The Florida Senate

¹240.296  State University System Facilities Loan and Debt Surety Program.--

(1)  LEGISLATIVE INTENT.--The Legislature recognizes the need for new facilities, improvements to existing facilities, and equipment to accommodate university needs for student housing, dining, parking, merchandising, athletics, and other income-generating, self-supporting enterprises. It is further recognized that projects for these purposes must be approved by the Legislature before revenue certificates may be issued on behalf of the Board of Regents, and that the credit ratings of these revenue certificates may be enhanced by a secondary pledge of unobligated trust funds. It is, therefore, the intent of the Legislature to establish a program to provide the opportunity for each state university to obtain funds for these projects and to serve as a source of secondary credit enhancement for revenue certificates issued on behalf of the Board of Regents. This program shall be administered in accordance with procedures established by the Board of Regents.

(2)  ADMINISTRATION OF THE PROGRAM.--

(a)  Projects, including acquisition of new facilities, improvements to existing facilities, and equipment to accommodate university needs for student housing, parking, dining, merchandising, athletics, or other income-generating, self-supporting enterprises, shall be eligible for loans or secondary credit enhancement, as the case may be, subject to the procedures established by the Board of Regents.

(b)  To be eligible for secondary credit enhancement from the program, the primary revenue stream dedicated to each project must be sufficient to attain a minimum debt coverage ratio established by the Board of Regents. The surety pledge from the program for any one project shall not exceed an amount equal to 1 year's debt service or lease payments and such surety pledge shall not extend beyond the first 5 years of the debt, unless specifically authorized by the Board of Regents. The Board of Regents shall establish procedures for charges and for repayments of draws from the program.

(c)  To be eligible for a loan, the university must demonstrate the project's fiscal sufficiency, including loan repayment provisions.

(d)  All construction allocations shall be acquired in accordance with rules established by the Board of Regents, pursuant to s. 240.209(3)(o).

History.--s. 3, ch. 80-314; s. 149, ch. 81-259; s. 4, ch. 94-230; s. 6, ch. 2000-240; s. 3(7), ch. 2000-321.

¹Note.--Repealed January 7, 2003, by s. 3(7), ch. 2000-321, and shall be reviewed by the Legislature prior to that date.