Ala. Admin. Code r. 335-15-7-.05

Current through Register Vol. 43, No. 1, October 31, 2024

Section 335-15-7-.05 - Terms Of The Loan

(1) The Fund may offer loans for up to 100 percent of allowable project costs and may offer a range of options regarding the term, interest rate and level of loan funding. Such loans must be made at or below market interest rates as determined by the Authority.

(2) The total term of the loans shall not exceed 10 years. Repayments shall begin no later than one year after completion of remediation, or three years from the date of loan award, whichever comes first, and shall be repaid in full in no later than 10 years later. Thereafter, loan repayments shall be made in accordance with the repayment schedule indicated in the borrower's Fund loan agreement. Principal and accrued interest with respect to a particular Fund loan may, however, be prepaid in accordance with the provisions of the relevant Fund loan agreement. Interest shall accrue from the date of delivery of the Authority's bonds in a leveraged loan program. In a direct loan program, interest accrues from the date of the execution of the loan agreement.

(3) Loans shall be made only to local governmental units that:

(a) Are on the State project priority list;

(b) Demonstrate tangible financial capacity to assure sufficient revenues to repay the loan;

(c) Provide security for repayment of the loan as required by the Authority;

(d) Agree to maintain records in accordance with governmental accounting standards and to conduct an annual audit of the facility's financial records;

(e) Provide such assurances as reasonably required by the Authority and the Department;

(f) Are not currently, or have been, subject to any penalties resulting from environmental non-compliance at the site subject to the loan;

(g) Are not currently, or have been, a generator or transporter of contamination at the site subject to the loan; and,

(h) Are exempt from liability under CERCLA for the site subject to the loan.

(4) Fund loan payments will be disbursed to recipients at intervals as work progresses and expenses are incurred and approved, but not more often than once a month.

(5) The specific terms and conditions of the Fund loan shall be incorporated in the Fund loan agreement to be executed by the recipient and the Authority.

Ala. Admin. Code r. 335-15-7-.05

New Rule: Filed October 21, 2004; effective November 25, 2004. Amended: Filed August 15, 2006; effective September 19, 2006.

Amended by Alabama Administrative Monthly Volume XXXVIII, Issue No. 05, February 28, 2020, eff. 4/13/2020.

Authors: Aubrey H. White, Lawrence A. Norris, James L. Bryant, Vernon H. Crockett, Sonja B. Favors, Anna M. Ennis

Statutory Authority:Code of Ala. 1975, §§ 22-30F-2, 22-30F-4.