(a) The term “eligible institution” as used in this section shall mean any public or private college or university in Alabama, including any state-related college or university, that meets all of the following criteria:

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Terms Used In Alabama Code 16-65A-2

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Contract: A legal written agreement that becomes binding when signed.
  • following: means next after. See Alabama Code 1-1-1
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
(1) Has been operating for more than 50 years in Alabama.
(2) Has a significant impact on the community in which it is located.
(3) Is experiencing financial hardship which could lead to closure of the institution.
(4) Whose governing body has adopted a resolution authorizing the application for a loan from this program to maintain operations as it replenishes its endowment through private gifts.
(5) Has assets sufficient to pledge as collateral.
(b) An eligible institution seeking a loan from this program shall make application on forms prescribed by the State Treasurer. The institution shall certify that it meets all criteria provided by this section.
(c) The State Treasurer shall review all applications for loans and shall make a careful and thorough investigation of the ability of each applicant to repay a loan under the program. Any institution applying for a loan shall provide any information requested by the State Treasurer relevant to the determination of ability to repay.
(d) The State Treasure is authorized to establish the terms and conditions of any loan made pursuant to this program, including: the amount of private funds committed prior to loan funds being drawn; the rate of interest, if any; the timing and amounts and timing of disbursements; the terms of repayment; and any necessary collateral.
(e) The State Treasurer may, in his or her judgment, award a loan to any eligible institution that meets the requirements provided in this section and shall be responsible for the administration of the loan, subject to the provisions of this section.
(f) As a condition of approval by the State Treasurer of a loan under the program, each applicant shall enter into a written contract with the State Treasurer. Breach of contract by the recipient shall make the recipient immediately liable for the unpaid balance of the loan.
(g) The State Treasurer shall forward copies of executed loan contracts to the Chairs of the Senate Finance and Taxation-Education Committee and the House Ways and Means-Education Committee, the Finance Director, and Legislative Fiscal Officer.
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