As used in this section, unless the context otherwise requires:
"Eligible charter school" means a charter school that is:
A qualified charter school as defined in section 22-30.5-408 (1)(c); and
Authorized to receive financial assistance pursuant to section 22-43.7-109 (7).
"Loan program" means the charter school matching moneys loan program created inthis section.
(a) There is hereby created the charter school matching moneys loan program to assist eligible charter schools in obtaining the matching moneys required for an award of financial assistance pursuant to section 22-43.7-109. Through the loan program, the board may approve a loan for an eligible charter school in an amount that does not exceed fifty percent of the amount of matching moneys calculated for the eligible charter school pursuant to section 2243.7-109 (9)(c).
(b) The board shall direct the state treasurer to include the amount of a loan approved pursuant to this section in the lease-purchase agreement entered into pursuant to section 22-43.7110 (2) to provide financial assistance to the eligible charter school for which the loan is approved.
An eligible charter school that chooses to seek a loan through the loan program shallapply to the board to receive a loan. The board shall promulgate rules pursuant to the "State Administrative Procedure Act", article 4 of title 24, C.R.S., establishing the contents of a loan application and the timelines and procedures for applying for a loan through the loan program.
To receive a loan through the loan program, an eligible charter school shall:
(a) Authorize the state treasurer to withhold moneys payable to the eligible charter school in the amount of the loan payments pursuant to the procedure described in section 22-
30.5-406;
Pay an interest rate on the loan that is equal to the interest rate paid by the statetreasurer on the lease-purchase agreement entered into pursuant to section 22-43.7-110 to provide financial assistance to the eligible charter school for which the loan is approved;
Amortize the loan payments over the same period in years as the lease-purchase agreement entered into pursuant to section 22-43.7-110 to provide financial assistance to the eligible charter school for which the loan is approved; except that the eligible charter school may pay the full amount of the loan early without incurring a prepayment penalty; and
Create an escrow account for the benefit of the state with a balance in the amount ofsix months of loan payments.
Source: L. 2012: Entire section added, (SB 12-121), ch. 177, p. 636, § 3, effective May 11.