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Statutes > North-dakota > T151 > T151c36

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CHAPTER 15.1-36SCHOOL CONSTRUCTION15.1-36-01.(Effective through June 30, 2011) School construction projects -Approval.1.Notwithstanding the powers and duties of school boards provided by law, the<br>superintendent of public instruction shall approve the construction, purchase, repair,<br>improvement, modernization, or renovation of any public school building or facility<br>before commencement of the project if the cost of the project, as estimated by the<br>school board, is in excess of forty thousand dollars.2.The superintendent of public instruction may not approve a project unless the school<br>district proposing the project:a.Demonstrates the need for the project and the educational utility of the project<br>or demonstrates potential utilization of the project by a future reorganized<br>school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the<br>superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board<br>may appeal the superintendent's decision to the state board of public school<br>education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The potential use of the project by a future reorganized school district;(4)The capacity of the district to pay for the project; and(5)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,<br>renovation, or modernization required as part of a plan of correction approved by the<br>state fire marshal under section 15.1-06-09 unless the cost of the improvements<br>exceeds seventy-five thousand dollars.5.This section is applicable to any construction, purchase, repair, improvement,<br>renovation, or modernization, even if the school board pays for the project in whole<br>or in part with moneys received on account of the leasing of lands acquired by the<br>United States for flood control, navigation, and allied purposes in accordance with<br>33 U.S.C. 701c-3 or in accordance with moneys received under the American<br>Recovery and Reinvestment Act of 2009.6.For purposes of this chapter, &quot;facility&quot; includes a public school parking lot, public<br>school athletic complex, or any other improvement to real property owned by the<br>school district.(Effective after June 30, 2011) School construction projects - Approval.1.Notwithstanding the powers and duties of school boards provided by law, the<br>superintendent of public instruction shall approve the construction, purchase, repair,Page No. 1improvement, modernization, or renovation of any public school building or facility<br>before commencement of the project if the cost of the project, as estimated by the<br>school board, is in excess of twenty-five thousand dollars.2.The superintendent of public instruction may not approve a project unless the school<br>district proposing the project:a.Demonstrates the need for the project, the educational utility of the project, and<br>the ability to sustain a stable or increasing student enrollment for a period of<br>time at least equal to the anticipated usable life of the project or demonstrates<br>potential utilization of the project by a future reorganized school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the<br>superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board<br>may appeal the superintendent's decision to the state board of public school<br>education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The school district's ability to sustain a stable or increasing student<br>enrollment for a period of time at least equal to the anticipated usable life<br>of the project;(4)The potential use of the project by a future reorganized school district;(5)The capacity of the district to pay for the project; and(6)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,<br>renovation, or modernization required as part of a plan of correction approved by the<br>state fire marshal under section 15.1-06-09 unless the cost of the improvements<br>exceeds seventy-five thousand dollars.5.For purposes of this chapter, &quot;facility&quot; includes a public school parking lot, public<br>school athletic complex, or any other improvement to real property owned by the<br>school district.15.1-36-02. School construction projects - Loans.1.The board of university and school lands may authorize the use of moneys in the<br>coal development trust fund established pursuant to section 21 of article X of the<br>Constitution of North Dakota and subsection 1 of section 57-62-02 to provide school<br>construction loans, as described in this chapter. The outstanding principal balance<br>of loans under this chapter may not exceed fifty million dollars. The board may<br>adopt policies and rules governing school construction loans.2.In order to be eligible for a loan under this section, the board of a school district<br>shall:a.Propose a construction project with a cost of at least one million dollars and an<br>expected utilization of at least thirty years;Page No. 2b.Obtain the approval of the superintendent of public instruction for the<br>construction project under section 15.1-36-01; andc.Submit to the superintendent of public instruction an application containing all<br>information deemed necessary by the superintendent, including potential<br>alternative sources or methods of financing the construction project.3.The superintendent of public instruction shall give priority to any district that meets<br>the requirements for receipt of an equity payment under section 15.1-27-11.4.If an eligible school district's imputed taxable valuation per student is less than eighty<br>percent of the state average imputed valuation per student, the district is entitled to<br>receive:a.A school construction loan equal to the lesser of eight million dollars or eighty<br>percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.5.If an eligible school district's imputed taxable valuation per student is equal to at<br>least eighty percent but less than ninety percent of the state average imputed<br>taxable valuation per student, the district is entitled to receive:a.A school construction loan equal to the lesser of seven million dollars or<br>seventy percent of the actual project cost;b.An interest rate buydown equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.6.If an eligible school district's imputed taxable valuation per student is equal to at<br>least ninety percent of the state average imputed taxable valuation per student, the<br>district is entitled to receive:a.A school construction loan equal to the lesser of two million five hundred<br>thousand dollars or thirty percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.7.The board of a school district may submit its loan application to the superintendent<br>of public instruction before or after receiving authorization of a bond issue in<br>accordance with chapter 21-03. If the vote to authorize a bond issue precedes the<br>application for a loan, the application must be acted upon by the superintendent<br>expeditiously but no later than one hundred eighty days from the date it is received<br>by the superintendent.8.The superintendent of public instruction shall consider each loan application in the<br>order it received approval under section 15.1-36-01.9.If the superintendent of public instruction approves the loan, the superintendent may<br>determine the loan amount, the term of the loan, and the interest rate, in accordance<br>with the requirements of this section.Page No. 310.The superintendent of public instruction may adopt rules governing school<br>construction loans.11.For purposes of this section, a construction project means the purchase, lease,<br>erection, or improvement of any structure or facility by a school board, provided the<br>acquisition or activity is within a school board's authority.15.1-36-02.1.School construction projects - Reorganized districts - Interestsubsidy.1.If under chapter 15.1-12 two or more school districts prepare a reorganization plan,<br>agree in that plan to pursue a construction project, and obtain the approval of the<br>superintendent of public instruction in accordance with this chapter, the newly<br>reorganized district is eligible to receive up to three hundred basis points of interest<br>rate buydown on the lesser of:a.Thirteen million five hundred thousand dollars; orb.A percentage of the total project cost determined by:(1)Allowing five percent for each school district that participated in the<br>reorganization;(2)Allowingfivepercentforeachonehundred-square-mile[259-square-kilometer] increment that is added to the square miles<br>[kilometers] of the geographically largest district participating in the<br>reorganization;(3)Allowing five percent for every ten students added to the enrollment of<br>the district having the greatest number of enrolled students and<br>participating in the reorganization; and(4)Capping the allowable percentage at ninety percent of the total project<br>cost.2.In addition to the requirements of subsection 1, the percentage of cost subsidy<br>determined under subdivision b of subsection 1 must equal at least twenty percent of<br>the total project cost.15.1-36-03.School construction project loans - Management by Bank of NorthDakota. If the superintendent of public instruction approves a loan application under section<br>15.1-36-02, the superintendent shall forward the application to the Bank of North Dakota. The<br>Bank shall manage and service each school construction loan issued under this chapter and<br>shall execute all necessary loan instruments. The Bank may charge a loan recipient a fee for<br>managing and servicing the loan. The Bank shall receive payments of principal and interest from<br>the school districts and shall remit the payments of principal and interest to the board of<br>university and school lands. The board shall use or deposit the payments in accordance with<br>section 57-62-02 and section 21 of article X of the Constitution of North Dakota.15.1-36-04. Evidences of indebtedness. The board of a school district may issue andsell evidences of indebtedness under chapter 21-03 to finance the construction or improvement<br>of a project approved under this chapter. The principal amount of the loan and the evidences of<br>indebtedness to repay the loan may not exceed the lesser of thirty percent of the school district's<br>taxable valuation or five million dollars. Evidences of indebtedness issued under this chapter<br>constitute a general obligation of the school district.15.1-36-05. Construction of public school building - Violations - Penalty.1.A person is guilty of an infraction if the person:Page No. 4a.Draws plans or specifications for the construction of a public school building or<br>facility in violation of this chapter;b.Superintends the construction of a public school building or facility in violation of<br>this chapter;c.Constructs a public school building or facility in violation of this chapter; ord.Violates any other provision of this chapter.2.A member of a school board is guilty of an infraction if the member concurred in a<br>violation of this chapter by the board.Page No. 5Document Outlinechapter 15.1-36 school construction

State Codes and Statutes

Statutes > North-dakota > T151 > T151c36

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CHAPTER 15.1-36SCHOOL CONSTRUCTION15.1-36-01.(Effective through June 30, 2011) School construction projects -Approval.1.Notwithstanding the powers and duties of school boards provided by law, the<br>superintendent of public instruction shall approve the construction, purchase, repair,<br>improvement, modernization, or renovation of any public school building or facility<br>before commencement of the project if the cost of the project, as estimated by the<br>school board, is in excess of forty thousand dollars.2.The superintendent of public instruction may not approve a project unless the school<br>district proposing the project:a.Demonstrates the need for the project and the educational utility of the project<br>or demonstrates potential utilization of the project by a future reorganized<br>school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the<br>superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board<br>may appeal the superintendent's decision to the state board of public school<br>education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The potential use of the project by a future reorganized school district;(4)The capacity of the district to pay for the project; and(5)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,<br>renovation, or modernization required as part of a plan of correction approved by the<br>state fire marshal under section 15.1-06-09 unless the cost of the improvements<br>exceeds seventy-five thousand dollars.5.This section is applicable to any construction, purchase, repair, improvement,<br>renovation, or modernization, even if the school board pays for the project in whole<br>or in part with moneys received on account of the leasing of lands acquired by the<br>United States for flood control, navigation, and allied purposes in accordance with<br>33 U.S.C. 701c-3 or in accordance with moneys received under the American<br>Recovery and Reinvestment Act of 2009.6.For purposes of this chapter, &quot;facility&quot; includes a public school parking lot, public<br>school athletic complex, or any other improvement to real property owned by the<br>school district.(Effective after June 30, 2011) School construction projects - Approval.1.Notwithstanding the powers and duties of school boards provided by law, the<br>superintendent of public instruction shall approve the construction, purchase, repair,Page No. 1improvement, modernization, or renovation of any public school building or facility<br>before commencement of the project if the cost of the project, as estimated by the<br>school board, is in excess of twenty-five thousand dollars.2.The superintendent of public instruction may not approve a project unless the school<br>district proposing the project:a.Demonstrates the need for the project, the educational utility of the project, and<br>the ability to sustain a stable or increasing student enrollment for a period of<br>time at least equal to the anticipated usable life of the project or demonstrates<br>potential utilization of the project by a future reorganized school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the<br>superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board<br>may appeal the superintendent's decision to the state board of public school<br>education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The school district's ability to sustain a stable or increasing student<br>enrollment for a period of time at least equal to the anticipated usable life<br>of the project;(4)The potential use of the project by a future reorganized school district;(5)The capacity of the district to pay for the project; and(6)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,<br>renovation, or modernization required as part of a plan of correction approved by the<br>state fire marshal under section 15.1-06-09 unless the cost of the improvements<br>exceeds seventy-five thousand dollars.5.For purposes of this chapter, &quot;facility&quot; includes a public school parking lot, public<br>school athletic complex, or any other improvement to real property owned by the<br>school district.15.1-36-02. School construction projects - Loans.1.The board of university and school lands may authorize the use of moneys in the<br>coal development trust fund established pursuant to section 21 of article X of the<br>Constitution of North Dakota and subsection 1 of section 57-62-02 to provide school<br>construction loans, as described in this chapter. The outstanding principal balance<br>of loans under this chapter may not exceed fifty million dollars. The board may<br>adopt policies and rules governing school construction loans.2.In order to be eligible for a loan under this section, the board of a school district<br>shall:a.Propose a construction project with a cost of at least one million dollars and an<br>expected utilization of at least thirty years;Page No. 2b.Obtain the approval of the superintendent of public instruction for the<br>construction project under section 15.1-36-01; andc.Submit to the superintendent of public instruction an application containing all<br>information deemed necessary by the superintendent, including potential<br>alternative sources or methods of financing the construction project.3.The superintendent of public instruction shall give priority to any district that meets<br>the requirements for receipt of an equity payment under section 15.1-27-11.4.If an eligible school district's imputed taxable valuation per student is less than eighty<br>percent of the state average imputed valuation per student, the district is entitled to<br>receive:a.A school construction loan equal to the lesser of eight million dollars or eighty<br>percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.5.If an eligible school district's imputed taxable valuation per student is equal to at<br>least eighty percent but less than ninety percent of the state average imputed<br>taxable valuation per student, the district is entitled to receive:a.A school construction loan equal to the lesser of seven million dollars or<br>seventy percent of the actual project cost;b.An interest rate buydown equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.6.If an eligible school district's imputed taxable valuation per student is equal to at<br>least ninety percent of the state average imputed taxable valuation per student, the<br>district is entitled to receive:a.A school construction loan equal to the lesser of two million five hundred<br>thousand dollars or thirty percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.7.The board of a school district may submit its loan application to the superintendent<br>of public instruction before or after receiving authorization of a bond issue in<br>accordance with chapter 21-03. If the vote to authorize a bond issue precedes the<br>application for a loan, the application must be acted upon by the superintendent<br>expeditiously but no later than one hundred eighty days from the date it is received<br>by the superintendent.8.The superintendent of public instruction shall consider each loan application in the<br>order it received approval under section 15.1-36-01.9.If the superintendent of public instruction approves the loan, the superintendent may<br>determine the loan amount, the term of the loan, and the interest rate, in accordance<br>with the requirements of this section.Page No. 310.The superintendent of public instruction may adopt rules governing school<br>construction loans.11.For purposes of this section, a construction project means the purchase, lease,<br>erection, or improvement of any structure or facility by a school board, provided the<br>acquisition or activity is within a school board's authority.15.1-36-02.1.School construction projects - Reorganized districts - Interestsubsidy.1.If under chapter 15.1-12 two or more school districts prepare a reorganization plan,<br>agree in that plan to pursue a construction project, and obtain the approval of the<br>superintendent of public instruction in accordance with this chapter, the newly<br>reorganized district is eligible to receive up to three hundred basis points of interest<br>rate buydown on the lesser of:a.Thirteen million five hundred thousand dollars; orb.A percentage of the total project cost determined by:(1)Allowing five percent for each school district that participated in the<br>reorganization;(2)Allowingfivepercentforeachonehundred-square-mile[259-square-kilometer] increment that is added to the square miles<br>[kilometers] of the geographically largest district participating in the<br>reorganization;(3)Allowing five percent for every ten students added to the enrollment of<br>the district having the greatest number of enrolled students and<br>participating in the reorganization; and(4)Capping the allowable percentage at ninety percent of the total project<br>cost.2.In addition to the requirements of subsection 1, the percentage of cost subsidy<br>determined under subdivision b of subsection 1 must equal at least twenty percent of<br>the total project cost.15.1-36-03.School construction project loans - Management by Bank of NorthDakota. If the superintendent of public instruction approves a loan application under section<br>15.1-36-02, the superintendent shall forward the application to the Bank of North Dakota. The<br>Bank shall manage and service each school construction loan issued under this chapter and<br>shall execute all necessary loan instruments. The Bank may charge a loan recipient a fee for<br>managing and servicing the loan. The Bank shall receive payments of principal and interest from<br>the school districts and shall remit the payments of principal and interest to the board of<br>university and school lands. The board shall use or deposit the payments in accordance with<br>section 57-62-02 and section 21 of article X of the Constitution of North Dakota.15.1-36-04. Evidences of indebtedness. The board of a school district may issue andsell evidences of indebtedness under chapter 21-03 to finance the construction or improvement<br>of a project approved under this chapter. The principal amount of the loan and the evidences of<br>indebtedness to repay the loan may not exceed the lesser of thirty percent of the school district's<br>taxable valuation or five million dollars. Evidences of indebtedness issued under this chapter<br>constitute a general obligation of the school district.15.1-36-05. Construction of public school building - Violations - Penalty.1.A person is guilty of an infraction if the person:Page No. 4a.Draws plans or specifications for the construction of a public school building or<br>facility in violation of this chapter;b.Superintends the construction of a public school building or facility in violation of<br>this chapter;c.Constructs a public school building or facility in violation of this chapter; ord.Violates any other provision of this chapter.2.A member of a school board is guilty of an infraction if the member concurred in a<br>violation of this chapter by the board.Page No. 5Document Outlinechapter 15.1-36 school construction

State Codes and Statutes

State Codes and Statutes

Statutes > North-dakota > T151 > T151c36

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CHAPTER 15.1-36SCHOOL CONSTRUCTION15.1-36-01.(Effective through June 30, 2011) School construction projects -Approval.1.Notwithstanding the powers and duties of school boards provided by law, the<br>superintendent of public instruction shall approve the construction, purchase, repair,<br>improvement, modernization, or renovation of any public school building or facility<br>before commencement of the project if the cost of the project, as estimated by the<br>school board, is in excess of forty thousand dollars.2.The superintendent of public instruction may not approve a project unless the school<br>district proposing the project:a.Demonstrates the need for the project and the educational utility of the project<br>or demonstrates potential utilization of the project by a future reorganized<br>school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the<br>superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board<br>may appeal the superintendent's decision to the state board of public school<br>education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The potential use of the project by a future reorganized school district;(4)The capacity of the district to pay for the project; and(5)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,<br>renovation, or modernization required as part of a plan of correction approved by the<br>state fire marshal under section 15.1-06-09 unless the cost of the improvements<br>exceeds seventy-five thousand dollars.5.This section is applicable to any construction, purchase, repair, improvement,<br>renovation, or modernization, even if the school board pays for the project in whole<br>or in part with moneys received on account of the leasing of lands acquired by the<br>United States for flood control, navigation, and allied purposes in accordance with<br>33 U.S.C. 701c-3 or in accordance with moneys received under the American<br>Recovery and Reinvestment Act of 2009.6.For purposes of this chapter, &quot;facility&quot; includes a public school parking lot, public<br>school athletic complex, or any other improvement to real property owned by the<br>school district.(Effective after June 30, 2011) School construction projects - Approval.1.Notwithstanding the powers and duties of school boards provided by law, the<br>superintendent of public instruction shall approve the construction, purchase, repair,Page No. 1improvement, modernization, or renovation of any public school building or facility<br>before commencement of the project if the cost of the project, as estimated by the<br>school board, is in excess of twenty-five thousand dollars.2.The superintendent of public instruction may not approve a project unless the school<br>district proposing the project:a.Demonstrates the need for the project, the educational utility of the project, and<br>the ability to sustain a stable or increasing student enrollment for a period of<br>time at least equal to the anticipated usable life of the project or demonstrates<br>potential utilization of the project by a future reorganized school district; andb.Demonstrates the capacity to pay for the project under rules adopted by the<br>superintendent of public instruction pursuant to chapter 28-32.3.a.If the superintendent of public instruction denies the project, the school board<br>may appeal the superintendent's decision to the state board of public school<br>education. In considering the appeal, the state board shall review:(1)The need for the project;(2)The educational utility of the project;(3)The school district's ability to sustain a stable or increasing student<br>enrollment for a period of time at least equal to the anticipated usable life<br>of the project;(4)The potential use of the project by a future reorganized school district;(5)The capacity of the district to pay for the project; and(6)Any other objective factors relative to the appeal.b.The decision of the state board is final.4.This section does not apply to any construction, purchase, repair, improvement,<br>renovation, or modernization required as part of a plan of correction approved by the<br>state fire marshal under section 15.1-06-09 unless the cost of the improvements<br>exceeds seventy-five thousand dollars.5.For purposes of this chapter, &quot;facility&quot; includes a public school parking lot, public<br>school athletic complex, or any other improvement to real property owned by the<br>school district.15.1-36-02. School construction projects - Loans.1.The board of university and school lands may authorize the use of moneys in the<br>coal development trust fund established pursuant to section 21 of article X of the<br>Constitution of North Dakota and subsection 1 of section 57-62-02 to provide school<br>construction loans, as described in this chapter. The outstanding principal balance<br>of loans under this chapter may not exceed fifty million dollars. The board may<br>adopt policies and rules governing school construction loans.2.In order to be eligible for a loan under this section, the board of a school district<br>shall:a.Propose a construction project with a cost of at least one million dollars and an<br>expected utilization of at least thirty years;Page No. 2b.Obtain the approval of the superintendent of public instruction for the<br>construction project under section 15.1-36-01; andc.Submit to the superintendent of public instruction an application containing all<br>information deemed necessary by the superintendent, including potential<br>alternative sources or methods of financing the construction project.3.The superintendent of public instruction shall give priority to any district that meets<br>the requirements for receipt of an equity payment under section 15.1-27-11.4.If an eligible school district's imputed taxable valuation per student is less than eighty<br>percent of the state average imputed valuation per student, the district is entitled to<br>receive:a.A school construction loan equal to the lesser of eight million dollars or eighty<br>percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.5.If an eligible school district's imputed taxable valuation per student is equal to at<br>least eighty percent but less than ninety percent of the state average imputed<br>taxable valuation per student, the district is entitled to receive:a.A school construction loan equal to the lesser of seven million dollars or<br>seventy percent of the actual project cost;b.An interest rate buydown equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.6.If an eligible school district's imputed taxable valuation per student is equal to at<br>least ninety percent of the state average imputed taxable valuation per student, the<br>district is entitled to receive:a.A school construction loan equal to the lesser of two million five hundred<br>thousand dollars or thirty percent of the actual project cost;b.An interest rate discount equal to at least fifty but not more than two hundred<br>basis points below the prevailing tax-free bond rates; andc.A term of repayment that may extend up to twenty years.7.The board of a school district may submit its loan application to the superintendent<br>of public instruction before or after receiving authorization of a bond issue in<br>accordance with chapter 21-03. If the vote to authorize a bond issue precedes the<br>application for a loan, the application must be acted upon by the superintendent<br>expeditiously but no later than one hundred eighty days from the date it is received<br>by the superintendent.8.The superintendent of public instruction shall consider each loan application in the<br>order it received approval under section 15.1-36-01.9.If the superintendent of public instruction approves the loan, the superintendent may<br>determine the loan amount, the term of the loan, and the interest rate, in accordance<br>with the requirements of this section.Page No. 310.The superintendent of public instruction may adopt rules governing school<br>construction loans.11.For purposes of this section, a construction project means the purchase, lease,<br>erection, or improvement of any structure or facility by a school board, provided the<br>acquisition or activity is within a school board's authority.15.1-36-02.1.School construction projects - Reorganized districts - Interestsubsidy.1.If under chapter 15.1-12 two or more school districts prepare a reorganization plan,<br>agree in that plan to pursue a construction project, and obtain the approval of the<br>superintendent of public instruction in accordance with this chapter, the newly<br>reorganized district is eligible to receive up to three hundred basis points of interest<br>rate buydown on the lesser of:a.Thirteen million five hundred thousand dollars; orb.A percentage of the total project cost determined by:(1)Allowing five percent for each school district that participated in the<br>reorganization;(2)Allowingfivepercentforeachonehundred-square-mile[259-square-kilometer] increment that is added to the square miles<br>[kilometers] of the geographically largest district participating in the<br>reorganization;(3)Allowing five percent for every ten students added to the enrollment of<br>the district having the greatest number of enrolled students and<br>participating in the reorganization; and(4)Capping the allowable percentage at ninety percent of the total project<br>cost.2.In addition to the requirements of subsection 1, the percentage of cost subsidy<br>determined under subdivision b of subsection 1 must equal at least twenty percent of<br>the total project cost.15.1-36-03.School construction project loans - Management by Bank of NorthDakota. If the superintendent of public instruction approves a loan application under section<br>15.1-36-02, the superintendent shall forward the application to the Bank of North Dakota. The<br>Bank shall manage and service each school construction loan issued under this chapter and<br>shall execute all necessary loan instruments. The Bank may charge a loan recipient a fee for<br>managing and servicing the loan. The Bank shall receive payments of principal and interest from<br>the school districts and shall remit the payments of principal and interest to the board of<br>university and school lands. The board shall use or deposit the payments in accordance with<br>section 57-62-02 and section 21 of article X of the Constitution of North Dakota.15.1-36-04. Evidences of indebtedness. The board of a school district may issue andsell evidences of indebtedness under chapter 21-03 to finance the construction or improvement<br>of a project approved under this chapter. The principal amount of the loan and the evidences of<br>indebtedness to repay the loan may not exceed the lesser of thirty percent of the school district's<br>taxable valuation or five million dollars. Evidences of indebtedness issued under this chapter<br>constitute a general obligation of the school district.15.1-36-05. Construction of public school building - Violations - Penalty.1.A person is guilty of an infraction if the person:Page No. 4a.Draws plans or specifications for the construction of a public school building or<br>facility in violation of this chapter;b.Superintends the construction of a public school building or facility in violation of<br>this chapter;c.Constructs a public school building or facility in violation of this chapter; ord.Violates any other provision of this chapter.2.A member of a school board is guilty of an infraction if the member concurred in a<br>violation of this chapter by the board.Page No. 5Document Outlinechapter 15.1-36 school construction

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