The loan obligation of a private academy and the bonds or notes issued to finance such loan pursuant to sections 10-289d to 10-289g, inclusive, shall be secured by all interest subsidy grants committed by the state to the private academy in connection with such financing. Whenever it is established that a qualifying municipality or private academy has defaulted in the payment of the principal or redemption premium or interest on its bonds or notes or on any payment obligation due under any loan agreement authorized by said sections 10-289d to 10-289g, inclusive, or any other event of default under any such loan agreement or guaranty agreement or the trust indenture for the bonds or notes occurs, the payment of interest subsidy grants to such qualifying municipality or private academy pursuant to any provision of the general statutes in effect at the time the default is established shall be withheld by the state. If the trustee, on behalf of a holder or owner of any such bond or note or such qualifying municipality or private academy, files with the State Comptroller a verified statement describing such default, the State Comptroller may investigate the circumstances of the alleged default, prepare and file in his office a certificate setting forth his finding with respect to the default and serve a copy of such finding, by registered or certified mail, upon the State Treasurer or chief fiscal officer of each such qualifying municipality and the private academy and the indenture trustee. Upon the filing of such a verified statement in the office of the State Comptroller, the State Comptroller shall deduct and withhold from all succeeding interest subsidy grant payments otherwise due each such qualifying municipality or private academy such amounts as are necessary to pay the interest on such bonds and notes of such a qualifying municipality until such time as the indenture trustee files a verified statement with the State Comptroller that all defaults have been cured. Payments of interest subsidy grants so deducted and withheld shall be forwarded promptly by the State Comptroller and the State Treasurer to the paying agent or agents for the bonds and notes for the sole purpose of payment of interest on such bonds or notes. The State Comptroller shall promptly notify the State Treasurer or the chief fiscal officer of each such qualifying municipality and the private academy of any payment or payments made to any paying agent or paying agents pursuant to this section. The state of Connecticut hereby covenants with the purchasers, holders and owners, from time to time, of bonds and notes issued by a qualifying municipality for school purposes that it will not limit or impair the rights and remedies granted by this section, provided nothing in this section shall be construed as requiring the state to continue the payment of state aid or assistance to any qualifying municipality or private academy or as limiting or prohibiting the state from repealing or amending any law relating to state aid or assistance, the manner and time of payment or apportionment thereof or the amount thereof.
(P.A. 97-265, S. 96, 98.)
History: P.A. 97-265 effective July 1, 1997.
Structure Connecticut General Statutes
Title 10 - Education and Culture
Chapter 173 - Public School Building Projects
Section 10-282. - Definitions.
Section 10-283. - Applications for grants for school building projects.
Section 10-283a. - Committee from General Assembly to review listing of eligible projects.
Section 10-283b. - School building projects for the Technical Education and Career System.
Section 10-283d. - Federal funds as part of local share for projects in a priority school district.
Section 10-285. - Acceptance or rejection of allotment.
Section 10-285a. - Percentage determination for school building project grants.
Section 10-285c. - Title reversion to the state.
Section 10-285d. - Projects related to full-day kindergarten programs or reduction in class size.
Section 10-285e. - Reimbursement for lease costs. Renovation project requirements.
Section 10-285f. - Design-build projects: Pilot program.
Section 10-285g. - Acoustical standards. Waiver.
Section 10-285h. - Projects for charter schools: Pilot program.
Section 10-286. - Computation of school building project grants.
Section 10-286a. - Grants for occupational training facilities.
Section 10-286c. - Establishment of criteria for building grants.
Section 10-286d. - Site-acquisition grant.
Section 10-286g. - Waiver of audit deficiencies.
Section 10-286h. - School building project grants for diversity schools.
Section 10-287a. - Lump sum payments. Advance payment of grants. Overpayment.
Section 10-287c. - Regulations.
Section 10-287d. - Bond issue for school building project grants.
Section 10-287e. - School Building Construction Fund.
Section 10-287f. - Renewal of temporary notes outstanding.
Section 10-287j. - Bond issue for funding interest subsidy grants.
Section 10-288. - Grants and loans to towns unable to complete projects.
Section 10-288a. - Replacement or relocation of secondary school associated with center.
Section 10-289. - Issuance of bonds for school building project.
Section 10-289a. - Short-term financing for school building projects.
Section 10-289d. - Definitions.
Section 10-289e. - Private academy project proposal, public hearing, referendum vote.
Section 10-289f. - Loans. Bond issues. Guaranties.
Section 10-289g. - Defaults in payment. Withholding of state aid.
Section 10-289h. - Central kitchen facility projects.
Section 10-290. - Advisory school planning service.
Section 10-290a. - Advisory services re school plant planning.
Section 10-290b. - Publication and distribution of information.
Section 10-290c. - Advisory committee.
Section 10-290d. - Conveyance of air space over schools.
Section 10-290e. - Services agreements. Requirements. Prohibitions.
Section 10-290f. - Standard school construction contracts. Guidance for projects.
Section 10-291. - Approval of plans and site. Expense limit.
Section 10-291a. - Code compliance improvements not required in certain situations.
Section 10-292c. - Definitions.
Section 10-292d. - Interest subsidy grants.
Section 10-292g. - Percentage determination for interest subsidy grants.
Section 10-292h. - Interest subsidy grants to incorporated or endowed high schools and academies.
Section 10-292i. - Computation of interest subsidy grants.
Section 10-292k. - Bond issue for interest subsidy grants.
Section 10-292l. - Certification of dates and amounts of interest subsidy grant payments.
Section 10-292n. - Default by municipality or private academy.
Section 10-292o. - Leasing of facilities by regional educational service centers; grants.
Section 10-292p. - School-based health clinic. Entrance requirement.
Section 10-292q. - School Building Projects Advisory Council.
Section 10-292r. - School safety infrastructure criteria.
Section 10-292s. - School building project safety assessment.
Section 10-292t. - Standard checklist for school building projects.