§ 15.1-36-08 — School construction assistance revolving loan fund - Bank of North Dakota - School construction projects - Continuing appropriation

North Dakota § 15.1-36-08

• Jurisdiction: North Dakota
• Title 15.1: Elementary and Secondary Education
• Ch. 15.1-36: School Construction

Text

Dakota - School construction projects - Continuing appropriation.
1. The school construction assistance revolving loan fund is a special revolving loan fund
administered by the Bank. The fund consists of all moneys appropriated or transferred
to the fund by the legislative assembly, all interest or other earnings of the fund, and all
repayments of loans made from the fund.
2. Moneys in the fund, interest upon the moneys in the fund, and payments to the fund of
principal and interest are appropriated to the Bank on a continuing basis for the
purpose of providing low-interest school construction loans and for paying
administrative costs, in accordance with this section.
3. For a school construction project not located on an air force base, to be eligible for a
loan under this section, the board of a school district shall:
a. Propose a new construction or remodeling project with a cost of at least
one million dollars and an expected utilization of at least thirty years;
b. Obtain the approval of the superintendent of public instruction for the project
under section 15.1-36-01;
c. (1) Publish in the official newspaper of the district the information regarding the
proposed estimated additional millage and the dollar increase per
one thousand dollars of taxable valuation in accordance with section
21-03-13 along with the notice of the election in accordance with section
21-03-12 or along with the initial resolution in accordance with subsection 7
of section 21-03-07; and
(2) Post the information on the school district's website before the date of the
election or during the protest period in accordance with chapter 21-03;
d. Receive authorization for a bond issue in accordance with chapter 21-03; and
e. Submit a completed application to the Bank.
4. For a school construction project located on an air force base, to be eligible for a loan
under this section, the board of the school district shall:
a. Propose a new construction or remodeling project on an air force base which has
a cost of at least one million dollars and an expected utilization of at least thirty
years;
b. Obtain the approval of the superintendent of public instruction for the project
under section 15.1-36-01;
c. Obtain all necessary federal authorizations and funding commitments for the
project; and
d. Submit a completed application to the Bank.

5. The superintendent of public instruction shall review loan applications based on a
prioritization system that includes a review of all applications filed during the
twelve-month period preceding April first and gives consideration to:
a. Student occupancy and academic needs in the district;
b. The age of existing structures to be replaced or remodeled;
c. Building design proposals that are based on safety and vulnerability
assessments;
d. Community support;
e. Cost; and
f. Any other criteria established by the superintendent of public instruction, after
consultation with an interim committee appointed by the legislative management.
6. If the superintendent of public instruction approves the loan, the Bank shall issue a
loan from the school construction assistance revolving loan fund. For a loan made
under this section:
a. If the school construction project totals less than seventy-five million dollars, the
maximum loan amount for which a school district may qualify is ten million
dollars. However, if a school district's unobligated general fund balance on the
preceding June thirtieth exceeds the limitation under section 15.1-27-35.3, the
loan amount under this section may not exceed eighty percent of the project's
cost up to a maximum loan amount of eight million dollars;
b. If the school construction project totals seventy-five million dollars or more, the
maximum loan amount for which a school district may qualify is twenty million
dollars. However, if a school district's unobligated general fund balance on the
preceding June thirtieth exceeds the limitation under section 15.1-27-35.3, the
loan amount under this section may not exceed eighty percent of the project's
cost up to a maximum loan amount of sixteen million dollars;
c. If the school construction project is on an air force base, the maximum loan
amount for which the school district may qualify is the lesser of twenty percent of
the project cost or twenty million dollars;
d. The term of the loan is twenty years, unless the board of the school district
requests a shorter term in the written loan application; and
e. The interest rate of the loan may not exceed two percent per year.
f. A district with a school construction loan secured on the open bond market may
apply to refinance the loan when callable with the school construction assistance
revolving loan fund under this subsection.
7. The Bank may adopt policies and establish guidelines to administer this loan program
in accordance with this section. The Bank may use a portion of the interest paid on the
outstanding loans as a servicing fee to pay for administration costs which may not
exceed one-half of one percent of the amount of the interest payment. The Bank shall
deposit principal and interest payments made by school districts for loans under this
section in the school construction assistance revolving loan fund. The fund must be
audited annually pursuant to section 6-09-29, and the cost of the audit must be paid
from the fund.