CORRIDOR IMPROVEMENT AUTHORITY ACT (EXCERPT)
Act 280 of 2005
125.2887 Acquisition or construction of property; financing; bonds or notes.Sec. 17.
(1) The authority may with approval of the local governing body borrow money and issue its revenue bonds or notes to finance all or part of the costs of acquiring or constructing or causing to be constructed property in connection with either of the following:
(a) The implementation of a development plan in the development area.
(b) The refund, or refund in advance, of bonds or notes issued under this section.
(2) Any of the following may be financed by the issuance of revenue bonds or notes:
(a) The cost of purchasing, acquiring, constructing, improving, enlarging, extending, or repairing property in connection with the implementation of a development plan in the development area, and, for the implementation of the development plan in a qualified development area, the cost of reimbursing a public or private person for any of those costs.
(b) Any engineering, architectural, legal, accounting, or financial expenses.
(c) The costs necessary or incidental to the borrowing of money.
(d) Interest on the bonds or notes during the period of construction.
(e) A reserve for payment of principal and interest on the bonds or notes.
(f) A reserve for operation and maintenance until sufficient revenues have developed.
(3) The authority may secure the bonds and notes by mortgage, assignment, or pledge of the property and any money, revenues, or income received in connection with the property.
(4) A pledge made by the authority is valid and binding from the time the pledge is made. The money or property pledged by the authority immediately is subject to the lien of the pledge without a physical delivery, filing, or further act. The lien of a pledge is valid and binding against parties having claims of any kind in tort, contract, or otherwise, against the authority, whether or not the parties have notice of the lien. Neither the resolution, the trust agreement, nor any other instrument by which a pledge is created must be filed or recorded to be enforceable.
(5) Bonds or notes issued under this section are exempt from all taxation in this state except inheritance and transfer taxes, and the interest on the bonds or notes is exempt from all taxation in this state, notwithstanding that the interest may be subject to federal income tax.
(6) The municipality is not liable on bonds or notes of the authority issued under this section, and the bonds or notes are not a debt of the municipality. The bonds or notes shall contain on their face a statement to that effect.
(7) The bonds and notes of the authority may be invested in by all public officers, state agencies and political subdivisions, insurance companies, banks, savings and loan associations, investment companies, and fiduciaries and trustees, and may be deposited with and received by all public officers and the agencies and political subdivisions of this state for any purpose for which the deposit of bonds is authorized.
History: 2005, Act 280, Imd. Eff. Dec. 19, 2005
Am. 2007, Act 44, Imd. Eff. July 17, 2007
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