(1) (a) Any local school board may request that the state treasurer issue a certificate evidencing eligibility for the state's guaranty under this part. (b) After reviewing the request, if the state treasurer determines that the local school board is eligible, the state treasurer shall promptly issue the certificate and provide it to the requesting local school board. (c) (i) The local school board receiving the certificate and all other persons may rely on the certificate as evidencing eligibility for the guaranty for one year from and after the date of the certificate, without making further inquiry of the state treasurer during that year. (ii) The certificate of eligibility is valid for one year even if the state treasurer later determines that the local school board is ineligible. (2) Any local school board that chooses to forego the benefits of the guaranty provided by this part for a particular issue of bonds may do so by not referring to this part on the face of its bonds. (3) Any local school board that has bonds, the principal of or interest on which has been paid, in whole or in part, by the state under this part may not issue any additional bonds guaranteed by this act until: (a) all payment obligations of the local school board to the state under the default avoidance program are satisfied; and (b) the state treasurer and the state superintendent each certify in writing, to be kept on file by the state treasurer and the state superintendent, that the local school board is fiscally solvent. (4) Bonds not guaranteed by this part are not included in the definition of "bonds" in Section
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