Q May a district borrow from its Sixteenth (16th) Section principal fund and use the loan proceeds to reimburse the districtís maintenance fund, or may the district issue a note under Section 37-59-101 to reimburse the maintenance fund?

A School districts may borrow funds from the 16th Section principal fund to reimburse funds in a district maintenance fund which were expended for the purposes authorized in Section 29-3-113. Districts lack the authority, though, to issue a note under Section 37-59-101 et seq. in order to reimburse the districtís maintenance fund. (Attorney Generalís Opinion to Watson, May 5, 2016)