Michigan Laws 324.21528 – Bonds or notes; issuance; amount; purpose; payment; provisions; validity of signatures; sale; bonds or notes subject to other acts
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Terms Used In Michigan Laws 324.21528
- Authority: means the underground storage tank authority created in section 21523. See Michigan Laws 324.21502
- board: means the board of directors of the authority. See Michigan Laws 324.21502
- Bonds or notes: means the bonds, notes, commercial paper, other obligations of indebtedness, or any combination of these, issued by the finance authority pursuant to this part. See Michigan Laws 324.21502
- Finance authority: means the Michigan finance authority created by Executive Reorganization Order No. See Michigan Laws 324.21502
- Fund: means the underground storage tank cleanup fund created in section 21506b and includes the bond proceeds account established within the fund. See Michigan Laws 324.21502
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
(1) The finance authority may issue from time to time bonds or notes in principal amounts the finance authority considers necessary to provide funds for any purpose, including, but not limited to, all of the following:
(a) The payment of approved claims under this part.
(b) The payment, funding, or refunding of the principal of, interest on, or redemption premiums on bonds or notes issued by the finance 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 finance 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 finance authority.
(e) The payment of all other costs or expenses of the finance authority incident to and necessary or convenient to implement its purposes and powers.
(2) The bonds or notes of the finance authority are not a general obligation of the finance 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 finance authority:
(a) Shall be authorized by resolution of the finance 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 finance 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 finance authority.
(4) If a member of the board of directors or any officer of the finance 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 finance 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 finance authority determines. A finance authority bond or note is not subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821. The bond or note of the finance authority is not required to be filed under the uniform securities act (2002), 2008 PA 551, MCL 451.2101 to 451.2703.