Sec. 7. (1) It is determined that the creation of the authority and the carrying out of
its authorized duties is in all respects a public and governmental purpose for the
benefit of the people of this state and for the improvement of their health, safety,
welfare, comfort, and security, and that these purposes are public purposes and that
the authority performs an essential governmental function in the exercise of the powers conferred upon it
by this act.
(2) The property, income, and operations of the authority, or those of any nonprofit corporation established by or on behalf of the authority,
are exempt from taxation by this state and any political subdivision of this state.
(3) The authority shall prescribe restrictions on the use of the proceeds of any bond for which the interest is intended to be exempt from federal income tax and any related matters that are necessary to assure that exemption. The recipients of the proceeds of a bond described in this subsection shall be bound by those restrictions to the extent the restrictions are made applicable to them. A recipient of the proceeds of a bond bearing interest intended to be exempt from federal income tax, including, without limitation, this state or any political subdivision of this state, is authorized to execute a
tax regulatory agreement with the authority and, as to any political subdivision that
is a recipient of the proceeds of a bond bearing interest intended to be exempt from federal income, this state. The execution of a tax regulatory agreement may be treated as a condition to receiving
any proceeds of a bond issued under this act.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.