Sec. 24.
(1) Upon the sale and issuance of municipal obligations to the authority by a governmental unit, that governmental unit shall be held and considered to have agreed to all of the following if the governmental unit fails to pay the interest on or the principal of the municipal obligations held or owned by the authority as and when due and payable:
(a) That the governmental unit waives all and any defenses to the nonpayment and the authority upon the nonpayment shall constitute a holder or owner of the municipal obligations as being in default.
(b) That, notwithstanding the provisions of any other law as to time or duration of default or percentage of holders or owners of municipal obligations entitled to exercise rights of holders or owners of municipal obligations in default, or entitled to invoke any remedies or powers of holders or owners of or of a trustee in connection with or of a board, body, agency, or commission of the state having jurisdiction in the matter or circumstances of municipal obligations in default, the authority may immediately avail itself of all other remedies, rights, and provisions of law applicable in such a circumstance.
(c) That the failure to exercise or exert any rights or remedies within any time or period provided by law shall not be raised as a defense by that governmental unit.
(d) That all of the obligations of the issue of municipal obligations of that governmental unit as to which there has been such a nonpayment shall for all of the purposes of this section be held and considered to have become due and payable and to be unpaid.
(2) The authority may carry out the provisions of this section and exercise all of the rights and remedies and provisions of law provided or referred to in this section.
History: 1985, Act 227, Eff. Mar. 31, 1986
Structure Michigan Compiled Laws
Chapter 141 - Municipal Financing
Act 227 of 1985 - Shared Credit Rating Act (141.1051 - 141.1078)
Section 141.1051 - Legislative Findings and Declarations.
Section 141.1052 - Short Title.
Section 141.1053 - Definitions.
Section 141.1054 - Michigan Municipal Bond Authority; Created; Powers; Funds.
Section 141.1057 - Powers of Board Generally.
Section 141.1060 - Retirement, Funding, or Refunding of Notes.
Section 141.1061 - Bonds or Notes to Refund Bonds or Notes.
Section 141.1062 - Security Transactions; Authorization and Approval.
Section 141.1065a - Repealed. 1990, Act 281, Imd. Eff. Dec. 13, 1990.
Section 141.1066 - Reserve Funds.
Section 141.1066b - State Drinking Water Revolving Fund.
Section 141.1066c - School Loan Revolving Fund.
Section 141.1066d - Grant Agreements Entered Under MCL 324.5204a.
Section 141.1067 - Default or Noncompliance by Authority.
Section 141.1068 - Liability on Bonds or Notes.
Section 141.1069 - Purchasing, Holding, Canceling, or Reselling Bonds or Notes of Authority.
Section 141.1070 - State Pledge to and Agreement With Holders of Bonds or Notes.
Section 141.1073 - Municipal Obligations Generally.
Section 141.1075 - Construction of Act.
Section 141.1076 - Severability.
Section 141.1077 - Repealed. 2000, Act 416, Imd. Eff. Jan. 8, 2001.
Section 141.1078 - Repealed. 1996, Act 241, Imd. Eff. June 10, 1996.