484.3218 Default.
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484.3218 Default.
Sec. 18.
(1)If the authority defaults in the payment of principal or interest of any notes or bonds when due, whether at maturity or upon call for redemption, and the default continues for a period of 30 days, or if the authority fails or refuses to comply with this act, or defaults in any agreement made with the holders of any notes or bonds, the holders of 25% in aggregate principal amount of the notes or bonds then outstanding may apply to the circuit court of Ingham county for the appointment of a trustee to represent the holders of the notes or bonds.
(2)A trustee appointed under this act may, and upon the written request of the holders of 25% in aggregate principal amount of the notes or bonds shall, do any of the following:
(a)Enforce all rights of the noteholders or bondholders, including the right to require the authority to perform its duties under this act.
(b)Bring suit upon the notes or bonds.
(c)Require the authority to account as if it were the trustee of an express trust for the holders of the notes or bonds.
(d)Enjoin any acts or things that may be unlawful or in violation of the rights of the holders of the notes or bonds.
(e)Declare all the notes or bonds due and payable.
(3)Before declaring the principal of notes or bonds due and payable, the trustee shall first give 30 days' notice in writing to the governor, to the authority, and to the attorney general.
(4)The trustee has all of the powers necessary or appropriate for the general representation of bondholders or noteholders in the enforcement and protection of their rights.
(5)An action under this section shall be brought in the circuit court for the county of Ingham.
History: 2002, Act 49 , Imd. Eff. Mar. 14, 2002
Compiler's Notes: For transfer of powers and duties of Michigan broadband development authority from department of treasury to department of labor and economic growth by Type I transfer, see E.R.O. No. 2003-1, compiled at MCL 445.2011.