Section 6021.712 - Upgrade Loan Program(a) Establishment.--The board is hereby authorized to establish a loan program for owners of regulated underground storage tanks as a method of investing fund moneys, provided that such a program does not interfere with the actuarial soundness of the fund required by section 705(d)(1) . Aggregate outstanding loan balances shall not exceed 20% of the fund balance, hereby defined as the ending cash balance in any given fiscal year less any liability for claims incurred but not yet paid. Loans shall not be made when the fund balance falls below $50,000,000. Loans shall not be made if such loans impede the board's ability to pay claims.(b) Eligibility.--Such loans shall be made available to owners of six or fewer regulated underground storage tanks for the purpose of upgrading or removing their storage tanks. Any portion of the annual availability of funds not committed to such owners within 90 days of the effective date of this section and thereafter within 120 days of July 1 in any fiscal year may be awarded to any owner of any number of regulated underground storage tanks that meet the remaining requirements of this section.(c) Loan terms.--Loans made under this section shall be governed by the following terms:(1) The maximum loan amount for an individual project is $500,000 or 75% of the total eligible project costs, whichever is less. The maximum total amount that a single owner or operator may have outstanding is $500,000.(2) Loans shall have a repayment period of up to ten years.(3) Interest rates shall be fixed at the time the loan is made and shall be equal to the Five-Year United States Treasury Note on the date application is made.(4) All loans must be adequately secured. The board shall determine the methods for securing loans.(5) The board shall charge a loan origination fee not to exceed 5% of the approved loan amount.(6) The board, by regulation, may create additional eligibility requirements for participation in the upgrade loan program.(d) Annual report.--The board shall prepare an annual report for submission to the General Assembly concerning activities and expenditures made pursuant to this section for the preceding year. Included in this report shall be information concerning all loans made to eligible applicants and applications denied.(e) Assistance.--The Department of Community and Economic Development, in consultation with the Department of Environmental Protection, shall assist the board with the implementation of this program. The fund shall reimburse the Department of Community and Economic Development for actual costs incurred to administer this program. However, administrative costs shall not exceed 5% of the loan amounts approved annually. Final loan approval shall be made by the board.1989, July 6, P.L. 169, No. 32, § 712, added 1998 , Jan. 30, P.L. 46, No. 13, § 5, imd. effective. Reenacted and amended 2000 , Dec. 20, P.L. 726, No. 100, § 1, imd. effective.