Okla. Admin. Code § 785:50-10-3

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

Section 785:50-10-3 - Terms and conditions

(a)General limitations and conditions.

(1) Under the federal Safe Drinking Water Act and 82 O.S. Section 1085.74, the Board is authorized to use the Drinking Water Treatment Revolving Loan Account for the following purposes:

(A) To make a loan to an eligible entity if:

(i) The drinking water project and planning documents have been approved by the Department,

(ii) The loan is made at or below market interest rates, including interest-free loans, at terms consistent with the federal Safe Drinking Water Act,

(iii) Principal and interest payments will begin not later than one year after completion of any drinking water project, which completion date shall be determined by the Department, and all loans will be fully amortized consistent with the federal Safe Drinking Water Act,

(iv) The Drinking Water Treatment Revolving Loan Account will be credited with all payments of principal and interest on all loans,

(v) The applicant demonstrates to the satisfaction of the Board the financial, legal and managerial capability to assure sufficient revenues to pay debt service,

(vi) The recipient of the loan establishes a dedicated source of revenue for payment of debt service for the loan,

(vii) The recipient agrees to maintain financial records in accordance with governmental accounting standards, to conduct an annual audit of the financial records relating to the drinking water project and to submit the audit report to the Board on a scheduled annual basis, and

(viii) The project is identified in the Department's current Intended Use Plan.

(B) To buy or refinance eligible entity obligations at or below market interest rates if the obligation was incurred after July 1, 1993;

(C) To guarantee or purchase insurance for eligible entities if the guarantee or insurance would improve access to market credit or reduced interest rates;

(D) As a source of revenue or security for the payment of principal of and interest on any investment certificate issued by the Board. The proceeds of the sale of such investment certificates shall be deposited in the Drinking Water Treatment Revolving Loan Account in compliance with applicable bond resolutions or indentures authorizing the sale;

(E) To earn interest on accounts established under the Drinking Water Treatment Revolving Loan Account;

(F) To administer the Drinking Water Treatment Revolving Loan Account pursuant to the provisions of 82 O.S. §§ 1085.71 et seq.; and

(G) For such other purposes or in such other manner, as is determined by the Board to be an appropriate use of the Drinking Water Treatment Revolving Loan Account and which has been specifically approved by the Environmental Protection Agency pursuant to the federal Safe Drinking Water Act.

(2) Financial assistance shall not be made from the Drinking Water Treatment Revolving Loan Account until the conditions in (1) of this subsection are met.

(3) The Board shall not use funds in the Drinking Water Treatment Revolving Loan Account established in the Water Resources Fund to make grants.

(b)Evidence of indebtedness. The financial assistance loans contemplated within this subchapter shall be provided by the Board for approved drinking water projects pursuant to such notes, bonds, revenue bonds or other appropriate form of evidence of indebtedness from the applicant as the Board may require.

(c)Criteria for determining interest rates.

(1) The interest rates on loans to be made from the Drinking Water Treatment Revolving Loan Account shall be at or below market rates for similar indebtedness by eligible entities and may vary among classes or categories of eligible entities based on a joint agreement entered into by and between the Board and Department.

(2) Such criteria of the joint agreement may incorporate applicable United States Environmental Protection Agency and Rural Development or successor agency guidelines for financial assistance.

(d)Loan repayments. Payment on loans shall be made to the Board as provided in the loan documents.

Okla. Admin. Code § 785:50-10-3

Added at 12 Ok Reg 2715, eff 7-1-95; Amended at 15 Ok Reg 2881, eff 7-1-98

Amended by Oklahoma Register, Volume 35, Issue 24, September 4, 2018, eff. 9/14/2018