SENATE BILL No. 836

November 29, 2001, Introduced by Senator PETERS and referred to the Committee on

Finance.

A bill to amend 1994 PA 325, entitled

"The international tradeport development authority act,"

by amending section 16 (MCL 125.2536); and to repeal acts and

parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 16. (1) An authority may issue from time to time

2 bonds, notes, or other obligations in principal amounts the

3 authority considers necessary to provide funds for the

4 following:

5 (a) Acquiring and improving property within an international

6 tradeport development zone.

7 (b) The payment, funding, or refunding of the principal of,

8 interest on, or redemption premiums on bonds or other obligations

9 issued by the authority whether the bonds or other obligations or

10 interest to be funded or refunded have or have not become due.

02316'01 JLB

2

1 (c) The establishment or increase of reserves to secure or

2 to pay bonds or other obligations of the authority or interest on

3 those bonds or other obligations.

4 (d) The payment of interest on the bonds or other obliga-

5 tions for a period determined by the authority.

6 (e) The payment of all other costs or expenses of the

7 authority incident to and necessary or convenient to carry out

8 its corporate purposes and powers.

9 (f) Any other purpose reasonably related to or connected

10 with the purposes described in this subsection.

11 (2) The bonds or other obligations of an authority are not a

12 general obligation of the authority but are payable solely from

13 the revenues or funds, or both, pledged to the payment of the

14 principal of and interest on the bonds or other obligations as

15 provided in the resolution authorizing the bonds or other

16 obligations.

17 (3) The bonds or other obligations of an authority shall be

18 authorized by resolution of the authority and:

19 (a) Shall bear the date or dates of issuance.

20 (b) May be issued in 1 or more series.

21 (c) May be issued as either tax-exempt bonds or other obli-

22 gations or taxable bonds or other obligations for federal income

23 tax purposes.

24 (d) Shall be serial bonds, term bonds, or term and serial

25 bonds.

26 (e) Shall mature at a time or times not exceeding 20 years

27 from the date of issuance.

02316'01

3

1 (f) May provide for sinking fund payments.

2 (g) May provide for redemption at the option of the author-

3 ity for any reason or reasons.

4 (h) May provide for redemption at the option of the holder

5 of the bonds or other obligations for any reason or reasons.

6 (i) Shall bear interest at a fixed or variable rate or rates

7 of interest per annum or at no interest.

8 (j) Shall be in either registered or coupon form, or both.

9 (k) May contain a registration or a conversion feature, or

10 both.

11 (l) May be transferable.

12 (m) Shall be in the form, in the denomination or denomina-

13 tions, and with other provisions and terms as the authority

14 determines necessary or beneficial, all as the resolution

15 provides.

16 (4) If a member of a board or an officer of the authority

17 whose signature or a facsimile of whose signature appears on the

18 bond or other obligation or coupon ceases to be a member or offi-

19 cer before the delivery of that bond or other obligation or

20 coupon, the signature or facsimile signature continues to be

21 valid and sufficient for all purposes, as if the member or offi-

22 cer had remained in office until the delivery.

23 (5) Bonds or other obligations of an authority may be sold

24 at a public or private sale at the time or times, at the price or

25 prices, and at a discount or premium as the authority

26 determines.

02316'01

4

1 (4) An authority bond or other obligation is not subject

2 to the municipal finance act, Act No. 202 of the Public Acts of

3 1943, being sections 131.1 to 139.3 of the Michigan Compiled

4 Laws REVISED MUNICIPAL FINANCE ACT, 2001 PA 34, MCL 141.2101 TO

5 141.2821. The bond or other obligation does not require the

6 approval of the state treasurer under Act No. 202 of the Public

7 Acts of 1943 and is not required to be registered. The bond or

8 other obligation is not required to be filed under the uniform

9 securities act, Act No. 265 of the Public Acts of 1964, being

10 sections 451.501 to 451.818 of the Michigan Compiled Laws 1964

11 PA 265, MCL 451.501 TO 451.818.

12 Enacting section 1. Section 19 of the international trade-

13 port development authority act, 1994 PA 325, MCL 125.2539, is

14 repealed.

02316'01 Final page. JLB