N.J. Admin. Code § 7:22-3.6

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:22-3.6 - Terms of the Fund loans

(a) The Fund may offer loans for up to 100 percent of allowable project costs for the construction of environmental infrastructure facilities but may offer a range of options regarding the term, interest rate and level of loan funding.

(b) The term of the Fund loans will generally be 20 years or as indicated in the Fund loan agreement. Fund loan repayments shall be made by the recipient in accordance with the repayment schedule indicated in the Fund loan agreement. Principal and accrued interest, if any, with respect to a particular Fund loan may, however, be prepaid in accordance with the provisions of the relevant Fund loan agreement. Interest, if any, on the Fund loan will accrue as indicated in the Fund loan agreement.

(c) Applicants shall secure all Fund loans in a manner acceptable to the Department. Acceptable security arrangements include, but are not limited to, general obligation bonds of the local government unit, service/deficiency agreement(s) with government units with general taxing power, bond insurance, surety bonds, revenue bonds, debt service reserve funds, letters of credit and other arrangements acceptable to the Department.

(d) Fund loan proceeds will be disbursed to recipients in accordance with N.J.A.C. 7:22-3.24.

(e) 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 State.

N.J. Admin. Code § 7:22-3.6

Amended by R.1988 d.210, effective 5/16/1988.
See: 19 New Jersey Register 1600(a), 20 New Jersey Register 1076(a).
Deleted text in (b) "Interest shall accrue... Fund Loan Agreement" and substituted "Interest on the...".
Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
At (d) added N.J.A.C. reference.
Amended by R.1995 d.494, effective 9/5/1995.
See: 27 New Jersey Register 1536(a), 27 New Jersey Register 3403(a).
Amended by R.1998 d.407, effective 8/3/1998.
See: 30 New Jersey Register 1144(a), 30 New Jersey Register 2863(a).
In (a), substituted "environmental infrastructure" for "wastewater treatment"; and in (c), substituted "Applicants" for "Local government units", deleted "municipal" preceding "bond insurance, and inserted "revenue bonds, debt service reserve funds" at the end of the second sentence.
Amended by R.2000 d.284, effective 7/3/2000.
See: 32 New Jersey Register 363(a), 32 New Jersey Register 2426(b).
In (c), inserted ", letters of credit" following "funds" in the second sentence.