Okla. Admin. Code § 785:50-7-7

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

Section 785:50-7-7 - Disbursement of funds

(a)Conditions for disbursement.

(1) After an application for financial assistance under the program authorized by Sections 1085.31 through 1085.49 of Title 82 of the Oklahoma Statutes has been approved by the Board, the following conditions and requirements shall be met prior to the release and disbursement of any assistance funds:

(A) Unless otherwise provided and approved by the Board Staff, applicant must submit to the Board all plans, specifications and engineering reports for the project for staff approval all of which shall be complete and in sufficient detail as would be required for submission of the project to a contractor for bidding or contracting the project.

(B) Applicant and Board, and all other necessary parties, shall have executed all necessary and incidental instruments and documents for loan closing, including but not limited to all mortgages, notes, financing statements and pledges of project security and revenues where appropriate.

(C) If not previously provided, applicant shall provide Board with a written and verified statement setting forth:

(i) the amount of funds necessary for release and disbursement at closing which funds are needed for initial commencement of the project; and,

(ii) information reflecting the reasonable availability of and/or a commitment from all other revenue or funding sources needed to finance and complete the project.

(2) At the time of and upon compliance with the requirements in (1) of this subsection, the Board may release, advance and disburse financial assistance funds to the applicant for the approved project.

(b)Disbursement of assistance funds.

(1) Unless otherwise provided and approved by the Board, the total amount of financial assistance funds authorized for loan or grant under the program authorized by Sections 1085.31 through 1085.49 of Title 82 of the Oklahoma Statutes to the applicant shall not be released and disbursed to applicant in a total lump sum but instead shall be disbursed to applicant in partial amounts at agreed upon intervals and stages of construction, all as provided within the financial assistance agreement.

(2) In conjunction with the rule, the Board may require applicant to submit to the Board prior to any release or disbursement of funds such invoices, receipts, contracts, verifications, evidence of expenditure or encumbrance, construction status and progress reports or other information as the Board may require.

(3) Unless otherwise provided and approved by the Board Staff, the Board shall not approve the release nor disbursement of more than ninety-five percent (95%) of the total loan funds authorized for loan until such time as the project has been completed, inspected by the project engineer and the Board, and accepted by the applicant. Furthermore, unless otherwise provided and approved by the Board, the Board shall not release nor disburse more than ninety-five percent (95%) of the total loan funds authorized for engineering services until the project engineer has prepared and submitted three sets of as built project plans (if different from original plans) to the applicant and one set to the Board.

(c)Disbursement of contract funding.

(1) Upon approval of an application for contract funding under the Water and Sewer Financial Assistance Program, the Board shall furnish to the applicant a letter containing notice of application approval and a draft contract.

(2) The contract shall contain, among others, the following provisions:

(A) A description of the project;

(B) The requirement that the applicant comply with applicable competitive bidding provisions in the acquisition of materials and services used for the project;

(C) The requirement that all projects less than $50,000.00 shall have a maintenance bond, letter of credit, or the equivalent equal to the project cost for a period of one year after construction has been completed

(D) The requirement that proper invoices be submitted monthly to the Board as funds are expended;

(E) The requirement that all books and records of applicant containing information pertaining to the project be available for inspection and audit.

(3) The funding contemplated by approval of the application and execution of the contract shall be paid to applicant upon submittal and acceptance of invoices for the work performed.

Okla. Admin. Code § 785:50-7-7

Amended at 9 Ok Reg 1683, eff 5-11-92; Amended at 11 Ok Reg 3007, eff 6-13-94; Amended at 12 Ok Reg 2715, eff 7-1-95; Amended at 13 Ok Reg 777, eff 11-29-95 (emergency); Amended at 13 Ok Reg 1753, eff 5-28-96; Amended at 26 Ok Reg 1715, eff 6-11-09

Amended by Oklahoma Register, Volume 33, Issue 24, September 1, 2016, eff. 9/11/2016

Amended by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/11/2017

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