N.J. Admin. Code § 7:36-14.7

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

Section 7:36-14.7 - Terms of loan repayment

(a) A local government unit shall repay the loan amount in semiannual installments over a period of not more than 20 years. The loan term shall begin on the date of the first disbursement of funds made under N.J.A.C. 7:36-14.5. The local government unit may prepay the loan in whole or in part at any time without penalty. An accelerated repayment schedule may be established under the project agreement executed under N.J.A.C. 7:36-14.1.

(b) The Department shall forward the final repayment schedule to the local government unit upon disbursement of the entire loan.

(c) Interest shall accrue on the outstanding loan principal at a rate of not more than two percent per year, beginning on the date of the first disbursement of funds made under N.J.A.C. 7:36-14.5. Interest accrued against each disbursement shall be paid to the Treasurer of the State, in a lump sum, three months after the date of the final disbursement.

(d) The first semi-annual repayment of principal shall be paid to the Treasurer of the State nine months after the final disbursement or two years after the date of the first disbursement, whichever is earlier.

(e) The local government unit shall allocate a portion of its budget to meet the annual debt service on the loan.

(f) The Department shall assess a late fee whenever the local government unit fails to make any repayment within 30 days of the scheduled payment due date, as follows:

1. When a payment is 30 to 59 days past due, five percent of the payment amount due;

2. When a payment is 60 to 89 days past due, 10 percent of the payment amount due; and

3. When a payment is 90 or more days past due, 15 percent of the payment amount due.

(g) A local government unit that fails to make payment within 90 days of the repayment due date shall be in default of the project agreement. Upon default:

1. All outstanding principal, interest, and late fees are payable immediately; and

2. Interest accrues at a rate of not more than two percent per year on the outstanding principal, interest, and late fee, calculated from the repayment due date.

(h) Repayment of the loan in full does not terminate the Green Acres restrictions on the local government unit's funded and unfunded parkland.

N.J. Admin. Code § 7:36-14.7