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Application and Loan Process 2016
Michigan Finance Authority (MFA)
Public School Academy State Aid Note Loan Program
Closing: August 22, 2016
1. Borrower Selects Note Counsel
The Bond Buyer’s Municipal Marketplace Directory (a.k.a. the Red Book”) must recognize a borrower’s note counsel. Contact the MFA for a listing of recognized note counsel, if necessary.
The MFA will only accept applications for participation in the State Aid Note pool from the borrower's note counsel. Public school academies should not submit the application directly to the MFA.
2. Borrower Completes Application and Cash Flow & Submits to Note Counsel
The PSA State Aid Note Program Application (Form 4039A) and the PSA State Aid Note Program Projected Cash Flow (Form 4046A) are available from the MFA website at www.michigan.gov/mfa.
3. Borrower's Board of Directors Adopts Borrowing Resolution
The borrowing resolution is available on the MFA website, www.michigan.gov/mfa,
4. Borrower Must Obtain Prior Approval or Pre-Qualification from Treasury, Local Government Financial Services (LGFS)
A borrower's note counsel may be of assistance with the prior approval application process for fiscal year 2016. A Qualifying letter or a copy of the prior approval application must be submitted with the State Aid Note Program Application.
Note: Local Government Financial Services (LGFS) previously known as Local Audit and Finance Division (LAFD)
5. Phase 1: Borrower’s Note Counsel Submits Required Documentation to MFA on or before June 10, 2016
- Completed PSA State Aid Note Program Application (Form 4039A) submitted electronically as a Word document (in addition to the signed copy)
- Qualification letter or proof of application (see #4)
- Educational Service Provider Agreement (management contract), if any
- Letter from the borrower's Authorizing Body stating there is a valid charter and there are no outstanding notices to revoke or requests for termination.
6. Phase 2: Borrower’s Note Counsel Submits Required Documentation to MFA on or before June 29, 2016
- Completed PSA State Aid Note Program Projected Cash Flow (Form 4046A) submitted electronically as an Excel spreadsheet
- Monthly Cash Flow for July 2016 through August 2017
- Weekly Cash Flow for the month from August 2016 through August 2017 with the greatest deficit from all borrowers
- General Fund Budgets
- Fiscal Year Ended 6/30/2016, as amended
- Fiscal Year Ended 6/30/2017, as adopted
- Authorizing resolution adopted by the Borrower's Board of Directors
7. MFA Prices Notes and Borrower Signs Purchase Contract
- MFA will price the notes and notify borrowers of the interest rates obtained (scheduled: July 25, 2016).
- After pricing, MFA will e-mail the purchase contract to the borrower’s primary and alternate contacts identified on the PSA SAN application:
- An authorized officer of the borrower must sign three (3) copies of the purchase contract.
- Fax or e-mail a signed copy of the purchase contract to MFA no later than 12:00 p.m. on July 28, 2016.
- Forward two (2) signed copies of the purchase contract to the Borrower's Note Counsel (keep one (1) signed original for its records).
8. Closing Documents Submission and Funding
- MFA will e-mail forms of all required documents to a borrower's 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, including all appropriate signatures.
- A borrower's note counsel must deliver all required, executed documents to the MFA's SAN Note Counsel by 10:00 a.m. August 5, 2016, including the following, which are required for fund disbursement:
- Completed Incumbency Certificate
- Completed Requisition Certificate
- On the closing date, August 22, 2016, the MFA's trustee will wire transfer a borrower's note proceeds according to the wire instructions provided by the borrower on the PSA SAN application.
Dates tentative and subject to change. Sync to calendar: iCal HTML
Updated: April 21, 2016
Michigan Finance AuthorityRichard H. Austin Building, 1st Floor
430 W. Allegan
Lansing, MI 48922 Phone: (517) 335-0994
Fax: (517) 241-9509