W. Va. Code R. § 47-34-23

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 47-34-23 - Loan Agreements

Upon approval of an application for a loan, the Secretary shall specify the provisions that are required to be contained in the loan agreement, including:

23.1. The specific purposes for which the proceeds of the loan shall be expended, the cost of the project, the amount of the loan, and the terms of repayment of the loan and the security therefor, which may include a deed of trust or other appropriate security instrument creating a lien on such project or any other collateral the Secretary may require;

23.2. The procedures as to the disbursement of loan proceeds including an estimated monthly draw schedule, and the duties and obligations imposed upon the applicant in regard to the acquisition or construction of the project;

23.3. The agreement of the applicant to repay the obligations of such applicant under the loan agreement. Revenue may be pledged for the repayment of the loan together with all interest, fees, and charges thereon and all other financial obligations of the applicant under the loan agreement;

23.4. If notes or other interim obligations are being issued by the applicant, the agreement of the applicant to take other repayment actions as are required of the applicant under the loan agreement;

23.5. Payments of the principal and any interest on a loan shall be made by the applicant in accordance with the following:

23.5.a. Computation of Interest on Loans. -- Each loan shall bear interest from the date of the delivery of the notes of the applicant evidencing the loan to the applicant (or such other date as is determined by the Secretary) at a rate or rates per annum, either fixed or variable, as determined by the Secretary.

23.5.b. Fees and Charges. -- In addition to payments of principal and interest on a loan, each applicant shall agree in the loan agreement to pay fees and charges equal to the applicant's share of the administrative expenses of the Secretary and the Authority relating to the loan program or any bond program established by the Secretary and the Authority.

23.6. The agreement of the applicant to accept the Authority's enforcement remedies under the Act in the event of any default under the loan; and

23.7. The agreement of the applicant to comply with all applicable federal and state statutes and rules and regulations and all applicable local ordinances pertinent to the financing, acquisition, design, construction, operation, maintenance and use of the project.

W. Va. Code R. § 47-34-23