MI HB5551

Permits municipal securities to bear no interest or interest rates not exceeding 18% per annum, or a higher rate determined by the department based on 80% of the adjusted prime rate.

Restricts municipal securities from being sold at a discount exceeding 10% of principal amount, unless specific conditions are met such as more even debt service distribution, interest cost savings, or availability of previously pledged revenues.

Requires municipal securities sold at discounts exceeding 10% to be rated investment grade by a nationally recognized rating agency or have insurance for principal and interest payments.

Limits no-interest securities with appreciated principal value to meet requirements under subsections (3), (4), (6), and (9), with accreted principal considered as interest subject to rate limitations.

Allows municipal securities to be sold at discounts exceeding 10% if issued before December 31, 2012, pursuant to a written debt management plan for more effective debt service management.