Drains: financing; interest charged for drain projects; limit. Amends sec. 278 of 1956 PA 40 (MCL 280.278).

This bill amends Michigan's Drain Code to clarify how interest rates are calculated on drain tax installments used to repay bonds. It requires that the interest charged to property owners be no more than one percentage point higher than the average interest rate paid on the bonds themselves, with a cap that cannot exceed the bond rate. The legislation also mandates that all collected funds be deposited in county-designated banks and used exclusively for paying off the bonds as they mature. Additionally, it sets a maximum interest rate for these bonds based on the Revised Municipal Finance Act. These changes directly affect drain commissioners, county treasurers, and property owners within drainage districts by standardizing financial rules for debt repayment.