Section R. 388.9 - Worksheet/draw request; compliance with paying agent guidelinesRule 9.
(1) A completed draw request shall include submission to the department of all of the following:(a) A cover transmittal letter.(b) A worksheet/draw request.(c) Copies of reconciled bank statements to support the debt fund balance reported on worksheet/draw request.(d) Any other documentation and information necessary to determine the amount of the disbursement.(2) If the state or the Michigan finance authority, or its successor, issues tax exempt bonds for purposes of funding qualified loans related to qualified bonds, as defined in the act, then school districts that receive proceeds of those tax exempt bonds shall use such proceeds towards the district's qualified debt service within 5 business days of receipt.(3) School districts participating in the school bond qualification and loan program must assist the department in complying with third party paying agent guidance as they may be called or amended. Those guidelines include, but are not limited to, the following: (a) Transferring funds to the paying agent not later than 5 business days prior to any payment due date.(b) Working with paying agents when a school district is notified by a paying agent that it has failed to transfer sufficient funds, which paying agents must do 4 business days prior to the debt service due date.(c) Agreeing that, 3 business days prior to the debt service due date, paying agents will notify the department that a school district has failed to transfer sufficient funds to it.(d) Allowing paying agents to work with delinquent school districts to ensure debt service payments are made by the due date, and to keep the department informed of the status of the payments.(e) Allowing paying agents to coordinate a loan from the state through the school loan revolving fund to ensure timely payment of debt service, if that school district does not timely transfer sufficient funds.Mich. Admin. Code R. 388.9