20-9-467. State loan -- limitation on state loan authority -- priority of loan allocation -- application. (1) The allocation of the state's loan authority for bonds issued pursuant to 20-9-466 is intended only to enable a school district to issue bonds pending resolution of the financing of capital outlay.
     (2) Except as provided in subsection (5), the total principal amount of school district bonds that may be secured by loans under 20-9-466 may not exceed $25 million and must be allocated to qualifying school districts on a first-come, first-serve basis in order of issuance of final certificates of allocation by the department of administration.
     (3) An individual school district may not issue bonds secured by a state loan with a principal amount in excess of $6 million.
     (4) If more than one school district qualifies for a state loan and an insufficient amount of state loan authority remains, the board of public education shall allocate the state loan authority to the district with the earliest voter approval of its bonds.
     (5) Prior to allocating the final $1.5 million of state loan authority under 20-9-466, the board of public education shall determine if there is a school district eligible for a state loan under 20-9-466(2)(b)(i) and, if so, shall give that district first priority to the remaining loan authority.
     (6) This section does not apply unless a bond resolution contains the covenant required under 20-9-466(6).

     History: En. Sec. 2, Ch. 12, Sp. L. January 1992.