Section 63A-3-404 - Loan agreement(1)(a) A borrower that borrows money from an infrastructure fund shall enter into a loan agreement with the division for repayment of the money.(b)(i) A loan agreement under Subsection (1)(a) shall be secured by:(A) bonds, notes, or another evidence of indebtedness validly issued under state law; or(B) revenue generated from an infrastructure project.(ii) The security provided under Subsection (1)(b)(i) may include the borrower's pledge of some or all of a revenue source that the borrower controls.(c) The respective loan approval body may determine that property tax revenue or revenue from the infrastructure project for which the infrastructure loan is obtained is sufficient security for an infrastructure loan.(2) An infrastructure loan shall bear interest at a rate not to exceed .5% above bond market interest rates available to the state.(3)(a) Subject to Subsection (3)(b), the respective loan approval body shall determine the length of term of an infrastructure loan.(b) If the security for an infrastructure loan is property tax revenue, the repayment terms of the infrastructure loan agreement shall allow sufficient time for the property tax revenue to generate sufficient money to cover payments under the infrastructure loan.(4) An infrastructure loan agreement may provide for a portion of the loan proceeds to be applied to a reserve fund to secure repayment of the infrastructure loan.(5)(a) If a borrower fails to comply with the terms of an infrastructure loan agreement, the division may: (i) seek any legal or equitable remedy to obtain:(A) compliance with the agreement; or(B) the payment of damages; and(ii) request a state agency with money due to the borrower to withhold payment of the money to the borrower and instead to pay the money to the division to pay any amount due under the infrastructure loan agreement.(b) A state agency that receives a request from the division under Subsection (5)(a)(ii) shall pay to the division the money due to the borrower to the extent of the amount due under the infrastructure loan agreement.(6) Upon approval from the respective loan approval body the division shall loan money from an infrastructure fund according to the terms established by the respective loan approval body.(7)(a) The division shall administer and enforce an infrastructure loan according to the terms of the infrastructure loan agreement.(b)(i) Beginning May 5, 2021, the division shall assume responsibility from the State Infrastructure Bank Fund for servicing the loan under Subsection 63B-27-101(3)(a)(i).(ii) Payments due on or after October 1, 2021, under the loan under Subsection 63B-27-101(3)(a)(i) shall be made to the division rather than to the State Infrastructure Bank Fund, to be deposited into the military development fund.(iii) Notwithstanding Subsection (7)(b)(ii) and upon receipt of each debt service payment, the division shall deposit an amount equal to interest payments due on the bond described in Subsection 63B-27-101(3)(a)(i) into the Transportation Investment Fund of 2005 created in Section 72-2-124.Amended by Chapter 463, 2022 General Session ,§ 3, eff. 5/4/2022.Amended by Chapter 237, 2022 General Session ,§ 16, eff. 5/4/2022.Added by Chapter 415, 2021 General Session ,§ 19, eff. 5/5/2021.