Utah Admin. Code R277-480-4 - Charter School Revolving Account Application and Conditions
(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
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; and
(iii) agreement
to execute an electronic funds transfer agreement for monthly payments by the
school.
(6)
The Charter School Revolving Account Committee shall establish terms and
conditions for loan repayment, consistent with Section 53F-9-203.
(7) The terms established under Subsection
(6) shall include a tiered schedule of loan fund distribution as follows:
(a) 50% (up to $150,000) disbursed no more
than 12 months prior to August 15 in the school's first year of
operations;
(b) 25% (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.
(9) If a loan recipient defaults
on a loan made under this rule, the debt may be secured by funds contributed by
charter schools to the Charter School Closure Reserve Account under Section
53F-9-307 after the defaulting
school has made reasonable effort to resolve its debts and liquidate its assets
as required by law.
Notes
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