§ 16-1-109 — State loan and investment board loans; amount; interest; security; conditions

Wyoming § 16-1-109

• Jurisdiction: Wyoming
• Title 16: City, County, State and Local Powers
• Ch. 1: INTERGOVERNMENTAL COOPERATION
• Art. 1: IN GENERAL

Text

(a) Before April 1, 2023, the state loan and investment
board may negotiate and make loans to one (1) or more agencies,
the University of Wyoming, or joint powers boards presently
existing, permitted or created pursuant to the statutes, from
the permanent mineral trust funds and other permanent funds of
Wyoming not otherwise obligated, not to exceed sixty million
dollars ($60,000,000.00) including all loans previously made and
outstanding, and not to exceed a term of forty (40) years for
repayment. The board shall set rates of interest on all such
loans according to the current rates of interest for similar
securities on the commercial market upon a basis which will not
be less than the average rate of return realized on all
permanent mineral trust fund investments as determined by the
state treasurer for the five (5) calendar years immediately
preceding the year in which the loan is made. For all loans
under this section approved after July 1, 1996, a loan
origination fee of one percent (1%) of the loan shall be paid to
the state loan and investment board by the borrowing agency,
university or joint powers board. The revenue produced by this
fee shall be credited to the loss reserve account as provided by
W.S. 16-1-110. The state loan and investment board shall not
issue any new loan under this section on and after April 1,
2023.
(b) In making loans pursuant to this act, the state loan
and investment board shall establish requirements and standards
which it determines to be necessary and advisable.
(c) Upon approval of a loan, an agency, the university,
participating agencies, or a joint powers board shall transfer
title or its interest to the property upon which facilities are
to be constructed, including later improvements, to the state
loan and investment board, or the state loan and investment
board may require the security it deems necessary. The recipient
of the loan shall make reasonable annual rental charges or loan
payments as specified by the state loan and investment board.
Upon repayment of the loan, title to or interest in the property
and improvements shall be reconveyed to the appropriate agency,
university, participating agencies or joint powers board. Where
the transfer of title or interest in the property would preclude
the obtaining of federal grants or where transfer of title or
interest is prohibited by or would be in violation of existing
grant-in-aid agreements, the state loan and investment board may
waive the requirements of transfer of title or transfer of any
interest in the property, and substitute other security of
sufficient value as it deems necessary.
(d) Loans under this section shall be made only under the
following conditions:
(i) Loans shall be made only for facilities
generating user fees only to the extent that the user fees will
repay the loan such that the loan can be considered a reasonable
and prudent investment of state permanent funds. Any portion of
the revenue generating facility unable to be financed by user
fees may be financed by a grant under W.S. 9-4-604(g) and (h) to
agencies and joint powers boards otherwise authorized to receive
grants under those provisions;
(ii) No security other than a lien on the facilities
used to generate user fees to repay the loan and pledges of user
fees shall be taken to secure the loan except that the entity or
joint powers board receiving the loan may also be required to
issue revenue bonds to the state to evidence the loan if
statutory authority exists for the entity to issue revenue bonds
for the facility. No property shall be taken as security unless
the property is owned by the entity to which the loan will be
made. Upon repayment of the loan, liens against the property and
revenue shall be released by the state loan and investment
board;
(iii) Loans shall be made to the governmental entity
or entities whose inhabitants receive a direct service or
benefit from the revenue generating facility;
(iv) The state loan and investment board shall
receive annual financial statements from entities receiving
loans under this subsection;
(v) No loan shall be made without the written opinion
of the attorney general certifying the legality of the
transaction and all documents connected therewith;
(vi) The board shall request a review and
recommendation from the aeronautics commission on all
applications for loans for the construction, development and
improvement of airport facilities generating user fees and shall
make any loan recommended by the aeronautics commission unless,
based upon the credit worthiness of the project, the board
determines the loan would not be a prudent investment.
(e) The board, whenever it deems necessary for the better
protection of permanent funds of the state invested in loans
under this section, may refinance any delinquent loan and
reamortize the loan over not more than thirty (30) years from
the date of refinancing. All costs of refinancing the loan
shall be paid by the borrowing entity and no loan shall be
refinanced where it appears refinancing will jeopardize the
collection of the loan. An additional fee of one percent (1%)
of the amount of the reamortized loan shall be paid by the
borrowing entity to the board to be credited to the loss reserve
account created by W.S. 16-1-110 as provided by subsection (a)
of this section.