Mich. Const. art. IX, § 16

Stateloanstoschooldistricts. Sec.16.Thestate,inadditiontoanyotherborrowingpower,mayborrowfromtimetotime such amounts as shall be required, pledge its faith and credit and issue its notes or bonds therefor,forthepurposeofmakingloanstoschooldistrictsasprovidedinthissection. Amountofloans. Iftheminimumamountwhichwouldotherwisebenecessaryforaschooldistricttolevyin anyyeartopayprincipalandinterestonitsqualifiedbonds,includinganynecessaryallowances for estimated tax delinquencies, exceeds 13 mills on each dollar of its assessed valuation as finally equalized, or such lower millage as the legislature may prescribe, then the school districtmayelecttoborrowalloranypartoftheexcessfromthestate.Inthateventthestate shalllendtheexcessamounttotheschooldistrictforthepaymentofprincipalandinterest.If for any reason any school district will be or is unable to pay the principal and interest on its qualifiedbondswhendue,thentheschooldistrictshallborrowandthestateshalllendtoitan amountsufficienttoenabletheschooldistricttomakethepayment. Qualifiedbonds. The term “qualified bonds” means general obligation bonds of school districts issued for capitalexpenditures,includingrefundingbonds,issuedpriortoMay4,1955,orissuedthereafter and qualified as provided by law pursuant to Section 27 or Section 28 of Article X of the Constitutionof1908orpursuanttothissection. Repaymentofloans,taxlevybyschooldistrict. After a school district has received loans from the state, each year thereafter it shall levy fordebtservice,exclusiveofleviesfornonqualifiedbonds,notlessthan13millsorsuchlower 43 FINANCE AND TAXATION Art.IX,§19 millageasthelegislaturemayprescribe,untiltheamountloanedhasbeenrepaid,andanytax collectionstherefrominanyyearoverandabovetheminimumrequirementsforprincipaland interest on qualified bonds shall be used toward the repayment of state loans. In any year whensuchlevywouldproduceanamountinexcessoftherequirementsandtheamountdueto thestate,thelevymaybereducedbytheamountoftheexcess. Bonds,stateloans,repayment lageasthelegislaturemayprescribe,untiltheamountloanedhasbeenrepaid,andanytax collectionstherefrominanyyearoverandabovetheminimumrequirementsforprincipaland interest on qualified bonds shall be used toward the repayment of state loans. In any year whensuchlevywouldproduceanamountinexcessoftherequirementsandtheamountdueto thestate,thelevymaybereducedbytheamountoftheexcess. Bonds,stateloans,repayment. Subjecttotheforegoingprovisions,thelegislatureshallhavethepowertoprescribeandto limit the procedure, terms and conditions for the qualification of bonds, for obtaining and makingstateloans,andfortherepaymentofloans. Powertotaxunlimited. Thepowertotaxforthepaymentofprincipalandinterestonbondshereafterissuedwhich arethegeneralobligationsofanyschooldistrict,includingrefundingbonds,andforrepayment ofanystateloansmadetoschooldistricts,shallbewithoutlimitationastorateoramount. Rightsandobligationstoremainunimpaired. All rights acquired under Sections 27 and 28 of Article X of the Constitution of 1908, by holders of bonds heretofore issued, and all obligations assumed by the state or any school districtunderthesesections,shallremainunimpaired. History: Const.1963,Art.IX,§16,Eff.Jan.1,1964. FormerConstitution: SeeConst.1908,Art.X,§§27,28.