Current through Bulletin 2024-06, March 15, 2024
(1) The Charter
School Revolving Account Committee shall develop a loan application that is
consistent with Section 53F-9-203, including criteria for urgent facility
needs.
(2) The Charter School
Revolving Account Committee may request any criteria or information from an
applicant that the committee finds necessary and helpful in making final
recommendations to the State Charter School Board and the Board.
(3)
(a) The
Charter School Revolving Account Committee shall accept applications for loans
annually by April 30, subject to eligibility criteria and availability of
funds.
(b) If the Charter School
Revolving Account Committee does not distribute all available funds during its
initial application process, the committee may set deadlines to review
additional applications.
(4) To apply for a loan, a charter school
shall submit the information requested on the Board's most current loan
application form together with the requested supporting
documentation.
(5) A charter
school's application shall include a resolution from the governing board of the
charter school that the governing board, at a minimum:
(a) agrees to enter into the loan as provided
in the application materials;
(b)
agrees to the interest established by the Charter School Revolving Account
Committee and repayment schedule of the loan designated by the Charter School
Revolving Account Committee and the Board;
(c) agrees that loan funds shall only be used
consistent with the purposes of Section 53F-9-203 and the approved
charter;
(d) agrees to any and all
inspections, audits or financial reviews ordered by the Charter School
Revolving Account Committee or the Board; and
(e) agrees to all terms required for the loan
by the State Division of Finance, including:
(i) servicing by the State Division of
Finance;
(ii) payment of an annual
servicing fee;
(iii) agreement to
execute an electronic funds transfer agreement for monthly payments by the
school; and
(iv) in the case of
default, agreement to terms established by the State Division of Finance for
collection.
(6) The Charter School Revolving Account
Committee shall establish terms and conditions for loan repayment, consistent
with Section 53F-9-203. Terms shall include:
(7) The terms established under Subsection
(6) shall include a tiered schedule of loan fund distribution as follows:
(a) 50 percent (up to $150,000) disbursed no
more than 12 months prior to August 15 in the school's first year of
operations;
(b) 25 percent (up to
$75,000) disbursed no more than six months prior to August 15 in the school's
first year of operation;
(c) the
balance of loan funds disbursed no more than three months prior to August 15 in
the school's first year of operations.
(8) The loan amount to a charter school board
awarded under Section 53F-9-203 may not exceed:
(a) $1,000 per pupil based on the most recent
October 1 enrollment count for operational schools; or
(b) $1,000 per pupil based on approved
enrollment capacity of the first year of operation for pre-operational schools;
or
(c) $300,000 of the total of all
current loan awards by the Board to a charter school board.
