{"data":{"id":"us-mi/mich.-comp.-laws-324.21532","jurisdiction":"us-mi","citation":"Mich. Comp. Laws § 324.21532","heading":"Contract with holders of bonds or notes; provisions.","body":"Sec. 21532.\n\nA resolution authorizing bonds or notes may provide for all or any portion of the following that shall be part of the contract with the holders of the bonds or notes:\n\nA pledge to any payment or purpose of all or any part of the fund or authority revenues or assets to which its right then exists or may later come to exist, and of money derived from the revenues or assets, and of the proceeds of bonds or notes or of an issue of bonds or notes, subject to any existing agreements with bondholders or noteholders.\n\nA pledge of a loan, grant, or contribution from the federal or state government.\n\nThe establishment and setting aside of reserves or sinking funds and the regulation and disposition of reserves or sinking funds subject to this part.\n\nAuthority for and limitations on the issuance of additional bonds or notes for the purposes provided for in the resolution and the terms upon which additional bonds or notes may be issued and secured.\n\nThe procedure, if any, by which the terms of a contract with noteholders or bondholders may be amended or abrogated, the number of noteholders or bondholders who are required to consent to the amendment or abrogation, and the manner in which the consent may be given.\n\nA contract with the bondholders as to the custody, collection, securing, investment, and payment of any money of the authority. Money of the authority and deposits of money may be secured in the manner determined by the authority. Banks and trust companies may give security for such deposits.\n\nA provision to vest in a trustee, or a secured party, property, income, revenues, receipts, rights, remedies, powers, and duties in trust or otherwise that the authority determines necessary or appropriate to adequately secure and protect noteholders and bondholders or to limit or abrogate the right of the holders of bonds or notes of the authority to appoint a trustee under this part or to limit the rights, powers, and duties of the trustee.\n\nA provision to provide to a trustee or the noteholders or bondholders remedies that may be exercised if the authority fails or refuses to comply with this part or defaults in an agreement made with the holders of an issue of bonds or notes, which may include any of the following:\n\nBy mandamus or other suit, action, or proceeding to enforce the rights of the bondholders or noteholders, and require the authority to implement any other agreements with the holders of those bonds or notes and to perform the authority's duties under this part.\n\nBring suit upon the bonds or notes.\n\nBy action or suit, require the authority to account as if it were the trustee of an express trust for the holders of the bonds or notes.\n\nBy action, suit, or proceeding, enjoin any act or thing that may be unlawful or in violation of the rights of the holders of the bonds or notes.\n\nDeclare the bonds or notes due and payable, and if all defaults are made good, then, as permitted by the resolution, to annul that declaration and its consequences.\n\nAny other matters of like or different character that in any way affect the security of protection of the bonds or notes.","path":["MI Code","Chapter 324","Act Act-451-of-1994"],"source_url":"https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-324-21532","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:31Z","sha256":"31c44f0d7f500f015812eec74c3c36cc418a59548a0d5e1c0b410e442159e3a6","source_id":"us-mi","stale":false,"prev":"us-mi/mich.-comp.-laws-324.21531","next":"us-mi/mich.-comp.-laws-324.21533"},"notice":"GroundRules: Original legal text. Not legal advice."}