Current through Register Vol. XLI, No. 50, December 13, 2024
4.1. Description of loans. 4.1.1. Source of loan funds. - The Board may obtain the funds with which to make loans from the proceeds of revenue bonds and notes issued from time to time by the Board pursuant to the Act, or the Board may obtain funds from other permitted sources to make such loans.4.1.2. Evidence of and security for loans. - The loans shall be evidenced by a note or other debt instruments issued by applicants at a discount to reflect the costs the Board incurred in issuing its obligations to provide the funds to make the loans, and other costs related to financing such projects, and shall be secured by a pledge of the fees, charges and all other revenues of the projects to be constructed, in whole or in part, with the proceeds of the loans and any other collateral required by the Board.4.1.3. Amount of loan. - Each loan shall be in an amount which shall cover all costs of the project to be constructed by the applicant for which funds from the aforesaid grant or other sources are not available.4.2. Eligibility for loans. 4.2.1. Governmental agencies eligible for loans. - All governmental agencies, or any combination thereof, which have the authority under applicable law to acquire, construct and equip a project shall be eligible for a loan.4.2.2. Application for loan. - Any eligible governmental agency which desires to obtain a loan shall make a separate application to the Board on forms prescribed by the Executive Director of the Board for each project for which a loan is desired.4.2.3. Acceptance of loan application. - Subject to Section 4.7.1 of these rules, no application which is received by the Board shall be accepted until the applicant has satisfied the following conditions:4.2.3.a. Provided documentation satisfactory to the Board that the project is eligible for a loan under the provisions of the Act.4.2.3.b. If required by the Board, provide a feasibility study prepared by a registered professional engineer and an independent certified public accounting firm demonstrating that the project is technically and financially feasible.4.2.3.c. Demonstrated to the satisfaction of the Board that it has adopted or will adopt all necessary ordinances or resolutions in form and substance satisfactory to the Board and has taken or will take all proceedings required by law to enable it to enter into a loan agreement with the Board and that it has obtained or will obtain all other necessary governmental agencies' approval of user charges for the project which will provide annual net revenues to the applicant which exceed, by an amount or percentage specified in the loan agreement, the annual payments required to be made by the applicant to the Board under the loan agreement.4.3. Loans to be subject to agreement.4.3.1. Prior to the making of a loan, the Board shall execute and enter into a loan agreement with the applicant, pursuant to the provisions of Section 4.7 of these rules, which shall include such provisions as may be required by the Board, including, without limitation, the following:4.3.1.a. The cost of such project, the amount of the loan, the terms of repayment of the loan and the security therefor, which may include, in addition to the pledge of all fees, charges and other revenues from such project after a reasonable allowance for operation and maintenance expenses, a deed of trust or other appropriate security instrument creating a lien on such project;4.3.1.b. The specific purposes for which the proceeds of the loan shall be expended, the procedures as to the disbursement of loan proceeds and the duties and obligations imposed upon the applicant in regard to the construction or acquisition of the project;4.3.1.c. The agreement of the applicant to impose, collect and, if required to repay the obligations of such applicant under the loan agreement, increase service charges from persons using said project, which service charges shall be pledged for the repayment of the loan together with all interest, fees and charges thereon and all other financial obligations of such applicant under the loan agreement; and4.3.1.d. The agreement of the applicant to comply with all applicable laws, rules and regulations issued by the Board or other state, federal and local bodies in regard to the financing, construction, operation, maintenance and use of the project.4.4. Repayment of loans; interest on loans; fees and charges.4.4.1. Payment of principal and interest on loan. - Payments of the principal of the loan shall be made by the applicant on a monthly, quarterly, semi-annual or annual basis as scheduled by the Board and interest payments on the loan shall be made by the applicant on a monthly, quarterly, semi-annual or annual basis as scheduled by the Board, in accordance with the provisions of the loan agreement.4.4.2. Computation of interest on loans. - Each loan shall bear interest from the date of delivery of the notes or other debt instruments of the applicant evidencing the loan to the applicant at a rate or rates per annum which shall be equal to the rate or rates per annum borne by the obligations of the Board issued to provide the funds to make the loan: Provided, That pursuant to the provisions of the loan agreement, the Board may purchase the notes or other evidences of indebtedness of the applicant at par or at a discount to reflect the costs of the Board incurred in issuing its said obligations and other costs relating to the making of the loan.4.4.3. Fees and charges. - In addition to payments of principal and interest on the loan, each applicant shall agree in the loan agreement to pay fees and charges to the Board equal to the applicant's share of the administrative expenses of the Board relating to the loan program referred to in this Section 4, including, without limitation, any fees and charges established by rule of the Board, and the fees and expenses of the trustee and paying agents for the bonds to be issued by the Board to make the loan.4.5. Agreement of Board to make loans conditioned upon sale of bonds.The obligation of the Board to make any loan is and shall be conditioned upon receipt by the Board of the proceeds of bonds issued by the Board or funds from other sources in such amounts and on such terms and conditions as in the sole judgement of the Board, will enable it to make the loans.4.6. Construction of project. Each applicant receiving a loan shall, prior to commencement of construction of the project, comply with all applicable provisions of the Act, of the loan agreement and of the resolution or ordinance authorizing the issuance of bonds or notes evidencing the loan, including, without limitation, that the applicant shall obtain all federal, state and local approvals.
4.7. Determination of priority for participation in loan program.4.7.1. Criteria for ranking applications. - Each application will be evaluated according to the following criteria:4.7.1.a. The Board will give references to projects in the following order or priority: (ii) recycling, reuse and resource recovery; and4.7.1.b. Potential of project to further the efficient and effective collection, processing, recycling and disposal of solid waste within the area and to assist in the protection of the environment.4.7.1.c. Degree of public involvement in the project.4.7.1.d. Consideration of the applicant's ability to assess and collect retails, fees and service charges for the use or services of the project involved in the grant application.4.7.1.e. Cost effectiveness of the project.4.8. Miscellaneous.4.8.1. Agreement between Board and applicant. - The agreement between the Board and the applicant referred to in Section 4.3 of these rules, shall be consistent with these rules and shall contain such additional provisions which the Board determines are necessary to the implementation of these rules and ensure the proper carrying forward of the program.4.8.2. Purposes for which loans can be obtained. - Loans obtained in accordance with these rules shall be used by a governmental agency or combination thereof only for the purpose of acquiring, constructing and/or equipping solid waste disposal projects.