Michigan Laws 380.503b – Agreement between public school academy and third party; obligation of state or authorizing party; debt
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(1) An agreement, mortgage, loan, or other instrument of indebtedness entered into by a public school academy and a third party does not constitute an obligation, either general, special, or moral, of this state or an authorizing body. The full faith and credit or the taxing power of this state or any agency of this state, or the full faith and credit of an authorizing body, may not be pledged for the payment of any public school academy bond, note, agreement, mortgage, loan, or other instrument of indebtedness.
(2) This part does not impose any liability on this state or on an authorizing body for any debt incurred by a public school academy.
Terms Used In Michigan Laws 380.503b
- Authorizing body: means any of the following that issues a contract as provided in this part:
(i) The board of a school district. See Michigan Laws 380.501Mortgage: The written agreement pledging property to a creditor as collateral for a loan. Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period. state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o