Michigan § 123.1140 - Dissolution of an authority; use and designation of public forest and natural resource area property; third-party rights.

(1) Except as otherwise provided in this section, if an authority dissolves, all property, funds, and assets of the authority are vested in the participating municipality or municipalities. Except as otherwise provided in the articles of an authority, if an authority dissolves, the debts or liabilities of an authority do not become the debts or liabilities of the participating municipality or municipalities unless the participating municipality or municipalities have agreed to assume those debts or liabilities. If the participating municipality or municipalities do not agree to assume the authority's debts and liabilities, an authority must not dissolve unless the authority has repaid or settled all of the authority's debts and liabilities.

(2) If the property owned by an authority was designated by the authority as a public forest and natural resources area, on dissolution of the authority, the designated use of the property must be continued. If the designated use of the property is not continued by the participating municipality or municipalities, the property must revert to this state. The reversionary interest under this subsection is in addition to, and does not alter or supersede, any other reversionary interest the state may hold in the property.

(3) If property owned by an authority was designated by the authority as a public forest and natural resources area, the participating municipality or municipalities may elect to waive their right, in full or in part, to the property. If the participating municipality or municipalities waive their right, in full or in part, to the property, the property or portion of the property reverts to this state.

(4) If an authority was in existence before the effective date of the amendatory act that added this subsection and the authority's articles address the disposition of the authority's property, funds, and assets on dissolution, the articles control the disposition of the property, funds, and assets on dissolution.

(5) Nothing in this act alters or supersedes any third-party rights, including rights of the state or federal government, in or attached to the property owned by an authority.