-5024, As Passed House, April 30, 2008

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5024

 

July 10, 2007, Introduced by Rep. Sheltrown and referred to the Committee on Commerce.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

by amending sections 21528 and 50510 (MCL 324.21528 and 324.50510),

 

section 21528 as amended by 1996 PA 181 and section 50510 as

 

amended by 2002 PA 387.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 21528. (1) The authority may issue from time to time

 

bonds or notes in principal amounts the authority considers

 

necessary to provide funds for any purpose, including, but not

 

limited to, all of the following:

 

     (a) The purposes described in section 21506(4)(a) and (e).

 

     (b) The payment, funding, or refunding of the principal of,

 

interest on, or redemption premiums on bonds or notes issued by the

 


authority whether the bonds or notes or interest to be funded or

 

refunded have or have not become due.

 

     (c) The establishment or increase of reserves to secure or to

 

pay authority bonds or notes or interest on those bonds or notes.

 

     (d) The payment of interest on the bonds or notes for a period

 

determined by the authority.

 

     (e) The payment of all other costs or expenses of the

 

authority incident to and necessary or convenient to implement its

 

purposes and powers.

 

     (2) The bonds or notes of the authority are not a general

 

obligation of the authority but are payable solely from the

 

revenues or funds, or both, pledged to the payment of the principal

 

of and interest on the bonds or notes as provided in the resolution

 

authorizing the bond or note.

 

     (3) The bonds or notes of the authority:

 

     (a) Shall be authorized by resolution of the authority.

 

     (b) Shall bear the date or dates of issuance.

 

     (c) May be issued as either tax-exempt bonds or notes or

 

taxable bonds or notes for federal income tax purposes.

 

     (d) Shall be serial bonds, term bonds, or term and serial

 

bonds.

 

     (e) Shall mature at such time or times not exceeding 20 years

 

from the date of issuance.

 

     (f) May provide for sinking fund payments.

 

     (g) May provide for redemption at the option of the authority

 

for any reason or reasons.

 

     (h) May provide for redemption at the option of the bondholder

 


for any reason or reasons.

 

     (i) Shall bear interest at a fixed or variable rate or rates

 

of interest per annum or at no interest.

 

     (j) Shall be registered bonds, coupon bonds, or both.

 

     (k) May contain a conversion feature.

 

     (l) May be transferable.

 

     (m) Shall be in the form, denomination or denominations, and

 

with such other provisions and terms as is determined necessary or

 

beneficial by the authority.

 

     (4) If a member of the board of directors or any officer of

 

the authority whose signature or facsimile of his or her signature

 

appears on the note, bond, or coupon ceases to be a member or

 

officer before the delivery of that bond or note, the signature

 

continues to be valid and sufficient for all purposes, as if the

 

member or officer had remained in office until the delivery.

 

     (5) Bonds or notes of the authority may be sold at a public or

 

private sale at the time or times, at the price or prices, and at a

 

discount as the authority determines. An authority bond or note is

 

not subject to the municipal finance act, Act No. 202 of the Public

 

Acts of 1943, being sections 131.1 to 139.3 of the Michigan

 

Compiled Laws revised municipal finance act, 2001 PA 34, MCL

 

141.2101 to 141.2821. The bond or note shall not require the

 

approval of the state treasurer under Act No. 202 of the Public

 

Acts of 1943 and shall not be required to be registered. The bond

 

or note of the authority shall not be is not required to be filed

 

under the uniform securities act, Act No. 265 of the Public Acts of

 

1964, being sections 451.501 to 451.818 of the Michigan Compiled

 


Laws 1964 PA 265, MCL 451.501 to 451.818, or the uniform securities

 

act (2002), MCL 451.2101 to 451.2703.

 

     Sec. 50510. (1) The authority may issue from time to time

 

bonds or notes in principal amounts the authority considers

 

necessary to provide funds for any purpose, including, but not

 

limited to, all of the following:

 

     (a) The payment, funding, or refunding of the principal of,

 

interest on, or redemption premiums on bonds or notes issued by the

 

authority whether the bonds or notes or interest to be funded or

 

refunded have or have not become due.

 

     (b) The establishment or increase of reserves to secure or to

 

pay authority bonds or notes or interest on those bonds or notes.

 

     (c) The payment of interest on the bonds or notes for a period

 

as the authority determines.

 

     (d) The payment of all other costs or expenses of the

 

authority incident to and necessary or convenient to carry out its

 

corporate purposes and powers.

 

     (2) The bonds or notes of the authority shall not be a general

 

obligation of the authority but shall be payable solely from the

 

revenues or funds, or both, pledged to the payment of the principal

 

of and interest on the bonds or notes as provided in the resolution

 

authorizing the bond or note.

 

     (3) The bonds or notes of the authority:

 

     (a) Shall be authorized by resolution of the authority.

 

     (b) Shall bear the date or dates of issuance.

 

     (c) May be issued as either tax-exempt bonds or notes or

 

taxable bonds or notes for federal income tax purposes.

 


     (d) Shall be serial bonds, term bonds, or term and serial

 

bonds.

 

     (e) Shall mature at such time or times not exceeding 30 years

 

from the date of issuance.

 

     (f) May provide for sinking fund payments.

 

     (g) May provide for redemption at the option of the authority

 

for any reason or reasons.

 

     (h) May provide for redemption at the option of the bondholder

 

for any reason or reasons.

 

     (i) Shall bear interest at a fixed or variable rate or rates

 

of interest per annum or at no interest.

 

     (j) Shall be registered bonds, coupon bonds, or both.

 

     (k) May contain a conversion feature.

 

     (l) May be transferable.

 

     (m) Shall be in the form, denomination or denominations, and

 

with the other provisions and terms as is determined necessary or

 

beneficial by the authority.

 

     (4) If a member of the board or any officer of the authority

 

whose signature or facsimile of his or her signature appears on the

 

note, bond, or coupon ceases to be a member or officer before the

 

delivery of that note or bond, the signature shall continue to be

 

valid and sufficient for all purposes, as if the member or officer

 

had remained in office until the delivery.

 

     (5) Bonds or notes of the authority may be sold at a public or

 

private sale at the time or times, at the price or prices, and at a

 

discount as the authority determines. Bonds and notes of the

 

authority are not subject to the revised municipal finance act,

 


2001 PA 34, MCL 141.2101 to 141.2821. The bond or note of the

 

authority is not required to be filed under the uniform securities

 

act, 1964 PA 265, MCL 451.501 to 451.818, or the uniform securities

 

act (2002), MCL 451.2101 to 451.2703.

 

     (6) The issuance of bonds and notes under this section is

 

subject to the agency financing reporting act, 2002 PA 470, MCL

 

129.171 to 129.177.

 

     (7) For the purpose of more effectively managing its debt

 

service, the authority may enter into an interest rate exchange or

 

swap, hedge, or similar agreement with respect to its bonds or

 

notes on the terms and payable from the sources and with the

 

security, if any, as determined by a resolution of the authority.

 

     Enacting section 1. This amendatory act does not take effect

 

unless Senate Bill No.____ or House Bill No. 5008(request no.

 

00420'07) of the 94th Legislature is enacted into law.