(1) The authority may lend money or participate in the lending of money to educational institutions for the acquisition, construction, or alteration of educational facilities. An educational loan for acquisition or alteration shall not be made unless the authority is reasonably satisfied that all of the following conditions exist:
  (a) There will be made available to the institution from the loan and other sources all the funds that may be required to complete and pay for the acquisition, construction, or alteration of educational facilities.

Terms Used In Michigan Laws 390.925

  • Authority: means the Michigan higher education facilities authority created by this act. See Michigan Laws 390.922
  • Educational facility: means a structure available for use as a dormitory or other housing facility, including housing facilities for students, a dining hall, student union, administration building, academic building, library, laboratory, research facility, classroom, athletic facility, health care facility, and maintenance, storage, or utility facility, and other structures or facilities related thereto or required or useful for the instruction of students or the conducting of research or the operation of an institution for higher education, including parking and other facilities or structures essential or convenient for the orderly conduct of the institution for higher education, and shall include lands and interests in lands and landscaping, site preparation, furniture, equipment, machinery, and other similar items necessary or convenient for the operation of a particular facility or structure in the manner for which its use is intended, and any improvements necessary to a particular facility to make the facility more energy efficient. See Michigan Laws 390.922
  • Educational loan: means a loan made by the authority to an institution. See Michigan Laws 390.922
  • institution: means a private or nonpublic, nonprofit educational institution within the state authorized by law to provide a program of education beyond the high school level. See Michigan Laws 390.922
  (b) The revenues and income generally available and to become available to the institution for allocation to repayment of the loan and interest on the loan when due will be sufficient for repayment.
  (c) The facility or alteration is needed, will not result in an unnecessary duplication of existing facilities, and has been well planned.
  (d) The facility or alteration is consistent with an orderly development and provision of educational services in the area.
  (e) The loan shall not exceed the cost of the acquisition, construction, or alteration of the educational facility and incidental costs related thereto and to the issuance of bonds by the authority to provide funds to make the loan.
  (2) The authority may lend money or participate in the lending of money to educational institutions as described in subsection (1) whether the loan is secured or unsecured, if the authority considers the action proper.
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