HARRISBURG — A number of Butler County agencies will get a slice of a multimillion dollar, multistate settlement related to alleged bid rigging by financial institutions.

According to the Pennsylvania attorney general, nonprofit agencies and school districts in the state will divvy up $11.5 million.

Of the $436,000 that will return to Butler County, the Butler County General Authority will get $351,298 from a settlement with JPMorgan Chase, which the authority then will divide up to affected participants, including the Butler School District.

From that same settlement, the South Butler School District will receive $43,344.

District spokesman Jason Davidek said the district received a form to accept the money, which will be turned over to solicitor Tom King.

“I imagine he’ll advise us to go forward with it,” Davidek said.

King, who also is solicitor for the Butler School District, said the recipients can only use the money for the same purpose as the original bond, which generally is buildings and grounds. King said the money could be used, for example, on the same construction project if it’s not finished, new construction or paying down debt for construction.

“One thing it cannot be used for: salaries,” King said.

Other institutions in the county also will get money from a settlement with Bank of America, including Butler County Community College, $38,484; the Mars School District, $2,657; and Sherwood Oaks in Cranberry Township, $40,809.

Attorney General Linda Kelly, in a written statement, said the scheme involved the marketing and sale of municipal derivative investments, which are used by government agencies and nonprofit groups to reinvest the proceeds of tax-exempt bonds until those funds are needed.

“This scheme took advantage of state agencies, local governments, public school districts and non-profit organizations that were attempting to invest or protect the proceeds of tax exempt bonds,” Kelly said. “According to the continuing national investigation, a number of banks, brokers and financial service firms manipulated the bidding process and shared information, causing victims to pay higher fees and receive lower interest rates.”

According to Kelly, the settlement funds are to compensate victims for their losses, returning the funds they should have received when they initially made their investments.

Of the Butler County General Authority’s $351,298 payout, only about $119,000 of that will stay in the county — about $101,000 to the Butler School District and $18,000 to the authority itself.

The authority helps businesses find financing, with loans and financing approved by the Butler County commissioners, but it can operate outside of the county. The remainder of its payout, about $232,000, will be split among the Conneaut, Erie and Greater Johnstown school districts.

However, Douglas Linn, solicitor for the authority, said the Butler School District’s total payout for bid rigging settlements could eclipse $250,000 by the time the state attorney general’s office finalizes three other settlements.

Kelly confirmed that officials are identifying the victims to receive payments from three other settlements.

Linn said the authority received notice of the settlements in the past week, and the $18,000 due the authority itself will be reinvested in the revolving loan fund that the authority offers for small businesses.

James Hrabosky, vice president for administration and finance at BC3, said the college’s $38,484 payout from Bank of America covers proceeds for bonds issued in 2001.

He said BC3 was notified of the settlement in a letter from Bank of America dated Nov. 18, 2011, and consulted legal council before taking any action.

“We elected to accept the settlement, and we did receive that money in December,” Hrabosky said.

Officials from Sherwood Oaks, the lone nonprofit agency on this county’s list, did not return a telephone message.

The multistate settlements are part of a coordinated national investigation involving state attorneys general and numerous federal agencies, including the Securities and Exchange Commission, the Internal Revenue Service and the U.S. Department of Justice.

Eagle staff writer Sandy Pontius contributed to this report.