MI HB5650

Amends section 701 of the Revised Municipal Finance Act to establish that unlimited tax pledges by municipalities constitute a statutory first lien on all taxes subject to the pledge without requiring further action or agreement.

Applies to both unlimited tax pledges made before and after the date of enactment of this bill.

Requires municipalities with municipal securities to include specific amounts in annual tax levies for: interest and principal payments; mandatory redemption refunding securities; mandatory redemption securities requiring sinking fund deposits; and unpaid debt service from prior years.

Specifies that surplus money in debt retirement funds after all securities are paid shall be used in priority order to pay other outstanding unlimited tax securities, then limited tax securities, then deposited into the general fund.

Establishes that collected taxes allocable to principal and interest payments must be held in trust for municipal security owners and divided pro rata among sinking and debt retirement funds; officers who willfully fail these duties are personally liable for damages.