N.J. Admin. Code § 7:22-6.6

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

Section 7:22-6.6 - Terms of grants and loans from the Pinelands Infrastructure Trust Fund

(a) The Pinelands Fund may offer grants and loans for up to 100 percent of allowable project costs for the acquisition, construction, improvement, expansion, repair or rehabilitation of all or part of any structure, facility, or equipment necessary for or ancillary to any wastewater treatment facilities and may offer a range of options regarding the term, interest rate and level of loan funding.

(b) The term of the Pinelands loans will generally be 20 years or as indicated in the Pinelands grant or loan agreement. The interest rate will not exceed 50 percent of the Bond Buyer Municipal Bond Index for bonds available for purchase during the last 26 weeks preceding the date of the execution of the loan agreement by the Department. Pinelands loan repayments shall be made by the recipient in accordance with the repayment schedule indicated in the Pinelands loan agreement. Principal and accrued interest with respect to a particular Pinelands loan may, however, be prepaid in accordance with the provisions of the relevant Pinelands loan agreement.

(c) Local government units shall secure all Pinelands 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, municipal bond insurance, surety bonds and other arrangements acceptable to the Department.

(d) Pinelands grant and loan proceeds will be disbursed to recipients in accordance with N.J.A.C. 7:22-6.24.

(e) The specific terms and conditions of the grant or loan shall be incorporated in the Pinelands grant or loan agreement to be executed by the recipient and the State.

N.J. Admin. Code § 7:22-6.6

Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
Deleted more specific time frames regarding initiation of repayment in lieu of repayment schedule as indicated in loan agreement.