Birmingham-Southern College filed a lawsuit Wednesday against State Treasurer Young Boozer after Boozer denied the college's request for a loan from a new fund set up by the Legislature for distressed colleges.
Montgomery County Circuit Judge James Anderson will hold a hearing Thursday afternoon in Birmingham-Southern College’s lawsuit against State Treasurer Young Boozer, a case that could determine whether the 167-year-old private college survives its financial problems.on Wednesday after Boozer turned down the college’s request for a $27 million loan from the Alabama Distressed Institutions of Higher Education Revolving Loan Program.
Birmingham-Southern is asking the court for an emergency order requiring Boozer to approve the loan and disburse the first $8.8 million by Nov. 6, with another installment of $7.2 million in February. Without emergency relief from the court, Birmingham-Southern will likely close for good before the end of the year, lawyers for the college told the court.
Birmingham-Southern said it completed its application on Aug. 24, the first day the treasurer’s office made applications available. The college said it provided adequate collateral for the loan and meets all the legal requirements to obtain it. The statute setting up the loan program made the state treasurer the administrator of the program. But the college said the law does not give the treasurer the discretion to deny a loan to a college that meets the criteria spelled out in the statute.If you purchase a product or register for an account through a link on our site, we may receive compensation.
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