NAC386.445. Repayment of loans.

     1. The rate of interest for loans made from the Account is the prime rate at the largest bank in Nevada, as ascertained by the Commissioner of Financial Institutions, on January 1 or July 1, as the case may be, immediately preceding the date of the transaction.

     2. If a loan is made to a charter school from the Account, the Department shall deduct from the apportionments made to the charter school pursuant to NRS 387.124, an amount of money equal to the annual repayment amount of the loan, including interest. The deductions must be made:

     (a) In quarterly amounts corresponding with the quarterly apportionment to the charter school.

     (b) In equal amounts during the period of repayment agreed upon by the governing body of the charter school and the Department, not to exceed 3 years.

     3. If a loan is made to an operational charter school, the deductions must be made commencing in the same fiscal year in which the loan is made. If a loan is made to a charter school that has a written charter issued pursuant to subsection 7 of NRS 386.527, the deductions must be made commencing with the first fiscal year immediately succeeding the fiscal year in which the charter school becomes an operational charter school.

     4. If a charter school that receives a loan:

     (a) Defaults on repayment of the full amount of the loan;

     (b) Was issued a written charter pursuant to subsection 7 of NRS 386.527 and the charter school fails to obtain a written charter issued pursuant to subsection 5 of NRS 386.527; or

     (c) Closes or otherwise ceases operation,

Ê the charter school shall be solely liable for repayment of the full amount of the loan.

     5. As used in this section, “fiscal year” means the 12-month period beginning on the first day of July and ending on the last day of June.

     (Added to NAC by Bd. of Education by R206-01, eff. 4-1-2002; A by Dep’t of Education by R044-05, 10-31-2005)