NAC386.435. Application for loan from Account; annual determination of balance of money in Account.

     1. An application for a loan from the Account must be submitted by the governing body of a charter school to the Department on or before September 30 of the calendar year immediately preceding the calendar year in which the loan will be made. The Department shall not accept an application for a loan from the Account unless the Department has determined pursuant to subsection 2 that the balance of money in the Account is $5,000 or more. An application must include:

     (a) The name of the charter school.

     (b) The name, address and telephone number of the person whom the Department may contact regarding the application.

     (c) The proposal of the charter school to repay the loan, consistent with NAC 386.445.

     (d) A description of:

          (1) The financial needs of the charter school;

          (2) The business plan for the charter school;

          (3) The effect that receipt of the loan will have on the operation of the charter school;

          (4) The effect, if any, that receipt of the loan will have on the ability of the governing body or the charter school to obtain other financial assistance from public and private sources; and

          (5) The plan, if any, for the use of the money obtained from the loan, including, without limitation, methods to enhance the credit of the charter school.

     (e) A list of the anticipated expenses for which the money obtained from the loan will be used.

     (f) A budget for the charter school for the fiscal year in which the loan is received and for each fiscal year of the proposed period for repayment of the loan. The budget must:

          (1) Include an identification of all sources of revenue and expenses;

          (2) Include the cost for repayment of the loan; and

          (3) Be accompanied by a written narrative explaining each of the assumptions made in developing the budget.

     (g) If the charter school is an operational charter school, a statement of the financial history of the applicant.

     (h) If a member of the governing body has or had an association or affiliation with another charter school in this State or another state, a statement of the financial history of the charter school with which the member has or had such an association or affiliation. The provisions of this paragraph apply regardless of whether the member has terminated the association or affiliation.

     (i) Three credit references for the applicant.

     (j) A statement of the monthly cash flow for the operation of the charter school, including, without limitation, an identification of the amount and timing of receipt of revenue relating to the amount and timing of expenditures.

     (k) A resolution of the governing body authorizing submission of the application.

     2. On or before July 1 of each year, the Department shall determine the balance of money in the Account. If the Department determines that the balance of money in the Account is $5,000 or more, the Department shall provide notice of that fact and the availability of loans from the Account to each charter school that has been issued a written charter pursuant to NRS 386.527.

     (Added to NAC by Bd. of Education by R206-01, eff. 4-1-2002)