Sec. 509.
A municipality may pay interest that accrues on a municipal security during the first 3 years after the date of issuance of the municipal security from the proceeds of the sale of the municipal security. In addition, a municipality may establish a reserve fund, in an amount not exceeding 15% of the principal amount of the municipal security issued from the proceeds of the sale of the municipal security which shall be held solely for the payment of principal and interest on the municipal security.
History: 2001, Act 34, Eff. Mar. 1, 2002
Structure Michigan Compiled Laws
Chapter 141 - Municipal Financing
Act 34 of 2001 - Revised Municipal Finance Act (141.2101 - 141.2821)
34-2001-V - Part V Long-Term Municipal Securities (141.2501...141.2518)
Section 141.2501 - Maturity Time Periods.
Section 141.2505 - Municipal Securities Secured by Special Assessments.
Section 141.2507 - Interest Rate Charge on Special Assessments.
Section 141.2509 - Reserve Fund; Establishment.
Section 141.2511 - Issuance of Municipal Securities to Fund County Drain Special Assessment.