SENATE BILL No. 908

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

A bill to amend 1947 PA 4, entitled

"An act to authorize and provide for the borrowing of

$270,000,000.00 to make payments to persons who served in the

military, naval, marine or coast guard forces of the United

States, including women serving in auxiliary branches thereof, or

to their next of kin or estates, and the issuance of certain

serial bonds and serial notes for such indebtedness; to create a

veterans' military pay fund and a veterans' bond redemption fund;

to pledge the full faith and credit of the state; to provide for

the payment of principal and interest on such serial obligations;

to make appropriations therefor; and to make such serial notes

and serial bonds exempt from taxation,"

by amending section 1 (MCL 35.901).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. The people of Michigan by constitutional amendment

2 having authorized the state to borrow not to exceed

3 $270,000,000.00, pledge its faith and credit and issue its serial

4 notes or serial bonds therefor, for the purpose of paying to

5 each person, or if deceased to the surviving husband or wife,

6 child or children, or to the surviving dependent mother, father,

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1 person standing in loco parentis, brothers and sisters, in the

2 order named, of any person who served in the military, naval,

3 marine or coast guard forces of the United States, including

4 women serving in auxiliary branches, thereof, between September

5 16, 1940, and June 30, 1946, who served honorably and faithfully

6 therein during said THAT period, who was a resident of this

7 state at the time of entering such THE service and for a period

8 of at least 6 months prior to entering therein THE SERVICE, and

9 whose service continued for more than 60 days during said period,

10 the sum of $10.00 for each month, or major fraction thereof OF

11 A MONTH, of service during said THAT period in any state of the

12 United States, and the District of Columbia, and the sum of

13 $15.00 for each month, or major fraction thereof OF A MONTH, of

14 service during said THAT period outside any state of the United

15 States, and the District of Columbia, but not to exceed a total

16 payment of $500.00 to any 1 person and the payment to the surviv-

17 ing husband or wife, child or children, or to the surviving

18 dependent mother, father, person standing in loco parentis,

19 brothers and sisters, in the order named, of each person who has

20 heretofore died or who shall hereafter die from service con-

21 nected causes incurred between September 16, 1940, and June 30,

22 1946, a sum equal to the difference between what he OR SHE has

23 received and the sum of $500.00, the state administrative board

24 is hereby authorized and directed, to borrow upon the full faith

25 and credit of this state money in the sum of not to exceed

26 $270,000,000.00, to issue serial bonds or serial notes of the

27 state in a like amount, therefor, and to expend from the

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1 veterans' military pay fund herein created IN THIS ACT a

2 sufficient amount to cover the reasonable cost of the printing

3 and such THE other expense incident to the issuance of such

4 THE serial bonds or notes. Said THE bonds shall be known as

5 veterans' bonds and shall bear interest at a rate or rates not

6 exceeding 2 1/2 per centum per annum, payable semi-annually,

7 shall be in the denomination of $1,000.00 each or any multiple

8 thereof OF THAT AMOUNT, shall be payable to bearer and shall

9 mature serially in annual installments of not less than

10 $10,800,000.00 each, beginning 1 year from their date and ending

11 not later than 1968. Such THE bonds may at the discretion of

12 the state administrative board be issued at 1 time in 1 series or

13 from time to time in 2 or more separate series with different

14 dates of issuance for each such series, and the state adminis-

15 trative board may from time to time determine and by resolution

16 prescribe, the date of issue of each such series, the amount of

17 bonds to be included in such THE series, the maturities of

18 such THE bonds so included, the maximum rate or rates of inter-

19 est on the bonds so included not to exceed 2 1/2 per centum per

20 annum, and the place or places of payment thereof. Such OF THE

21 BONDS. THE bonds or any part thereof OF THE BONDS may be made

22 callable prior to maturity upon such THE terms as may be pre-

23 scribed prior to the issuance of the bonds by resolution of

24 said THE state administrative board. Upon such THE terms and

25 conditions as may be prescribed by resolution of the state admin-

26 istrative board, such THE bonds may be made registerable as to

27 either principal only or as to both principal and interest or may

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1 be converted into registered bonds of such THE denominations as

2 the state administrative board may authorize, which registered

3 bonds may be reconverted into registered bonds of other denomina-

4 tions or reconverted into coupon bonds. All bonds so presented

5 for conversion or reconversion or payment shall be deposited with

6 the state treasurer, who is hereby authorized and directed forth-

7 with to cancel by perforation and preserve until checked by

8 auditor general THE BOND.

9 (2) Said THE bonds shall be executed for and on behalf of

10 the state of Michigan by the state treasurer and the secretary of

11 state or their deputies and the seal of the state shall be

12 affixed thereto TO THE BONDS by the secretary of state.

13 Interest coupons evidencing accrued interest to the respective

14 dates of maturity of said THE bonds shall bear the facsimile

15 signature of the state treasurer. The auditor general STATE

16 TREASURER shall provide a bond register which shall be kept in

17 the office of the auditor general STATE TREASURER, in which

18 register shall be recorded the date of each bond, its number, the

19 person or persons to whom originally issued, and the dates of its

20 respective maturity and cancellation.

21 (3) The bonds herein authorized IN THIS ACT to be issued

22 shall be sold by the state administrative board, at not less than

23 par and accrued interest. Such THE sale or sales shall be

24 public sales held from time to time at the discretion of said

25 state administrative board after notice by publication at least 7

26 days before each such sale, in a publication printed in the

27 English language and circulated in the state of Michigan, which

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1 carries as a part of its regular service, notices of the sale of

2 municipal bonds. The bonds so sold at each such sale shall

3 be awarded to the bidder whose bid in the opinion of said THE

4 state administrative board would result in the lowest interest

5 cost to the state. The state administrative board shall have the

6 right to reject any or all bids.

7 (4) Pending the execution and delivery of the veterans'

8 bonds, there are hereby authorized to be executed and delivered

9 temporary bonds which upon the execution of the veterans' bonds

10 shall be exchangeable for veterans' bonds of like date, tenor,

11 denomination, interest rate and maturity. Said THE temporary

12 bonds shall be printed from type, on steel engraved borders,

13 shall be numbered T1 consecutively upwards, starting with the

14 temporary bonds of earliest maturity, shall be signed and sealed

15 in the same manner as the definitive veterans' bonds, and shall

16 be issued with not more than 2 interest coupons attached

17 thereto TO THEM.

18 (5) Such THE temporary bonds may be registered in the

19 names of the respective holders thereof on books kept by the

20 state treasurer, as to both principal and interest, but not as to

21 principal alone, such THE registration being noted by the state

22 treasurer, on any bond so registered, in the registration blank

23 to be printed on the back thereof OF THE BOND, after which no

24 transfer shall be valid unless made on said books at the request

25 of the registered holder thereof OF THE BOND or attorney duly

26 authorized, and similarly noted in said THE registration blank,

27 but any such temporary bond so registered may be discharged from

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1 registration by being transferred to bearer, after which it shall

2 be transferable by delivery, and it may be again registered as

3 before.

4 (6) In case any temporary bond shall be mutilated, the

5 holder thereof OF THE BOND may obtain a duplicate temporary

6 bond in the same manner and under the same terms as hereinafter

7 provided for the obtaining of duplicate definitive veterans'

8 bonds.

9 (7) Except as hereinbefore OTHERWISE specifically provided

10 IN THIS SECTION, all the terms and conditions for the issuance

11 of, and covenants for the security of the holders of, the

12 veterans' bonds, shall apply to such temporary bonds.

13 (8) The proceeds of the sale of bonds shall be deposited in

14 the state treasury, and shall constitute a fund to be known as

15 "The veterans' military pay fund," hereby created in the state

16 treasury as a special trust fund, and shall be paid out in no

17 other manner or for any other purpose than provided by law:

18 Provided, That if at any time it shall appear to the finance and

19 budget committee of the state administrative board that there

20 are moneys IS MONEY in the veterans' military pay fund that

21 will not be needed for the payment of veterans' claims under the

22 terms and provisions of Act No. 12 of the Public Acts of 1947,

23 said THE VETERANS' MILITARY PAY ACT, 1947 PA 12, MCL 35.921 TO

24 35.932, THE committee may authorize the state treasurer to pur-

25 chase Michigan veterans' bonds upon the open market and cancel

26 the same BONDS if said THE bonds may be purchased at par or

27 below, and may authorize the state treasurer to cancel any

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1 Michigan veterans' bonds theretofore purchased and then contained

2 in said veterans' military pay fund, or said committee may trans-

3 fer such funds to the veterans' bond redemption fund provided for

4 in said Act No. 4 of the Public Acts of 1947 THIS ACT.

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