Sec. 18.
(1) If the authority defaults in the payment of principal or interest of any notes or bonds when due, whether at maturity or upon call for redemption, and the default continues for a period of 30 days, or if the authority fails or refuses to comply with this act, or defaults in any agreement made with the holders of any notes or bonds, the holders of 25% in aggregate principal amount of the notes or bonds then outstanding may apply to the circuit court of Ingham county for the appointment of a trustee to represent the holders of the notes or bonds.
(2) A trustee appointed under this act may, and upon the written request of the holders of 25% in aggregate principal amount of the notes or bonds shall, do any of the following:
(a) Enforce all rights of the noteholders or bondholders, including the right to require the authority to perform its duties under this act.
(b) Bring suit upon the notes or bonds.
(c) Require the authority to account as if it were the trustee of an express trust for the holders of the notes or bonds.
(d) Enjoin any acts or things that may be unlawful or in violation of the rights of the holders of the notes or bonds.
(e) Declare all the notes or bonds due and payable.
(3) Before declaring the principal of notes or bonds due and payable, the trustee shall first give 30 days' notice in writing to the governor, to the authority, and to the attorney general.
(4) The trustee has all of the powers necessary or appropriate for the general representation of bondholders or noteholders in the enforcement and protection of their rights.
(5) An action under this section shall be brought in the circuit court for the county of Ingham.
History: 2002, Act 49, Imd. Eff. Mar. 14, 2002 Compiler's Notes: For transfer of powers and duties of Michigan broadband development authority from department of treasury to department of labor and economic growth by Type I transfer, see E.R.O. No. 2003-1, compiled at MCL 445.2011.
Structure Michigan Compiled Laws
Chapter 484 - Telephone, Telegraph, and Radio
Act 49 of 2002 - Michigan Broadband Development Authority Act (484.3201 - 484.3225)
Section 484.3201 - Short Title.
Section 484.3202 - Legislative Findings.
Section 484.3203 - Definitions.
Section 484.3204 - Michigan Broadband Development Authority; Creation; Duties.
Section 484.3207 - Powers of Authority.
Section 484.3210 - Notes and Bonds; Issuance, Renewal, and Refund by Authority.
Section 484.3211 - Notes and Bonds; Issuance by Resolution; Form and Terms; Sale; Prices.
Section 484.3212 - Notes or Bonds; Contents of Resolutions.
Section 484.3213 - Money or Property Pledged and Received by Authority.
Section 484.3214 - Notes or Bonds; Personal Liability.
Section 484.3215 - Notes or Bonds; Power of Authority to Purchase.
Section 484.3217 - Notes or Bonds as Limited Obligations.
Section 484.3219 - Disposition of Money Held by Authority.
Section 484.3220 - Notes and Bonds as Securities; Investment.
Section 484.3221 - Full Faith and Credit Bonds; Issuance; Vote.
Section 484.3222 - Notes and Bonds; Exemption From Tax.
Section 484.3223 - Property; Exemption From Tax.
Section 484.3224 - Annual Report.
Section 484.3225 - New Partnerships or Joint Ventures; Limitation.