2012 Wyoming Statutes
TITLE 9 - ADMINISTRATION OF THE GOVERNMENT
CHAPTER 4 - PUBLIC FUNDS
9-4-1002. Guarantee program for local government bonds.

(a) The state loan and investment board shall administer a bond guarantee program for cities, towns or counties in accordance with this section and may promulgate rules to implement it. This program applies to bonds issued by cities, towns or counties under W.S. 15-7-101 through 15-7-114 or 18-4-301 through 18-4-506. The program is intended to benefit local governments by guaranteeing payment of bonded indebtedness of creditworthy cities, towns and counties by reducing the interest rate at which the bonds may be issued.

(b) A city, town or county that seeks the guarantee of bonds under this program shall apply to the board on forms prescribed by the board. The board shall review the application, investigate the applicant city, town or county and determine whether to approve the application based upon:

(i) The purpose of the bond issue, the local government's need for it, including whether the local government would likely remain within constitutional debt limits after the issue and whether a guarantee under this section would likely reduce costs;

(ii) The local government financial status and stability;

(iii) Any other factor relevant to the issue and guarantee of the bonds which are the subject of the application.

(c) The board may determine to guarantee bonds under this section and may impose terms, conditions and limits on that guarantee as it finds, in its discretion, are necessary to protect state funds and ensure the viability of the program. A decision by the board not to guarantee bonds under this section is not subject to judicial review under the Wyoming Administrative Procedure Act (W.S. 16-3-101 through 16-3-115).

(d) As a condition of participating in the bond guarantee program under this section, a city, town or county shall enter into agreements necessary to provide that:

(i) The state of Wyoming, through the state treasurer, shall assume responsibility for and make all payments to the city, town or county's paying agent in the amount necessary to pay principal and interest on the bonds subject to the guarantee;

(ii) The city, town or county shall deposit funds with the state by a certain date and in a sufficient amount so that the state can make the entire principal and interest payment to the city, town or county's paying agent in a timely manner;

(iii) If the city, town or county fails to comply with paragraph (ii) of this subsection:

(A) The state shall make the full payment due from funds in the permanent Wyoming mineral trust fund available under W.S. 9-4-715(h) for this purpose;

(B) To the extent that the city, town or county has not deposited sufficient funds with the state to comply with paragraph (ii) of this subsection, the state is deemed to have loaned and the city, town or county is deemed to have borrowed those funds subject to the following terms and conditions:

(I) The loan shall bear interest at a rate equal to the average interest earned on discretionary investments of the permanent Wyoming mineral trust fund in the four (4) calendar quarters preceding the quarter in which the loan occurred;

(II) The loan, including principal and interest, shall be repaid from the city, town or county's next distributions of federal mineral royalties under W.S. 9-4-601(a)(v) and of severance taxes under W.S. 39-14-801(e)(v), (vi) or (viii). The loan is not deemed to be a general obligation of the city, town or county, and the state shall not require repayment from any source other than as provided in this subdivision;

(III) The city, town or county may make additional payments on the loan.

(C) The state loan and investment board may require the city, town or county to modify its fiscal practices and its general operations if the board determines that there is a substantial likelihood that the city, town or county may not be able to make future payments required under paragraph (ii) of this subsection.