Michigan Laws 207.632 – Transmitting payment to trustee or trustees for bonds, obligations, other evidences of indebtedness, or payments under a public-private arrangement; prohibition; exception
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Terms Used In Michigan Laws 207.632
- Convention facility: means 1 or more facilities owned or leased by a local governmental unit or metropolitan authority created under the regional convention facility authority act, 2008 PA 554, MCL 141. See Michigan Laws 207.623
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Local governmental unit: means a county, township, city, village, or a metropolitan authority formed under the regional convention facility authority act, 2008 PA 554, MCL 141. See Michigan Laws 207.623
- Public-private arrangement: means a public-private arrangement authorized under the regional convention facility authority act, 2008 PA 554, MCL 141. See Michigan Laws 207.623
- qualified local governmental unit: means , except as otherwise provided in this subsection, a city, village, township, county, or authority that is located in, or includes within its territory or jurisdiction, a county in which convention hotels are located and that either is the owner or lessee of a convention facility with 350,000 square feet or more of total exhibit space on July 30, 1985 or, if such a convention facility does not exist, will be the owner or lessee of a convention facility with 350,000 square feet or more of total exhibit space through the application of distributions under this section to the purchase or lease of a convention facility. See Michigan Laws 207.629
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
- Trustee: A person or institution holding and administering property in trust.
(1) A local governmental unit may assign or pledge all or a portion of the distribution of taxes that the local governmental unit is eligible to receive under this act for payment of bonds, obligations, or other evidences of indebtedness, including payments under a public-private arrangement, for the purposes specified in section 8(2). If a local governmental unit assigns or pledges all or a portion of the distribution of taxes that the local governmental unit is eligible to receive under this act for payment of bonds, obligations, or other evidences of indebtedness, including payments under a public-private arrangement, the state treasurer may transmit to the duly appointed trustee or trustees for the bonds, obligations, or other evidences of indebtedness, including a public-private arrangement, the payment of the distribution assigned or pledged by the local governmental unit. Notwithstanding anything in this act to the contrary, the second sentence of section 11(2) does not apply to bonds issued by a metropolitan authority that becomes a qualified local governmental unit after December 1, 2008.
(2) A local governmental unit that becomes a qualified local governmental unit before May 1, 2008 shall not issue bonds, obligations, or other evidences of indebtedness to which distributions under section 9 are pledged in a principal amount greater than $180,000,000.00. This limit does not apply to refunding bonds, obligations, or other evidences of indebtedness issued pursuant to section 11(2) or to bonds, obligations, or other evidences of indebtedness to which distributions of taxes from the convention facility development fund are dedicated under section 11(3). A metropolitan authority that becomes a qualified local governmental unit after December 1, 2008 may, after the effective date of the amendatory act that added subdivision (f), issue bonds, obligations, or other evidences of indebtedness to which distributions under section 9 are pledged in an aggregate principal amount not to exceed $299,000,000.00. The cost of a project in addition to construction and acquisition costs may include an allowance for legal, engineering, architectural, and consulting services. The following are not subject to the limitations set forth in this subsection:
(a) Interest on revenue obligations issued to finance the project becoming due before the collection of the first revenues available for the payment of those revenue obligations.
(b) A reserve for the payment of principal, interest, and redemption premiums on the revenue obligations of the qualified local governmental unit, and other necessary incidental expenses, including, but not limited to, placement fees, fees or charges for insurance, letters of credit, lines of credit, remarketing agreements, or commitments to purchase obligations issued pursuant to this act.
(c) Fees or charges associated with an agreement to manage payment, revenue, or interest rate exposure.
(d) Any other fees or charges for any other security provided to assure timely payment of the obligations.
(e) Refunding bonds.
(f) Payments under a public-private arrangement.