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Michigan Legislature
Michigan Compiled Laws Complete Through PA 178 of 2019
House: Adjourned until Tuesday, January 28, 2020 1:30:00 PM
Senate: Adjourned until Tuesday, January 28, 2020 10:00:00 AM


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Act 89 of 1933
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PROTECTIVE COMMITTEES

Act 89 of 1933

AN ACT to prevent fraud, deception and imposition in the solicitation within the state of Michigan of the deposit of bonds, notes, debentures and other evidences of indebtedness under, and/or the consent of the holders or owners of such securities, to a protective committee agreement, and to prevent fraud, deception and imposition in the operations and activities of protective committees organized within the state of Michigan to act for and in behalf of the holders or owners of such securities, and for such purposes to create a commission to regulate and supervise the establishment and the operations of protective committees, depositaries under protective committee agreements, and solicitors for protective committee agreements; to authorize said commission to have supervision over defaulted bonds, notes, debentures, certificates of participation and similar evidences of indebtedness; to prescribe the powers and duties of such commission; to license members of protective committees, depositaries under protective committee agreements and solicitors for protective committee agreements; to regulate and supervise and control the solicitation by anyone of bonds, notes, debentures and all other similar evidences of indebtedness, issued by the maker of any security for the purpose of procuring the modification and/or amendment and/or foreclosure of any instrument in writing securing any issue of bonds, notes, debentures and all other similar evidences of indebtedness; to authorize such commission to act as custodian or receiver and appoint custodians, agents and managers of defaulted mortgage property under orders of court or otherwise; to prescribe penalties for violation of this act; and to repeal Act No. 37 of the Public Acts of the first extra session of 1932.


History: 1933, Act 89, Imd. Eff. May 25, 1933 ;-- Am. 1935, Act 218, Imd. Eff. June 8, 1935


© 2020 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
Section 451.302SectionProtective committees, depositaries and solicitors; definitions.
Section 451.303SectionProtective committees, depositaries and solicitors; license applications, fees, hearing, bonds; inactive committee or depositary; names, inspection.
Section 451.304SectionProtective committees, depositaries and solicitors; licenses, non-resident applicants, filing; service of process.
Section 451.305SectionProtective committees, depositaries and solicitors; licenses, suspension or revocation.
Section 451.306SectionProtective committees; statement, contents; application to solicit security holders.
Section 451.307SectionProtective committees; solicitation of security holders; fraud, conditions, limitation of charges.
Section 451.308SectionProtective committees; notice to issuer of security, objections, hearing.
Section 451.309SectionProtective committees; records and reports.
Section 451.310SectionProtective committees; authority to take action.
Section 451.311SectionPublic trust commission; investigations, audits and appraisals.
Section 451.312SectionPublic trust commission; subpoenas, oaths, records.
Section 451.313SectionPublic trust commission; investigations; costs; audits and appraisals.
Section 451.315SectionPublic trust commission; suspension of orders, grounds, procedure.
Section 451.316SectionAggrieved parties; action in circuit court.
Section 451.317SectionFiduciary's relation to security holders; reports of purchases.
Section 451.318SectionConstruction of act; severing clause.
Section 451.318aSectionBonds; exception from act; securities exempt from blue sky law and mortgage tax act.
Section 451.319SectionViolation of act; penalty.
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