Mich. Comp. Laws § 259.125a: Interest rate exchange or agreement.

Sec. 125a.

For the purpose of more effectively managing its debt service, an authority may enter into an interest rate exchange or swap, hedge, or similar agreement or agreements in connection with the issuance or proposed issuance of obligations or other evidences of indebtedness or in connection with its then outstanding obligations or other evidences of indebtedness.

In connection with entering into an interest rate exchange or swap, hedge, or similar agreement, the authority may create a reserve fund for the payment thereof.

An agreement entered into pursuant to this section shall comply with all of the following:

The agreement is not a debt of the authority entering into the agreement for any statutory or charter debt limitation purpose.

The agreement is payable from general funds of the authority or, subject to any existing contracts, from any available money or revenue sources, including revenues that shall be specified by the agreement, securing the obligation or evidence of indebtedness in connection with the agreement.