20 USC 8071d: Reserve account

20 USC 8071d: Reserve account Text contains those laws in effect on January 2, 2001

From Title 20-EDUCATIONCHAPTER 70-STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY SCHOOLSSUBCHAPTER X-PROGRAMS OF NATIONAL SIGNIFICANCEPart C-Public Charter Schoolssubpart 2-credit enhancement initiatives to assist charter school facility acquisition, construction, and renovation

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§8071d. Reserve account

(a) Use of funds

To assist charter schools to accomplish the objectives described in section 8071c of this title, an eligible entity receiving a grant under this subpart shall, in accordance with State and local law, directly or indirectly, alone or in collaboration with others, deposit the funds received under this subpart (other than funds used for administrative costs in accordance with section 8071e of this title) in a reserve account established and maintained by the entity for this purpose. Amounts deposited in such account shall be used by the entity for one or more of the following purposes:

(1) Guaranteeing, insuring, and reinsuring bonds, notes, evidences of debt, loans, and interests therein, the proceeds of which are used for an objective described in section 8071c of this title.

(2) Guaranteeing and insuring leases of personal and real property for an objective described in section 8071c of this title.

(3) Facilitating financing by identifying potential lending sources, encouraging private lending, and other similar activities that directly promote lending to, or for the benefit of, charter schools.

(4) Facilitating the issuance of bonds by charter schools, or by other public entities for the benefit of charter schools, by providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue).

(b) Investment

Funds received under this subpart and deposited in the reserve account shall be invested in obligations issued or guaranteed by the United States or a State, or in other similarly low-risk securities.

(c) Reinvestment of earnings

Any earnings on funds received under this subpart shall be deposited in the reserve account established under subsection (a) of this section and used in accordance with such subsection.

(Pub. L. 89–10, title X, §10325, as added Pub. L. 106–554, §1(a)(1) [title III, §322(a)(2)], Dec. 21, 2000, 114 Stat. 2763 , 2763A-59.)

Section Referred to in Other Sections

This section is referred to in sections 8071c, 8071h of this title.