Sec. 10-292j. Installment payment of interest subsidy grants. Withholding of state grant payments.
Sec. 10-292j. Installment payment of interest subsidy grants. Withholding of
state grant payments. (a) An interest subsidy grant approved under sections 10-292c
to 10-292n, inclusive, shall be paid in installments, the number and time of payment of
which shall correspond to the number and time of interest installment payments on
municipal bonds, including payments to retire temporary notes renewed for the third
and subsequent years pursuant to section 7-378a or 7-378e issued for the purpose of
financing the school building project to which such interest subsidy grant relates and
shall be equal to the state's share of interest costs per interest installment on municipal
bonds or notes, provided final payment shall not be made prior to an audit conducted
by the State Board of Education. Annual interest subsidy grant installments paid pursuant
to this section on interest installment payments to retire temporary notes renewed pursuant to said section 7-378a or 7-378e shall be paid only if at the time such temporary
notes are renewed, the rate of interest applicable to such notes is less than the rate of
interest that would be applicable with respect to twenty-year bonds if issued at the time
of such renewal. The determination related to such rates of interest pursuant to this
subsection may be reviewed and shall be subject to approval by the Commissioner of
Education prior to renewal of such notes.
(b) If the commissioner determines that a school building project has not met the
approved conditions of the original application, the State Board of Education may withhold subsequent state interest subsidy grant payments related to said school building
project until appropriate action, as determined by the commissioner, is taken to cause
the school building project to be in compliance with the approved conditions or may
require repayment of all state interest subsidy grant payments for said school building
project when such appropriate action is not undertaken within a reasonable time.
(P.A. 97-265, S. 92, 98.)
History: P.A. 97-265 effective July 1, 1997.