SECTIONS 41360-41367 - California Statutes

EDUCATION CODE

SECTION 41360-41367

41360. Loans may be made from moneys in the Public School District
Organization Revolving Fund to newly organized elementary, high
school, or unified school districts upon application of the governing
board of any such district, certified by the county superintendent
of schools and approved by the Superintendent of Public Instruction
for use by the district during the period from the date the action to
form the district was completed and the date the district becomes
effective for all purposes. Money loaned to a district pursuant to
this section shall be used only to meet (a) the expenses of office
rental, office supplies, postage, telephone, and telegraphing; (b)
the expenses of necessary elections required by law or authorized by
Section 4062; and (c) the expenses of employing, the salary of, and
necessary travel expenses of officers and necessary clerical help for
the governing board.
During each of the two successive fiscal years commencing with the
first fiscal year of the existence of the school district for all
purposes, the State Controller shall deduct from apportionments made
to such school district an amount equal to one-half of the amount
loaned to such school district under this section and pay the same
amount into the Public School District Organization Revolving Fund in
the State Treasury.

41365. (a) The Charter School Revolving Loan Fund is hereby created
in the State Treasury. The Charter School Revolving Loan Fund shall
be comprised of federal funds obtained by the state for charter
schools and any other funds appropriated or transferred to the fund
through the annual budget process. Funds appropriated to the Charter
School Revolving Loan Fund shall remain available for the purposes of
the fund until reappropriated or reverted by the Legislature through
the annual Budget Act or any other act.
(b) Loans may be made from moneys in the Charter School Revolving
Loan Fund to a chartering authority for charter schools that are not
a conversion of an existing school, or directly to a charter school
that qualifies to receive funding pursuant to Chapter 6 (commencing
with Section 47630) that is not a conversion of an existing school,
upon application of a chartering authority or charter school and
approval by the Superintendent of Public Instruction. Money loaned to
a chartering authority for a charter school, or to a charter school,
pursuant to this section shall be used only to meet the purposes of
the charter granted pursuant to Section 47605. The loan to a
chartering authority for a charter school, or to a charter school,
pursuant to this subdivision shall not exceed two hundred fifty
thousand dollars ($250,000) over the lifetime of the charter school.
A charter school may receive money obtained from multiple loans made
directly to the charter school or to the school's chartering
authority from the Charter School Revolving Loan Fund, as long as the
total amount received from the fund over the lifetime of the charter
school does not exceed two hundred fifty thousand dollars
($250,000). This subdivision does not apply to a charter school that
obtains renewal of a charter pursuant to Section 47607.
(c) The Superintendent of Public Instruction may consider all of
the following when making a determination as to the approval of a
charter school's loan application:
(1) Soundness of the financial business plans of the applicant
charter school.
(2) Availability of the charter school of other sources of
funding.
(3) Geographic distribution of loans made from the Charter School
Revolving Loan Fund.
(4) The impact that receipt of funds received pursuant to this
section will have on the charter school's receipt of other private
and public financing.
(5) Plans for creative uses of the funds received pursuant to this
section, such as loan guarantees or other types of credit
enhancements.
(6) The financial needs of the charter school.
(d) Priority for loans from the Charter School Revolving Loan Fund
shall be given to new charter schools for startup costs.
(e) Commencing with the first fiscal year following the fiscal
year the charter school receives the loan, the Controller shall
deduct from apportionments made to the chartering authority or
charter school, as appropriate, an amount equal to the annual
repayment of the amount loaned to the chartering authority or charter
school for the charter school under this section and pay the same
amount into the Charter School Revolving Loan Fund in the State
Treasury. Repayment of the full amount loaned to the chartering
authority shall be deducted by the Controller in equal annual amounts
over a number of years agreed upon between the loan recipient and
the State Department of Education, not to exceed five years for any
loan.
(f) (1) Notwithstanding other provisions of law, a loan may be
made directly to a charter school pursuant to this section only in
the case of a charter school that is incorporated.
(2) Notwithstanding other provisions of law, in the case of
default of a loan made directly to a charter school pursuant to this
section, the charter school shall be solely liable for repayment of
the loan.

41366.5. (a) Moneys in the Charter School Revolving Loan Fund shall
be loaned at the interest rate earned by the money in the Pooled
Money Investment Account as of the date of disbursement of the funds
to the charter school.
(b) A charter school shall pay the interest on any loan from the
fund in regular installments withdrawn from the annual apportionment
the charter school receives.
(c) All interest payments shall be paid into the Charter School
Security Fund established pursuant to Section 41367.

41366.7. The Director of Finance shall monitor the adequacy of the
amount of funds in the Charter School Security Fund and report
annually to the Legislature on the need, if any, to adjust the
interest rate set forth in Section 41366.5 or to revise any other
aspect of the default recovery plan.

41367. (a) The Charter School Security Fund is hereby created in
the State Treasury.
(b) Moneys in the fund shall be available for deposit into the
Charter School Revolving Loan Fund in case of default on any loan
made from the Charter School Revolving Loan Fund.