Mich. Comp. Laws § 388.1921
Short title.
This act shall be known and may be cited as the "school bond qualification, approval, and loan act".
Michigan Compiled Laws — SCHOOL BOND QUALIFICATION, APPROVAL, AND LOAN ACT (Act 92 of 2005)
Michigan · statute · 92 of 2005, Mich. Comp. Laws · 19 active provisions
Mich. Comp. Laws § 388.1922
Purpose of act.
The purpose of this act is to implement section 16 of article IX of the state constitution of 1963 and to provide for loans to school districts.
Mich. Comp. Laws § 388.1923
Definitions.
As used in this act: (a) "Computed millage" means the number of mills in any year, not less than 7 mills and not more than 13 mills, determined on the date of issuance of the order qualifying the bonds or on a later date if requested by the school district and approved by the state treasurer, that, if levied by the sch…
Mich. Comp. Laws § 388.1924
Qualification of new bonds; terms and conditions applicable to outstanding qualified bonds; application for prequalification.
(1) A school district may issue and market bonds as qualified bonds if the state treasurer has issued an order granting qualification under this act. (2) Except with regard to qualification of new bonds, nothing in this act shall be construed to alter the terms and conditions applicable to outstanding qualified bonds i…
Mich. Comp. Laws § 388.1925
Preliminary qualification; application.
(1) A school district may apply to the state treasurer for preliminary qualification of a proposed school bond issue by filing an application in the form and containing the information required by this act. (2) An application for preliminary qualification of a school bond shall contain all of the following information:…
Mich. Comp. Laws § 388.1926
Prequalification of bonds; determination by state treasurer.
The state treasurer shall prequalify bonds of a school district if the state treasurer determines all of the following: (a) The issuance of additional qualified bonds will not prevent the school district from repaying its outstanding qualified bonds, the proposed bonds, all outstanding qualified loans, and all qualifie…
Mich. Comp. Laws § 388.1927
Qualification of bonds; determination by state treasurer; order; specifications; loan agreement; failure to issue bonds within certain time; reapplication; qualification of refunding bonds.
(1) The state treasurer shall qualify bonds of a school district if the state treasurer determines all of the following: (a) A majority of the school district electors have approved the bonds. (b) The terms of the bond issue comply with applicable provisions of the revised school code, 1976 PA 451, MCL 380.1 to 380.185…
Mich. Comp. Laws § 388.1928
Submission of ballot to electors; ballot.
A ballot submitted to the school electors of a school district after November 8, 2005 requesting authorization to issue unlimited tax general obligations that will be guaranteed by this state in accordance with section 16 of article IX of the state constitution of 1963 shall inform the electors that if the school distr…
Mich. Comp. Laws § 388.1929
(1) Except as otherwise provided in this act, a school district may borrow from the state an amount not greater than the difference between the proceeds of the school district's computed millage and the amount necessary to pay principal and interest on its qualified bonds, including any necessary allowances for estimat…
Mich. Comp. Laws § 388.1930
Certificates of qualification or approval; file; delivery.
The state treasurer shall keep all certificates of qualification or approval in a permanent file and shall deliver copies of the certificates to the school district.
Mich. Comp. Laws § 388.1931
Rules; bulletins.
The state treasurer may promulgate rules to implement this act pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, and may issue bulletins as authorized by this act.
Mich. Comp. Laws § 388.1932
Failure to apply for prequalification, qualification, or approval of bond before issuance.
If a school district does not apply for prequalification or qualification or approval of a bond issue before the issuance of those bonds, the state treasurer shall not approve or qualify those bonds as qualified bonds under this act.
Mich. Comp. Laws § 388.1933
(1) If a school district owes a balance due to the revolving loan fund or has been identified as a potential borrower, the school district shall file an annual loan activity application with the state treasurer no less than 60 days before certifying its annual tax levy. The annual loan activity application shall be sub…
Mich. Comp. Laws § 388.1934
Failure of school district to pay principal and interest due on qualified bonds; notice; payment by state treasurer; billing of school district for amount paid; remittance.
(1) If any paying agent for a school district’s qualified bonds notifies the state treasurer that the school district has failed to deposit sufficient funds to pay principal and interest due on the qualified bonds when due, or if a bondholder notifies the state treasurer that the school district has failed to pay princ…
Mich. Comp. Laws § 388.1935
Default; repayment.
(1) If a school district that owes this state loan repayments relating to qualified bonds fails to levy at least the computed millage upon its taxable value for debt retirement purposes for qualified bonds and for repayment of a qualified loan made under this act while any part of the qualified loan is unpaid or defaul…
Mich. Comp. Laws § 388.1936
Charging and disposition of fees.
(1) The state treasurer may charge a prequalification application fee, a qualification application fee, and an annual loan activity fee in the amounts determined by the state treasurer to be required to pay the estimated administrative expenses incurred under this act for the fiscal year in which the state treasurer im…
Mich. Comp. Laws § 388.1937
False statement or unauthorized use of proceeds; violation as felony; penalty.
A person who knowingly makes a false statement or conceals material information for the purpose of obtaining qualification of a bond issue under this act or for the purpose of obtaining a qualified loan under this act, or who knowingly uses all or part of the proceeds of a qualified loan obtained under this act for any…
Mich. Comp. Laws § 388.1938
Use of remaining proceeds.
If a school district has completed the projects approved by the school electors of the school district to be funded from proceeds of qualified bonds, a school district may use any remaining proceeds of the qualified bonds as follows: (a) To pay debt service on the qualified bonds. (b) To repay this state. (c) If in the…
Mich. Comp. Laws § 388.1939
Actions by designee.
The state treasurer may designate in writing a person or persons to take any actions required to be taken by the state treasurer under this act. The signature of any designee shall have the same force and effect as the signature of the state treasurer for all purposes of this act.