21-18-319. Student dormitory capital construction loans; rulemaking; requirements; reporting; definition.
(a) 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.
(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" or "construction" includes new construction, renovation or capital renewal.