The rating on Holt Public Schools, Mich.'s bonds reflects the additional security provided by the Michigan School Bond Loan Fund. Section 16 of Article 9 of the 1963 Michigan Constitution created the Michigan School Bond Loan Fund Program to provide districts access to funds to avoid a default on qualified debt. Under this program, if a school district fails to meet its debt service obligation for qualified debt, the state treasurer is notified. The treasurer pays the required debt service, and payment to bondholders is uninterrupted. If the balance in the state's loan fund is insufficient to cover obligations, the state is required to make loans from the general fund. Since the fund is an obligation of the state, the
