§ 10160. Reporting and Default Provisions.

(a) Reporting provisions within the memorandum of understanding and / or funding agreement will include, but not be limited to, the requirements that all recipients of Program funding shall:

(1) provide to the Authority semi-annual unaudited financial statements;

(2) provide to the Authority quarterly reports detailing all disbursements and interest earned as it relates to the separate Program account established pursuant to Section 10159(g), upon request;

(3) report to the Authority any material adverse change in its financial condition that could adversely affect its ability to make its lease payments under the Program within 30 days of such a change;

(4) report to the Authority if the charter school's charter has been revoked or has not been renewed within 30 days of notification of such action, including providing the Authority with a copy of the document provided by the chartering authority notifying the charter school of such action;

(5) provide to the Authority audited financial statements within 180 days of the end of each fiscal year; and

(6) obtain from the Authority prior written consent before incurring any additional indebtedness, which consent may only be given if the Authority has determined that the charter school will remain financially sound with the additional indebtedness.

(b) Default provisions will include monetary penalties for late payments. Upon request of the Board, the Authority may amend the terms of the lease agreement, including the amortization schedule, where the applicant has established financial hardship to the satisfaction of the Authority and the Board, and the Authority has determined that the charter school will be financially sound under the terms of the revised lease agreement. However, no such amendment may extend the amortization schedule beyond 30 years from the date of disbursement of funds. In the event the chartering authority has revoked or declined to renew the charter, the lease will be considered to be in default and the provisions of Education Code section 17078.62 shall be invoked. In instances where the lease is in default due to the revocation of the charter or failure to renew the charter, monetary penalties will not be incurred so long as the school district complies with Education Code section 17078.62.

HISTORY

1. New section filed 2-13-2003 as an emergency; operative 2-13-2003 (Register 2003, No. 7). A Certificate of Compliance must be transmitted to OAL by 6-13-2003 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 2-13-2003 order transmitted to OAL 6-12-2003 and filed 7-14-2003 (Register 2003, No. 29).

3. Renumbering of former section 10160 to section 10162 and renumbering and amendment of former section 10158 to section 10160 filed 3-29-2004 as an emergency pursuant to Education Code section 17078.57(b); operative 3-29-2004 (Register 2004, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-27-2004 or emergency language will be repealed by operation of law on the following day.

4. Renumbering of former section 10160 to section 10162 and renumbering and amendment of former section 10158 to section 10160 refiled 7-19-2004 as an emergency pursuant to Education Code section 17078.57(b); operative 7-27-2004 (Register 2004, No. 30). A Certificate of Compliance must be transmitted to OAL by 11-24-2004 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 7-19-2004 order, including further amendment of subsections (d)(3)-(e), transmitted to OAL 11-8-2004 filed 12-23-2004 (Register 2004, No. 52).

6. Amendment filed 11-3-2006 as an emergency; operative 11-3-2006 (Register 2006, No. 44). A Certificate of Compliance must be transmitted to OAL by 3-5-2007 or emergency language will be repealed by operation of law on the following day.

7. Reinstatement of section as it existed prior to 11-3-2006 emergency amendments pursuant to Government Code section 11346.1(f) (Register 2007, No. 39).

8. Amendment of subsection (d)(2) and new subsection (f) filed 9-9-2010 as an emergency; operative 9-9-2010 (Register 2010, No. 37). A Certificate of Compliance must be transmitted to OAL by 3-8-2011 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 9-9-2010 order transmitted to OAL 1-19-2011 and filed 2-16-2011 (Register 2011, No. 7).

10. Renumbering of former section 10160 to section 10158 and renumbering and amendment of former section 10162 to section 10160 filed 11-3-2011 as an emergency; operative 11-3-2011 (Register 2011, No. 44). A Certificate of Compliance must be transmitted to OAL by 5-1-2012 or emergency language will be repealed by operation of law on the following day.

11. Certificate of Compliance as to 11-3-2011 order transmitted to OAL 2-7-2012 and filed 3-5-2012 (Register 2012, No. 10).

Note

Note: Authority cited: Section 17078.57, Education Code. Reference: Section 17078.57, Education Code.