MichiganState land bank bonds would follow commercial code rules
If House Bill 6347 is enacted, this proposal would describe state authority bonds as negotiable and require them to state that Michigan does not back repayment.
What it does
If the linked bill is enacted, this proposed section would treat state authority bonds and notes as negotiable under Michigan’s commercial code, subject to registration terms written into them.
If the linked bill is enacted, each state authority bond or note would have to say that repayment comes only from pledged authority funds, without Michigan’s backing.
Argument forBuyers could find bonds easier to handle because the text treats them as negotiable under familiar commercial code rules.
Argument againstBuyers may be less willing to lend if repayment depends only on pledged authority funds, with no state credit or tax backing.
More detail
The proposed section describes the authority’s bonds and notes as negotiable under Michigan’s commercial code. This applies to bonds and notes issued by the state authority. The text makes negotiability subject to any registration terms in the bond or note. This section would take effect only if House Bill 6347 is enacted into law.
The proposed section says each bond or note must state that repayment comes only from authority funds pledged for that purpose. This applies to each bond or note issued by the state authority. The text says Michigan is not obligated to pay the principal or interest and does not pledge its credit or taxing power. This section 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. Phil GreenIntroduced
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