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School Bond Qualification & Loan

School Bond Qualification & Loan

The School Bond Qualification and Loan Program (SBQLP) was established by the Michigan Constitution of 1963 and subsequently amended by Public Act 92 of 2005 to provide a state credit enhancement and loan mechanism for school district bond issues. The State Treasurer must qualify the bonds, and the bond proceeds must be used for capital expenditure purposes.

Qualified bonds provide school districts with access to the state’s credit rating, which will usually result in a lower interest rate and cost and the ability to borrow for the principal and interest requirements of outstanding qualified bonds (subject to a minimum debt millage).