(a) (1) Upon approval of the board of trustees of a state-supported institution of higher education, the Department of Higher Education, and the Chief Fiscal Officer of the State, a state-supported institution of higher education may borrow funds determined by the board to be necessary to continue the operation of the state-supported institution of higher education from a private financial institution if the Revolving Loan Fund is insufficient, as certified by the Chief Fiscal Officer of the State, for a state-supported institution of higher education to participate in the fund.
(2) A state-supported institution of higher education shall not have outstanding loans in the aggregate under this section in excess of eighty-five percent (85%) of the total of the actual May and June general revenues distributed during the immediately preceding fiscal year to the state-supported institution of higher education.
(b) (1) The principal amount of the loans described in subsection (a) of this section shall be repaid from general revenues distributed to the state-supported institution of higher education during the months of May and June of the fiscal year in which the loans were obtained.
(2) All interest and other charges shall be paid from cash funds of the state-supported institution of higher education.
(c) (1) Notwithstanding subsections (a) and (b) of this section or ยง 19-4-705, the Chief Fiscal Officer of the State and the Director of the Department of Higher Education may authorize a state-supported institution of higher education to borrow funds from a private financial institution provided that the board certifies that borrowing funds from a private financial institution:
(A) Is required to continue essential operations of the state-supported institution of higher education into the following fiscal year; and
(B) Will be repaid not later than one hundred twenty (120) days after the start of the following fiscal year.
(2) The aggregate amount of funds borrowed from private financial institutions may not exceed the limits set in subsection (a) of this section.
(3) Upon repayment, the chief financial officer of the state-supported institution of higher education shall certify in writing to the Chief Fiscal Officer of the State and the director the:
(A) Date of the repayment; and
(B) Amount of the repayment.
(4) This subsection (c) shall expire on June 30, 2011.
(d) The Chief Fiscal Officer of the State shall promulgate rules and regulations necessary for the implementation of this section.
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