Mich. Admin. Code R 388.15 — Refunding bonds

Rule 15. (1) Bonds issued to refund qualified bonds or outstanding qualified loans
shall comply with the provisions of the act and the revised municipal finance act, 2001
PA 34, MCL 141.2101 to 141.2821.
(2) The term of the refunding bond shall be no longer than the term of the original
bond issue being refunded.
(3) Qualified bonds issued to refund outstanding qualified loans shall not be issued
for a term longer than the projected repayment term of the qualified loans as of the date
of the refunding.
(4) The department shall consider requests to issue qualified refunding bonds to
refund outstanding qualified loans, despite the school district’s current or prospective
computed millage equaling a level greater than the maximum levy permitted by law, and
despite the school district’s current inability to comply with its final mandatory
repayment date, so long as the issuance of the qualified refunding bonds will not further
extend the school district’s anticipated repayment date of its outstanding qualified loan
balance, will result in a savings, will improve the district’s projected qualified loan
repayment date, and otherwise complies with the act and these rules.