Michigan Compiled Laws
40-1956-18. - Chapter 18. Obstructions in Drains; Sewage; Miscellaneous Provisions. (280.421...280.435)
Section 280.434 - Drain Project; Construction or Studies; Borrowing Money or Accepting Advances; Reimbursement; Contract or Note as Evidence of Obligation; Full Faith and Credit; Source of Payments; Applicability of Section.

Sec. 434.
(1) A drainage district may borrow money or accept an advance of work, material, or money from a public or private corporation, partnership, association, individual, or the federal government or any agency of the federal government for any of the following for any project under this act:
(a) Payment of costs in connection with the maintenance and repair of a drain or the construction of any part of a drain project, including costs of easement and land acquisition, engineering fees, financing costs, and legal fees.
(b) Payment of or financing costs of a feasibility, practicability, environmental assessment, or impact study of a drain project, including engineering or legal fees.
(2) The drainage district shall pay or provide reimbursement for the obligations under subsection (1), with or without interest as may be agreed, when funds are available. The obligation of the drainage district to make the repayment or reimbursement may be evidenced by a contract or note. The contract or note may pledge the full faith and credit of the drainage district and may be made payable out of any of the following:
(a) Drain assessments made against public corporations at large, or against lands in the drainage district.
(b) The proceeds of drain orders, notes, or bonds issued by the drainage district pursuant to this act.
(c) Any other available funds.
(3) A contract or note described in subsection (2) is not subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, unless the principal amount of the obligation is more than $600,000.00. However, if the principal amount of the obligation is $600,000.00 or less, then the contract or note is subject to the agency financing reporting act, 2002 PA 470, MCL 129.171 to 129.177. However, projects in which advances or loans are made by any public corporation, the federal government, or any agency of the federal government are not subject to either the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821, or the agency financing reporting act, 2002 PA 470, MCL 129.171 to 129.177.
(4) A county board of commissioners by a majority vote of 2/3 of its members may pledge the full faith and credit of the county for the payment of a contract or note of the drainage district.
History: Add. 1970, Act 112, Imd. Eff. July 23, 1970 ;-- Am. 1974, Act 185, Imd. Eff. July 2, 1974 ;-- Am. 1976, Act 71, Imd. Eff. Apr. 7, 1976 ;-- Am. 1980, Act 297, Imd. Eff. Oct. 19, 1980 ;-- Am. 2002, Act 406, Imd. Eff. June 3, 2002 ;-- Am. 2020, Act 291, Eff. Mar. 24, 2021 Popular Name: Act 40

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 280 - Drain Code of 1956

Act 40 of 1956 - The Drain Code of 1956 (280.1 - 280.630)

40-1956-18. - Chapter 18. Obstructions in Drains; Sewage; Miscellaneous Provisions. (280.421...280.435)

Section 280.421 - Obstructions; Removal; Expenses, Notice; Livestock; Criminal Complaint.

Section 280.422 - Obstructions; Public Utility Companies; Removal, Mandamus.

Section 280.423 - Discharge of Certain Sewage or Waste Matter Into Drains Prohibited; Construction to Purify Flow; Petitions; Order of Determination; Findings; Construction of Drain; Plans and Specifications; Contracts; Costs; Review; Acquisition of...

Section 280.424 - Inadequate Disposal or Filtration Plant; Abatement of Nuisance; Estimate of Annual Cost; Appeal; Notice; Posting; Review of Apportionment; Board of Review; Meeting; Proceedings; Determination; Payment; Assessment; Water Rates.

Section 280.425 - Petition to Construct Open or Closed Drain; Permission of Commissioners or Drainage Board; Consent of Landowners; Expense; Time and Manner of Construction; Protection of Drain Entrance; Signature of Applicant or Petitioner; Tiling S...

Section 280.426 - Drain Orders Received for Drain Taxes.

Section 280.427 - Corporation or Land Contract Vendee as Freeholder; Corporate Agent or Officer as Signer of Petition.

Section 280.428 - Drainage District Including State Lands; Assessment, Payment.

Section 280.429 - Flood Control Projects; Easements to United States; Approval.

Section 280.430 - Sanitary Sewage; Contracts for Use of Drains; Charges; Lien; Cost Included in Charges.

Section 280.431 - Contracts for Drain Projects; Federal Government; Public Corporations; Relief From Assessments; Flood Control Projects; Conservation and Utilization of Soil and Water; “Public Corporation” Defined.

Section 280.432 - Obstruction of Drain Commissioner; Drainage Board or Agents; Misdemeanor.

Section 280.433 - Enlargement of Drainage District; Agreement; Construction and Cost of Drainage Facilities; Certificate of Registered Professional Engineer; Payment of Excess Amount and Pro Rata Equitable Share; Liability of Added Lands for Assessme...

Section 280.434 - Drain Project; Construction or Studies; Borrowing Money or Accepting Advances; Reimbursement; Contract or Note as Evidence of Obligation; Full Faith and Credit; Source of Payments; Applicability of Section.

Section 280.435 - Financing of Flood Control or Drainage Projects; Contract or Agreement With Federal Government; Payments and Purposes; Determination of Necessity; Notes or Bonds; Issuance Subject to Revised Municipal Finance Act.