§ 11.2. Limits upon borrowing power.

(a)

The net bonded indebtedness incurred for all public purpose shall not at any time exceed the maximum amount permitted by law, provided that in computing such net bonded indebtedness, the following shall be excluded:

(1)

Special assessment bonds which are issued in anticipation of the payment of special assessments for the purpose of defraying the costs of any one or more public improvements, which bonds may be both an obligation of the special assessment district and a general obligation of the City;

(2)

Revenue bonds as authorized by law;

(3)

Mortgage bonds which are secured only by a mortgage on the property or franchise of the public utility;

(4)

Any other bonds or indebtedness excluded by law from such limitation;

(b)

No bonds shall be issued or sold to obtain funds for any other purpose other than that for which they were specifically authorized, and if such bonds are not issued or sold within three (3) years after authorization, such authorization shall be null and void.

State law reference

Limitation of net bonded indebtedness incurred for all public purposes, MCL 117.4a(2), MSA 5.2074, (2).