Section 388.826 - Assumption and payment of bonded indebtedness; approval of electors; final responsibility; certifying and ordering levy of taxes; holding election. - Michigan Statutes

EMERGENCY FINANCIAL ASSISTANCE FOR CERTAIN SCHOOL DISTRICTS (EXCERPT)
Act 26 of 1982

***** 388.826 THIS SECTION DOES NOT APPLY AFTER JUNE 30, 1994: See 388.829 *****

388.826 Assumption and payment of bonded indebtedness; approval of electors; final responsibility; certifying and ordering levy of taxes; holding election.

Sec. 16.

Beginning 3 years after the effective date of the reorganization of a school district under this act, a district receiving a building having an existing bonded indebtedness and assuming the responsibilities set forth in section 15 may assume the obligation of the bonded indebtedness of the school building attached to its district under this act and pay the bonded indebtedness from the proceeds of a debt retirement tax levy spread uniformly over the territory of the district when the electors of the reorganized or successor district approve an increase in the limitation on taxes for that purpose and the school electors of the recipient district approve the assumption of the bonded indebtedness. Assumption of the bonded indebtedness of an original school district does not release the territory of the original school district from the final responsibility of paying the obligation or rescind the increase in the limitation on taxes pledged to the bond issue or available to it in the original school district. When the bonded indebtedness of an original school district is assumed as provided in this section, the board of the reorganized or successor district shall certify and order the levy of taxes for the bonded indebtedness equivalent in terms of money to those required by the terms under which the indebtedness was originally incurred and carry out the original bond contract. The election to assume the bonded indebtedness of a reorganized district may be held at any time after 3 years following the effective date of reorganization when a proposal is placed before the school electors to increase the bonded indebtedness of the recipient district.

History: 1982, Act 26, Imd. Eff. Mar. 4, 1982