(1) In determining to issue a municipal security, a municipality may do 1 or more of the following:
    (a) Authorize and enter into insurance contracts, agreements for lines of credit, letters of credit, commitments to purchase municipal securities, remarketing agreements, reimbursement agreements, and any other transactions to enhance timely payment of any municipal security.
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Terms Used In Michigan Laws 141.2315

  • Governing body: means the county board of commissioners of a county; the township board of a township; the council, common council, or commission of a city; the council, commission, or board of trustees of a village; the board of education or district board of a school district; the board of an intermediate school district; the board of trustees of a community college district; the county drain commissioner or drainage board of a drainage district; the board of the district library; the legislative body of a metropolitan district; the port commission of a port district; and, in the case of another governmental authority or agency, that official or official body having general governing powers over the authority or agency. See Michigan Laws 141.2103
  • Municipal security: means a security that when issued was not exempt from this act or former 1943 PA 202 by the provisions of this act or by former 1943 PA 202 or by the provisions of the law authorizing its issuance and that is payable from or secured by any of the following:
    (i) Ad valorem real and personal property taxes. See Michigan Laws 141.2103
  • Municipality: means a county, township, city, village, school district, intermediate school district, community college district, metropolitan district, port district, drainage district, district library, or another governmental authority or agency in this state that has the power to issue a security. See Michigan Laws 141.2103
  • Security: means an evidence of debt such as a bond, note, contract, obligation, refunding obligation, certificate of indebtedness, or other similar instrument issued by a municipality, which pledges payment of the debt by the municipality from an identified source of revenue. See Michigan Laws 141.2103
    •     (b) Authorize payment from the proceeds of the municipal security, or from other funds available, of the cost of issuance, including, but not limited to, fees for placement, fees or charges for insurance, letters of credit, lines of credit, remarketing agreements, reimbursement agreements, or purchase or sales agreements or commitments, or agreements to enhance timely payment of municipal securities.
        (c) Authorize principal and interest to be payable from 1 or more of the following:
        (i) Taxes or other revenues of the municipality.
        (ii) Proceeds of the municipal security.
        (iii) Earnings on proceeds of the municipal security or other funds held for payment of the municipal security.
        (iv) Proceeds of any other transaction described in subdivision (a).
        (d) Authorize or provide for an officer of the municipality, but only within limitations that shall be contained in the authorizing resolution of the governing body, to do 1 or more of the following:
        (i) Sell, deliver, and receive payment for the municipal securities.
        (ii) Refund the municipal securities in accordance with part VI of this act.
        (iii) Deliver a municipal security partly to refund another security and partly for any other authorized purposes.
        (iv) Buy the municipal security so issued at not more than the face value of the municipal security.
        (v) Approve fixed interest rates, variable interest rates, or methods for fixing interest rates, prices, discounts, maturities, principal amounts, denominations, dates of issuance, interest payment date, redemption rights at the option of the municipality or the holder, the place of delivery and payment, and other matters and procedures necessary to complete the transactions authorized.
        (2) A municipality may provide that a municipal security additionally secured as provided in subsection (1) may be payable on demand or before maturity at the option of the holder only at the time and in the manner determined by the governing body as provided in the resolution authorizing the municipal security.
        (3) The authority granted by this section may be exercised notwithstanding any ordinance or charter provision to the contrary.
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