Section 071-61-12 - BONDING OF MAJOR CAPITAL SCHOOL CONSTRUCTION PROJECTSBonds for Major Capital School Construction projects shall be sold after favorable local referendum vote on a schedule approved by the State Board that accommodates the approved debt service limit as established by the Legislature.
1. The Commissioner shall be guided by the following table in determining the length of school construction bonding issues:A. Bond issues of $2,500,000 and under - 15 yearsB. Bond issues in excess of $2,500,000 - 20 years2. Sale of Bonds A. The sale of bonds shall be consistent with Section 12 of this Chapter and bonds shall be sold by the bond sale date specified in the Certificate of Final Funding Approval issued by the Commissioner.B. Proceeds of the bond sale shall be used immediately or at the earliest possible date, whichever is in the best interest of the project, to pay principal and interest costs due to temporary borrowing or BAN.3. The Certificate of Final Funding Approval issued by the Commissioner shall specify the length of the bonding period.4. Bonds may be sold only in accordance with the dates specified in the Certificate of Final Funding Approval issued by the Commissioner. All notices of bond sale must contain the following stipulations:A. Bidders must state the rate or rates of interest per annum that the several maturities of the bonds are to bear.B. The principal pay down of the respective loan shall be structured in a manner that the principal repayments are level to the extent that such structure complies with industry standards. The number of principal payments shall not exceed twenty (20).C. Bonds sold during the fall (Fall Sale) of the first half of the fiscal year beginning July through December (i.e., last six calendar months) have respective first interest payments in the second half of the fiscal period from January through June (i.e., first six calendar months of the next calendar year), with principal and interest payments to commence in the following fiscal year's first half (i.e., the last six calendar months of the next year), and with subsequent interest and principal payments to follow each six months and twelve months respectively, until bonds mature. Note - Example of Fall Sale: bonds are sold in November 2014 - first State debt service payment will be interest only occurring in May 2015 (six months after the sale of bonds), second State debt service payment will be interest plus principal occurring in November 2015 (twelve months after the sale of bonds), with payments of interest occurring each May and principal and interest occurring each November thereafter until bonds mature;
D. Bonds sold during the spring (Spring Sale) of the second half of the fiscal year beginning January through June (i.e., first six calendar months), have respective first interest payments in the first half of the following fiscal period from July through December (i.e., second six calendar months of that calendar year), with the following interest payment to be made in the subsequent second half of the fiscal year from January through June (i.e., the first six calendar months of the following calendar year), with principal and interest payments to commence in the following fiscal year's first half from July through December (i.e., the last six calendar months of the following calendar year), and with subsequent interest and principal payments to follow each six months and twelve months respectively, until bonds mature. Note - Example of Spring Sale: bonds are sold in May 2014- first State debt service payment will be interest only occurring in November 2014 (six months after the sale of bonds), second State debt service payment will be interest only occurring in May 2015 (twelve months after the sale of bonds), and third State debt service payment will be interest plus principal occurring November 2015 (eighteen months after the sale of bonds) with payments of interest occurring each May and principal and interest occurring each November thereafter until bonds mature.
05-071 C.M.R. ch. 61, § 12