(a) Subject to the conditions and limitations of this section, any education service cooperative established under The Education Service Cooperative Act of 1985, § 6-13-1001 et seq., may borrow, and the State Board of Education may lend, moneys in the Revolving Loan Fund.
(b) The maximum amount of money an education service cooperative may owe the Revolving Loan Fund at any one time is that equal to a six-month's basic grant for the fiscal year in which a loan is sought.
(c)
(1) The board of directors of any education service cooperative desiring to borrow money from the Revolving Loan Fund, acting through its executive director, shall file a formal application with the state board.
(2) The application shall contain the following information:
(A) The name and location of the education service cooperative;
(B) The date and place of the meeting of the board of directors at which action was taken authorizing the executive director to make formal application for a loan;
(C) The estimated amount that it proposes to borrow, together with supporting evidence upon which the estimate is based;
(D) The purpose for which the proceeds of the loan would be used;
(E) The security for the loan and the method and schedule for repayment; and
(F) Such additional information as may be required by the state board.
(d) After considering the merits of each application, the state board may, in its discretion:
(1) Approve the application for the full amount of the proposed loan;
(2) Approve the application for a loan of a lesser amount than the amount requested; or
(3) Disapprove the application.
(e)
(1) Each such loan, which is to be paid in full as to both principal and interest within or at the end of ten (10) years from the date of its approval by the state board, shall be evidenced by a certificate executed by the Commissioner of Education.
(2) Thereafter, each such certificate shall be a negotiable instrument.