2006 Michigan Compiled Laws - Mich. Comp. Laws § 390.1155 Bonds; purposes; general obligation of authority; approval by municipal finance commission or successor agency; determination; resolution; requirements; issuance subject to agency financing reporting act; interest rate agreement.

Sec. 5.

(1) The authority may issue its bonds in the principal amounts necessary to provide funds for achieving its purposes under this act including the payment of interest on bonds of the authority, the establishment of reserves to secure the bonds, and other expenditures of the authority incident to and necessary or convenient to carry out its purposes and powers. The authority may issue refunding bonds when it considers refunding expedient, whether the bonds to be refunded have or have not matured. The proceeds of the refunding bonds shall be applied to the purchase, redemption, or payment of the bonds refunded. Except as otherwise expressly provided in a resolution authorizing bonds, an issue of bonds shall be a general obligation of the authority to be satisfied out of revenues or money or other property of the authority, subject to an agreement with the holders of particular receipts, revenues, or other property of the authority that has been pledged or mortgaged.

(2) Bonds issued by the authority are not subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821.

(3) The authority shall authorize its bonds by resolution. The bonds shall bear interest at a rate or rates, which are fixed for the term of the bonds or which are calculated upon a formula to vary; be in the denominations; be in a form approved by the authority; carry registration privileges; be executed in a manner; be payable in a medium of payment; and at a place or places; be subject to terms of redemption; and be subject to any other terms and conditions as the resolution or resolutions may provide. The bonds authorized under this section may be sold by the authority at public or private sale at a price determined by the authority. If the bonds are:

(a) Serial bonds or term bonds, or both, the bonds shall bear a date, and, if serial bonds, shall be payable either semiannually or annually, and shall mature at a time or times, not exceeding 40 years after the date of issue, as provided in the resolution.

(b) Term loans, commercial paper, or other evidences of indebtedness, the bonds shall bear a date or dates; and shall mature at a time or times not exceeding 30 years after the date of issue, as the resolution or resolutions shall provide.

(4) The issuance of bonds and notes under this act is subject to the agency financing reporting act.

(5) 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.

History: 1975, Act 222, Eff. Oct. 1, 1975 ;-- Am. 1976, Act 163, Imd. Eff. June 21, 1976 ;-- Am. 1977, Act 50, Imd. Eff. July 5, 1977 ;-- Am. 1978, Act 253, Imd. Eff. June 20, 1978 ;-- Am. 1983, Act 122, Imd. Eff. July 18, 1983 ;-- Am. 1984, Act 259, Imd. Eff. Dec. 7, 1984 ;-- Am. 2002, Act 547, Imd. Eff. July 26, 2002