Mich. Comp. Laws § 484.3201
Short title.
This act shall be known and may be cited as the "Michigan broadband development authority act".
Michigan Compiled Laws — MICHIGAN BROADBAND DEVELOPMENT AUTHORITY ACT (Act 49 of 2002)
Michigan · statute · 49 of 2002, Mich. Comp. Laws · 25 active provisions
Mich. Comp. Laws § 484.3202
Legislative findings.
The legislature finds that certain areas of this state are not being adequately served with broadband services and that, for the benefit of the people of this state and the improvement of their health, welfare, and living conditions, the improvement of the economic and educational welfare of this state, and the improve…
Mich. Comp. Laws § 484.3203
Definitions.
As used in this act: (a) "Authority" means the Michigan broadband development authority created under section 4. (b) "Board" means the board of directors of the authority. (c) "Capital reserve fund requirement" means the fund amount requirement that may be established in the resolution authorizing notes or bonds for wh…
Mich. Comp. Laws § 484.3204
Michigan broadband development authority; creation; duties.
(1) The Michigan broadband development authority is created as a public body corporate and politic within the department of treasury. (2) The authority may do all of the following: (a) Assist through financing and refinancing the expansion of broadband infrastructure services to residential, commercial, public, and non…
Mich. Comp. Laws § 484.3205
Administrative functions; performance under direction and supervision of state treasurer.
The authority shall exercise its duties independently of the state treasurer. The budgeting, procurement, and related administrative functions of the authority shall be performed under the direction and supervision of the state treasurer.
Mich. Comp. Laws § 484.3206
Board of directors; membership; service of representative in member's absence; compensation; chairperson; officers; quorum; voting; open meetings act; confidentiality; “trade secrets, commercial, financial, or proprietary information” defined; employees; discharge of duties.
(1) The authority shall exercise its duties through its board of directors. (2) The board shall be made up of the following members: (a) The president and CEO of the Michigan economic development corporation. (b) The state treasurer. (c) The executive director of the Michigan state housing development authority. (d) Ei…
Mich. Comp. Laws § 484.3207
Powers of authority.
(1) The powers of the authority shall include all those necessary to carry out and effectuate the purposes of this act, including, but not limited to, all of the following: (a) To borrow money and issue bonds and notes to fund operations of the authority, to finance or refinance part or all of the development costs of…
Mich. Comp. Laws § 484.3208
Reserve capital account; creation; administration; credit of proceeds from sale of notes or bonds; capital reserve fund; creation; use; security arrangements; transfer of income or interest earned.
(1) A reserve capital account is created under the jurisdiction and control of the authority and shall be administered by the authority to secure notes and bonds of the authority. The authority shall credit to the reserve capital account the proceeds of the sale of notes or bonds to the extent provided for in the autho…
Mich. Comp. Laws § 484.3209
Capital reserve fund; amount; deficiency; restoration; liability of state for notes or bonds.
(1) The authority shall accumulate in a capital reserve fund an amount equal to the capital reserve fund requirement for that fund. If at any time the amount of a capital reserve fund falls below the capital reserve fund requirement for that fund, the authority shall transfer from the reserve capital account to the cap…
Mich. Comp. Laws § 484.3210
Notes and bonds; issuance, renewal, and refund by authority.
(1) The authority may issue notes and bonds as provided under this act to do all of the following: (a) Pay the development costs associated with acquiring, leasing, constructing, maintaining, and operating the broadband infrastructure. (b) Make loans to persons for development costs. (c) Make loans to persons to make p…
Mich. Comp. Laws § 484.3211
Notes and bonds; issuance by resolution; form and terms; sale; prices.
(1) The notes and bonds shall be authorized by resolution of the authority and mature at the time provided in the resolution. The notes and bonds shall be in a form, bear interest at a rate or rates, be in the denominations, carry registration privileges, be payable, and be subject to the terms of redemption as provide…
Mich. Comp. Laws § 484.3212
Notes or bonds; contents of resolutions.
A resolution relating to authorizing notes or bonds may contain any of the following provisions, which shall be a part of the contract with the holders of the notes or bonds: (a) Pledging all or any part of the revenues of the authority, and all or any part of the money received in payment of loans and interest on loan…
Mich. Comp. Laws § 484.3213
Money or property pledged and received by authority.
(1) Any pledge made by the authority is valid and binding from the date that the pledge is made. (2) The money or property pledged and received by the authority shall immediately be subject to the lien of the pledge without any physical delivery or further act and the lien of the pledge is valid and binding against all…
Mich. Comp. Laws § 484.3214
Notes or bonds; personal liability.
The members of the board or any person executing the notes or bonds under this act are not liable personally on the notes or bonds or subject to any personal liability or accountability by reason of the issuance of the notes or bonds.
Mich. Comp. Laws § 484.3215
Notes or bonds; power of authority to purchase.
Subject to any agreements with noteholders or bondholders, the authority has the power to use any funds available to purchase notes or bonds of the authority at a price determined by the authority.
Mich. Comp. Laws § 484.3216
Rights of authority to fulfill terms of agreement not limited, altered, or impaired.
This state pledges and agrees with the holders of any notes or bonds issued under this act, that this state will not limit or alter the rights vested in the authority to fulfill the terms of any agreements made with the holders, or in any way impair the rights and remedies of the holders until the notes or bonds, toget…
Mich. Comp. Laws § 484.3217
Notes or bonds as limited obligations.
(1) The authority may issue notes or bonds that are expressly stated not to be general obligations of the authority but that constitute limited obligations of the authority payable solely from and secured solely by the revenues, money, and property as the authority may specify. (2) The notes or bonds designated as limi…
Mich. Comp. Laws § 484.3218
Default.
(1) If the authority defaults in the payment of principal or interest of any notes or bonds when due, whether at maturity or upon call for redemption, and the default continues for a period of 30 days, or if the authority fails or refuses to comply with this act, or defaults in any agreement made with the holders of an…
Mich. Comp. Laws § 484.3219
Disposition of money held by authority.
(1) Money of the authority shall be held by the authority and deposited in a financial institution approved by the state treasurer, which financial institution may give security for the deposits. (2) The authority may, subject to the approval of the state treasurer, contract with the holders of any of its notes or bond…
Mich. Comp. Laws § 484.3220
Notes and bonds as securities; investment.
The notes and bonds of the authority are securities in which public officers and bodies of this state and municipalities and municipal subdivisions, insurance companies and associations and other persons carrying on an insurance business, banks, trust companies, savings banks and savings associations, savings and loan…
Mich. Comp. Laws § 484.3221
Full faith and credit bonds; issuance; vote.
The authority, at its discretion, may recommend an issuance of full faith and credit bonds to the legislature for a vote of the people.
Mich. Comp. Laws § 484.3222
Notes and bonds; exemption from tax.
This state covenants with the purchasers and all subsequent holders and transferees of notes and bonds issued by the authority, in consideration of the acceptance of and payment for the notes and bonds, that the notes and bonds of the authority, issued under this act and the income from the notes and bonds and all its…
Mich. Comp. Laws § 484.3223
Property; exemption from tax.
The property of the authority and its income and operation are exempt from all taxation by this state or any of its political subdivisions.
Mich. Comp. Laws § 484.3224
Annual report.
The authority shall submit an annual report no later than March 1 of each year relating to its activities for the preceding calendar year to the governor, the speaker of the house of representatives, the majority leader of the senate, and to each member of the house and senate committees with oversight over utility and…
Mich. Comp. Laws § 484.3225
New partnerships or joint ventures; limitation.
Except to the extent necessary to maintain, improve, complete, or expand within the defined service area, an element of the broadband infrastructure already acquired or financed under this act, the authority shall not enter into new partnerships or other joint ventures arrangements or provide new loans or joint venture…