Sec. 23.
(1) An authority may enter into, amend, or terminate, as it determines necessary or appropriate, any ancillary facility for any of the following purposes:
(a) To facilitate the issue, sale, resale, purchase, repurchase, or payment of bonds, or the making or performance of swap contracts, including without limitation bond insurance, letters of credit, and liquidity facilities.
(b) To attempt to hedge risk or achieve a desirable effective interest rate or cash flow.
(2) An authority may enter into, amend, or terminate any ancillary facility as it determines necessary or appropriate or to place the obligations or investments of the authority, as represented by the bonds or the investment of bond proceeds, in whole or in part, on the interest rate, cash flow, or other basis desired by the authority. The ancillary facility may include without limitation contracts commonly known as interest swap agreements and futures or contracts providing for payments based on levels of, or changes in, interest rates. The authority may enter into these contracts or arrangements in connection with, or incidental to, entering into, or maintaining any agreement that secures bonds of the authority or any investment of reserves, or contract providing for investment of reserves, or similar ancillary facility guaranteeing an investment rate for a period of years.
(3) An authority's determination that an ancillary facility, or the amendment or termination of an ancillary facility, is necessary or appropriate is conclusive. The authority may determine the terms and conditions of an ancillary facility, including without limitation provisions as to security, default, termination, payments, remedy, and consent to service of process.
(4) Before an authority enters into any ancillary facility, the authority must have the consent of the Michigan finance authority.
History: 2012, Act 392, Imd. Eff. Dec. 19, 2012
Structure Michigan Compiled Laws
Chapter 123 - Local Government
Act 392 of 2012 - Municipal Lighting Authority Act (123.1261 - 123.1295)
Section 123.1261 - Short Title.
Section 123.1263 - Definitions.
Section 123.1267 - Alteration of Laws and Regulations of Utility Franchise.
Section 123.1269 - Articles of Incorporation.
Section 123.1279 - Fiscal Year; Commencement; Ending.
Section 123.1281 - Issuance of Bonds.
Section 123.1283 - Ancillary Facility.
Section 123.1285 - Contracts; Trust Agreement; Definitions.
Section 123.1287 - Property as Public Property; Exemption From Taxes.
Section 123.1289 - Acquisition of Property.
Section 123.1291 - Advance or Loan of Money From Local Governing Body to Authority.
Section 123.1293 - Powers in Addition to Charter or Statute.