830 R.I. Code R. 830-RICR-10-25-1.6

Current through December 3, 2024

Section 830-RICR-10-25-1.6 - Terms and Conditions

A. Interest/Pricing: Financial assistance may include market interest rates, below market interest rates, interest rate subsidies or other credit enhancements which reduce the cost of financing eligible projects. Interest rates will be determined by the Board of Directors on a project by project basis depending on the risk and term of the loan. Interest is to be calculated on the basis of a 360 day year and twelve 30 day months on the outstanding loan balance, paid semi-annually on March 1^st and September 1^st and may be capitalized during construction

B. Fees: The Bank may charge an Origination Fee at the time of loan closing. All out of pocket closing costs (i.e. Borrower's cost of issuance, Bank cost of issuance, Bank underwriting costs and any other closing costs) will be paid by the Borrower. The Bank will also charge an annual Service Fee payable semi-annually at each interest payment date. A late payment fee will be charged for every 15 days that a payment is late.

C. Amortization: Amortization will begin within one year after completion of construction and one year after closing for a refinancing. Principal payments will be made annually on September 1^st. An alternative repayment schedule may be proposed by the Bank after consultation with the Borrower.

D. Term/Final Maturity: The length of the term of financial assistance awarded shall be determined by the Bank in consultation with the Borrower.

E. Prepayments: The loan may be prepaid by the Borrower at any time, but may be subject to a prepayment penalty based on the cost of reinvesting the prepayment, the cost of prepaying outstanding bonds of the Bank or any other negative financial impact to the Bank.

F. Security: Loans will have a pledge of:

1. For governmental borrowers:

a. An appropriations pledge;

b. A general revenues pledge; or

c. May be secured by any other assets or pledges of the Borrower and upon such other terms and conditions as the Bank deems appropriate to protect the interests of the other participants in the Brownfields Revolving Loan Fund of the Bank; bondholders; other creditors of the Bank; or the finances of the Bank.

2. For all other borrowers:

a. May be secured by any assets or pledges of the Borrower and upon such other terms and conditions as the Bank deems appropriate to protect the interests of the other participants in the Brownfields Revolving Loan Fund of the Bank; bondholders; other creditors of the Bank; or the finances of the Bank.

G. Construction Progress Payments: Progress payments for each construction project will be made through the Construction Proceeds Fund (CPF). Loan proceeds will be transferred monthly from the CPF for each borrower based upon approved Requisition Forms submitted to the Bank. Upon receipt of the Requisition Form, the Bank will verify:

1. The costs requisitioned for payment are in connection with a project listed on the project priority list established by the Department of Environmental Management;

2. The vendor is identified in the contract; and

3. There is sufficient availability in the CPF to make the payment.

H. Payments will be made directly to the vendor and/or the Borrower for reimbursements by the Bank, and a "paid" stamped copy of the Requisition Form will be sent to the Borrower. The Department of Environmental Management will perform periodic project inspections to:

1. Monitor construction progress;

2. Verify eligibility of construction costs under the program; and

3. Ensure construction is in conformity with Plans and Specifications.

I. The Department of Environmental Management will provide a copy of the inspection report to the Bank. Any adverse conditions will be reported to the Bank who may suspend further payments until the adverse conditions have been rectified. The Department of Environmental Management will perform a final project inspection before the final payment is made by the Bank.

830 R.I. Code R. 830-RICR-10-25-1.6