Md. Code Regs. 26.03.09.08

Current through Register Vol. 51, No. 22, November 1, 2024

Section 26.03.09.08 - Financial Agreement

A. Terms of Financial Agreement. The financial agreement required by the Board of Public Works as a condition of financial assistance shall include terms which:

(1) Provide salvage rights by the State upon default of the applicant;

(2) Require that the applicant maintain adequate accounting records and submit monthly accounting reports to the Department;

(3) Describe the grant, loan, or loan guarantee payment and repayment schedules;

(4) Provide that a project sign will be erected when total State participation in the project exceeds $10,000;

(5) Require the applicant to follow all State and local environmental control laws in constructing the project;

(6) Require the applicant to operate and maintain the water supply facility in accordance with applicable sections of Environment Article, Title 9, Annotated Code of Maryland;

(7) Provide that the agreement may be voided by the Department if construction has not commenced within 6 months of the award for construction and, if voided, shall require the applicant to repay all funds with interest;

(8) Require that all significant extra work orders or change orders be approved by the Department before the contractor is authorized to proceed and, upon approval, the applicant may request an amendment to the grant or loan agreement; and

(9) Require that the applicant agree that the total amount of all change orders not exceed 5 percent of the original total award of financial assistance and that all costs exceeding this amount or costs not authorized by the Department are the responsibility of the applicant.

B. Financial agreements may also include any special conditions or requirements recommended by the Department and approved by the Board of Public Works.

Md. Code Regs. 26.03.09.08