53F-10-302. Capital development project loans.
| (1) |
The panel may recommend and the state board may distribute capital project funding for a loan to an eligible school district to provide the required match amount described in Section 53F-10-301 for a capital development project that the panel has prioritized:
Terms Used In Utah Code 53F-10-302- 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
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- 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
| (a) |
at an interest rate that the state treasurer establishes that is equal to the state’s most recent general obligation bond rate; or |
| (b) |
at no interest for a school district:
| (i) |
with a per-household property tax that is higher than 125% of the statewide average of property tax as a percentage of household income, based on the data sets described in Subsection 53F-10-302(1)(b); and |
| (ii) |
that has incurred debt equal to 90% of the debt limit imposed by Utah Constitution, Article XIV, Section 4. |
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| (2) |
The panel shall determine the repayment terms of a loan described in Subsection (1), subject to state board approval, based on established standards. |
| (3) |
Repayment of a loan described in Subsection (1) and associated interest shall be deposited into the Small School District Capital Projects Fund. |
| (4) |
An LEA that receives loan funding under this section shall demonstrate the ability to provide sufficient ongoing funding to support the operation and maintenance of the new or renovated facility resulting from the capital development project based on standards that the panel establishes. |
Enacted by Chapter 407, 2022 General Session
