La. Admin. Code tit. 71 § IX-105

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

Section IX-105 - Process for Obtaining Loan from the Fund

A. After passing the resolution or ordinance as described in R.S. 39:1357(E) and (F), the political subdivision shall transmit an application to the legislative auditor. The application shall be in the form established by the department of treasury.

B. Such application should contain the following:

1. name of the public entity, including:

a. names of chief administrative officer and board/council members;

b. physical address;

c. mailing address;

d. email of chief administrative officer; and

e. phone number.

2. name of fiscal administrator, including:

a. physical address;

b. mailing address;

c. email;

d. phone number;

e. date of appointment; and

f. certified copy of court order appointing fiscal administrator;

3. a copy of the written report required to be prepared under R.S. 39:1352(B)(1). In the event that the written report has not yet been prepared or was prepared more than a year prior to the application, the application shall contain an estimate of the revenues and expenditures of the political subdivision for the remainder of its current fiscal year and the following fiscal year;

4. current budget of the political subdivision with projected expenditures to fiscal year end;

5. financial statements of the political subdivision;

6. a list of current creditors showing existing balances and payment schedules;

7. a list of assets not identified in financial statements;

8. a list of insurance policies, including insurance company name, policy numbers, and type of insurance;

9. sources of funds and evidence of ability to repay the loan requested by this application;

10. anticipated date for end of fiscal administration;

11. the estimated costs as determined by the political subdivision and fiscal administrator; and

12. the requested maximum principal amount of loan.

C. The legislative auditor in its review and approval of the application shall ensure all financial information is included in the application.

D. Upon approval of the application, the legislative auditor shall forward the application to the state treasurer and attorney general for their review and approval.

E. Upon receiving the approval of the application from the legislative auditor, state treasurer, and attorney general, the attorney general shall file a motion to approve the application with the court.

F. Following issuance of an order by the court approving the political subdivisions application, the political subdivision shall submit, in addition to the requirements of the state bond commission, the following to the state bond commission for its review and approval:

1. the application;

2. a copy of the approvals of the state treasurer, attorney general, legislative auditor, and fiscal administrator;

3. a certified copy of the court order approving the application;

4. a draft of the proposed loan agreement to secure repayment of the loan from the fund;

5. proof of publication of the resolution or ordinance in the official journal of the political subdivision as required in R.S. 39:1357(F); and

6. a copy of a resolution or ordinance adopted by the political subdivision authorizing the fiscal administrator to execute a loan agreement with the department of treasury on behalf of the political subdivision for a loan from the fund setting forth the following:

a. maximum principal amount under the loan;

b. maximum interest rate;

c. maximum term of the loan;

d. repayment schedule of the loan;

e. security for the loan, if any;

f. any redemption features of the loan agreement, including a maximum redemption premium, if any.

G. Upon approval from the state bond commission, the fiscal administrator on behalf of the political subdivision shall execute a loan agreement with the department of treasury containing the details set forth in the application and the adopted resolution or ordinance.

H. Payments from the fund shall be made by the department of treasury upon receipt of invoices from the fiscal administrator, approved by the legislative auditor. Such payments shall not exceed the maximum principal amount as established in the loan agreement.

I. Payments from the fund shall be made in the order of approval by the bond commission, absent circumstances where the department of treasury determines that an emergency exists or where the fiscal review committee has adopted a motion prioritizing payments from the fund.

La. Admin. Code tit. 71, § IX-105

Promulgated by the Department of Treasury, Office of the Treasurer, LR 46192 (2/1/2020).

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:1357.