N.J. Admin. Code § 7:1A-6.5

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:1A-6.5 - Amount and terms of emergency interim rehabilitation loan

(a) The amount of the emergency interim rehabilitation loan shall be determined by the Department based upon allowable costs as set forth in the applicable sections of N.J.A.C. 7:1A-1, 2 and 3, but shall not exceed a maximum total of $ 300,000.

(b) The amount of the emergency interim rehabilitation loan shall not be included in the calculations for the maximum loan amount for any subsequent water supply rehabilitation loan awarded pursuant to N.J.A.C. 7:1A-1 and 2.

(c) The emergency interim rehabilitation loan shall be repaid within one year of the date or dates funds are disbursed, either through application of the proceeds of loan funds pursuant to N.J.A.C. 7:1A-1, 2 and 3 or from other sources, including external borrowings.

(d) Interest on the emergency interim rehabilitation loan shall accrue from the date or dates funds are disbursed and be computed at the annual rate of 80 percent of the average of the 52 week high and low of the Bond Buyer's 20-bond index as of the time the funds are disbursed and shall be payable at the end of one year from the date of disbursement or upon repayment of the emergency interim rehabilitation loan or any portion thereof.

(e) A rate schedule setting forth the amount charged for the sale of water by the borrower shall be established. A percentage of these receipts, as stipulated by the loan award document, shall be dedicated to a specific fund for the purpose of assuring the repayment of the loan by the borrower. The Department may require additional collateral to secure the loan when deemed necessary.

(f) Any funds from repayment of the principal of emergency interim rehabilitation loans shall be repaid into the Water Supply Fund created pursuant to the Act and shall remain available for further disbursements as new loans to be awarded pursuant to N.J.A.C. 7:1A-1, 2 and 3.

(g) Any purchase, contract or agreement under an emergency interim rehabilitation loan may be made, negotiated or awarded without public advertising for bids provided that such purchase, contract or agreement qualify for an exemption pursuant to the "Emergency purchases and contracts" section of the local Public Contracts Law, 40A:11-6.

N.J. Admin. Code § 7:1A-6.5