CHAPTER X
BORROWING POWER

SECTION 10.1 GENERAL BORROWING.

   Subject to the applicable provisions of State law and this charter, the Council, by proper ordinance or resolution, may authorize the borrowing of money for any purpose within the scope of the powers vested in the City and the issuance of bonds of the City or other evidence of indebtedness therefor, and may pledge the full faith, credit and resources of the City for the payment of the obligation created therefor. The amount of such bonds which may be issued shall not exceed the maximum permitted by State law.

SECTION 10.2 SPECIAL ASSESSMENT BONDS.

   The Council shall subject to the applicable provisions of the general laws of the State, have authority to borrow money in anticipation of the payment of special assessments made for the purpose of defraying the cost of any public improvement, or in anticipation of the payment of any combination of such special assessments, and to issue bonds therefor. Such special assessment bonds may be an obligation of the special assessment district or districts or may be both an obligation of the special assessment district or districts and a general obligation of the City. All collection on each special assessment roll or combination of rolls shall be set apart in a separate fund for the payment of the principal and interest of the bond issued in anticipation of the payment of such special assessments, and shall be used for no other purpose.

SECTION 10.3 MORTGAGE REVENUE BONDS.

   The City shall have power to issue mortgage bonds beyond the general limits of bonded indebtedness prescribed by law for the acquiring, owning, purchasing, constructing, improving or operating of any public utility; provided, such mortgage bonds issued beyond the general limit of bonded indebtedness prescribed by law shall not impose any liability upon such city but shall be secured only upon the property and revenues of such public utility, including a franchise, stating the terms upon which, in case of foreclosure, the purchaser may operate the same, which franchise shall in no case extend for a longer period than twenty (20) years from the date of the We of such utility and franchise on foreclosure. Such mortgage bonds shall be sold to yield not to exceed the limit set by State law. A sinking fund shall be created in the event of the issuance of such bonds, by setting aside such percentage of the gross or net earnings of the public utility as may be deemed sufficient for the payment of the mortgage bonds at maturity, provided, however, than no such fund need be created if serial bonds are issued of such nature that they are paid annually and no sinking fund is required.

SECTION 10.4 OTHER BONDS.

   The City shall have power to issue revenue or other types of bonds in the manner and for the purposes permitted by the present or future Constitutions and general laws of the State of Michigan.