This bill amends the Drain Code of 1956, specifically section 278, to update the regulations surrounding the issuance of bonds or notes by the drain commissioner. The bill stipulates that if bonds or notes are issued, the installments of drain taxes must bear interest at a rate that does not exceed the interest rate payable on the bonds or notes. Additionally, it allows for the payment of interest on these bonds or notes to be made semiannually if determined by the drain commissioner.

Furthermore, the bill modifies the language regarding the collection and allocation of funds. It specifies that collected installments and interest must be credited to the fund of the drain and used solely for the payment of the bonds and notes as they mature or are subject to mandatory redemption. The bill also mandates that money collected in anticipation of bond payments must be deposited in designated banks, with the interest earned belonging to the fund. Overall, the amendments aim to clarify and streamline the financial processes related to the issuance of drain-related bonds and notes.

Statutes affected:
Senate Introduced Bill: 280.278