Mich. Admin. Code R 388.9 — Worksheet/draw request; compliance with paying agent guidelines

Rule 9. (1) A completed draw request shall include submission to the department of
all of the following:
(a) A cover transmittal letter.
(b) A worksheet/draw request.
(c) Copies of reconciled bank statements to support the debt fund balance reported
on worksheet/draw request.
(d) Any other documentation and information necessary to determine the amount of
the disbursement.
(2) If the state or the Michigan finance authority, or its successor, issues tax exempt
bonds for purposes of funding qualified loans related to qualified bonds, as defined in the
act, then school districts that receive proceeds of those tax exempt bonds shall use such
proceeds towards the district's qualified debt service within 5 business days of receipt.
(3) School districts participating in the school bond qualification and loan program
must assist the department in complying with third party paying agent guidance as they
may be called or amended. Those guidelines include, but are not limited to, the
following:
(a) Transferring funds to the paying agent not later than 5 business days prior to any
payment due date.
(b) Working with paying agents when a school district is notified by a paying agent
that it has failed to transfer sufficient funds, which paying agents must do 4 business days
prior to the debt service due date.
(c) Agreeing that, 3 business days prior to the debt service due date, paying agents
will notify the department that a school district has failed to transfer sufficient funds to it.
(d) Allowing paying agents to work with delinquent school districts to ensure debt
service payments are made by the due date, and to keep the department informed of the
status of the payments.
(e) Allowing paying agents to coordinate a loan from the state through the school
loan revolving fund to ensure timely payment of debt service, if that school district does
not timely transfer sufficient funds.