Michigan § 120.119a - Port authority; power to enter into, amend, or terminate ancillary financing facility.

(1) An authority may enter into, amend, or terminate any ancillary financing facility, as it determines necessary or appropriate, for any of the following purposes:

(a) To facilitate the issue, sale, resale, purchase, repurchase, or payment of bonds, or the making or performance of swap contracts, including, but not limited to, bond insurance, letters of credit, and liquidity facilities.

(b) To attempt to hedge risk or achieve a desirable effective interest rate or cash flow.

(2) An authority may enter into, amend, or terminate any ancillary financing facility, as it determines necessary or appropriate, to place the obligations or investments of the authority, as represented by the bonds or the investment of bond proceeds, in whole or in part, on the interest rate, cash flow, or other basis desired by the authority. The ancillary financing facility may include, but is not limited to, contracts commonly known as interest swap agreements and futures or contracts providing for payments based on levels of, or changes in, interest rates. The authority may enter into these contracts or arrangements in connection with, or incidental to, entering into or maintaining any agreement that secures bonds of the authority or any investment of reserves or contract providing for investment of reserves, or similar ancillary financing facility guaranteeing an investment rate for a period of years.

(3) An authority's determination that an ancillary financing facility, or the amendment or termination of an ancillary financing facility, is necessary or appropriate is conclusive. The authority may determine the terms and conditions of an ancillary financing facility, including without limitation provisions as to security, default, termination, payments, remedy, and consent to service of process.