Section 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.Utah Admin. Code R277-480-4
Amended by Utah State Bulletin Number 2019-15, effective 7/2/2019Amended by Utah State Bulletin Number 2024-14, effective 7/9/2024