Fiscal solvency of school districts -- Duties of state treasurer and attorney general

(1) The state superintendent shall: (a) monitor the financial affairs and condition of each local school board in the state to evaluate each local school board's financial solvency; and (b) report immediately to the governor and state treasurer any circumstances suggesting that a school district will be unable to timely meet its debt service obligations and recommend a course of remedial action. (2) (a) The state treasurer shall determine whether the financial affairs and condition of a local school board are such that it would be imprudent for the state to guarantee the bonds of that local school board. (b) If the state treasurer determines that the state should not guarantee the bonds of that local school board, the state treasurer shall: (i) prepare a determination of ineligibility; and (ii) keep it on file in the office of the state treasurer. (c) The state treasurer may remove a local school board from the status of ineligibility when a subsequent report or other information made available to the state treasurer evidences that it is no longer imprudent for the state to guarantee the bonds of that local school board. (3) Nothing in this section affects the state's guaranty of bonds of a local school board issued: (a) before determination of ineligibility; (b) after the eligibility of the local school board is restored; or (c) under a certificate of eligibility issued under Section 53G-4-803.