MichiganFund bonds count as commercial code instruments and aid agreements secure state
If a linked bill becomes law, Michigan’s Strategic Fund would apply commercial code terms to its bonds and require security interests in some aid agreements.
What it does
Fund bonds are treated as negotiable instruments under the commercial code. Assistance agreements must give the state a security interest up to the amount of aid, with exceptions for conflicting contracts and bankruptcy or insolvency laws.
Argument forTreating fund bonds as commercial code instruments and securing assistance agreements could help protect bondholders and public money.
Argument againstState security claims could conflict with some recipients’ contracts or bankruptcy protections, which may complicate repayment arrangements.
More detail
The text says fund bonds are negotiable instruments under the commercial code, and assistance agreements must give the state a security interest. These provisions concern Michigan Strategic Fund bonds and agreements for economic assistance to businesses or site applicants. The required state security interest does not apply if it conflicts with the recipient’s contract or federal or state bankruptcy or insolvency law. The bill would take effect only if House Bill 6347 is enacted into law.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 29bill electronically reproduced 09/24/2026Latest
- Sep 24referred to Committee on FinanceMinor
- Sep 24read a first timeMinor
- Sep 24introduced by Representative Rep. Amos O'NealIntroduced
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