reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 1 - Short Title, Purposes, and Definitions (487.1101...487.1106) › Section 487.1102 - Purposes of Act.

487.1102 Purposes of act.
Sec. 102.
The purposes of this act are all of the following:
(a) Promote economic development by encouraging the formation of business and industrial development companies, a new type of private institution, and to help meet the financing assistance and management assistance needs of business firms in this state.
(b) Provide for a system of licensing, regulation, and enforcement that will enable business and industrial development companies to satisfy eligibility requirements to participate, if they so choose, in the program of the small business administration under section 7(a) of the small business act, Public Law 85-536, 15 U.S.C. 636, and other programs for which they may be eligible.
(c) Provide for a system of licensing, regulation, and enforcement designed to prevent fraud, conflict of interest, and mismanagement and to promote competent management, accurate record keeping, and appropriate communication with owners; in order to provide both of the following:
(i) Comfort to prospective owners so as to facilitate equity investments in business and industrial development companies.
(ii) Comfort to prospective debt sources so as to facilitate the borrowing of money by business and industrial development companies.
(d) Safeguard the general reputation of business and industrial development companies as a type of institution in order to increase the confidence of prospective equity investors in and prospective debt sources for those institutions.
(e) Eliminate unnecessary restrictions that have discouraged the formation of business development corporations under former 1963 PA 117, by repealing that act and substituting a more flexible regulatory framework.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 1 - Short Title, Purposes, and Definitions (487.1101...487.1106) › Section 487.1103 - Meanings of Words and Phrases.

487.1103 Meanings of words and phrases.
Sec. 103.
For the purposes of this act, unless the context clearly indicates otherwise, the words and phrases defined in sections 104 to 106 have the meaning ascribed to them in those sections.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 1 - Short Title, Purposes, and Definitions (487.1101...487.1106) › Section 487.1104 - Definitions; a to C.

487.1104 Definitions; A to C.
Sec. 104.
(1) "Affiliate" means, if used with respect to a specified person other than a natural person, a person controlling or controlled by that specified person, or a person controlled by a person that also controls the specified person.
(2) "BIDCO" means a business and industrial development company licensed under this act. The term includes a business development enterprise.
(3) "Business development enterprise" means a business and industrial development company that meets all of the following:
(a) Has as part of its business plan the objective of providing public benefit.
(b) Is licensed under this act.
(c) Is designated as a qualified business development enterprise by the Michigan strategic fund under section 304.
(4) "Business firm" means a person that transacts business on a regular and continual basis, or a person that proposes to transact business on a regular and continual basis.
(5) "Commissioner" means the commissioner of the office of financial and insurance regulation in the department of licensing and regulatory affairs.
(6) "Control" means, if used with respect to a specified person, the power to direct or cause the direction of, directly or indirectly through 1 or more intermediaries, the management and policies of that specified person, whether by contract, other than a commercial contract for goods or nonmanagement services, or otherwise. A natural person is not considered to control a person solely because he or she is a director, officer, manager, or employee of that person. A person that, directly or indirectly, has the power to vote or direct the voting of 20% or more of the total ownership vote is rebuttably presumed to control that entity.
(7) "Controlling person" means, if used with respect to a specified person, a person that controls that specified person, directly or indirectly through 1 or more intermediaries.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997 ;-- Am. 2012, Act 358, Imd. Eff. Dec. 13, 2012
Compiler's Notes:
For references to office of financial and insurance regulation to be deemed as department of insurance and financial services, and abolishment of office of financial and insurance regulation, see E.R.O. No. 2013-1, compiled at MCL 550.991.For references to commissioner of office of financial and insurance regulation to be deemed as references to director of department of insurance and financial services, and abolishment of office of commissioner of office of financial and insurance regulation, see E.R.O. No. 2013-1, compiled at MCL 550.991.
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 1 - Short Title, Purposes, and Definitions (487.1101...487.1106) › Section 487.1105 - Definitions; I to M.

487.1105 Definitions; I to M.
Sec. 105.
(1) "Incorporating statute" means the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098, the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192, or the Michigan limited liability company act, 1993 PA 23, MCL 450.4101 to 450.5200.
(2) "Insolvent" means a licensee that ceases to pay its debts in the ordinary course of business, that cannot pay its debts as they become due, or whose liabilities exceed its assets.
(3) "Interests of the licensee" includes the interests of shareholders of a licensee organized as a Michigan corporation and members of a licensee organized as a Michigan limited liability company.
(4) "License" means a license issued under this act authorizing a Michigan corporation or Michigan limited liability company to transact business as a BIDCO. The term includes a BIDCO license issued to a business development enterprise.
(5) "Licensee" means a Michigan corporation or Michigan limited liability company that holds a license under this act.
(6) "Manager" means a person designated by the members of a Michigan limited liability company to manage the limited liability company as provided in its articles of organization or an operating agreement.
(7) "Member" means a person that has an ownership interest in a BIDCO organized as a Michigan limited liability company.
(8) "Michigan corporation" means a corporation incorporated under the business corporation act, 1972 PA 284, MCL 450.1101 to 450.2098, or the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192.
(9) "Michigan limited liability company" means a limited liability company organized under the Michigan limited liability company act, 1993 PA 23, MCL 450.4101 to 450.5200.
(10) "Michigan nonprofit corporation" means a corporation incorporated under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192.
(11) "Michigan strategic fund" means the Michigan strategic fund as described in the Michigan strategic fund act, 1984 PA 270, MCL 125.2001 to 125.2094.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997 ;-- Am. 2012, Act 358, Imd. Eff. Dec. 13, 2012
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1201 - Administration of Act; Orders; Rules; Imposition of Conditions; Applications for Declaratory Rulings; Judicial Review.

487.1201 Administration of act; orders; rules; imposition of conditions; applications for declaratory rulings; judicial review.
Sec. 201.
(1) The commissioner shall administer this act. The commissioner may issue orders and promulgate rules that, in the opinion of the commissioner, are necessary to execute, enforce, and effectuate the purposes of this act. Any rules promulgated shall be promulgated in accordance with the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws.
(2) Whenever the commissioner issues an order or license under this act, the commissioner may impose conditions that are necessary, in the opinion of the commissioner, to carry out this act and the purposes of this act.
(3) The commissioner may honor applications from interested persons for declaratory rulings regarding any provision of this act.
(4) Every final order, decision, license, or other official act of the commissioner under this act is subject to judicial review in accordance with law.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1203 - Application; Form; Information; Business Plan.

487.1203 Application; form; information; business plan.
Sec. 203.
(1) An applicant for a license under this act shall file an application with the commissioner. Subject to subsection (2), the commissioner shall establish the form of the application and the information the applicant must provide on or with the application form.
(2) For purposes of section 303, an application for a license under this act shall include a business plan. If the applicant is applying for a license as a business development enterprise, the business plan must include the objective of providing public benefit.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 2012, Act 358, Imd. Eff. Dec. 13, 2012
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1205 - Investigations; Purposes; Oaths and Affirmations; Witnesses; Evidence; Documents or Records; Failure to Comply With Subpoena.

487.1205 Investigations; purposes; oaths and affirmations; witnesses; evidence; documents or records; failure to comply with subpoena.
Sec. 205.
(1) The commissioner may make public or private investigations within or outside this state that the commissioner considers necessary to determine whether to approve an application filed with the commissioner under this act, to determine whether a person has violated or is about to violate this act, to aid in the enforcement of this act, or to aid in issuing an order or promulgating a rule under this act.
(2) For purposes of an investigation, examination, or other proceeding under this act, the commissioner may administer oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take evidence, and require the production of books, papers, correspondence, memoranda, agreements, or other documents or records which the commissioner considers relevant or material to the proceeding.
(3) If a person fails to comply with a subpoena issued by the commissioner or to testify with respect to a matter concerning which the person may be lawfully questioned, the circuit court for Ingham county, on application of the commissioner, may issue an order requiring the attendance of the person and the giving of testimony or production of evidence.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1207 - Service of Process.

487.1207 Service of process.
Sec. 207.
Service of process authorized to be made by the commissioner in connection with a noncriminal proceeding under this act may be made by registered or certified mail.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1209 - Establishment of Annual Schedule of Fees; Payment; Action for Recovery of Fees or Penalties; Failure to Submit Report; Disposition.

487.1209 Establishment of annual schedule of fees; payment; action for recovery of fees or penalties; failure to submit report; disposition.
Sec. 209.
(1) The commissioner shall establish annually a schedule of fees sufficient to pay for the bureau's costs of enforcing this act. The fees shall be as follows:
(a) For filing an application for a license, not less than $2,500.00 or more than $8,000.00.
(b) For filing an application for approval to acquire control of a licensee, not less than $1,250.00 or more than $6,000.00.
(c) For filing an application for approval for a licensee to merge with another corporation, an application for approval for a licensee to purchase all or substantially all of the business of another person, or an application for approval for a licensee to sell all or substantially all of its business or of the business of any of its offices to another licensee, not less than $1,250.00 or more than $6,000.00. Two or more applications relating to the same merger, purchase, or sale may be filed, for the same fee as for filing a single application.
(d) For annual license renewal, not less than $2,500.00 or more than $8,000.00, payable at a time prescribed by the commissioner. A license renewal fee not paid when due is subject to a penalty of $25.00 for each day the fee is delinquent or $1,000.00, whichever is less.
(e) For examination of the licensee, not less than $40.00 or more than $70.00 per hour for each examiner involved in the examination. If the commissioner examines a licensee or a subsidiary of a licensee, within 10 days after receiving a statement from the commissioner, the licensee shall pay the fee, plus travel expenses.
(2) A fee for filing an application with the commissioner is nonrefundable and is to be paid at the time the application is filed with the commissioner.
(3) If any fees or penalties provided for in this act are not paid when required, the attorney general may maintain an action against the delinquent licensee to recover the fees or penalties together with interest and costs.
(4) A licensee or an affiliate or subsidiary of a licensee that fails to submit a report as required by section 215 is subject to a penalty of $25.00 for each day the report is delinquent or $1,000.00, whichever is less.
(5) Money collected under this section shall be paid into the state treasury to the credit of the financial institutions bureau and used only for the operation of the financial institutions bureau.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1992, Act 74, Imd. Eff. June 2, 1992
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1211 - Books, Accounts, and Other Records of Licensee; Location and Preservation; Valuation of Assets; Audit Report.

487.1211 Books, accounts, and other records of licensee; location and preservation; valuation of assets; audit report.
Sec. 211.
(1) A licensee shall make and keep books, accounts, and other records in a form and manner as the commissioner may require. These records shall be kept at a place and be preserved for a length of time as the commissioner may require.
(2) The commissioner may require by order that a licensee write down any asset on its books and records to a valuation that represents its then value.
(3) Not more than 90 days after the close of each calendar year or a longer period if specified by the commissioner, a licensee shall file with the commissioner an audit report containing all of the following:
(a) Financial statements, including balance sheet, statement of income or loss, statement of changes in capital accounts, and statement of changes in financial position or, for a licensee that is a Michigan nonprofit corporation or Michigan limited liability company, comparable financial statements for, or as of the end of, the calendar year, prepared with an audit by an independent certified public accountant or an independent public accountant in accordance with generally accepted accounting principles.
(b) A report, certificate, or opinion of the independent certified public accountant or independent public accountant who performs the audit, stating that the financial statements were prepared in accordance with generally accepted accounting principles.
(c) Other information that the commissioner may require.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1213 - Making or Keeping of Books, Accounts, or Other Records by Person Other Than Licensee; Applicability of Act; Approval of Commissioner.

487.1213 Making or keeping of books, accounts, or other records by person other than licensee; applicability of act; approval of commissioner.
Sec. 213.
(1) If a person other than a licensee makes or keeps the books, accounts, or other records of that licensee, this act applies to that person with respect to the performance of those services and with respect to those books, accounts, and other records to the same extent as if that person were the licensee.
(2) If a person other than an affiliate or subsidiary of a licensee makes or keeps any of the books, accounts, or other records of that affiliate or subsidiary, this act applies to that person with respect to those books, accounts, and other records to the same extent as if that person were the affiliate or subsidiary.
(3) If the commissioner considers it expedient, the commissioner may require any particular licensee to obtain the approval of the commissioner before permitting another person to make or keep any of the books, accounts, or other records of the licensee.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1215 - Filing Reports With Commissioner; Form; Contents.

487.1215 Filing reports with commissioner; form; contents.
Sec. 215.
Each licensee, each affiliate of a licensee, and each subsidiary of a licensee shall file with the commissioner such reports as and when the commissioner may require. A report under this section shall be in such a form and shall contain such information as the commissioner may require.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1216 - Publication and Distribution of Information on Impact of Act.

487.1216 Publication and distribution of information on impact of act.
Sec. 216.
(1) The commissioner shall publish annually and provide to the house committee on economic development and energy and senate committee on economic development, trade and tourism information on the impact of this act in promoting economic development in this state. At the minimum, the information shall include aggregate statistics on each of the following:
(a) The number and dollar amount of provisions of financing assistance made by licensees to business firms.
(b) The number and dollar amount of provisions of financing assistance made by licensees to business firms classified in broad categories of industry such as divisions of the standard industrial classification manual.
(c) The number and dollar amount of provisions of financing assistance made by licensees to minority owned business firms and to woman owned business firms.
(d) Estimates of the number of jobs created or retained.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 2 - Regulation, Reporting, and Examination (487.1201...487.1217) › Section 487.1217 - Examination of Licensee or Subsidiary of Licensee; Exhibiting Books, Accounts, and Other Records; Facilitating Examination; Retention of Person to Assist Commissioner.

487.1217 Examination of licensee or subsidiary of licensee; exhibiting books, accounts, and other records; facilitating examination; retention of person to assist commissioner.
Sec. 217.
(1) The commissioner shall examine each licensee not less than once each calendar year.
(2) The commissioner may at any time examine a licensee or subsidiary of a licensee.
(3) A director, officer, manager, or employee of a licensee or of a subsidiary of a licensee being examined by the commissioner, or a person having custody of any of the books, accounts, or records of the licensee or of the subsidiary, shall provide the commissioner, on request, any of the books, accounts, and other records of the licensee or of the subsidiary and shall otherwise facilitate the examination so far as it is in their power to do so.
(4) If in the commissioner's opinion it is necessary in the examination of a licensee or of a subsidiary of a licensee, the commissioner may retain a certified public accountant, attorney, appraiser, or other person to assist the commissioner. Within 10 days after receipt of a statement from the commissioner, the licensee being examined shall pay the fees of a person retained by the commissioner under this subsection.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1301 - Licensure; Eligibility.

487.1301 Licensure; eligibility.
Sec. 301.
A Michigan corporation or Michigan limited liability company may apply to the commissioner for a license under this act. A person that is not a Michigan corporation or Michigan limited liability company shall not apply for, and the commissioner shall not grant, a license under this act.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997 ;-- Am. 2012, Act 358, Imd. Eff. Dec. 13, 2012
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1304a - Reports.

487.1304a Reports.
Sec. 304a.
(1) A business development enterprise shall report to the Michigan strategic fund at least annually the following information for each business it supported, by providing or facilitating the securing of capital, in the preceding 5-year period:
(a) The total amount of private capital secured by the business from its support.
(b) The estimated number of jobs the business created or retained.
(c) An estimate of the state and local tax collections attributable to its support of that business.
(2) The commissioner shall provide to the Michigan strategic fund an annual summary report containing its assessment of the financial condition of each business development enterprise. The commissioner shall establish the form and contents of the report. At a minimum, the report shall include an assessment of the business development enterprise's ability to fund its operations in the future.
(3) A business development enterprise shall provide the commissioner any information he or she reasonably requests in connection with his or her assessment of the financial condition of the business development enterprise and the preparation of the report described in subsection (2).
History:
Add. 2012, Act 358, Imd. Eff. Dec. 13, 2012
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1305 - Application for Preliminary Approval of Application for License; Order; Conditions to Final Approval; Fee.

487.1305 Application for preliminary approval of application for license; order; conditions to final approval; fee.
Sec. 305.
(1) A person may apply to the commissioner for preliminary approval of an application for a license. Notwithstanding that commitments to invest in the equity of the applicant have not been obtained and that all directors, officers, and managers of the applicant have not been identified, the commissioner may grant preliminary approval. In issuing an order granting preliminary approval, the commissioner shall indicate that, for the commissioner to determine that the requirements of section 303 are satisfied, final approval is conditioned on review by the commissioner of the applicant's completion of fund-raising, including the controlling persons, and review by the commissioner of the completion of the roster of directors and officers. If an application for preliminary approval has been granted, before granting final approval of the application for a license, the commissioner may request an updated balance sheet and other information considered relevant by the commissioner.
(2) If a person files an application under this section, the fee required by section 209(1)(a) is payable at the time the application is filed with the commissioner.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1307 - Denial of Application; Written Statement of Explanation.

487.1307 Denial of application; written statement of explanation.
Sec. 307.
If the commissioner denies an application under sections 301 to 305, the commissioner shall provide the applicant with a written statement explaining the basis for the denial.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1309 - License; Issuance; Posting; Nontransferable and Nonassignable.

487.1309 License; issuance; posting; nontransferable and nonassignable.
Sec. 309.
If an application for a license is approved and all conditions precedent to the issuance of that license are fulfilled, the commissioner shall issue a license to the applicant. A licensee shall post the license in a conspicuous place in the licensee's principal office. A license is not transferable or assignable.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1311 - Prohibited Representations; Permissible Acts.

487.1311 Prohibited representations; permissible acts.
Sec. 311.
(1) Except as otherwise provided in subsection (2), a person transacting business in this state, other than a licensee, shall not use a name or title that indicates that the person is a business and industrial development company including, but not limited to, use of the term "BIDCO", and shall not otherwise represent that the person is a business and industrial development company or a licensee.
(2) Before being issued a license under this act, a Michigan corporation or Michigan limited liability company that proposes to apply for a license or that applies for a license may, under a name that indicates that it is a business and industrial development company, perform the acts necessary to obtain a license and to otherwise prepare to transact business as a licensee. A corporation or limited liability company shall not represent that it is a licensee until after the license has been obtained.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1313 - Misrepresentation of License.

487.1313 Misrepresentation of license.
Sec. 313.
A licensee shall not misrepresent the meaning or effect of its license.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1315 - Michigan Corporation or Limited Liability Company Licensed Under Another Law.

487.1315 Michigan corporation or limited liability company licensed under another law.
Sec. 315.
(1) A Michigan corporation or Michigan limited liability company that is licensed under another law of this state or the United States may be issued a license under this act unless the transaction of business as a licensee under the other law of this state or the United States would violate this act or would be contrary to the purposes of this act.
(2) A Michigan corporation or Michigan limited liability company that is licensed under this act may apply for and be issued a license under another law of this state or the United States unless the transaction of business as a licensee under the other law of this state or the United States would violate this act or would be contrary to the purposes of this act.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 3 - Licensing (487.1301...487.1317) › Section 487.1317 - Application to Commissioner to Accept Surrender of License; Approval; Notice to Owners and Creditors; Filing Objection; Sending Copy of Objection to Commissioner.

487.1317 Application to commissioner to accept surrender of license; approval; notice to owners and creditors; filing objection; sending copy of objection to commissioner.
Sec. 317.
(1) Upon approval of a 2/3 vote of its board of directors and after complying with subsection (2), a Michigan corporation licensee may apply to the commissioner to have the commissioner accept the surrender of the licensee's license. If a Michigan limited liability company licensee dissolves and after it has provided the notice required under subsection (2), it shall apply to the commissioner to surrender its license. If the commissioner determines that the requirements of this section have been satisfied, the commissioner shall approve the application unless in the opinion of the commissioner the purpose of the application is to evade a current or prospective action by the commissioner under article 7. A Michigan corporation licensee shall not dissolve and a Michigan limited liability company shall not complete winding up of its affairs until the commissioner has accepted the surrender of the licensee's license.
(2) Upon the dissolution of a licensee organized as a Michigan limited liability company or before dissolution of a licensee organized as a Michigan corporation, a licensee shall notify all of its owners and all of its creditors of its dissolution and intention to file the application. Each creditor shall be notified of the right to comment to the commissioner. Each owner shall be notified of the right to file with the licensee for a period of 60 days after the date of the notice an objection to the proposed surrender of the license and shall be advised that, if the owner files an objection, the owner should send a copy of the objection to the commissioner. If owners representing 20% or more of the total ownership vote of the licensee file an objection, the licensee shall not proceed with the application under subsection (1) unless the application is approved by a vote of owners representing 2/3 or more of the total ownership vote.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 4 - Corporate Matters (487.1401...487.1407) › Section 487.1401 - Name of Licensee; Inclusion of Word "bidco."

487.1401 Name of licensee; inclusion of word "BIDCO."
Sec. 401.
(1) Except as provided in subsection (2), the name of each licensee shall include the word "BIDCO".
(2) A business development enterprise is not required to include the word "BIDCO" in its name.
(3) A licensee shall not transact business under a name other than its name.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997 ;-- Am. 2012, Act 358, Imd. Eff. Dec. 13, 2012
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 4 - Corporate Matters (487.1401...487.1407) › Section 487.1403 - Board of Directors; Number of Directors; Membership; Meetings.

487.1403 Board of directors; number of directors; membership; meetings.
Sec. 403.
(1) A licensee shall have a board of directors.
(2) The board of directors of a licensee that is not a business development enterprise shall consist of at least 7 directors. All of the following apply to the board of directors of a licensee that is a business development enterprise:
(a) The board shall consist of at least 3 directors.
(b) At least 1/3 of the members of the board shall be individuals designated by the board of the Michigan strategic fund.
(3) If the licensee is a Michigan limited liability company, the board may consist of members who are not managers of the licensee.
(4) The board of directors of a licensee shall hold a meeting at least once each calendar quarter.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997 ;-- Am. 2012, Act 358, Imd. Eff. Dec. 13, 2012
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 4 - Corporate Matters (487.1401...487.1407) › Section 487.1405 - Death, Resignation, or Removal of Director, Officer, or Manager; Election of Director; Appointment of Officer or Manager; Notice to Commissioner; Additional Information.

487.1405 Death, resignation, or removal of director, officer, or manager; election of director; appointment of officer or manager; notice to commissioner; additional information.
Sec. 405.
Within 30 days after the death, resignation, or removal of a director, officer, or manager, the election of a director, or the appointment of an officer or manager, the licensee shall notify the commissioner in writing of the event and shall provide any additional information which the commissioner may require.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 4 - Corporate Matters (487.1401...487.1407) › Section 487.1407 - Dividend and Distribution Policies; Buying Back Share of Stock or Membership Interest.

487.1407 Dividend and distribution policies; buying back share of stock or membership interest.
Sec. 407.
(1) A licensee shall not pay, or obligate itself to pay, a cash dividend or distribution or dividend and distribution in kind to its owners, unless that payment is consistent with a dividend and distribution policy that has been adopted by the licensee and approved by the commissioner. In reviewing dividend and distribution policies under this section, the commissioner shall protect against unsafe or unsound acts which could threaten the viability of the licensee as an ongoing BIDCO but be flexible in recognizing the special characteristics of BIDCOs and the diverse range of potentially appropriate dividend policies for BIDCOs. The commissioner may at any time withdraw any previous approval of a dividend and distribution policy if the commissioner determines that the withdrawal is necessary to prevent unsafe or unsound acts.
(2) Without the prior approval of the commissioner, a licensee shall not buy back, or obligate itself to buy back a share of stock or a membership interest from an owner.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 5 - Transaction of Business (487.1501...487.1513) › Section 487.1501 - Offices of Licensee; Number; Location; Posting Sign Bearing Corporate Name; Personnel; Establishing, Relocating, or Closing Office.

487.1501 Offices of licensee; number; location; posting sign bearing corporate name; personnel; establishing, relocating, or closing office.
Sec. 501.
(1) A licensee shall maintain not less than 1 office in this state.
(2) A licensee shall not maintain an office at any place outside this state.
(3) Each office of a licensee shall be located in a place which is reasonably accessible to the public.
(4) A licensee shall post in a conspicuous place at each of its offices a sign which bears the corporate name of the licensee.
(5) A licensee shall maintain at each of its offices personnel who are competent to conduct the business of such an office.
(6) Upon written notice to the commissioner, a licensee may establish, relocate, or close an office.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 5 - Transaction of Business (487.1501...487.1513) › Section 487.1503 - Business of Licensee; Powers and Privileges of Licensee.

487.1503 Business of licensee; powers and privileges of licensee.
Sec. 503.
(1) The business of a licensee shall be providing financing assistance and management assistance to business firms. A licensee shall not engage in a business other than the business of providing financing assistance and management assistance to business firms.
(2) In addition to the powers and privileges provided to a licensee by this act, a licensee has all powers and privileges conferred by its incorporating statute which are not inconsistent with or limited by this act. The powers of a licensee include, but are not limited to, all of the following:
(a) To borrow money and otherwise incur indebtedness for its purposes, including issuance of corporate bonds, debentures, notes, or other evidence of indebtedness. A licensee's indebtedness may be secured or unsecured, and may involve equity features including, but not limited to, provisions for conversion to stock or membership interests and warrants to purchase stock or membership interests.
(b) To make contracts.
(c) To incur and pay necessary and incidental operating expenses.
(d) To purchase, receive, hold, lease, or otherwise acquire or to sell, convey, mortgage, lease, pledge, or otherwise dispose of, real or personal property, together with rights and privileges that are incidental and appurtenant to these transactions of real or personal property, if the real or personal property is for the licensee's use in operating its business or if the real or personal property is acquired by the licensee from time to time in satisfaction of debts or enforcement of obligations.
(e) To make donations for charitable, educational, research, or similar purposes.
(f) To implement a reasonable and prudent policy for conserving and investing its money before the money is used to provide financing assistance to business firms or to pay the expenses of the licensee.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 5 - Transaction of Business (487.1501...487.1513) › Section 487.1509 - Transacting Business in Safe and Sound Manner; Considering Risks; Authority of Commissioner Not Limited.

487.1509 Transacting business in safe and sound manner; considering risks; authority of commissioner not limited.
Sec. 509.
(1) A licensee shall transact its business in a safe and sound manner and shall maintain itself in a safe and sound condition.
(2) In determining whether a licensee is transacting business in a safe and sound manner or has committed an unsafe or unsound act, the commissioner shall not consider the risk of a provision of financing assistance to a business firm, unless the commissioner determines that the risk is so great compared with the realistically expected return as to demonstrate gross mismanagement.
(3) Subsection (2) does not limit the authority of the commissioner to do any of the following:
(a) Determine that a licensee's financing assistance to a single business firm or a group of affiliated business firms is in violation of subsection (1) or constitutes an unsafe or unsound act, if the amount of that financing assistance is unduly large in relation to the total assets or the total owners equity of the licensee.
(b) Require that a licensee maintain a reserve in the amount of anticipated losses.
(c) Require that a licensee have in effect a written financing assistance policy, approved by its board of directors, including credit evaluation and other matters. The commissioner shall not require that a licensee adopt a financing assistance policy that contains standards that prevent the licensee from exercising needed flexibility in evaluating and structuring financing assistance to business firms on a deal by deal basis.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 5 - Transaction of Business (487.1501...487.1513) › Section 487.1513 - Lien on or Security Interest in Property of Licensee.

487.1513 Lien on or security interest in property of licensee.
Sec. 513.
Except with the approval of the commissioner, a licensee shall not provide a lien on or security interest in any of its property for the purpose of securing an obligation of, or an obligation incurred for the benefit of, another person.
History:
1986, Act 89, Imd. Eff. May 1, 1986
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 6 - Mergers and Acquisitions (487.1601...487.1603) › Section 487.1601 - Acquiring Control of Licensee; Application for Approval; Determinations by Commissioner.

487.1601 Acquiring control of licensee; application for approval; determinations by commissioner.
Sec. 601.
(1) Without the prior approval of the commissioner, a person shall not acquire control of a licensee.
(2) With respect to an application for approval to acquire control of a licensee, if the commissioner determines, that the applicant and the directors, officers, and managers of the applicant are of good character and sound financial standing, that it is reasonable to believe that, if the applicant acquires control of the licensee, the applicant will comply with this act, and that the applicant's plans, if any, to make a major change in the business, corporate structure, or management of the licensee are not detrimental to the safety and soundness of the licensee, the commissioner shall approve the application. If, after notice and a hearing, the commissioner determines otherwise, the commissioner shall deny the application.
(3) For purposes of subsection (2), the commissioner may determine any of the following:
(a) That an applicant or a director, officer, or manager of an applicant is not of good character if that person has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty.
(b) That an applicant's plan to make a major change in the management of a licensee is detrimental to the safety and soundness of the licensee if the plan provides for a person to become a director, officer, or manager of the licensee and that person has been convicted of, or has pleaded nolo contendere to, a crime involving fraud or dishonesty.
(4) The conditions described in subsection (3) are not the only conditions upon which the commissioner may determine that an applicant or a director, officer, or manager of an applicant is not of good character or that an applicant's plan to make a major change in the management of a licensee is detrimental to the safety and soundness of the licensee.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997
2023 Michigan Compiled Laws › Chapter 487 - Financial Institutions › Act 89 of 1986 - Michigan Bidco Act (487.1101 - 487.2001) › Article 6 - Mergers and Acquisitions (487.1601...487.1603) › Section 487.1603 - Merger of Licensee With Another Business Firm; Conditions; Purchase by Licensee of Business of Another Person; Sale of Business; Application for Approval of Merger, Purchase, or Sale; Determinations.

487.1603 Merger of licensee with another business firm; conditions; purchase by licensee of business of another person; sale of business; application for approval of merger, purchase, or sale; determinations.
Sec. 603.
(1) A licensee shall not merge with another business firm unless 1 of the following applies:
(a) If the licensee is the surviving business firm, the merger is approved by the commissioner.
(b) If the licensee is a disappearing business firm, the surviving business firm is a licensee and the merger is approved by the commissioner.
(2) A licensee shall not purchase all or substantially all of the business of another person unless the purchase is approved by the commissioner.
(3) A licensee shall not sell all or substantially all of its business or of the business of any of its offices to another person unless that other person is a licensee and the sale is approved by the commissioner.
(4) The commissioner shall approve an application for approval of a merger, purchase, or sale, if the commissioner determines all of the following:
(a) That the merger, purchase, or sale will be safe and sound with respect to the acquiring licensee.
(b) That, upon consummation of the merger, purchase, or sale, it is reasonable to believe that the acquiring licensee will comply with this act.
(c) That the merger, purchase, or sale will not have a major detrimental impact on competition in providing financial assistance or management assistance to business firms, or if there will be a detrimental impact, the merger, purchase, or sale is necessary in the interests of the safety and soundness of any of the parties to the merger, purchase, or sale, or is otherwise, on balance, in the public interest.
History:
1986, Act 89, Imd. Eff. May 1, 1986 ;-- Am. 1997, Act 150, Imd. Eff. Dec. 2, 1997