MI SB0160

Authorizes cities experiencing financial emergencies under the Local Financial Stability and Choice Act to issue financial recovery bonds exceeding charter or statutory limitations, subject to local emergency financial assistance loan board approval.

Establishes debt limits for cities issuing financial recovery bonds: cities generally limited to 20% of assessed value, and cities issuing recovery bonds limited to 12% of assessed value.

Allows cities with populations under 10,000 in organized counties to deposit tax revenues into escrow accounts pledged to pay court-ordered judgments and bond administrative costs, with statutory lien protection superior to other claims.

Permits cities with populations over 600,000 to refund prior financial recovery bonds through the Michigan Finance Authority and establishes statutory liens on pledged revenues that are superior to all other liens and interests.

Exempts financial recovery bonds from the Revised Municipal Finance Act and from certain charter and statutory debt limitations, effective immediately upon Governor approval on April 22, 2015.