SENATE BILL No. 889

December 4, 2001, Introduced by Senator MC COTTER and referred to the Committee on Government Operations.

A bill to amend 1933 PA 89, entitled

"An act to prevent fraud, deception and imposition in the solici-

tation 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, decep-

tion and imposition in the operations and activities of protec-

tive 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 super-

vise the establishment and the operations of protective commit-

tees, 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 com-

mission; to license members of protective committees, deposi-

taries 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 modifica-

tion 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 com-

mission 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

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this act; and to repeal Act No. 37 of the Public Acts of the

first extra session of 1932,"

by amending section 13 (MCL 451.313).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 13. Any person interested in any security in connec-

2 tion with which a protective committee is organized may request

3 said THE commission to make an investigation, audit, or

4 appraisal and report with respect to the property and/or OR

5 business to which such THE security pertains. : Provided,

6 however, That HOWEVER, before any investigation, audit, or

7 appraisal and report shall be IS made by said THE commission

8 upon such a request, such THE person so requesting shall,

9 when IF required by the commission, deposit with said THE

10 commission such THE sum of money as said THAT THE commission

11 shall believe CONSIDERS necessary to meet the cost thereof OF

12 THE INVESTIGATION, AUDIT, OR APPRAISAL AND REPORT. In the event

13 that the money so deposited shall prove to be IF THE DEPOSIT IS

14 insufficient to defray the cost of said THE investigation,

15 audit, or appraisal and report, said THE commission may request

16 further deposits as a condition of the continuance by it of its

17 investigation, audit, or appraisal and report. All money so

18 deposited shall be deposited by said THE commission in the

19 state treasury in a special fund and disbursements from said

20 THAT fund shall be upon the vouchers drawn by said THE commis-

21 sion and the warrant of the auditor general drawn on the state

22 treasurer, and such ANY disbursements shall be for the purposes

23 for which the money is paid. Any excess over and above the cost

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of such THE requested investigation, audit, or appraisal and

report shall be returned to the person who made the deposit.

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