MI SB0318

Allows cities facing financial emergencies under the Local Government and School District Fiscal Accountability Act to issue financial recovery bonds exceeding charter or statutory debt limitations, subject to approval by the local emergency financial assistance loan board.

Limits net indebtedness of cities to 20% of assessed value, or 12% if issuing financial recovery bonds, with certain amounts excluded under section 4a(4).

Permits cities with populations under 10,000 in counties organized under 1966 PA 293 to deposit tax revenues into an escrow account pledged for payment of court-ordered judgment bonds and associated administrative costs.

Creates a statutory lien and trust on tax revenues collected by third-party tax collectors that is paramount and superior to all other liens, protecting bondholders and exempting pledged revenues from other city debts.

Exempts financial recovery bonds from section 5(g) restrictions and from the revised municipal finance act requirements.