SENATE BILL NO. 485


   March 25, 1999, Introduced by Senator STILLE and referred to the
        Committee on Local, Urban and State Affairs.



        A bill to amend 1943 PA 202, entitled

   "Municipal finance act,"

   by amending section 1b of chapter VII (MCL 137.1b), as amended by

   1982 PA 469.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                               CHAPTER VII

 2         Sec. 1b.  Debt retirement  funds  MONIES,
             except in the case

 3    of a common debt retirement fund maintained by a school district

 4    pursuant to section 1223 of  Act No.  451 of the Public Acts
             of

 5     1976, being section 380.1223 of the Michigan Compiled Laws
                        THE

 6    REVISED SCHOOL CODE, 1976 PA 451, MCL 380.1223, shall be 
             kept

 7     separate from each other  ACCOUNTED FOR SEPARATELY
                       and,  separate

 8     from other moneys of the municipality and,  except
                       as provided in

 9    section 1a(4) of this chapter, shall be used only to retire the

10    funded indebtedness  of the municipality  for which
             the debt


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 1    retirement fund OR ACCOUNT was created.  A MUNICIPALITY MAY POOL

 2    OR COMBINE DEBT RETIREMENT MONIES WITH EACH OTHER OR WITH OTHER

 3    MONIES OF THE MUNICIPALITY FOR DEPOSIT OR INVESTMENT PURPOSES.


















































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