Mich. Admin. Code R 388.16 — Variable interest rate, interest rate exchange, swap, hedge, or

similar agreements.
Rule 16. (1) School districts using variable interest rate debt or entering into
interest rate exchanges, swaps, hedges or similar agreements shall do all of the
following:
(a) Maintain a minimum fund balance within any applicable Internal Revenue
Service regulations sufficient to limit borrowing from the school loan revolving fund
to the regularly scheduled May and November borrowings.
(b) Provide supplemental schedules with current estimates of debt service
payments projected for the upcoming year along with the submission of the annual
loan activity application.
(c) Provide written notification to the department if changes are made to the
indenture documents. If the department does not respond in writing within 30 days
after receipt of the notification, then the parties may proceed with the transaction.

Courtesy of Michigan Administrative Rules
(2) A school district may not borrow from the school loan revolving fund to pay a
termination payment or similar payment related to the termination or cancellation of an
interest rate exchange or swap, hedge, or other similar agreement entered into or
modified after July 20, 2005, pursuant to MCL 388.1923(3)(b).