SENATE BILL No. 1082

February 5, 2002, Introduced by Senator SIKKEMA and referred to the Committee on Finance.

A bill to amend 1947 PA 235, entitled

"An act to regulate the ownership, extension, improvement and

operation of public water and sewage disposal systems lying

within 2 or more public corporations; to authorize the acquisi-

tion, by any public corporation, of that part of a public water

or sewage disposal system lying within its boundaries; and to

provide for the payment and security of revenue bonds issued for

the construction, acquisition, extension and improvement of such

systems,"

by amending section 6 (MCL 123.336).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 Sec. 6. (1) If there be ARE outstanding revenue bonds

2 issued for the acquisition, construction, extension, or improve-

3 ment of such THE system, such THE bonds may be retired either

4 by the issue of joint refunding bonds on behalf of all the public

5 corporations by concurrent ordinances of their respective legis-

6 lative or governing bodies, or by the apportionment of the

7 outstanding indebtedness among the several public corporations

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1 and assumption by each of its proportion thereof OF

2 INDEBTEDNESS, or the issue by each of revenue refunding bonds or

3 other obligations for its proportion. Unless otherwise provided

4 by contract, the outstanding indebtedness, if such THE plan of

5 refunding or assumption shall be IS adopted by either public

6 corporation, and if there be non-callable ARE NONCALLABLE bonds

7 the owners of which do not consent to the surrender thereof

8 for redemption, exchange, or indorsement, the plan may neverthe-

9 less be made effective if provision be IS made for the subordi-

10 nation of the refunding or assumed bonds to those not consenting

11 and for a separate bond and interest redemption fund for such

12 THE non-consenting bonds and the deposit therein of all money

13 required by the ordinance under which the bonds were originally

14 issued for the payment of the non-consenting bonds and reserves

15 therefor, before any provision is made for the payment of the

16 refunding or assumed bonds or reserves. therefor.

17 (2) BONDS ISSUED UNDER THIS ACT, EXCLUDING REVENUE BONDS,

18 ARE SUBJECT TO THE REVISED MUNICIPAL FINANCE ACT, 2001 PA 34,

19 MCL 141.2101 TO 141.2821.

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