1 N.C. Admin. Code 41C.0203

Current through Register Vol. 39, No. 11, December 2, 2024

Section 41C .0203 - LOAN PERCENTAGE AND CONDITIONS AND LIMITATIONS

(a) The interest rate on the loan shall be set pursuant to G.S. 143B-344.44(c) by the State Energy Office based on the following:

(1) previous State Energy Office loan recipients get one percent deduction with closed loans and no defaults to zero percent;

(2) loans made to residents and small businesses shall receive a one percent interest rate;

(3) loans made to nonprofit organizations and local governments projects shall receive a two percent interest rate; and

(4) loans made to commercial and industrial entities shall receive a three percent interest rate.

(b) Loans shall be made subject to the following conditions:

(1) the repayment schedule shall be based on the estimated payback as shown in the Technical Analysis Report, pursuant to Rule .0303 of this Subchapter;

(2) the commercial or industrial business, nonprofit organization, local government entity, or resident shall make payments at least once a month;

(3) the total amount of the loan, or any portion thereof, may be repaid at any time before the total amount is due, without penalty;

(4) rebates received through other program offerings of the State Energy Office for projects undertaken from loan proceeds shall be used to reduce the amount of principal;

(5) the borrower shall warrant that all work or construction done with the proceeds of a loan under this program shall comply with all building codes;

(6) project implementation shall begin within 90 days after approval of the application. If delays are encountered following loan closing, any arbitrage profits will be repaid to the Energy Loan Fund;

(7) loan payments or drafts shall be sent or delivered to the Financial Service Division, in accordance with 04 NCAC 12D .0101; and

(8) a letter of credit from a bank approved to do business in North Carolina shall secure the loan against non-payment and also serve as a quarterly drafting mechanism for loan repayment from the bank.

(c) Loans shall be made subject to the following limitations:

(1) the amount of the loan shall not exceed allowable costs;

(2) loans shall not be used to replace an existing loan; and

(3) no loans shall be forgiven.

01 N.C. Admin. Code 41C .0203

Authority G.S. 143B-344.44;
Eff. August 1, 2004;
Readopted Eff. June 1, 2021.

Authority G.S. 143-345.18(b)(2a); 143-345.18(b)(3);
Eff. August 1, 2004.

Readopted by North Carolina Register Volume 36, Issue 01, July 1, 2021 effective 6/1/2021.