HOUSE BILL No. 5333


     February 9, 2000, Introduced by Rep. Ehardt and referred to the Committee on Insurance and Financial Services.


        A bill to amend 1986 PA 157, entitled

   "Michigan export development act,"

   by amending section 2 (MCL 447.152), as amended by 1990 PA 304.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 2.  As used in this act:

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           (a) "Authority" means the Michigan export development

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      authority created by section 3.

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           (b) "Board" means the board of directors of the authority

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      established by section 4.

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           (c) "Eligible export loan" means a loan by a participating

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      financial institution located within this state the proceeds of

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      which are restricted to the financing of eligible export

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      transactions.

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           (d) "Eligible export transaction" means the sale of goods or

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      services, or the development of goods or services for sale,


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      outside of the United States by a person doing business in this

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      state, which goods or services, in the judgment of the authority,

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      have a substantial portion of their value created within this

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      state and which sale or development, in the judgment of the

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      authority, creates or maintains employment in this state.

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           (e) "Export insurance" means insurance made available by the

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      authority to protect an exporter against a foreign buyer's fail-

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      ure to pay for goods or services for political or commercial

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      reasons.  The amount of the loss covered for each transaction and

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      particular risks shall be determined by the authority.

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           (f) "Grant" means an amount of money provided by the author-

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      ity to a nonprofit organization.

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           (g) "Guarantee" means a guarantee against loss, in whole or

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      in part, of principal of and interest on an eligible export

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      loan.  The guarantee may include, without limitation, insurance

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      against loss up to the guarantee amount.  A single guarantee may

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      encompass several individual eligible export loans or eligible

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      export transactions.

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           (h) "Guarantee amount" means the maximum amount payable

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      under a guarantee which amount shall be specifically set forth in

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      writing at the time the guarantee is entered into by the

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      authority.

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           (i) "Participating financial institution" means a bank as

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      defined by the banking code of  1969, Act No. 319 of the Public

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      Acts of 1969, being sections 487.301 to 487.598 of the Michigan

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      Compiled Laws  1999, MCL 487.11101 TO 487.15101, an agency or

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      branch of a foreign banking corporation licensed by the



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      commissioner of the financial institutions bureau, or a national

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      bank, state or federal savings and loan association, or savings

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      bank or federal credit union located within this state that has

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      been approved by the board to participate in guaranteed funding

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      for eligible export loans and transactions within the purposes of

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      this act.

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           Enacting section 1.  This amendatory act does not take

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      effect unless Senate Bill No. _____ or House Bill No. _____

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      (request no. 02983'99) of the 90th Legislature is enacted into

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      law.
   



































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