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MFA Credit Criteria
Bonds or Notes issued by the Michigan Finance Authority should meet one of
the following criteria:
- Rating provided by a Nationally Recognized Agency; or
- Offering Document that contains full borrower disclosure; or
- Letter of credit, bond insurance, or guarantee from an organization with
an Investment Grade Rating provided by a Nationally Recognized Agency; or
- If 1, 2, or 3 above are not met, then bonds or notes may be privately
placed with Qualified Institutional Buyers, in minimum denominations of
$100,000, which provide an Investor Letter
Definitions
Nationally Recognized Agency
Fitch Ratings, Standard & Poor's Ratings Services, or Moody's Investors
Service
Qualified Institutional Buyers
As defined in Rule 144A promulgated by the Securities Exchange Commission
under the Securities Act of 1933
Investor Letter
A letter signed by each Qualified Institutional Buyer acknowledging the risks
associated with the securities being purchased and a representation of its
financial ability to take such risks, its access to information on the
securities and its intent to hold the securities for investment purposes. The
letter must state that the Qualified Institutional Buyers have not relied on
information provided by the Michigan Finance Authority.
The Michigan Finance Authority reserves the right to grant exceptions to the
foregoing upon its sole determination.
Adopted: June 17, 2010
Austin Building, 1st Floor
430 W. Allegan
Lansing, MI 48922
Phone: (517) 335-0994
Fax: (517) 241-9509
www.michigan.gov/mfa
TreasMFA@michigan.gov
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