Borrowing
Section 12.1. General power.
Subject to the applicable provisions of law the city may borrow money for any purpose within the scope of its powers, and may issue bonds or other evidence of indebtedness therefore. Such bonds or other evidence of indebtedness shall include, but not be limited to:
- General obligation bonds which pledge the full faith and credit of the city for payment thereof .Special assessment bonds which are issued in anticipation of the payment of special assessments for public improvements in a special assessment district or combination thereof, which bonds may be either an obligation solely of the special assessment district or districts, or both an obligation of such district and a general obligation of the city .Revenue bonds as authorized by law .Mortgage bonds for the acquiring, owning, purchasing, constructing, improving or operating of any public utility which the city is authorized by law to finance in this manner, or for such other purposes as may be authorized by law.Tax anticipation notes as authorized by law .Calamity bonds issued in case of fire, flood, or other calamity as authorized by law.Bond's for the city’s share of the cost of local improvements, which bonds may be issued as a part of, or independently of any issue of special assessment bonds which are issued for the same improvement or improvements.onds for refunding the indebtedness of the city .Budget bonds as authorized elsewhere herein.Time-purchase contracts as authorized elsewhere herein, to the extent that the same are considered to be debts.
- Bonds issued in anticipation of future payments from the motor vehicle highway fund or any other fund of the state which the city may be permitted by law to pledge for the payment of principal and interest thereof.
Section 12.2. Limitation.
The net bonded indebtedness of the city, incurred for all public purposes shall not at any time exceed the limit provided by law. No bonds shall be sold to obtain funds for any purpose or purposes other than that for which they were specifically authorized.
Section 12.3. Use of borrowed funds.
Each bond or other evidence of indebtedness shall contain on its face a statement of the purpose for which the same is issued and no officer of the city shall use the proceeds thereof for any other purpose, except that whenever the proceeds of any bond issue, or a part thereof, remain unexpended and unencumbered for the purpose for which said bond issue was made, the council may authorize the use of such unexpended and unencumbered funds subject to the approval of the Michigan Municipal Finance Commission where required:
- For an additional extension or improvement of facility or project for which the bond issue was made.For the retirement of such bond issue.If such bond issue has been fully retired or funds are segregated which are adequate for such purpose, then for the retirement of other bonds or obligations of the city.
- If there is no other indebtedness, or funds are segregated which are adequate for such purpose, then for such other purposes as may be permitted by law.
Section 12.4. Separation of special assessment collections; payment of deficiency in special
All collections on each special assessment roll or combination of rolls, in anticipation of which bonds have been issued, shall be set apart in a separate fund (but not necessarily a separate bank account) and shall be used for the purpose for which levied and for the payment of the principal and interest on such bonds. If there is any deficiency in a special assessment fund to meet the payment of the principal or interest to be paid there from, money shall be advanced from the general fund of the city to meet such deficiency and shall be replaced in the general fund when the special assessment fund shall be sufficient therefore.
Section 12.5. Bond interest rates.
No bond or other evidence of indebtedness of the city shall bear interest at a rate exceeding the maximum rate permitted by law.
Section 12.6. Execution of bonds.
All bonds issued by the city shall be signed by the mayor and countersigned by the city clerk, and shall bear the corporate seal of the city. Said signatures may be by facsimile if permitted by law. Any attached coupons may be signed with the facsimile signature of the city clerk.
Section 12.7. Records of bonds and other evidence of indebtedness; cancellation.
The treasurer shall keep a detailed record of all bonds and other evidence of indebtedness. Upon payment of bonds or other evidence of indebtedness the same shall be cancelled. Top
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