SENATE BILL No. 984

December 13, 2001, Introduced by Senator NORTH and referred to the Committee on

Finance.

A bill to amend 1923 PA 118, entitled

"An act to authorize counties to raise by loan, expend from unal-

located moneys on hand, or borrow money for permanent improve-

ments, to issue bonds, and to levy taxes to the extent necessary

for the repayment of the bonds,"

by amending section 1 (MCL 141.61).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 1. When the county board of commissioners of any

2 county within the THIS state of Michigan shall deem CONSIDERS

3 it expedient for the county or its lawful officers, agents, and

4 servants to make or cause to be made any permanent improvement or

5 improvements , in or additions to or about roads, highways,

6 bridges, boulevards, parks, buildings, courthouse COURTHOUSES,

7 infirmaries, sanatoria, or any other permanent improvements,

8 authorized by law, relating to county property or to public

9 property under the control or management of county authorities,

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1 the county board of commissioners may, by resolution , of a

2 majority of the members-elect, authorize and direct the borrowing

3 or raising by loan on the faith and credit of the county of

4 such THE sums of money as in the judgment of the board may be

5 needed, subject to the constitutional limitations upon county

6 indebtedness, and the county board of commissioners may, in the

7 resolution, authorize and direct the issue and sale of bonds of

8 the county to secure the repayment of the sums borrowed, or

9 raised by loan which bonds shall be paid from taxes levied with-

10 out limitation as to rate or amount to the extent necessary for

11 the repayment of the bonds. For any permanent improvement that

12 may lawfully be made by the county authorities on the faith and

13 credit of the county, the bonds of the county may be issued and

14 sold to raise the money to pay for the improvement, or the bonds

15 may be issued and negotiated to secure the payment of indebted-

16 ness incurred in making the permanent improvements. The bonds

17 ISSUED UNDER THIS ACT ARE SUBJECT TO THE REVISED MUNICIPAL

18 FINANCE ACT, 2001 PA 34, MCL 141.2101 TO 141.2821. shall draw

19 interest at the rate of not to exceed the maximum rate permitted

20 by Act No. 202 of the Public Acts of 1943, as amended, payable

21 semiannually, and be payable in not to exceed 30 years from the

22 date of issue. Unless such bonds are payable serially, commenc-

23 ing not less than 5 years from the date of issue, the county

24 board of commissioners shall provide a sinking fund which shall

25 be added to the taxes to be assessed from year to year, and which

26 shall be without limitation as to rate or amount and sufficient

27 to take care of the bonds as and when the same respectively come

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1 due. The sinking fund shall remain intact and shall be used for

2 no purpose other than the payment of the bonds as and when the

3 same respectively become due; excepting that the fund may, by

4 resolution of the county board of commissioners, be invested in

5 municipal securities of this state, or of the United States, and

6 the income from the securities shall be added to and become a

7 part of the sinking fund. This act shall not be construed to

8 enlarge or extend the term of any bonds the term of which is now

9 limited by statute. Bonds issued under the provisions of this

10 act shall not be sold for less than par value.

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