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Qualified Bonds

Qualified Bonds

Bonds qualified by the State Treasurer provide school districts with:

  • Access to the State's credit rating; which will usually result in a lower interest rate and cost.
  • Ability to borrow for the principal and interest requirements of outstanding qualified bonds (subject to a minimum debt millage).

Prior to applying for state qualification, a district should have conducted a thorough local level study regarding the district's facility needs and options for financing those needs.

SBQLP Frequently Asked Questions
SBQLP Administrative Rules 
Bond Qualification Process

Preliminary Qualification

A school district that seeks State qualification of its bond issue is required to file a preliminary qualification (PQ) application. The PQ application is the mechanism to seek preliminary qualification. Prior to completing the PQ application, a district should conduct a thorough study to determine facility needs and gauge the level of support that exists within the community.
 
Preliminary Qualification Application (Form 3881) 
Preliminary Qualification Instructions
Worksheet 1: Useful Life Calculation
Cost Per Square Foot Parameters Effective August 31, 2021

Elections

School district bond elections must be held in accordance with Public Act 166 of 1954 (MCL 408.551-408.558), more information can be obtained from the school district's legal counsel.
 
Ballot Requirements for State Qualified Bond Elections 

Final Qualification

If a majority of the district's citizens vote in favor of the proposition, the district applies for final qualification.
 
Final Qualification Application and Instructions (Form 3451) 
Qualification Fee Schedule

Issuing Bonds

Once an Order Qualifying Bonds is issued the district can proceed to sell the bonds to prospective investors.
 
Bond Structures with Variable Rate and Derivative Transactions
School Loan Revolving Fund