§ 21-18-319 — Student dormitory capital construction loans; rulemaking; requirements; reporting; definition

Wyoming § 21-18-319

• Jurisdiction: Wyoming
• Title 21: Education
• Ch. 18: COMMUNITY COLLEGES
• Art. 3: COMMUNITY COLLEGE DISTRICTS

Text

(a) Before April 1, 2023, the state loan and investment
board may negotiate and make loans from the permanent Wyoming
mineral trust fund to community college districts for capital
construction of student dormitories, including the purchase of
land, buildings, facilities and necessary rights-of-way. The
aggregate sum of all outstanding loans made under this section
shall not exceed sixty million dollars ($60,000,000.00). The
board shall adopt rules as it deems advisable or necessary to
administer the loans authorized in this section. 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 authorized in this section, the board
shall establish in rule the requirements and standards which it
determines to be advisable or necessary and in accordance with
the following:
(i) To qualify for a loan a community college
district shall demonstrate in its application:
(A) A commitment to adequately maintain the
student dormitory for which the loan is requested for the full
term of the loan or for the period in which there remains an
outstanding loan balance;
(B) That all costs for the construction of the
student dormitory will be funded at the time of receipt of the
loan, with funding sources specified in the application.
(ii) The determination of whether to make a loan
shall include consideration of:
(A) The community college district's need for
the student dormitory and the financial needs of the community
college district in relation to the student dormitory;
(B) The ability of the community college
district to repay the loan.
(iii) Any community college district with a
significant demonstrated need to increase student dormitory
capacity on campus shall be granted first priority for loans;
(iv) Loans shall be at an interest rate of one
percent (1%) plus seventy-five thousandths of one percent
(.075%) for each year of the loan term in excess of five (5)
years;
(v) Loans shall be for an initial term of not fewer
than five (5) years and not greater than twenty-five (25) years
for repayment;
(vi) Adequate security for loans shall be required
and may include:
(A) A pledge of the revenues from the student
dormitory for which the loan was granted;
(B) A pledge of other revenues available to the
community college district receiving the loan;
(C) Any other security device or requirement
deemed advantageous or necessary by the board.
(vii) Annual financial statements shall be required
from any community college district receiving a loan. In
addition, the expenditures and progress of the project related
to the loan shall be reported to the board at least annually or
more frequently if deemed advisable by the board. At the end of
the term of the loan, the community college district shall
provide to the board a comprehensive report that shall, at
minimum, include a financial review and a list of the
accomplishments as a result of the loan;
(viii) 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
by the qualified electors of the community college district
approving the construction of student dormitories and borrowing
of funds under this section shall be required only if the
attorney general determines an election is otherwise required by
law;
(ix) A loan origination fee of one-half of one
percent (0.5%) of the loan amount shall be paid by the community
college district to the board to be credited to a loss reserve
account, which is hereby created:
(A) Revenues received by the board for deposit
in the loss reserve account shall be transmitted to the state
treasurer for deposit to the account;
(B) Funds in the loss reserve account shall be
used to pay the administrative and legal expenses of the board
in making collections and foreclosing on loans made pursuant to
this section;
(C) 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 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 Wyoming mineral trust fund.
(x) The board, whenever it deems necessary for the
better protection of the permanent Wyoming mineral trust fund,
may refinance any delinquent loan made under this section and
reamortize the loan over not more than twenty-five (25) years
from the date of refinancing. All costs of refinancing the loan
shall be paid by the community college district that is
delinquent on the original loan and no loan shall be refinanced
where it appears refinancing will jeopardize the collection of
the loan. A fee of one-half of one percent (0.5%) of the
refinanced loan amount shall be paid by the community college
district to the board to be credited to a loss reserve account
created by paragraph (ix) of this subsection. The rate of
interest for any refinanced loan shall be at the same rate
specified under paragraph (iv) of this subsection.
(c) Loans to a community college district under this
section shall not be used for any other infrastructure need of
the community college district that is not directly associated
with the development and construction of student dormitories.
(d) On or before June 30 of each year, the board shall
report information on the administration of loans made pursuant
to this section to the joint appropriations committee, the joint
minerals, business and economic development interim committee
and the joint education interim committee. The report shall
include a list of all loan requests made in the previous twelve
(12) months, the amount approved by project, expenditures by
project and the progress of each project as of the date of the
report, including outstanding loan amounts, repayment schedules
and any delinquencies.
(e) As used in this section:
(i) "Board" means the state loan and investment board
and includes assistance provided by the office of state lands
and investments;
(ii) "Capital construction" includes new
construction, demolition, renovation or capital renewal.