Nev. Admin. Code § 408.Sec. 6.1

Current through December 12, 2024

Section 408.Sec. 6.1 - NEW

For each application for a loan or other financial assistance submitted to the Bank, the staff of the Bank shall:

1. Review the application for completeness, including, without limitation, any attachments or exhibits.

2. Confirm that the governing body of the applicant has approved the application.

3. Confirm that the applicant is a qualified borrower and the project is an eligible project.

4. Confirm that the proposed source of repayment is appropriate for the loan or other financial assistance from the Bank and that the applicant has the ability to repay the loan or other financial assistance from the proposed source of repayment.

5. Determine the impact of the loan or other financial assistance on the finances and operations of the applicant.

6. Determine whether the applicant has unmet capital needs that could be detrimentally affected by the loan or other financial assistance or that could detrimentally affect the ability of the applicant to repay the loan or other financial assistance.

7. Review the audited financial statements of the applicant for the immediately preceding 5 years or, if the applicant is a new entity with less than 5 years of financial statements, review the existing audited financial statements and a feasibility study for the eligible project provided by the applicant.

8. Conduct a financial analysis of the applicant's general credit, including, without limitation:

(a) An analysis of the financial statements of the applicant using criteria appropriate for an analysis of municipal credits or private credits, as applicable;

(b) A review of any official statements or prospectus used by the applicant in conjunction with the issuance of bonds;

(c) Conducting discussions with the financial advisor and underwriter of the applicant to assist in evaluating the applicant's financial condition;

(d) A review of reports of bond rating agencies, where applicable;

(e) For applicants who are governmental units, a review of existing property tax rates and general obligation bonding capacity;

(f) An analysis of the existing indebtedness of the applicant, both secured and unsecured; and

(g) An analysis of cash flow projections.

9. Examine population trends.

10. Examine assessed value trends.

11. Evaluate the relevant legal authority applicable to the applicant, including, without limitation, state law, federal tax law and local ordinances and resolutions.

12. Evaluate the extent to which the management of the applicant understands the obligations, terms and conditions of the loans and other financial assistance provided by the Bank.

13. Determine the readiness of the management of the applicant to assume responsibility for the timely repayment of the loan or other financial assistance.

Nev. Admin. Code § 408.Sec. 6.1

Added to NAC by Dep't of Transportation by R017-22A, eff. 4/19/2022

NRS 408.55071