N.M. Admin. Code § 20.7.5.14

Current through Register Vol. 35, No. 21, November 5, 2024

Section 20.7.5.14 - ADMINISTRATION OF THE LOAN PROGRAM AND FUND

A. The loan program and fund is administered by the department as agent for the commission. Pursuant to Paragraph 10 of Subsection A of Section 74-6A-9 NMSA 1978 of the act, the department shall develop new, and implement existing, policies, procedures and guidelines necessary and appropriate to implement the provisions of the act and the Clean Water Act.

B. The necessary administrative expenses required of the board, the commission, and the department to implement the provisions of the act will be appropriated from the fund.

C. The department may impose and collect a fee from each qualified borrower that receives financial assistance from the fund, which fee shall be deposited into the clean water state revolving loan administrative fund, and used solely for the costs of administering the fund as follows:

(1) an administrative fee may be assessed on all financial assistance provided after January 1, 1996, and will be assessed on the refinancing of financial assistance after October 1, 1993;

(2) if an administrative fee is assessed pursuant to Paragraph (1) of Subsection C of 20.7.5.14 NMAC above, the total administrative fee assessed shall not exceed five percent of the total loan amount; the fee will be assessed on the outstanding principal balance of the loan payable; these fees are due on the same dates the payment of principal and interest on the loans are due, and shall be charged to each borrower, unless waived from the requirement by the department; the department may determine, establish and revise from time to time, the precise amount of the administrative fee to be charged, based on the projected costs of administering the program and other revenue available to pay such costs; the administrative fee payments must be deposited in the clean water state revolving loan administrative fund as they are received; interest on the clean water state revolving loan administrative fund shall be transferred to the administrative fund as it is received; and

(3) an administrative fee of two percent of the unpaid principal balance of the refinanced loan will be assessed against the qualified borrower and shall be paid into the clean water state revolving loan administrative fund at the time of closing of the refinancing.

D. Financial assistance agreements will be prepared by the department and executed by the qualified borrower for the project which can be financed with available balances in the fund.

E. Repayment of the loan portion of the financial assistance shall begin no later than one year after completion of the project for which the loan was executed and shall be repaid in full no later than 30 years after completion of the project. All principal and interest on loan payments shall be deposited in the fund.

F. The interest rate for the loan portion of the financial assistance shall be the rate in effect when the loan agreement is executed. The interest rate shall not change during the term of the financial assistance unless refinanced in accordance with Subsection J. of 20.7.5.14 NMAC.

G. At the beginning of each state fiscal year, the commission may determine a base rate for the state fiscal year which is less than or greater than the current base rate.

H. Local authority interest rates and interest rate conditions shall be determined by the department and reported to the commission at the beginning of each state fiscal year.

I. The interest rate for a state agency shall be the lowest interest rate available above zero percent in Subsection H of Section 14 of 20.7.5 NMAC.

J. The interest rate for all other eligible borrowers will be the base rate at the time the loan agreement is executed.

K. A local authority may refinance the loan portion of the financial assistance if the local authority later qualifies for a reduced rate. The refinancing may only occur at or after the execution of a final loan agreement.

L. Financial assistance recipients shall comply with all applicable federal, state and local laws and regulations, including but not limited to:

(1) procurement;

(2) record keeping;

(3) accounting;

(4) audit and inspection;

(5) occupational health and safety;

(6) environmental review; and

(7) non-discrimination.

M. In the event of default by the qualified borrower, the department as agent for the commission may enforce its rights by suit or mandamus or may utilize all other available remedies under state law.

N.M. Admin. Code § 20.7.5.14

11-18-93; 11-30-95; 09-30-98; 20.7.5.14 NMAC - Rn, 20 NMAC 7.5.204 & N, 7/16/2000; & A, 7/16/2000; A, 11/15/2007, Adopted by New Mexico Register, Volume XXVI, Issue 21, November 16, 2015, eff. 12/16/2015, Amended by New Mexico Register, Volume XXVIII, Issue 10, May 30, 2017, eff. 5/30/2017, Amended by New Mexico Register, Volume XXIX, Issue 17, September 11, 2018, eff. 9/29/2018, Amended by New Mexico Register, Volume XXXI, Issue 20, October 27, 2020, eff. 10/27/2020