(1) The department may make a determination that assistance should be terminated and may issue an order recommending that the authority take appropriate action to terminate assistance.
  (2) Cause for making a determination under subsection (1) includes, but is not limited to, 1 or more of the following:

Terms Used In Michigan Laws 324.5413

  • Assistance: means 1 or more of the following activities to the extent authorized by the federal safe drinking water act:
  (i) Provision of loans for the planning, design, and construction or alteration of waterworks systems. See Michigan Laws 324.5401
  • Authority: means the Michigan municipal bond authority created in the shared credit rating act, 1985 PA 227, MCL 141. See Michigan Laws 324.5401
  • Department: means the department of environment, Great Lakes, and energy or its authorized agent or representative. See Michigan Laws 324.5402
  • Fraud: Intentional deception resulting in injury to another.
  • Fund: means the state drinking water revolving fund established under section 16b of the shared credit rating act, 1985 PA 227, MCL 141. See Michigan Laws 324.5402
  • Project: means a project related to the planning, design, and construction or alteration of a waterworks system and may include utilization of more efficient energy and resources as described in any of the following:
    •   (i) The cost-effective governmental energy use act, 2012 PA 625, MCL 18. See Michigan Laws 324.5403
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • 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
  • supplier: means a municipality or its designated representative accepted by the director, a legal business entity, or any other person that owns a public water supply. See Michigan Laws 324.5403
    •   (a) Substantial failure to comply with the terms and conditions of the agreement providing assistance.
      (b) A legal finding or determination that the assistance was obtained by fraud.
      (c) Practices in the administration of the project that are illegal or that may impair the successful completion or organization of the project.
      (d) Misappropriation of assistance for uses other than those set forth in the agreement providing assistance.
      (e) Failure to accept an offer of assistance from the fund within a period of 30 days after receipt of a proposed loan agreement from the authority.
      (3) The department shall give written notice to the water supplier by certified letter of the intent to issue an order of termination. This notification shall be issued not less than 30 days before the department forwards the order recommending that the authority take appropriate action to terminate assistance.
      (4) The termination of assistance by the authority shall not excuse or otherwise affect the water supplier’s requirement for repayment of the outstanding loan balance to the fund. The water supplier shall repay the outstanding loan proceeds according to a schedule established by the authority.
      (5) Termination of assistance under this section does not relieve the water supplier of any requirements that may exist under state or federal law to construct the project.
      (6) Any settlement costs incurred in the termination of project assistance are the responsibility of the water supplier.
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