(A) The Authority may borrow money and issue its negotiable revenue bonds therefore pursuant to Public Act 94 of 1933, being M.C.L.A. §§ 141.101 through 141.138, as amended. Revenue bonds issued by the Authority shall not, except as hereinafter provided, be deemed a debt of the village or the state. The village, by a majority vote of the members of the Village Council, may pledge its full faith and credit to support the Authority’s revenue bonds.
(B) The Authority may, with approval of the Village Council, borrow money and issue its revenue bonds or notes to finance all or part of the costs of acquiring or constructing property in connection with the implementation of a development plan in the downtown district or to refund or refund in advance bonds or notes issued pursuant to this section. The costs which may be financed by the issuance of revenue bonds or notes may include the cost of purchasing, acquiring, constructing, improving, enlarging, extending or repairing property in connection with the implementation of a development plan in the downtown district; any engineering, architectural, legal, accounting or financial expenses; the costs necessary or incidental to the borrowing of money; interest on the bonds or notes during the period of construction; a reserve for payment of principal and interest on the bonds or notes; and a reserve for operation and maintenance until sufficient revenues have developed. The Authority may secure the bonds and notes by mortgage, assignment or pledge of the property and any money, revenues or income received in connection therewith.
(C) A pledge made by the Authority shall be valid and binding from the time the pledge is made. The money or property pledged by the Authority immediately shall be subject to the lien of the pledge without a physical delivery, filing or further act. The lien of such a pledge shall be valid and binding as against parties having claims of any kind in tort, contract or otherwise, against the Authority, irrespective of whether the parties have notice of the lien. Neither the resolution, the trust agreement nor any other instrument by which a pledge is created need be filed or recorded.
(D) The village shall not be liable on bonds or notes the Authority issued pursuant to this section and the bonds or notes shall not be a debt of the village. The bonds or notes shall contain on their face a statement to that effect.
(Ord. 187, passed 7-14-2010)