(A) The net bonded indebtedness incurred for all public purposes shall not at any time exceed ten percent of the assessed value of all the real and personal property in the city: Provided, That, in computing such net bonded indebtedness, there shall be excluded money borrowed under the provisions of Section 10.1.(A), clauses (2), (3), and (4) of this chapter, and any other bonds which are not, by law, subject to the debt limitation of the city. The resources of any debt retirement or sinking fund pledged for the retirement of any outstanding bonds which are subject to the debt limitation here established, shall also be deducted from the amount of the bonded indebtedness.
(B) No bonds shall be sold to obtain funds for any purpose other than that for which they were specifically authorized, and if such bonds are not sold within three years after authorization such authorization shall be null and void except when delay is caused by litigation or when a bond issue has been authorized by the electors to be issued in two or more parts or series. In case of litigation, the three year period shall start at the time of the filing of the final judgment or decree. In case of bonds authorized to be issued in two or more parts or series, the first part or series shall be sold within three years after authorization and the final part or series shall be sold within ten years after authorization.
Statutory reference:
Limitation of net bonded indebtedness incurred for all public purposes, see M.C.L.A. § 117.4a(1)