§ 16-1-111 — Loans to political subdivisions; requirements; limitations; rulemaking

Wyoming § 16-1-111

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

Text

(a) The state loan and investment board may negotiate and
make loans from the permanent Wyoming mineral trust fund to
political subdivisions of this state as provided in this
section. The aggregate sum of all outstanding loans made under
this section shall not exceed one hundred seventy-five million
dollars ($175,000,000.00). Loans may be made for infrastructure
projects and street and road projects as provided in this
section. The board shall adopt rules and procedures as it deems
advisable or necessary to administer the program. The rules
shall include requirements and standards which the board
determines to be necessary or advisable in accordance with the
following:
(i) To qualify for a loan an applicant shall
demonstrate:
(A) A commitment to adequately maintain the
project for which the loan is requested during a reasonable
period of time;
(B) That all project costs will be funded at the
time of receipt of the loan, with funding sources specified
within the project application;
(C) Compliance with any other criteria developed
by the board consistent with this section.
(ii) The determination of whether to make a loan
shall include consideration of:
(A) The contribution of the project to health,
safety and welfare;
(B) The applicant's need for the project and
financial needs of the applicant in relation to the project;
(C) The ability of the applicant to repay the
loan.
(b) Loans may be made to cities, towns, counties, special
districts specifically involved in providing facilities or
functions enumerated in W.S. 16-1-104(c), school districts and
community college districts for infrastructure projects and to
airport boards and joint powers boards for projects for the
construction, development and improvement of airport facilities
generating user fees. A loan under this subsection shall be at
an interest rate equal to the yield on a United States treasury
security of the same duration of the loan. The board may add an
additional percentage not to exceed two percent (2%) as a risk
premium to the interest rate established under this subsection.
The rate of interest for all loans issued under this subsection
shall not be less than three percent (3%). In the event of
prepayment of a loan, the interest rate shall be calculated at
the actual loan period, but no refund of interest payment shall
be made to the borrowing entity. Any loan made under this
subsection shall be for a term of not fewer than five (5) years
and not greater than twenty-five (25) years for repayment.
Adequate security for loans shall be required and may include:
(i) A pledge of the revenues from the project for
which the loan was granted;
(ii) A pledge of other revenues available to the
entity receiving the loan;
(iii) A mortgage covering all or any part of the
project or by a pledge of the lease of the project;
(iv) Any other security device or requirement deemed
advantageous or necessary by the board.
(c) Loans may be made to cities, towns and counties for
road or street projects. To qualify for a road or street
project loan, in addition to the requirements of subsections (a)
and (b) of this section, an applicant shall demonstrate that all
related infrastructure including water and sewer is or will be
in place at the time of receipt of the loan. No loan shall be
provided under this subsection to any city, town or county that
has any outstanding or unpaid loan under this subsection. Any
loan under this subsection shall be at an interest rate equal to
the yield on a United States treasury security of the same
duration of the loan. The board may add an additional percentage
not to exceed two percent (2%) as a risk premium to the interest
rate established under this subsection. The rate of interest for
all loans issued under this subsection shall not be less than
three percent (3%). In the event of prepayment of a loan, the
interest rate shall be calculated at the actual loan period, but
no refund of interest payment shall be made to the borrowing
entity. Any loan made under this subsection shall be for a term
of not fewer than five (5) years and not greater than twenty-
five (25) years for repayment.
(i) Repealed by Laws 2023, ch. 135, § 2.
(ii) Repealed by Laws 2023, ch. 135, § 2.
(iii) Repealed by Laws 2023, ch. 135, § 2.
(d) Loans may be made to irrigation or water conservancy
districts for replacement or major maintenance projects of
storage, diversion, transmission, and distribution systems. A
loan under this subsection shall be at an interest rate equal to
yield of a United States treasury security of the same duration
of the loan. The board may add an additional percentage not to
exceed two percent (2%) as a risk premium to the interest rate
established under this subsection. The rate of interest for all
loans issued under this subsection shall not be less than three
percent (3%). In the event of prepayment of a loan, the interest
rate shall be calculated at the actual loan period, but no
refund of interest payment shall be made to the borrowing
entity. Any loan made under this subsection shall be for a term
of not fewer than five (5) years and not greater than twenty-
five (25) years for repayment. The board shall require an
irrigation or a water conservancy district to apply for other
grant or loan programs prior to authorizing a loan under this
subsection. Adequate security for loans shall be required and
may include:
(i) A pledge of the revenues from the project for
which the loan was granted;
(ii) A pledge of other revenues available to the
irrigation or water conservancy district receiving the loan;
(iii) A mortgage covering all or any part of the
project or by a pledge of the lease of the project;
(iv) Any other security device or requirement deemed
advantageous or necessary by the board.
(e) No loan shall be made without the written opinion of
the attorney general certifying the legality of the transaction
and all documents connected therewith. An election approving
the project and borrowing for the project by the qualified
electors of the borrowing entity shall be required only if the
attorney general determines such an election is otherwise
required by law.
(f) There is created a loss reserve account for loans made
under this section. A loan origination fee of one-half of one
percent (0.5%) of the loan shall be paid by the loan applicant
and deposited to the loss reserve account for any loan approved
under this section. If, as a result of default in the payment of
any loan made under this section, there occurs a nonrecoverable
loss either to the corpus of, or interest due to the permanent
Wyoming mineral trust fund, the board shall restore the loss to
the permanent fund using any funds available in the loss reserve
account. If the funds in the loss reserve account are
insufficient to restore the full amount of the loss, the board
shall submit a detailed report of the loss to the legislature
and shall request an appropriation to restore the balance of the
loss to the permanent fund.
(g) As used in this section:
(i) "Board" means the state loan and investment board
to include the office of state lands and investments;
(ii) "Infrastructure project" means a capital
construction project which may lawfully be undertaken within the
powers of the political subdivision authorized to receive a loan
under this section;
(iii) "Road or street project" means the
construction, maintenance or improvement of a public street,
road or alley within a city, town or county.