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 Gibraltar
 Code of Ordinances
 Part I. CHARTER
 Chapter X. BORROWING POWER

§ 10.1. Grant of authority to borrow.  

Latest version.

  • Subject to the applicable provisions of statute and constitution, the council may by ordinance or resolution borrow money and issue bonds and other evidence of indebtedness therefor, for any purpose within the scope of powers vested in the city. Such bonds or other evidence of indebtedness shall include, but not be limited to, the following types:

    (a)

    General obligation bonds which pledge the full faith, credit and resources of the city for the payment of such obligations, including bonds for the city's portion of public improvements;

    (b)

    Notes issued in anticipation of the collection of taxes, but the proceeds of such notes may be spent only in accordance with appropriations as provided in section 8.5.

    (c)

    In case of fire, flood or other calamity, emergency loans due in not more than five years for the relief of the inhabitants of the city and for the preservation of municipal property;

    (d)

    Special assessment bonds issued 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. 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.

    (e)

    Mortgage bonds for the acquiring, owning, purchasing, constructing, improving or operating of any public utility which the city is authorized by this Charter to acquire or operate; provided such bonds shall not impose any liability upon the 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 20 years from the date of the sale of such utility and franchise on foreclosure. Such mortgage bond shall be sold to yield not to exceed six percent per annum. A sinking fund shall be created in the event of the issuance of such bonds 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, unless serial bonds are issued of such a nature that no sinking fund is required.

    (f)

    Bonds issued at a rate of interest not to exceed six percent per annum to refund money advanced or paid on special assessments as authorized by statue.

    (g)

    Bonds for the refunding of the funded indebtedness of the city.

    (h)

    Revenue bonds as authorized by statute which are secured only by the revenues from a public improvement and do not constitute a general obligation of the city.

State law reference

City authority to borrow money on the credit of the city and issue bonds therefor, MCL 117.4a(1); city authority to borrow money and issue bonds therefor in anticipation of the payment of special assessments, MCL 117.4a(2).