By Joel Thurtell
On July 10, 1994, the Michigan Legislature approved Public Act 278, the law (PA278-1994-corrected0001) that banned Capital Appreciation Bonds.
CABs have become controversial in California, where a prohibition on CABs is being debated.
The relevant sections are: 380.1352a Borrowing money and issuing bonds; 380.1351b Appreciation or sale at discount; and 380.1352 Borrowing or issuing bonds; contract for legal representation.
In future columns, I’ll explain the significance of each of these sections.
