Subject to this section, restrictions imposed by bond covenants, restrictions in Section 53-2a-605, or other controlling regulations, the board of trustees of a special district may authorize an interfund loan from one fund to another.
Terms Used In Utah Code 17B-1-626
Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Bond: means :
(a)
a written obligation to repay borrowed money, whether denominated a bond, note, warrant, certificate of indebtedness, or otherwise; and
(b)
a lease agreement, installment purchase agreement, or other agreement that:
(i)
includes an obligation by the district to pay money; and
Budget: means a plan of financial operations for a fiscal year which embodies estimates of proposed expenditures for given purposes and the proposed means of financing them, and may refer to the budget of a particular fund for which a budget is required by law or it may refer collectively to the budgets for all such funds. See Utah Code 17B-1-601
Fiscal year: means the annual period for accounting for fiscal operations in each district. See Utah Code 17B-1-601
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Fund: has the meaning given under generally accepted accounting principles as reflected in the Uniform Accounting Manual for Special Districts. See Utah Code 17B-1-601
General fund: is a s defined by the Governmental Accounting Standards Board as reflected in the Uniform Accounting Manual for All Local Governments prepared by the Office of the Utah State Auditor. See Utah Code 17B-1-601
Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
Interfund loan: means a loan of cash from one fund to another, subject to future repayment. See Utah Code 17B-1-601
Public funds: means any money or payment collected or received by an officer or employee of a special district acting in an official capacity and includes money or payment to the officer or employee for services or goods provided by the district, or the officer or employee while acting within the scope of employment or duty. See Utah Code 17B-1-601
Special district: means a limited purpose local government entity, as described in Section 17B-1-103, that operates under, is subject to, and has the powers described in:
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
An interfund loan under Subsection (1) shall be in writing and specify the terms and conditions of the loan, including the:
(a)
effective date of the loan;
(b)
name of the fund loaning the money;
(c)
name of the fund receiving the money;
(d)
amount of the loan;
(e)
subject to Subsection (3), term of and repayment schedule for the loan;
(f)
subject to Subsection (4), interest rate of the loan;
(g)
method of calculating interest applicable to the loan;
(h)
procedures for:
(i)
applying interest to the loan; and
(ii)
paying interest on the loan; and
(i)
other terms and conditions the board of trustees determines applicable.
(3)
The term and repayment schedule specified under Subsection (2)(e) may not exceed 10 years.
(4)
(a)
In determining the interest rate of the loan specified under Subsection (2)(f), the board of trustees shall apply an interest rate that reflects the rate of potential gain had the funds been deposited or invested in a comparable investment.
(b)
Notwithstanding Subsection (4)(a), the interest rate of the loan specified under Subsection (2)(f):
(i)
if the term of the loan under Subsection (2)(e) is one year or less, may not be less than the rate offered by the Public Treasurers’ Investment Fund that was created for public funds transferred to the state treasurer in accordance with Section 51-7-5; or
(ii)
if the term of the loan under Subsection (2)(e) is more than one year, may not be less than the greater of the rate offered by:
(A)
the Public Treasurers’ Investment Fund that was created for public funds transferred to the state treasurer in accordance with Section 51-7-5; or
(B)
a United States Treasury note of a comparable term.
(5)
(a)
For an interfund loan under Subsection (1), the board of trustees shall:
(i)
hold a public hearing;
(ii)
prepare a written notice of the date, time, place, and purpose of the hearing, and the proposed terms and conditions of the interfund loan under Subsection (2);
(iii)
provide notice of the public hearing in the same manner as required under Section 17B-1-609 as if the hearing were a budget hearing; and
(iv)
authorize the interfund loan by resolution in a public meeting.
(b)
The notice and hearing requirements in Subsection (5)(a) are satisfied if the interfund loan is included in an original budget or in a subsequent budget amendment previously approved by the board of trustees for the current fiscal year.
(6)
Subsections (2) through (5) do not apply to an interfund loan if the interfund loan is:
(a)
a loan from the special district general fund to any other fund of the special district; or
(b)
a short-term advance from the special district’s cash and investment pool to individual funds that are repaid by the end of the fiscal year.
