MI HB5569

State treasurer authorized to make loans from surplus funds to eligible municipalities under the Emergency Municipal Loan Act, 1980 PA 243, if approved by the local emergency financial assistance loan board.

Loans must comply with Emergency Municipal Loan Act requirements regarding terms, conditions, interest rates, and amounts, and require execution of a note of indebtedness by authorized municipal representatives, including emergency managers or emergency financial managers.

For state fiscal years before October 1, 2011, annual loan limit is $5,000,000 plus authorized section 3(2) loans; for fiscal years after September 30, 2018, limit increases to $10,000,000 with a $4,000,000 cap per municipality per fiscal year.

For the period October 1, 2011 through September 30, 2018, municipalities may borrow up to $35,000,000 total ($20,000,000 per municipality) and school districts may borrow up to $50,000,000 total ($20,000,000 per district).

State treasurer authorized to sell, assign, transfer, or repurchase loans made under this section using surplus funds; legislation is contingent on enactment of House Bills 5566, 5567, 5568, and 5570.