1. (a) Program funds must be applied toward funding the primary debt service reserve requirement for debt issued by or through the Authority for an Awardee to acquire, renovate or construct Charter School facilities, or refinance existing Charter School facility debt.
2. (b) The Authority may make awards of up to the maximum annual debt service per Financing, with an award dollar limit of $2,000,000, for uses listed in subdivision (a) above.
3. (c) The term of repayment for any financing in conjunction with a Program award, pursuant to this Article, shall not exceed the useful life of the financed asset.
4. (d) The grant award shall be held in trust by the Authority or an Authority approved financial institution, solely for authorized purposes and shall not be released to Awardees without the Authority's or trustee's approval. As deemed appropriate by the Authority, conditions for release of the Program funds throughout the term of the financing will be determined by the Authority, in collaboration with all lending parties, prior to closing of the financing.
5. (e) Awards of a reservation of funds shall be released and returned to the Authority when the funds are no longer needed for the authorized purposes.
6. (f) Awards of a reservation of funds will expire if the Awardee does not use the awarded funds within six months of Authority approval. Exceptions may be granted by the Authority.

Note: Authority cited: Sections 17179 and 17180, Education Code. Reference: Section 17180, Education Code.

History

1. New section filed 4-19-2012; operative 5-19-2012 (Register 2012, No. 16).

2. Amendment filed 5-16-2013; operative 5-16-2013 pursuant to Government Code section 11343.4(b)(3) (Register 2013, No. 20).

3. Amendment of subsection (b) filed 3-17-2022 as an emergency; operative 3-17-2022 (Register 2022, No. 11). A Certificate of Compliance must be transmitted to OAL by 9-13-2022 or emergency language will be repealed by operation of law on the following day.

4. Amendment of subsection (b) refiled 9-13-2022 as an emergency; operative 9-14-2022 (Register 2022, No. 37). A Certificate of Compliance must be transmitted to OAL by 12-13-2022 or emergency language will be repealed by operation of law on the following day.

5. Amendment of subsection (b) refiled 12-13-2022 as an emergency; operative 12-14-2022 (Register 2022, No. 50). A Certificate of Compliance must be transmitted to OAL by 3-14-2023 or emergency language will be repealed by operation of law on the following day.

6. Reinstatement of section as it existed prior to 3-17-2022 emergency amendment by operation of Government Code section 11346.1(f) (Register 2023, No. 11).

7. Amendment of subsection (b) filed 8-6-2024; operative 8-6-2024 pursuant to Government Code section 11343.4(b)(3) (Register 2024, No. 32).