La. Admin. Code tit. 71 § III-123

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-123 - School Boards-Loans

A. Budgetary (R.S. 17:88-89). After the budget has been prepared and adopted, school boards may anticipate revenue for current operation of schools. They may borrow up to one half of expected revenues for the fiscal year. Parishes of Caddo, East Baton Rouge, Jefferson, and Orleans may borrow up to three-fourths because population exceeds 200,000. Permits a loan for one year, to be repaid by end of fiscal year (June 30). Maximum interest rate for securities is 8 percent (R.S. 39:1424). The following information is required:

1. a copy of the resolution adopted by the school board setting forth³ the amount of loan, maturity, interest rate,⁵ purpose, and security; and

2. a copy of the budget adopted by the school board for the current year.

B. Anticipation of Avails of Special Taxes Levied under Article VI, Section 32 or Article VII, Section 13(C) Third. Tax must be authorized to be levied for the period of the loan. The amount which can be borrowed is limited to 100 percent of the avails to construct or improve school houses (75 percent limitation does not prevail). The following information is required:

1. a copy of the resolution adopted by the school board setting forth³ the amount of loan, maturity, interest rate,⁵ purpose, and security; and

2. a certified statement of the expected yield from the special tax levy according to the last rolls.

C. Excess Revenue Certificates of Indebtedness (R.S. 33:2921 et seq.). Provides for pledging excess of revenues (as shown by current budget) in an amount sufficient to pay annual debt service (principal and interest) on the loan. R.S. 33:2923 sets the maximum interest rate at 8 percent. The following information is required:

1. a copy of the resolution adopted by the school board setting forth³ the amount of certificates, maturity, interest rate,⁵ purpose, and security (dedication of surplus or excess revenues accruing to the school board above statutory, necessary and usual charges for number of years over which certificates mature);

2. a copy of the budget adopted by the governing authority showing expected revenues and expenditures, and excess of revenues over statutory, necessary, and usual charges for current year.

La. Admin. Code tit. 71, § III-123

Promulgated by the Department of the Treasury, Bond Commission, LR 2:348 (November 1976), amended LR 4:401 (October 1978).

AUTHORITY NOTE: Promulgated in accordance with R.S. 49:950 et seq.