...The '##' rating on Lincoln Park School District, Mich.'s bonds reflects the district's eligibility for and participation in the Michigan State School Loan Bond Program. Section 16 of Article 9 of Michigan's constitution (adopted in 1963) 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 or issue state GO debt. As the fund is an obligation of the state, the guarantee program is rated on par with the state's own GO debt....
