53F-9-206. School Building Revolving Account — Access to the account.
(1) |
Terms Used In Utah Code 53F-9-206- 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
- 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) |
There is created within the Uniform School Fund a restricted account known as the “School Building Revolving Account” to provide short-term help to school districts to meet district needs for school building construction and renovation. |
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(2) |
The state board may not allocate funds from the School Building Revolving Account that exceed a school district’s bonding limit minus its outstanding bonds. |
(3) |
In order to receive money from the School Building Revolving Account, a school district shall:
(a) |
levy a combined capital levy rate of at least .0024; |
(b) |
contract with the state superintendent to repay the money, with interest at a rate established by the state superintendent, within five years of receipt, using future state capital outlay allocations, local revenues, or both; |
(c) |
levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan repayments, unless the state superintendent alters the payment schedule to improve a hardship situation; and |
(d) |
meet any other condition established by the state board pertinent to the loan. |
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(4) |
(a) |
The state superintendent shall establish a committee, including representatives from state and local education entities, to:
(i) |
review requests by school districts for loans under this section; and |
(ii) |
make recommendations regarding approval or disapproval of the loan applications to the state superintendent. |
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(b) |
If the committee recommends approval of a loan application under Subsection (4)(a)(ii), the committee’s recommendation shall include:
(i) |
the recommended amount of the loan; |
(ii) |
the payback schedule; and |
(iii) |
the interest rate to be charged. |
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Amended by Chapter 186, 2019 General Session