Ohio Revised Code
Chapter 3333 | Department of Higher Education
Section 3333.59 | Bonds.

Effective: October 17, 2019
Latest Legislation: House Bill 166 - 133rd General Assembly
(A) As used in this section:
(1) "Allocated state share of instruction" means, for any fiscal year, the amount of the state share of instruction appropriated to the department of higher education by the general assembly that is allocated to a community or technical college or community or technical college district for such fiscal year.
(2) "Issuing authority" has the same meaning as in section 154.01 of the Revised Code.
(3) "Bond service charges" has the same meaning as in section 154.01 of the Revised Code.
(4) "Chancellor" means the chancellor of higher education.
(5) "Community or technical college" or "college" means any of the following state-supported or state-assisted institutions of higher education:
(a) A community college as defined in section 3354.01 of the Revised Code;
(b) A technical college as defined in section 3357.01 of the Revised Code;
(c) A state community college as defined in section 3358.01 of the Revised Code.
(6) "Community or technical college district" or "district" means any of the following institutions of higher education that are state-supported or state-assisted:
(a) A community college district as defined in section 3354.01 of the Revised Code;
(b) A technical college district as defined in section 3357.01 of the Revised Code;
(c) A state community college district as defined in section 3358.01 of the Revised Code.
(7) "Credit enhancement facilities" has the same meaning as in section 133.01 of the Revised Code.
(8) "Obligations" has the meaning as in section 154.01 or 3345.12 of the Revised Code, as the context requires.
(B) The board of trustees of any community or technical college district authorizing the issuance of obligations under section 3354.12, 3354.121, 3357.11, 3357.112, 3358.10, or 3358.11 of the Revised Code, or for whose benefit and on whose behalf the issuing authority proposes to issue obligations under section 154.25 of the Revised Code, may adopt a resolution requesting the chancellor to enter into an agreement with the community or technical college district and the primary paying agent or fiscal agent for such obligations, providing for the withholding and deposit of funds otherwise due the district or the community or technical college it operates in respect of its allocated state share of instruction, for the payment of bond service charges on such obligations.
The board of trustees shall deliver to the chancellor a copy of the resolution and any additional pertinent information the chancellor may require.
The chancellor and the office of budget and management, and the issuing authority in the case of obligations to be issued by the issuing authority, shall evaluate each request received from a community or technical college district under this section. The chancellor, with the advice and consent of the director of budget and management and the issuing authority in the case of obligations to be issued by the issuing authority, shall approve each request if all of the following conditions are met:
(1) Approval of the request will enhance the marketability of the obligations for which the request is made;
(2) The chancellor and the office of budget and management, and the issuing authority in the case of obligations to be issued by the issuing authority, have no reason to believe the requesting community or technical college district or the community or technical college it operates will be unable to pay when due the bond service charges on the obligations for which the request is made, and bond service charges on those obligations are therefore not anticipated to be paid pursuant to this section from the allocated state share of instruction for purposes of Section 17 of Article VIII, Ohio Constitution.
(3) Any other pertinent conditions established in rules adopted under division (H) of this section.
(C) If the chancellor approves the request of a community or technical college district to withhold and deposit funds pursuant to this section, the chancellor shall enter into a written agreement with the district and the primary paying agent or fiscal agent for the obligations, which agreement shall provide for the withholding of funds pursuant to this section for the payment of bond service charges on those obligations. The agreement may also include both of the following:
(1) Provisions for certification by the district to the chancellor, prior to the deadline for payment of the applicable bond service charges, whether the district and the community or technical college it operates are able to pay those bond service charges when due;
(2) Requirements that the district or the community or technical college it operates deposits amounts for the payment of those bond service charges with the primary paying agent or fiscal agent for the obligations prior to the date on which the bond service charges are due to the owners or holders of the obligations.
(D) Whenever a district or the community or technical college it operates notifies the chancellor that it will not be able to pay the bond service charges when they are due, subject to the withholding provisions of this section, or whenever the applicable paying agent or fiscal agent notifies the chancellor that it has not timely received from a district or from the college it operates the full amount needed for payment of the bond service charges when due to the holders or owners of such obligations, the chancellor shall immediately contact the district or college and the paying agent or fiscal agent to confirm that the district and the college are not able to make the required payment by the date on which it is due.
If the chancellor confirms that the district and the college are not able to make the payment and the payment will not be made pursuant to a credit enhancement facility, the chancellor shall promptly pay to the applicable primary paying agent or fiscal agent the lesser of the amount due for bond service charges or the amount of the next periodic distribution scheduled to be made to the district or to the college in respect of its allocated state share of instruction. If this amount is insufficient to pay the total amount then due the agent for the payment of bond service charges, the chancellor shall continue to pay to the agent from each periodic distribution thereafter, and until the full amount due the agent for unpaid bond service charges is paid in full, the lesser of the remaining amount due the agent for bond service charges or the amount of the next periodic distribution scheduled to be made to the district or college in respect of its allocated state share of instruction.
(E) The chancellor may make any payments under this section by direct deposit of funds by electronic transfer.
Any amount received by a paying agent or fiscal agent under this section shall be applied only to the payment of bond service charges on the obligations of the community or technical college district or community or technical college subject to this section or to the reimbursement of the provider of a credit enhancement facility that has paid the bond service charges.
(F) The chancellor may make payments under this section to paying agents or fiscal agents during any fiscal biennium of the state only from and to the extent that money is appropriated to the department by the general assembly for distribution during such biennium for the state share of instruction and only to the extent that a portion of the state share of instruction has been allocated to the community or technical college district or community or technical college. Obligations of the issuing authority or of a community or technical college district to which this section is made applicable do not constitute an obligation or a debt or a pledge of the faith, credit, or taxing power of the state, and the holders or owners of those obligations have no right to have excises or taxes levied or appropriations made by the general assembly for the payment of bond service charges on the obligations, and the obligations shall contain a statement to that effect. The agreement for or the actual withholding and payment of money under this section does not constitute the assumption by the state of any debt of a community or technical college district or a community or technical college, and bond service charges on the related obligations are not anticipated to be paid from the state general revenue fund for purposes of Section 17 of Article VIII, Ohio Constitution.
(G) In the case of obligations subject to the withholding provisions of this section, the issuing community or technical college district, or the issuing authority in the case of obligations issued by the issuing authority, shall appoint a paying agent or fiscal agent who is not an officer or employee of the district or college.
(H) The chancellor, with the advice and consent of the office of budget and management, may adopt reasonable rules not inconsistent with this section for the implementation of this section to secure payment of bond service charges on obligations issued by a community or technical college district or by the issuing authority for the benefit of a community or technical college district or the community or technical college it operates. Those rules shall include criteria for the evaluation and approval or denial of community or technical college district requests for withholding under this section.
(I) The authority granted by this section is in addition to and not a limitation on any other authorizations granted by or pursuant to law for the same or similar purposes.

Structure Ohio Revised Code

Ohio Revised Code

Title 33 | Education-Libraries

Chapter 3333 | Department of Higher Education

Section 3333.01 | Ohio Board of Regents - Advisory Role - Terms.

Section 3333.011 | Board Members, Staff and Employees - Prohibited Activities.

Section 3333.012 | References to Ohio Board of Regents.

Section 3333.02 | Board Meetings and Duties.

Section 3333.021 | Filing Fiscal Analysis With Proposed Rules.

Section 3333.03 | Department of Higher Education; Chancellor of Higher Education.

Section 3333.032 | Annual Report of Board of Regents.

Section 3333.04 | Chancellor - Powers and Duties.

Section 3333.041 | Submitting Annual Report on Number of Graduates of Ohio School Districts at State Institutions of Higher Education, Percentage Needing Remedial Courses, and Other Information to Governor and General Assembly.

Section 3333.042 | Grants for Nonprofit Entity That Provides Aerospace Research, Education and Technology.

Section 3333.043 | Community Service Programs.

Section 3333.044 | Contracting With Consultants - Liability Insurance.

Section 3333.045 | Model for Training University and College Trustees and Regents as to Authority and Responsibilities.

Section 3333.046 | Exempting Certain Programs From Regulation as Proprietary Schools.

Section 3333.047 | Student Financial Aid Program Audits.

Section 3333.048 | Educator Preparation; Metrics and Programs.

Section 3333.049 | Reading Endorsement Programs; Instruction in Computer Science and Computational Thinking.

Section 3333.0410 | Use the Student's Data Verification Code Required.

Section 3333.0411 | Reports for Teacher Preparation Programs.

Section 3333.0412 | Private University Exempt From Liability for Certain Breach of Confidentiality.

Section 3333.0413 | Inventory of Education Programs Focusing on Workforce Development and Training.

Section 3333.0414 | Opioid and Other Substance Abuse Prevention Instruction.

Section 3333.0415 | Annual Report Regarding Attainment Goal 2025.

Section 3333.0416 | Investigation of Fees Charged by State Institutions.

Section 3333.0417 | Statewide Educational Plan for Preventing Hazing.

Section 3333.0418 | Mental Health and Wellness Report.

Section 3333.05 | Chancellor to Approve Plans and Charter of Community Colleges.

Section 3333.051 | Applied Bachelor's and Nursing Bachelor's Degree Programs at Two-Year Institutions.

Section 3333.052 | Community College Acceleration Program.

Section 3333.06 | State Plan - Federal Grants.

Section 3333.07 | Restrictions on State Institutions.

Section 3333.071 | Restricting Expenditures for Land or Capital Improvements.

Section 3333.073 | Program Viability Analysis.

Section 3333.08 | Appropriating Property.

Section 3333.09 | Conveyances - Lease-Back Agreements.

Section 3333.10 | Granting Aid to Nonprofit Medical, Osteopathic and Dental Schools.

Section 3333.11 | Department of Family Practice.

Section 3333.111 | Department or Office of Geriatric Medicine.

Section 3333.12 | Instructional Grant Program.

Section 3333.121 | Instructional Grant Reconciliation Fund.

Section 3333.122 | Ohio College Opportunity Grant Program.

Section 3333.123 | Ohio College Opportunity Grant Program - Funding Preferences and Priorities.

Section 3333.124 | Ohio College Opportunity Grant Program Reserve Fund.

Section 3333.125 | Commercial Truck Driver Student Aid Program.

Section 3333.126 | Supplemental Ohio College Opportunity Grants.

Section 3333.127 | Second Chance Grant Program.

Section 3333.14 | Public Post High School Technical Education Programs.

Section 3333.15 | Establishment of University Branch by Chancellor.

Section 3333.16 | Universal Course Equivalency Classification System for State Institutions of Higher Education.

Section 3333.161 | Statewide System for Articulation Agreements Among State Institutions of Higher Education for Transfer Students Pursuing Teacher Education Programs.

Section 3333.162 | Criteria, Policies, and Procedures for Transfer of Courses.

Section 3333.163 | Standards for College Credit Based on Advanced Placement Test Scores.

Section 3333.164 | College Credit for Military Training, Experience, and Coursework.

Section 3333.165 | Annual Report.

Section 3333.166 | Transfer of Credits.

Section 3333.167 | College Credit for High School Students Enrolled in Career-Technical Planning Districts.

Section 3333.168 | Guaranteed Transfer Pathways; Joint Academic Programming; Dual Enrollment.

Section 3333.17 | Reciprocal Contracts With Institutions in Neighboring States for Tuition and Fees.

Section 3333.171 | Reciprocity Agreement With Midwestern Higher Education Compact.

Section 3333.172 | Endorsement of Midwest Student Exchange Program.

Section 3333.18 | Reciprocal Contracts With Institutions in Neighboring States for Financial Aid Funds.

Section 3333.19 | Foreign Exchange Students - Tuition and Fees.

Section 3333.20 | Educational Service Standards for Community Colleges, University Branches, Technical Colleges and State Community Colleges.

Section 3333.21 | Academic Scholarship Program - Basis of Award.

Section 3333.22 | Award and Renewal of Scholarship - Leave of Absence.

Section 3333.23 | Scholastic Record Sent to Chancellor - Suspension or Revocation of Scholarship.

Section 3333.25 | Academic Scholarship Payment Fund.

Section 3333.26 | Waiving Tuition for Child or Spouse of Public Service Officer Killed in Line of Duty.

Section 3333.28 | Nurse Education Assistance Program - Fund.

Section 3333.29 | Facilitation of Communication, Cooperation, and Partnerships Among State Institutions of Higher Education With Nursing Education Programs.

Section 3333.30 | Web Site Access to Career Information.

Section 3333.301 | Fafsa Completion Tracking System.

Section 3333.31 | Rules for Determining Student Residency.

Section 3333.311 | Residency of Veterans and Veterans' Spouses.

Section 3333.32 | Conditions for Resident Status.

Section 3333.33 | Establishment of Tuition Guarantee Program.

Section 3333.34 | College-Level Certificates Transferable to College Credit.

Section 3333.342 | Certificates of Value.

Section 3333.35 | Cooperative Efforts With State Board of Education.

Section 3333.36 | Allocation of Funds for Certain Scholarships.

Section 3333.37 | Outstanding Scholarship, Priority Needs Fellowship Program Definitions.

Section 3333.371 | Purposes of Scholarship and Fellowship Programs.

Section 3333.372 | Outstanding Scholarship and Priority Needs Fellowship Programs.

Section 3333.373 | Scholarship Rules Advisory Committee.

Section 3333.374 | Rules Establishing Scholarship Policy Guidelines.

Section 3333.375 | Ohio Outstanding Scholarship and Ohio Priority Needs Fellowship Programs Payment Funds.

Section 3333.38 | Ineligibility for Student Financial Assistance Supported by State Funds.

Section 3333.39 | Teach Ohio Program.

Section 3333.391 | Ohio Teaching Fellows Program.

Section 3333.392 | Scholarships; Termination; Repayment.

Section 3333.40 | Midwestern Higher Education Compact.

Section 3333.41 | Members of Midwestern Higher Education Commission.

Section 3333.42 | Nonresident Student Military Personnel Tuition.

Section 3333.421 | Ohio Hidden Hero Scholarship Programs.

Section 3333.43 | Statements for Three-Year Baccalaureate Degrees.

Section 3333.44 | Postsecondary Globalization Liaison.

Section 3333.45 | Partnership to Provide Competency - Based Education Programs.

Section 3333.50 | Critical Needs Rapid Response System.

Section 3333.55 | Health Information and Imaging Technology Workforce Development Pilot Project.

Section 3333.59 | Bonds.

Section 3333.60 | Choose Ohio First Scholarship Definitions.

Section 3333.61 | Choose Ohio First Scholarship Program.

Section 3333.613 | Choose Ohio First Scholarship Reserve Fund.

Section 3333.615 | Elimination of Certain Choose Ohio First Scholarship Components.

Section 3333.62 | Competitive Process for Program Awards.

Section 3333.63 | Meeting Prior to Making Awards - Proposal Summary Review.

Section 3333.64 | Fiscal and Distributive Goals; Work-Based Learning Requirement.

Section 3333.65 | Award Recipients to Enter Use Agreement.

Section 3333.66 | Scholarship Amounts.

Section 3333.68 | College Proposal Preference for Future Awards.

Section 3333.69 | Monitor of Initiatives for Which Award Granted.

Section 3333.70 | Ohio Higher Education Innovation Grant Program.

Section 3333.71 | Choose Ohio First Co-Op/internship Program Definitions.

Section 3333.72 | Choose Ohio First Co-Op/internship Program.

Section 3333.73 | Competitive Process for Making Awards Under Program.

Section 3333.731 | Co-Op/internship Program Advisory Committee.

Section 3333.74 | Private Pledge Required for Program Awards.

Section 3333.75 | Agreement Governing Use of Program Award.

Section 3333.76 | Recruiting Ohio Residents in Out-of-State Institutions.

Section 3333.77 | Proposal Preference to Institution for Future Years.

Section 3333.78 | Monitor of Initiatives for Which Awards Granted.

Section 3333.79 | Ohio Co-Op/internship Program Minority Outreach.

Section 3333.80 | Ohiocorps Pilot Program.

Section 3333.801 | Ohiocorps Scholarship for At-Risk Students.

Section 3333.802 | Ohiocorps Fund.

Section 3333.81 | Clearinghouse of Computer-Based Courses Definitions.

Section 3333.82 | Chancellor to Establish Clearinghouse of Digital Texts and Distance Learning Courses.

Section 3333.83 | Enrollment in Clearinghouse Course - Participation - Withdrawal.

Section 3333.84 | Fees Charged for Texts or Courses Offered Through Clearinghouse.

Section 3333.85 | Assignment of Course Grade; Credit.

Section 3333.86 | Offering of Course as Dual Enrollment Program.

Section 3333.87 | Clearinghouse Implementation Rules.

Section 3333.88 | Alternative Means for Offering Computer-Based Courses.

Section 3333.90 | Course and Program Sharing Network.

Section 3333.91 | Plan for the Adult Basic and Literacy Education Program.

Section 3333.92 | Participation in Adult Basic and Literacy Education; Creation of Account With Ohiomeansjobs Website.

Section 3333.93 | Workforce-Education Partnership Programs.

Section 3333.94 | Inventory of Credit and Non-Credit Certificate Programs and Industry-Recognized Credentials; Preferential Funding.

Section 3333.95 | Efficiency Advisory Committee.

Section 3333.951 | Higher Education Textbook Study.

Section 3333.99 | Governing Boards of State Colleges and Universities Retain Former Powers and Duties.