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.

Birmingham-Southern sued the state treasurer 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.

The Legislature passed a bill this year creating the loan program in response to requests from officials, alumni, and supporters of Birmingham-Southern, who said the college would close without an infusion of public funds to serve as a bridge while it raised money from donors and private sources.

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.

This story will be updated after the hearing at 1:30 p.m..