Okla. Admin. Code § 785:50-10-2

Current through Vol. 42, No. 7, December 16, 2024

Section 785:50-10-2 - General approval standards and criteria

(a) In the review and consideration for financial assistance under the Drinking Water Treatment Revolving Loan Program, the Board shall give consideration to the following general and non-exclusive criteria for application approval:

(1)Compliance with laws. The application and proposed drinking water project must be found to be in compliance with all applicable and relevant federal, state and local laws and regulations, and applicant must possess all necessary and incidental legal rights and privileges necessary for project commencement and operation.

(2)Eligibility. The applicant and proposed drinking water project must be determined to be eligible for the assistance sought.

(3)Economic feasibility. The Board shall consider the overall apparent economic viability and feasibility of the drinking water project as a whole including proposed revenues from the drinking water project and the adequacy and reliability of estimated revenues necessary for loan repayment when indicated.

(4)Availability of funds. The Board shall take into consideration the current and anticipated availability of assistance funds needed to provide the financial assistance requested.

(b) The Board may deny an application for a loan from the Drinking Water Treatment Revolving Loan Program for any of the following reasons:

(1) The applicant or the entity which stands to receive the benefit of the financial assistance is not an eligible entity.

(2) The applicant does not have a demonstrated history of sound management.

(3) The applicant's financial condition is not sound enough to assure the Board that the loan would be satisfactorily repaid (including but not limited to circumstances such as inability to meet debt service, inability to meet any applicable rate covenant or additional indebtedness requirements, a substantial increase in operation and maintenance costs due to the proposed project, substantial revenue collection problems, substantial negative financial trends, a default or record of late payment(s) on previous indebtedness, etc.)

(4) The economic conditions pertinent for the applicant show negative trends (including but not limited to conditions such as substantial declines in sales tax revenues, population, per capita income, building permits, or water and/or sewer connections; a substantial increase in unemployment; or detrimental changes in the bases of ten largest customers or ten largest taxpayers).

(5) Any other reason based upon applicable law or the Board's judgment and discretion.

Okla. Admin. Code § 785:50-10-2

Added at 12 Ok Reg 2715, eff 7-1-95; Amended at 14 Ok Reg 2788, eff 7-1-97