53F-9-203.1. Charter School Revolving Fund.

428 words·~2 min read·/ut/title-53f/chapter-9/53f-9-203-1

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(1)As used in this section:

(a)The definitions in Section 53G-5-102 apply to this section.

(b)"Fund" means the Charter School Revolving Fund.

(a)There is created within the Uniform School Fund a restricted account known as the Charter School Revolving Fund to provide assistance to charter schools to:

(i)meet school building construction and renovation needs; and

(ii)pay for expenses related to the startup of a new charter school or the expansion of an existing charter school.

(b)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act , the Utah Charter Finance Authority shall make rules to administer the fund including:

(i)establishing the interest rates of loans;

(ii)amortization schedules for loans; and

(iii)other terms of repayment.

(3)The fund shall consist of:

(a)assets and money deposited in accordance with Subsection

(9);

(b)money the Legislature appropriates to the fund;

(c)money received from the repayment of loans made from the fund; and

(d)interest earned on money in the fund.

(4)The Utah Charter Finance Authority shall make loans to charter schools from the fund for a loan of:

(a)up to $1,000,000 to a charter school for a school facility addition or expansion; or

(b)up to 25% of a requested loan amount to a charter school for the acquisition or construction of a school facility.

(5)The Utah Charter Finance Authority shall:

(a)review requests by charter schools for loans under this section; and

(b)approve or reject each request.

(6)The Utah Charter Finance Authority:

(a)shall:

(i)make a loan that is secured by a promissory note and a deed of trust from the charter school; and

(ii)require a recipient charter school to repay the funds if the recipient charter school sells or refinances any collateral associated with the loan; and

(b)may make a loan that is subordinate to senior debt.

(7)A loan under this section may not be made unless the Utah Charter Finance Authority approves the loan.

(8)The Utah Charter Finance Authority shall set the term of a loan to a charter school under this section.

(a)On July 1, 2026, the state board shall transfer into the fund the assets, unused money, and obligations of the Charter School Revolving Account administered under Section 53F-9-203 .

(b)Beginning on July 1, 2026, the state board shall deposit loan payments for loans made from the Charter School Revolving Account into the fund.

Enacted by Chapter 228 , 2026 General Session