First Try

Question 1

Generally, municipalities cannot indemnify private companies, because doing so violates the Michigan Constitution, which prohibits the lending of the credit of a political subdivision of the state to a private corporation.

Answer 1

See e.g. Const 1963, art 9, sec 18; Wayne Co Bd of Comm’rs v Wayne Co Airport Authority, 253 Mich App 144 (2002); Skutt v City of Grand Rapids, 275 Mich 258 (1936).