HB6363: Commercial code: other; references to uniform commercial code in Michigan family farm development…

HOUSE BILL NO. 6363 A bill to amend 1982 PA 220, entitled "Michigan family farm development act," by amending section 13 (MCL 285.263), as amended by 2002 PA 381. the people of the state of michigan enact: Sec. 13. (1) The authority may issue its negotiable bonds and notes in a principal amount , which that in the opinion of the authority is necessary to provide sufficient funds for achieving its the corporate purposes of the authority , the payment of interest on bonds and notes of the authority, the establishment of reserves to secure bonds and notes, and all other expenditures of the authority incident to and necessary or convenient to carry out its the corporate purposes and powers of the authority . (2) The authority may issue renewal notes, issue bonds to pay notes, and if it the authority determines refunding expedient, refund bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and issue bonds partly to refund bonds then outstanding and partly for any other purpose. The refunding bonds shall must be sold and the proceeds applied to the purchase, redemption, or payment of the bonds to be refunded. (3) Except as may otherwise be expressly provided by the authority, every issue of its the authority's notes or bonds shall be is a general obligations obligation of the authority payable out of revenues or money of the authority, subject only to agreements with the holders of particular notes or bonds pledging any particular receipts or revenues. (4) Whether or not the notes or bonds are of a form or character as to be negotiable instruments under the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.11102, 440.12501, the notes or bonds shall be and are hereby made negotiable instruments within the meaning of and for all the purposes of the uniform commercial code, 1962 PA 174, MCL 440.1101 to 440.12501, subject only to the provisions of the notes or bonds for registration. (5) Bonds and notes issued under this act are not subject to the revised municipal finance act, 2001 PA 34, MCL 141.2101 to 141.2821. (6) The issuance of bonds and notes under this act is subject to the agency financing reporting act , 2002 PA 470, MCL 129.171 to 129.177 . Enacting section 1. This amendatory act does not take effect unless House Bill No. 6347 (request no. H02809'25) of the 103rd Legislature is enacted into law.