La. Admin. Code tit. 33 § IX-2113

Current through Register Vol. 50, No. 6, June 20, 2024

Section IX-2113 - Loans

A. Loans shall be made only to eligible applicants that:

1. meet the requirements of financial capability as defined in LAC 33:IX.2105 set by the department to assure sufficient revenues to operate and maintain the facility for its useful life and to repay the loan;

2. possess an acceptable source of revenue for repayment of the loan. Acceptable sources of revenue for municipalities may include charges as defined in LAC 33:IX.2105, sales taxes, property taxes, other sources of revenue that may be legally dedicated, and revenue that is deemed acceptable by the department;

3. agree to operate and maintain the wastewater facility so that the facility will function properly over the design life of the facility, which shall not be less than the term of the loan;

4. agree to properly maintain financial records, to allow an audit of the project's financial records by a certified public accountant, and to make these records available to the department upon request;

5. provide a written assurance, signed by an attorney, that the applicant has proper title, easement and right-of-way to the property upon or through which the project is to be constructed or extended; and

6. agree to provide a written notice to the department of completion of the project; and

7. ensure that the expenditure of funds by loan recipients for construction as defined in LAC 33:IX.2105 or other eligible project costs shall begin within six months after entering into a binding commitment or on a more stringent time frame as may be required by financing agreements. Failure by the loan recipient to start the expenditure of funds within one year after entering into a binding commitment will result in the withdrawal of all financial assistance from the CWSRF.

B. Loans shall be made for a period of time not to exceed 30 years.

C. Loan repayments of the principal and interest installments will be set by the department in the executed loan agreement. Interest payments on the amount drawn shall begin within one year following the loan closing. Principal repayments shall begin within one year following completion of the project, but no later than three years after the loan closing.

La. Admin. Code tit. 33, § IX-2113

Promulgated by the Department of Environmental Quality, Office of Water Resources, LR 13:742 (December 1987), repromulgated LR 14:862 (December 1988), amended by the Office of the Secretary, Legal Division, LR 40:769 (April 2014).

AUTHORITY NOTE: Promulgated in accordance with R.S. 30:2011(D)(1).