MI SB1385

Authorizes the state administrative board to borrow funds on the state's full faith and credit to make loans to school districts for principal and interest payments on school bonds.

Allows the board to issue school loan bonds, notes, or commercial paper in series as needed, with terms including maturity dates, interest rates, and redemption provisions determined by board resolution.

Directs proceeds from bond sales to be deposited in the school loan revolving fund established under the shared credit rating act, 1985 PA 227, MCL 141.1066c, for making loans to school districts.

Permits the state treasurer to assign repayments on loans previously made from the school bond loan fund before July 20, 2005, and to accept assignment of loans or repayments made from the school loan revolving fund by the Michigan municipal bond authority.

Authorizes the state administrative board to pay issuance costs from bond proceeds, including placement fees, insurance fees, letters of credit, and purchase agreements to secure timely payment.