2019 Wyoming Statutes
Title 16 - City, County, State and Local Powers
Chapter 1 - Intergovernmental Cooperation
Article 1 - In General
Section 16-1-111 - Loans to Political Subdivisions; Requirements; Limitations; Rulemaking.

Universal Citation: WY Stat § 16-1-111 (2019)

16-1-111. Loans to political subdivisions; requirements; limitations; rulemaking.

(a) The state loan and investment board may negotiate and make loans from the permanent Wyoming mineral trust fund to political subdivisions of this state as provided in this section. The aggregate sum of all outstanding loans made under this section shall not exceed four hundred million dollars ($400,000,000.00). The aggregate sum of outstanding loans made for infrastructure projects shall not exceed two hundred million dollars ($200,000,000.00) and shall not exceed two hundred million dollars ($200,000,000.00) for road or street projects. Loans may be made for infrastructure projects and street and road projects as provided in this section. The board shall adopt rules and procedures as it deems advisable or necessary to administer the program. The rules shall include requirements and standards which the board determines to be necessary or advisable in accordance with the following:

(i) To qualify for a loan an applicant shall demonstrate:

(A) A commitment to adequately maintain the project for which the loan is requested during a reasonable period of time;

(B) That all project costs will be funded at the time of receipt of the loan, with funding sources specified within the project application;

(C) Compliance with any other criteria developed by the board consistent with this section.

(ii) The determination of whether to make a loan shall include consideration of:

(A) The contribution of the project to health, safety and welfare;

(B) The applicant's need for the project and financial needs of the applicant in relation to the project;

(C) The ability of the applicant to repay the loan.

(b) Loans may be made to cities, towns, counties, school districts and community college districts for infrastructure projects. A loan under this subsection shall be at an interest rate of one percent (1%) plus seventy-five thousandths of one percent (.075%) for each year of the loan term in excess of five (5) years. In the event of prepayment of a loan, the interest rate shall be calculated at the actual loan period, but no refund of interest payment shall be made to the borrowing entity. Any loan made under this subsection shall be for a term of not fewer than five (5) years and not greater than twenty-five (25) years for repayment. Adequate security for loans shall be required and may include:

(i) A pledge of the revenues from the project for which the loan was granted;

(ii) A pledge of other revenues available to the entity receiving the loan;

(iii) A mortgage covering all or any part of the project or by a pledge of the lease of the project;

(iv) Any other security device or requirement deemed advantageous or necessary by the board.

(c) Loans may be made to cities, towns and counties for road or street projects. To qualify for a road or street project loan, in addition to the requirements of subsections (a) and (b) of this section, an applicant shall demonstrate that all related infrastructure including water and sewer is or will be in place at the time of receipt of the loan. No loan shall be provided under this subsection to any city, town or county that has any outstanding or unpaid loan under this subsection. Any loan under this subsection shall be at an interest rate of one percent (1%) plus seventy-five thousandths of one percent (.075%) for each year of the loan term in excess of five (5) years. In the event of prepayment of a loan, the interest rate shall be calculated at the actual loan period, but no refund of interest payment shall be made to the borrowing entity. Any loan made under this subsection shall be for a term of not fewer than five (5) years and not greater than twenty-five (25) years for repayment. The total loans under this subsection provided in any one (1) year shall not exceed one hundred million dollars ($100,000,000.00). Not more than thirty-five million dollars ($35,000,000.00) of road or street loans shall be made in any one (1) year to:

(i) Towns as defined in W.S. 15-1-101(a)(xiv);

(ii) Cities as defined in W.S. 15-1-101(a)(iv);

(iii) Counties.

(d) No loan shall be made without the written opinion of the attorney general certifying the legality of the transaction and all documents connected therewith. An election approving the project and borrowing for the project by the qualified electors of the borrowing entity shall be required only if the attorney general determines such an election is otherwise required by law.

(e) There is created a loss reserve account for loans made under this section. A loan origination fee of one-half of one percent (0.5%) of the loan shall be paid by the loan applicant and deposited to the loss reserve account for any loan approved under this section. If, as a result of default in the payment of any loan made under this section, there occurs a nonrecoverable loss either to the corpus of, or interest due to the permanent Wyoming mineral trust fund, the board shall restore the loss to the permanent fund using any funds available in the loss reserve account. If the funds in the loss reserve account are insufficient to restore the full amount of the loss, the board shall submit a detailed report of the loss to the legislature and shall request an appropriation to restore the balance of the loss to the permanent fund. Beginning June 30, 2018, the state treasurer shall transfer funds quarterly from the permanent Wyoming mineral trust fund reserve account to the loss reserve account created in this subsection, in an amount necessary to ensure that as of the last day of each quarter there is an unobligated, unencumbered balance equal to five percent (5%) of the balance of outstanding loans under this section. Any funds transferred to the loss reserve account pursuant to this subsection which are not necessary to maintain the five percent (5%) balance shall be transferred back to the permanent Wyoming mineral trust fund reserve account on the last day of the quarter.

(f) As used in this section:

(i) "Board" means the state loan and investment board to include the office of state lands and investments;

(ii) "Infrastructure project" means a capital construction project which may lawfully be undertaken within the powers of the political subdivision authorized to receive a loan under this section;

(iii) "Road or street project" means the construction, maintenance or improvement of a public street, road or alley within a city, town or county.

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