Application procedures:

1. A. A public school district may apply for a loan from the public school district general obligation bond loan fund upon certification by the local board of education that there are insufficient ad valorem taxes or other school district revenues to meet the payment of principal or interest or both, due on the school district's general obligation indebtedness or to meet other obligations arising in connection with that indebtedness lawfully payable from ad valorem taxes, or that the receipt of ad valorem taxes to make such payment will be delayed and not be available to make the payment when due.

2. B. The application will be made on forms developed by the public education department and will require the following minimum information from the applicant public school district:

   (1) a detailed explanation as to the reasons for the public school district's inability to meet its general obligation indebtedness;

   (2) a certified statement from the local board of education of the public school district's current financial status;

   (3) a detailed explanation on efforts taken by the public school district to generate additional revenues to meet its general obligation indebtedness;

   (4) a proposed repayment schedule by the applicant public school district must be submitted with the application; such proposed repayment schedule shall be for a period of time not to exceed five (5) years.

3. C. The application must be submitted to the public education department forty five (45) days prior to the due date of the payment on the public school district's general obligation indebtedness. An application submitted after the forty-five (45) days will be considered only upon the public education department’s determination that the public school district has demonstrated compelling circumstances.
4. D. The applicant public school district must meet the financial criteria set forth in Sections 8 and 9 of this rule.
5. E. The applicant shall provide any other information required by the public education department to determine a public school district's eligibility for a loan pursuant to the School District Loan Act.

6. F. With prior approval from the state board of finance, all loans requested by public school districts from the public school district general obligation bonds loan fund shall be made by the public education department.

   [01-15-99; 6.20.5.9 NMAC - Rn, 6 NMAC 2.2.3.9, 06-14-01; A, 11-13-09]