§ 9-4-1003 — Supplemental coverage program for university revenue bonds

Wyoming § 9-4-1003

• Jurisdiction: Wyoming
• Title 09: Administration of the Government
• Ch. 4: PUBLIC FUNDS
• Art. 10: GUARANTEE PROGRAMS FOR BONDS

Text

(a) The state loan and investment board shall administer a
university revenue bond supplemental coverage program in
accordance with this section and may promulgate rules to
implement it. This program applies to bonds issued by the
University of Wyoming under W.S. 21-17-402 through 21-17-450.
The program is intended to benefit the university by providing
supplemental coverage for payment of bonded indebtedness of the
university thereby reducing the interest rate at which the bonds
may be issued.
(b) If the university seeks supplemental coverage for its
revenue bonds under this program, the university shall apply to
the board on forms prescribed by the board following legislative
authorization of the university to issue revenue bonds. In no
case shall the board approve supplemental coverage for bonds if
the sale of the bonds would reduce the ratio of university
pledged revenue that is available for debt servicing to the cost
of interest and principal payments to a level of less than one
(1) to one (1). The board shall review the application and
determine whether to approve the application based upon:
(i) Whether supplemental coverage under this section
would likely result in reduced costs;
(ii) Any other factor relevant to the issue and
supplemental coverage for payment of the bonds which are the
subject of the application.
(c) The board may determine to provide supplemental
coverage for revenue bonds under this section and may impose
terms, conditions and limits on that supplemental coverage as it
finds, in its discretion, are necessary to protect state funds
and ensure the viability of the program. In addition, the board
may provide supplemental coverage for refunding of revenue bonds
issued on or before November 1, 2015, provided the refunding is
not combined with any bonds issued after November 1, 2015. A
decision by the board not to approve supplemental coverage for
revenue bonds under this section is not subject to judicial
review under the Wyoming Administrative Procedure Act.
(d) As a condition of participating in the supplemental
coverage program under this section, the university shall enter
into agreements necessary to provide that:
(i) The state of Wyoming, through the state
treasurer, shall assume responsibility for and make all payments
to the university's paying agent in the amount necessary to pay
principal and interest on the bonds subject to the supplemental
coverage;
(ii) The university shall deposit funds with the
state by a certain date and in a sufficient amount so that the
state can make the entire principal and interest payment to the
university's paying agent in a timely manner;
(iii) If the university fails to comply with
paragraph (ii) of this subsection:
(A) The state shall make the full payment due
from federal mineral royalties as provided by W.S.
9-4-601(d)(vii) for this purpose;
(B) To the extent that the university has not
deposited sufficient funds with the state to comply with
paragraph (ii) of this subsection, the state is deemed to have
loaned and the university is deemed to have borrowed those funds
subject to the following terms and conditions:
(I) The loan shall bear interest at a rate
equal to the average interest earned on pooled investments of
state funds in the four (4) calendar quarters preceding the
quarter in which the loan occurred;
(II) The loan, including principal and
interest, shall be repaid from revenues from the university's
general fund that are neither state appropriations to the
university nor pledged revenues under W.S. 21-17-404(a)(xiv)(A).
The loan is not deemed to be a general obligation of the
university, and the state shall not require repayment from any
source other than as provided in this subdivision;
(III) The university may make additional
payments on the loan.
(C) The state loan and investment board may
require the university to modify its fiscal practices and its
general operations if the board determines that there is a
substantial likelihood that the university will not be able to
make future payments required under paragraph (ii) of this
subsection.