| 1. |
Borrower Selects Local Counsel |
| Selected note counsel
must be recognized by The Bond Buyer's Municipal Marketplace
Directory (a.k.a. the "Red Book"). Contact the Michigan Finance
Authority (MFA) for a listing of recognized local counsel, if necessary.
The MFA will only accept applications for participation in the State
Aid Note pool from note counsel to the Academy. Public School
Academies should not submit the application directly to the MFA. |
| 2. |
Borrower Completes Application and Cash Flow |
| The PSA
State Aid Note Program Application, Form 4039B, and the
Current/Projected Cash Flow, Form 4046B, are available from the MFA
Web site at
www.michigan.gov/mfa. |
| 3. |
Borrower's Board of Education Directors Adopts Borrowing Resolution |
| The borrowing resolution is
available from the MFA Web site at
www.michigan.gov/mfa. |
| 4. |
Borrower Must Obtain Prior Approval or Pre-Qualification from Treasury,
Local Audit and Finance Division (LAFD) |
|
Your local note counsel may assist you with the prior
approval application process for fiscal year 2012. A Qualifying letter
or a copy of the prior approval application must be submitted with the
State Aid Note Program Application. |
| 5. |
Borrower's Local Counsel Submits Required Documentation to MFA |
The application and supplemental documents are due on or
before February 24, 2012. Full application package includes all of the
following items:
- Completed application (Form 4039B)
- Cash Flow (Form 4046B)
- Current year monthly cash flow for July 2011 through August 2012
- Projected monthly cash flow for August 2011 through August 2012
- Projected weekly cash flow for the month from August 2011
through August 2012 with the greatest deficit
- General Fund Budget
- Fiscal Year Ended 6/30/2011
- Fiscal Year Ended 6/30/2012 as adopted
- LAFD Qualification or proof of application (see #4)
- Educational Service Provider agreement (management contract), if
any
- Authorizing resolution adopted by the Academy's Board
- Letter from Authorizing Body stating there is a valid charter and
there are no outstanding notices to revoke or requests for termination
|
| 6. |
MFA Prices the
Notes and Borrower Signs Purchase Contract |
- MFA will price the notes and notify borrowers of the
interest rates obtained. Expected pricing: March 5, 2012 .
- After pricing, MFA will e-mail the purchase contract to the
borrower's primary and alternate contacts identified on the State Aid
Note Loan Program Application. An authorized officer must sign six
copies of the contract, and a signed copy must be faxed or
e-mailed to MFA no later than 2:00 p.m. on March 6, 2012 .
|
| 7. |
Local Counsel
Submits all Closing Documents and Borrower Receives Funds |
- MFA will e-mail form copies of all required documents to your
note counsel in advance of the closing date.
- Each borrower must coordinate with its note counsel and complete
six copies of all required closing documents and obtain the
appropriate signatures.
- Each note counsel must deliver all required documents to the
MFA SAN note counsel by 10:00 a.m., March 16, 2012 .
- Borrowers in both the tax-exempt and taxable pools will be
required to submit a completed Incumbency Certificate (the form of
which will be attached to the purchase contract) prior to the closing
date.
- Borrowers in the tax-exempt pool will be required to submit a
completed Requisition Certificate (the form of which will be attached
to the purchase contract) prior to closing in order to receive note
proceeds on the closing date.
- Borrowers in the taxable pool will be required to submit a
completed Requisition Certificate (the form of which will be attached
to the purchase contract) prior to closing to receive the entire note
proceeds on the closing date.
- The MFA trustee will wire note proceeds to the academies according
to the wire instructions provided by the borrower on the application.
|
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