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Michigan State to issue bonds for $500M Nassar settlement

EAST LANSING, MI - The Michigan State University Board of Trustees on Friday unanimously approved a settlement agreement with survivors of ex-university doctor Larry Nassar and the issuance of $500 million in bonds to pay for it.

The university will issue bonds but then continue to work with more than a dozen insurers to recoup money that way, said MSU Interim President John Engler in an interview.

"That will be bonded and then that bond issue will be reduced as insurance proceeds come in," Engler said in an interview.

The university and attorneys for Nassar victims reached a settlement agreement in May.