HOUSE BILL No. 5969


     September 27, 2000, Introduced by Rep. Pappageorge and referred to the Committee on Tax Policy.


        A bill to amend 1954 PA 188, entitled

   "An act to provide for the making of certain improvements by
   townships; to provide for paying for the improvements by the
   issuance of bonds; to provide for the levying of taxes; to pro-
   vide for assessing the whole or a part of the cost of improve-
   ments against property benefited; and to provide for the issuance
   of bonds in anticipation of the collection of special assessments
   and for the obligation of the township on the bonds,"

   by amending section 15 (MCL 41.735) and by adding section 15d.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 15.  The township board may borrow money and issue the

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      bonds of the township  therefor  in anticipation of the collec-

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      tion of special assessments to defray all or any part of the cost

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      of any improvement made under this act after the special assess-

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      ment roll  therefor shall have  OF THE TOWNSHIP HAS been

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      confirmed.  Such bonds  BONDS ISSUED UNDER THIS SECTION shall

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      not exceed the amount of the special assessments in anticipation

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      of the collection of which they are issued, and shall bear


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      interest at a rate not exceeding the maximum rate permitted by

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       Act No. 202 of the Public Acts of 1943, as amended, being sec-

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      tions 131.1 to 138.2 of the Michigan Compiled Laws  THE MUNICIPAL

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      FINANCE ACT, 1943 PA 202, MCL 131.1 TO 139.3.  Collections on

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      special assessments to the extent the  same  COLLECTIONS are

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      pledged for the payment of bonds shall be set aside in a special

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      fund for the payment of  such  THOSE bonds.  Bonds may be issued

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      in anticipation of the collection of special assessments levied

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      in respect to 1 or more public improvements, but no special

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      assessment district shall be compelled to pay the obligation of

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      any other special assessment district.  The  SUBJECT TO SECTION

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      15D, THE township board may pledge the full faith and credit of

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      the township for the prompt payment of the principal of and

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      interest on the bonds authorized  herein  IN THIS SECTION, as the

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       same shall  PRINCIPAL OF AND INTEREST ON THE BONDS become due.

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       , in which event the  THE township may levy a tax on all taxable

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      property in the township for the payment of principal and inter-

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      est on the bonds ISSUED UNDER THIS SECTION without limitation as

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      to rate or amount and in addition to all other taxes  which  THAT

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      the township may be authorized to levy.  The issuance of bonds

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      under this section  shall be  IS subject to  Act No. 202 of the

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      Public Acts of 1943, as amended, being sections 131.1 to 138.2 of

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      the Michigan Compiled Laws  THE MUNICIPAL FINANCE ACT, 1943 PA

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      202, MCL 131.1 TO 139.3.  Bonds issued  hereunder  UNDER THIS

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      SECTION shall be executed by the supervisor and township clerk

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      and the interest coupons to be attached  thereto  TO THOSE BONDS





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      shall be executed by the officials causing their facsimile

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      signatures to be affixed  thereto  TO THOSE BONDS.

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           SEC. 15D.  IF A TOWNSHIP BOARD PLEDGES ANY PORTION OF THE

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      GENERAL FUND OF THE TOWNSHIP AND ISSUES ANY BOND OTHER THAN A

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      GENERAL OBLIGATION BOND OR A REVENUE BOND UNDER SECTION 15, THE

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      TOWNSHIP SHALL PROVIDE FOR AND PUBLISH A NOTICE OF INTENT AS PRO-

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      VIDED IN SECTION 10 OF CHAPTER 5 OF THE MUNICIPAL FINANCE ACT,

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      1943 PA 202, MCL 135.10.








































   02615'99          Final page.                            JLB