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