Illinois Administrative Code › Title 23 - EDUCATION AND CULTURAL RESOURCES › Part 575 - SCHOOL TECHNOLOGY PROGRAM › Subpart B - SCHOOL TECHNOLOGY REVOLVING LOAN PROGRAM › Section 575.700 - Terms and Conditions of Loan Agreement

Current through Register Vol. 48, No. 28, July 12, 2024
a) Loan proceeds under this program shall be
				used exclusively for the purposes listed in Section
				575.200 of this Part
				and shall be expended in accordance with the approved application and the
				participant's policies and procedures related to such expenditures. In the
				event that the loan proceeds are not expended in the manner approved, then the
				participant, upon written notification from the State Board of Education, shall
				be required to submit, by the next payment due date, payment of the outstanding
				principal of the loan and the amount of the interest accrued as of that payment
				due date.
b) Loan proceeds shall be
				obligated no later than six months following receipt of the loan.
c) Use of loan proceeds shall be accounted
				for in accordance with the rules of the State Board of Education at 23 Ill.
				Adm. Code 100 (Requirements for Accounting, Budgeting, Financial Reporting, and
				Auditing) or, for participants not subject to those rules, in accordance with
				generally accepted standards of governmental accounting principles.
d) Loan recipients shall submit to the State
				Board of Education a report detailing how the loan proceeds were used. This
				expenditure report, to be submitted on a form supplied by the State Board of
				Education, shall be due not later than nine months after receipt of the
				loan.
e) Along with the report
				required under subsection (d) of this Section, each recognized nonpublic school
				shall submit an inventory listing the property identification number, serial
				number, description and location of each piece of equipment purchased with loan
				proceeds. The recognized nonpublic school shall identify (tag) each piece of
				equipment as "Purchased with proceeds from the State of Illinois' School
				Technology Revolving Loan Fund, School Year"; this designation may be removed
				once the outstanding principal of the loan and any amount of interest accrued
				has been paid in full. The recognized nonpublic school shall not transfer or
				assign any interest in the equipment during the pendency of the loan.
f) In the event of default that is not cured
				within 90 calendar days, the State Superintendent of Education or designee
				shall take the action specified either in subsection (f)(1) or (f)(2) of this
				Section. The participant shall be ineligible for additional loans until good
				standing has been restored; however, the chartering school district of a
				charter school participant or the school districts participating in a
				vocational education cooperative shall be allowed to apply for loans on behalf
				of their respective school districts.
1) For
				school districts, charter schools, area vocational centers and laboratory
				schools, the State Superintendent or designee shall deduct the amount owed from
				the participant's next payment of General State Aid, subject to the provisions
				of Section
				575.400(b)(5)
				of this Part.
2) For recognized
				nonpublic schools, the State Superintendent or designee shall deduct the amount
				owed from the participant's next payment of school safety and educational
				improvement block grant funding. In any fiscal year in which the recognized
				nonpublic school does not receive a block grant, or when either the grant is
				not funded by the State or the grant payment is insufficient to cover the
				amount owed, then the school shall be subject to consequences for noncompliance
				as set forth in 23 Ill. Adm. Code
				425.50
				(Renewal of Recognition).