Rule 11-6-4.3 - Project RequirementsUntil such time as the State satisfies the Title II funding limitations described in Rule 4.2.G. of this regulation, all wastewater projects (as described in Section 212 of the Act) funded by the SRF must comply with the Title II requirements of Rule 4.2.G. and the crosscutting requirements in Appendix H. In addition, the following project requirements also apply:
A. Facilities Planning. (1) Preplanning Conference. Potential applicants and/or their consulting engineer shall request and attend a preplanning conference with the Department staff as early in the planning process as practical. During the conference the staff will provide information, advice, instruction, and guidance on the scope of work and level of effort needed to define eligible projects, in order to ensure that the applicant expeditiously complies with the facilities planning requirements dictated by the Act and State regulations. All facilities plans must be prepared by or under the responsible supervision of a professional engineer, registered under Mississippi law.(2) Contents of Facilities Plan. All facilities plans must contain that described in the Department's guidance for SRF facilities plans, including all updates, and as may be required by Department staff pursuant to review of the facilities plan. The facilities plan must also be prepared in accordance with Appendices A, B, C, H, I, K, M, and N of this regulation. Should an applicant desire to omit or modify a portion of the facilities plan as required by the Department's guidance for SRF facilities plans, approval by the Department staff must be obtained prior to completion and submission of the facilities plan. The facilities plan must also include a financial capability analysis in accordance with Department guidance. The facilities plan must bear the seal of the registered professional engineer responsible for preparation of this document.(3) Environmental Review Process. Prior to approval of the facilities plan, the Department staff will complete the appropriate portions of the environmental review procedure described in Appendix C of this regulation, based upon the evaluation of environmental impacts of the selected alternative as described in the facilities plan.(4) Approval of Facilities Plan. The Department staff will approve the facilities plan after completing the appropriate environmental review procedure and after determining that all facilities planning requirements have been met and are approvable.B. Engineering Design. (1) Predesign Conference. Potential applicants and/or their consulting engineer shall request and attend a predesign conference with Department staff as early in the design process as practical. all plans, specifications and contract documents must be prepared by or under the responsible supervision of a professional engineer registered under Mississippi law.(2) Value Engineering.(a) Applicability. The applicant shall conduct value engineering during the design of the project, if he estimated cost of building the treatment works is more than $5 million. Value engineering for projects of less than $5 million may be conducted at the discretion of the applicant. Applicants who conduct value engineering may receive an additional design allowance, as described in Appendix B, as a part of the loan award.(b) Guidance. The applicant shall utilize the Department's guidance on the scope and performance of the value engineering analysis.(3) Plans, Specifications and Contract Documents.(a) General Requirements. The applicant shall prepare plans, specifications and contract documents on all appropriate elements of the project. These documents shall conform to Department requirements, to Appendices A, C, D, E, F, H, I, K, L, M, and N of this regulation, and to the technical requirements of the Departmental document, "State of Mississippi Requirements for the Design of Municipal Wastewater Treatment Facilities," or its successor. Other recognized engineering publications may be used for unit processes or technologies not described in the "Requirements." Plans, specifications, and contract documents must also conform to such contract language, conditions, and forms as may be required by Department staff. The plans and specifications shall incorporate the accepted recommendations of any value engineering performed in accordance with this regulation. The plans, specifications, and contract documents must bear the seal of the registered professional engineer responsible for preparation of these documents.
(b) Contents. The plans, specifications, and contract documents shall contain the following: (1) Provisions assuring compliance with these regulations and all relevant federal and state laws.(2) Forms by which the bid bond, performance bond and payment bonds will be provided.(3) Until such time as the State satisfies the Title II funding limitations described in Rule 4.2.G. of this regulation, provisions requiring the successful contractor and subcontractors to pay all laborers and mechanics employed on the project not less than the prevailing wage rates, as determined by the United States Secretary of Labor, in accordance with the federal Davis-Bacon Act ( 40 U.S.C. 276, et seq.).(4) A contractor's assurance form to be executed by the contractor which shall warrant compliance by the contractor with all applicable federal laws and regulations and all law of the State of Mississippi and all regulations and published policies of the Commission.(5) If determined to be necessary by the applicant, provisions providing for the applicant to retain a certain percentage of the progress payments otherwise due to the contractor until the building of the project is substantially complete, in accordance with state law.(6) Provisions requiring the contractor to obtain and maintain the appropriate insurance coverage.(7) Provisions giving authorized representatives of the Department access to all such construction activities, books, records, documents and other evidence of the contractor for the purpose of inspection, audit and copying during normal business and/or working hours.(8) Provisions for compliance with the MBE/WBE requirements as described in Appendix E of this regulation.(9) Those conditions, specifications and other provisions provided by or required by the Department staff.(c) Related Submittals. The following documents, if applicable to the project, must also be submitted prior to, or along with the plans, specifications, and contract documents; or at other times may be required by the Priority System: (1) A completed NPDES permit application.(2) A completed Section 404 and/or Section 10 permit application, or a letter from the Corps of Engineers which states that such permits are not needed.(3) A completed solid waste disposal permit application.(4) Approved archaeological/cultural resource surveys, or a letter from the Mississippi Department of Archives and History which states that such surveys are not needed.(5) Approved vegetative/wildlife surveys, or a letter from the Mississippi Natural Heritage Program which states that such surveys are not needed. (4) Approval of Plans and Specifications. (a) Department Approval. The Department staff will approve the plans, specifications, and contract documents upon determining that these documents:(1) Conform to the requirements listed in this regulation;(2) Are consistent with all relevant federal and state laws;(3) Pass a biddability, operability, and constructability review by the Department staff;(4) Are consistent with the facilities planning documents and environmental determinations required by this regulation; and(5) Are otherwise approvable pursuant to review by the Department staff.C. Application for SRF Loan. (1) Preapplication Conference. Potential applicants and/or their consulting engineer shall request and attend a preapplication conference with Department staff as early in the application process as practical.(2) Contents of Application. All documents listed below must be complete and approvable when submitted to the Department staff. An original and one copy of the SRF loan application shall be submitted to the Department staff. Only forms provided by the Department staff may be used, and they must not be altered. The SRF loan application may request assistance only for costs that are allowable in accordance with Appendices A and B of this regulation, and may include a construction contingency, as determined by the Department staff, in the project budget. The application amount shall include any administration fee charged to the loan recipient by the Department, as established in the Intended Use Plan under which the project is funded. A complete application shall conform to this regulation, including all Appendices, and shall include the following:
(a) A completed SRF loan application form.(b) A draft user charge system and ordinance. The user charge system shall be designed to produce adequate revenues required for operation, maintenance, replacement, retirement of existing debt and repayments of the State Revolving Fund Loan for the project and shall identify the dedicated source of funds, the basis of payment, and user charges for each user class.(c) A draft sewer use ordinance. The sewer use ordinance shall prohibit new connections of inflow sources, shall require that new sewers and connections are properly designed and constructed, shall prohibit combined sewers, shall prohibit the introduction of toxics or other pollutants in amounts or concentrations that endanger public safety or physical integrity of the treatment works, cause violation of effluent or water quality limitations, or preclude the selection of the most cost effective alternative for wastewater treatment and sludge disposal.(d) A complete procurement package for all eligible engineering, inspection, architectural, administrative and legal services included in the SRF loan application. Procurement packages for the facilities planning and engineering design are not to be submitted. All procurement actions related to the SRF Loan project shall comply with state law and Appendix D of this regulation, and a certification from the applicant to this effect shall be included in all procurement packages.(e)(1) For all loan ineligible real property and easements (including power and other utilities), completion of the appropriate requirements of the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act, and certification forms from both the loan applicant and the Title Counsel which indicate that all such loan ineligible real property and easements for the entire project have been secured by at least one of the following actions: (b) Execution by both parties of a bonafide option to purchase or lease.(c) Initiation of condemnation by filing such action in court. Prior to loan award, clear title certification forms from both the loan applicant and the Title Counsel must be submitted for all loan ineligible real property and easements (including poser and other utilities).
(2) For all loan eligible real property, such as for land treatment projects, completion of the appropriate requirements of the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act, and a written request to the Department staff for approval of the purchase price of all such loan eligible real property. Prior to loan award, the applicant must secure approval of the purchase price by the Department staff and must submit and executed bonafide option to purchase.(f) A statement of the amount of all necessary local funds for the project and a certification form from the loan applicant which states that all local funds necessary for the project have been secured, or will be secured within 90 days after loan award, and a statement to this effect from the funding source. If local funds will be raised by a local bond issue, a certified copy of the authorizing resolution and an approvable bond issuance schedule may be submitted in lieu of a statement from a funding source.(g) A completed financial capability analysis using the most recent design level cost estimates in Rule 4.3.C.(2)(l).(h) Completion of the intergovernmental review process as described in Appendix K of this regulation, and the final comment letter from the State Clearinghouse, and all other intergovernmental review agency comments received.(i) A certification form from the loan applicant and the loan applicant's legal counsel, stating that (1) the loan applicant has authority under federal and state laws and regulations to receive SRF loan assistance, to collect user charges through an approved user charge system, to enforce the user charge system and sewer use ordinance, to repay the loan under the terms of the loan agreement, to comply with all other terms of the loan agreement, to own, operate, maintain and replace the facilities to be constructed with SRF loan funds, and that (2) there are no restrictions under federal or state laws or regulations regarding indebtedness which may prevent the loan applicant from executing the SRF loan agreement and implementing the project.(j) A certified copy of a resolution by the loan applicant's governing body which (1) authorizes the submission of the application, and (2) designates an authorized representative or office for executing the application and to be the authorized representative on the project.(k) A copy of all actual or proposed interlocal agreements related to the project. Such agreements must be executed by all appropriate parties and must be approved by Department staff prior to loan award.(l) A copy of the bid forms from the plans and specifications filled out with the consulting engineer's cost estimates. The construction costs shown on the application must match those on the bid forms.(m) A certification regarding debarment, suspension and other responsibility matters, in accordance with Appendix F of this regulation.(n) All other forms, documents, and supporting information required by the Department staff.D. Award of SRF Loan (1) Upon determination by the Department staff that (a) all applicable requirements of this regulation and applicable state and federal laws have been met, (b) all applicable documents have been approved, (c) all applicable permits have been issued or will be issued, (d) the project is on the fundable portion of the current year priority list and has not been bypassed by the Commission, and (e) funds are available for the amount of the SRF loan application, the Executive Director, or his designee, shall execute and transmit an SRF loan offer (includes an offer letter, loan agreement and initial repayment agreement) to the loan recipient. In addition to the estimated allowable project costs as described in Appendices A and B of this regulation, the loan offer may include a construction contingency, as determined by the Department staff, in the project budget. This contingency may be reduced after receipt of construction bids as described in Rule 4.3.D.5. below.(2) Upon receipt of the SRF loan offer, the loan recipient must completely execute and return it to the Department staff, along with a certified copy of a resolution by the loan recipient's governing body authorizing acceptance of the loan offer, within the timeframe established in the SRF loan offer. The loan offer becomes void if not executed and returned within the timeframe specified, unless extended by the Executive Director or his designee.(3) Upon return of the executed SRF loan offer to the Department staff, any administration fee established in the loan agreement will be processed accordingly and such fee will be paid to an appropriate Department administration fund.(4) Upon return of the executed SRF loan offer to the Department staff, the loan recipient must then advertise the project for construction bids within the timeframe established in the loan agreement. All procurement actions by the loan recipient must comply with state law and Appendix D of this regulation.(5) Upon receipt of construction bids, the loan recipient must then submit (a) the completed MBE/WBE documentation as required by Appendix E of this regulation, (b) the completed bid package, and (c) a completed loan agreement amendment request (to reflect as-bid construction costs, a construction contingency as determined by the Department staff, and final allowances) to the Department staff within the timeframes established in the loan agreement.(6) Upon receipt of the completed MBE/WBE documentation, bid package and completed loan agreement amendment request from the loan recipient, the Department staff will review these documents, determine whether any request for an increased loan amount is justified, eligible, and that funds are available and, after determining that all documents are approvable, will transmit to the loan recipient an authority to award the construction contracts and an amended SRF loan offer, which includes in the project budget (a) the approved as-bid amounts for construction, (b) the final allowance amounts for facilities planning, engineering design, and construction phase services in accordance with Appendix B of this regulation, and (c) a construction contingency as determined by the Department staff. After execution of the amended SRF loan offer, the SRF loan amount may not be increased except for funding of a subsequent segment of a segmented project as identified in the Intended Use Plan for a later fiscal year. Any increased project costs in excess of the amended SRF loan amount must be paid by the loan recipient from sources other than SRF loan funds.E. Construction Phase (1) Awarding Construction Contracts and Preconstruction Conference. Upon receipt of the authority to award the construction contracts and issue the notice to proceed, the loan recipient must do so and must transmit a copy of the executed construction contracts and the notice to proceed to the Department staff within the timeframe specified in the loan agreement. The loan recipient shall be responsible for assuring that every appropriate procedure and incidental legal requirement is observed in advertising for bids and awarding the construction contracts. The plans, specifications, and executed contract documents shall not vary from those approved by the Department staff.
The loan recipient shall arrange and hold a preconstruction conference and shall allow attendance and participation by the Department staff.
(2) Observation During Construction. During all times that construction work is being performed, the loan recipient shall provide for full-time observation of the project by the consulting engineer and shall require the consulting engineer's assurance that the work is being performed in a satisfactory manner in accordance with the SRF loan agreement and the approved plans, specifications and contract documents, approved change orders, and in accordance with sound engineering principles and building practices. Less than full-time observation may be allowed when properly justified and approved by the Department staff. The Department staff is authorized to observe the building of any project at any time in order to assure that plans, specifications and contract documents are being followed and that the project is being built in accordance with sound engineering principles and building practices. A representative may be stationed at the building site by the Department staff to report on the manner and progress of the building or to report conditions relating to the equipment or materials furnished and the compliance by the contractor with approved plans, specifications and contract documents for the project. Such observation shall not subject the Department to any action for damages of other liability. Such observation will not release the contractor from any requirements of the contract documents or the consulting engineer from determining compliance with the requirements of the contract documents or the loan recipient rom insuring compliance with the terms of the loan agreement.
The contractor, consulting engineer and loan recipient shall furnish the Department staff with every reasonable facility for determining whether the work as performed is in accordance with the requirement and intent of the plans, specifications and contract documents. The Department staff is authorized to review and require submission of daily logs, record drawings, field notes, and any other document prepared by any party in relation to the SRF project.
(3) Observation of Materials and Equipment. The Department staff is also authorized to observe all equipment and materials furnished, including observation of the preparation or manufacture of the equipment and materials to be used.(4) Construction Deficiencies (a) In the event construction procedures, materials or equipment are determined by the Department staff to be substandard, otherwise unsatisfactory, and/or not in conformity with approved plans and specifications, the Department staff may order the loan recipient to take such action through the consulting engineer in the manner provided for in the construction contract to correct any such deficiency.(b) The Department staff may immediately begin withholding SRF loan payments should such substandard or unsatisfactory construction work, materials, or equipment become evident and may require the loan recipient to repay any previously paid amounts related to such work, within 30 days of such notification. Interest may be charged on such delinquent repayments after expiration of the 30-day period at the rate established in Rule 4.3.G(6) of this regulation. Alternatively, the Department staff may withhold such amounts from subsequent payment requests.(c) In those instances of dispute between the loan recipient or consulting engineer and the Department staff as to whether material or equipment furnished or work performed conforms with the terms of the construction contract, the Executive Director or his designee may order the loan recipient to reject unsatisfactory construction work, materials or equipment and/or initiate other action provided for in the construction contract, including suspension of work where necessary, until all disputed issues are resolved in accordance with the terms.(d) In addition to normal testing procedures required of the loan recipient, should questions arise concerning the construction work, materials or equipment, the Department staff may require the loan recipient to perform reasonable additional tests of construction materials, equipment or processes which the Department staff determines to be necessary during the construction of the project. All tests, whether for the Department staff or the consulting engineer, shall conform to current American Water Works Association, American Association of State Highway and Transportation Officials, or American Society of Testing and Materials published procedures, or similar criteria. The Department staff shall specify which tests are applicable, if not described in the approved plans, specifications, and contract documents. Samples for testing shall be furnished free of cost, if so requested, to the Department staff upon request on the construction site.(5) Change Orders. The loan recipient, consulting engineer and construction contractor shall comply with the EPA publication Management of Construction Change Orders. If after the construction contract has been executed it becomes apparent that changes in such plans, specifications or contract documents are necessary or appropriate, a proposed change order and justification shall be submitted to the Department staff for approval, well in advance of the construction change when possible. Approval of change orders may be secured from the Department either before or after such work is initiated, at the discretion of the loan recipient. The Department staff may identify eligible costs and may approve the change order to the previously approved engineering plans, specifications and contract documents including but not limited to additions or deletions of work to be performed pursuant to the contract. Such change order shall not change, vary or alter the basic purpose or effect of a project, shall be technically adequate, the costs shall be justified and reasonable, and eligible/ineligible costs shall be appropriately separated. All requests for change order approvals shall contain
(a) sufficient information and justification, (b) applicable plans or drawings, (c) construction contractor's cost breakdowns, (d) the consulting engineer's analysis of the cost breakdown, and (e) a memorandum of negotiations to enable the Department staff to review the change order. Engineering computations and sketches shall also be included if necessary to justify the change. Justification for contract time extensions included in a change order shall be prepared but need not be submitted to the Department unless the total time extensions for the contract exceed 25% of the original contract time, in which case justification for all time extensions shall be submitted to the Department for review and approval. Construction work which occurs after the date representing a 25% time extension to the original contract time is not allowable, unless approved as such by the Department staff pursuant to review of the justification for all time extensions.
(6) Contractor Bankruptcy or Default. In the event of a contractor bankruptcy or default, any agreements entered into with the bonding company (other than the bonding company serving as general contractor or fully bonding another contractor acting as their agent) shall be submitted for approval of the Department staff. The loan recipient shall be responsible for assuring that every appropriate procedure and incidental legal requirement is observed in advertising for bids and re-awarding a construction contract, if this course of action is taken.(7) Construction Phase Submittals, Approvals, and Actions. The following submittals, approvals and actions will be required during the construction phase of the project. The Department staff may establish other timeframes within the loan agreement when properly justified.(a) Within 90 days after loan award, (1) proof of applicable flood insurance shall be submitted, (2) all construction related contracts shall be advertised for bids and proof of such shall be submitted and (3) all local funds necessary for the project shall be secured and proof of such shall be submitted.(b) Within 14 days after receipt of bids, the loan recipient shall submit all MBE/WBE, EEO and related documents.(c) Within 21 days after receipt of bids, the loan recipient shall submit all bid packages.(d) Within 60 days after receipt of bids, the loan recipient shall execute and submit all construction related contract documents and shall issue and submit a notice to proceed on all such contracts.(e) By the date initially established in the loan agreement (which is based upon approximately 50% of contract time), the loan recipient shall submit for review (1) a completed operation and maintenance manual for all facilities to be constructed in whole or in part with SRF loan funds and (2) a plan of how the loan recipient will insure that operators are hired and certified in accordance with state law by the date in f. below.(f) By the date initially established in the loan agreement (which is based upon approximately 90% of contract time), the loan recipient shall (1) enact the approved user charge system and sewer use ordinance, (2) secure approval of the operation and maintenance manual, (3) hire and operators and (4) submit their names and submit the operator certification numbers for the operators certified in accordance with state law.(g) Within 5 days after construction completion of each construction contract, the loan recipient shall submit a determination of construction completion and shall request a final construction inspection by the Department staff. The determination of construction completion shall be made by the consulting engineer and the loan recipient. The final construction inspection may be delayed by the Department staff pursuant to review of the loan recipient's request and justification for such delay. Should the Department staff decide that the determination of construction completion and request for final construction inspection are being unreasonably delayed, a final construction inspection may be immediately performed by the Department staff.(h) Within 30 days after the final construction inspection performed by the Department staff, the loan recipient shall submit final payment requests, approvable summary change orders for all construction contracts, a complete set of as-built plans for the entire project funded in whole or in part with SRF loan funds, and all other administrative forms and documents required by the loan agreement. Payment requests submitted after this date are not allowable, regardless of when the costs were incurred.(i) Any other submittals or actions required by the loan agreement shall be performed when so required and are subject to review and approval by the Department staff.(8) Retainage. The loan recipient may retain progress payments to any party under contract with the loan recipient, consistent with state law. Any such retained amounts may not be requested or paid to the loan recipient from SRF loan funds.F. Post Construction Phase (1) Following final payment of SRF loan funds to the loan recipient, or upon expiration of any deadlines established by the loan agreement or the Department staff, the Department staff or other designated parties may perform an audit of the SRF loan project for the purpose of determining compliance with the SRF loan agreement and to determine final allowable costs, payments made thus far, and any additional payments due the loan recipient or repayments due the State.(2) Upon completion of the SRF audit (or, if an audit is not performed, following final payment of SRF loan funds to the loan recipient, or upon expiration of any deadlines established by the loan agreement or the Department Staff), the Department staff will transmit to the loan recipient a copy of the audit and a final determination of allowable costs and payments due the loan recipient or repayments due the State. This final determination will also establish a 30-day appeal deadline, as required by 3. below, and will require repayment of any overpayments with an interest penalty to begin accruing on the appeal deadline. the interest penalty will be as established in Rule 4.3.G.(6) of this regulation.(3) Within 30 days after the date of the above final determination, the loan recipient may submit a written appeal the final determination, including a written justification of the reason for the appeal and supporting documentation for any disputed costs of the final determination; otherwise, the final determination allowable costs will become the final allowable costs for purposes of SRF loan payments and the SRF loan repayment agreement.(4) Should an appeal be submitted in accordance with paragraph (3) above, the disputes procedures established in Appendix G of this regulation will be followed in order to resolve the dispute and establish the final allowable costs.(5) Upon expiration of the final determination appeal period, or upon resolution of a dispute of the final determination, the Department staff will transmit to the loan recipient a final SRF loan repayment agreement between the loan recipient and the State Tax Commission as established by state law. The loan recipient shall execute and submit to the Department the final loan repayment agreement within the deadline established by the Department.(6) Upon receipt of an executed final repayment agreement from the loan recipient, the Department staff will transmit the repayment agreement to the State Tax Commission for execution and return to the Department staff.(7) Upon receipt of the executed final repayment agreement from the State Tax Commission, the Department staff will transmit a copy to the loan recipient, and repayment of the SRF loan will commence under the terms of the repayment agreement.(8) On the date one year after initiation of operation of the project, which is defined as the date of the final construction inspection performed by Department staff, the loan recipient shall submit a certification that the project meets all of the project performance standards, in accordance with the SRF loan agreement and department requirements. If the loan recipient cannot certify that all project performance standards are being met, a negative certification shall be submitted on this date along with a corrective action report and an approvable schedule for meeting the project performance standards. all certifications shall be submitted on forms established by the Department staff. Failure to submit such certifications or to implement corrective actions in a timely manner may result in the Department staff determining all or a portion of the loan award unallowable and requiring repayment of such unallowable amounts within 30 days of such determination.G. Payments to SRF Loan Recipients. Payments from the SRF may be made to SRF loan recipients under the following conditions: (1) Payments may be requested by and may be made only to loan recipient, in accordance with the SRF loan agreement and the loan recipient's contracts for services and construction for work performed within the project scope and budget period, unless specifically allowed other by the SRF loan agreement.(2) Payments may be requested and paid no more often than on a monthly basis.(3) The loan recipient shall deduct from all SRF payment requests the amount of funds provided or to be provided from all other state and federal agency funding sources for allowable SRF project costs.(4) Payment requests shall be submitted by the loan recipient to the Department staff and shall include the following:(a) SRF payment request form(b) Invoices for all allowable costs for which payment is requested, except that invoices need not be submitted for payment of the facilities planning and design allowance, as determined by Appendix B of this regulation and need not be submitted for any administrative fee included in the loan agreement.(c) Any other documents required by the loan agreement.(5) The timing of SRF payments will be as follows, provided the loan recipient is in compliance with the requirements of this regulation and all provisions of the SRF loan agreement:(a) Upon execution of the SRF loan agreement, 50% of the estimated facilities planning and design allowance, as determined by Appendix B of this regulation, may be requested and paid.(b) Upon execution and submittal of all construction contracts within the project scope and upon issuance and submittal of the notice to proceed on all such contracts, the remainder of the final facilities planning and design allowance may be requested and paid.(c) Payments for the construction phase services allowance, as determined by Appendix B of this regulation, may be requested and paid based upon incurred allowable costs. Such requested payment amounts are subject to verification by the Department staff. No more than 85% of the total construction phase services allowance will be paid pending submission of the determination of construction completion, performance of the final construction inspection by department staff, submission of the final pay request, submission of approvable summary change orders on all construction contracts, submission of as-built plans on all construction contracts, and compliance with all other applicable provisions of the SRF loan agreement. Upon completion of these actions, the remainder of the construction phase services allowance may be requested and paid.(d) Payments for allowable construction work may be requested and paid based upon in-place work or delivered materials and equipment as specified in the construction contract, and as supported by invoices and verified as accurate by the consulting engineer and the loan recipient, less any retainage. Such requested payment amounts are subject to verification by the Department staff.(e) Payments for eligible land may be requested and paid immediately after loan agreement execution, provided the Department has approved the purchase price and provided the loan recipient has submitted a bonafide option to purchase within 30 days after purchase of the loan eligible real property, clear title certification forms from both the loan recipient and the title counsel shall be submitted to the Department.,(6) Any payments made to the loan recipient which are at any time determined by Department staff to be for costs not in accordance with the SRF loan agreement, for ineligible or unallowable costs, or for related to waste, fraud, abuse or illegal acts under state of federal law, shall be repaid to the SRF fund with 30 days of such notification by the Department staff. Interest may be charged on such delinquent repayments after expiration of the 30-day period at a rate of ten (10) percent per annum, compounded monthly. Alternatively, the Department staff may withhold such amounts form subsequent payment requests.H. SRF Loan Repayment Requirements. All SRF loan repayment agreements will be processed under the following requirements:(1) Interest on paid amounts will commence on the original construction contract completion date.(2) The amount of interest accrued between the original construction contract completion date and the initiation of the repayment process will be added to the final allowable project costs to determine the principal amount to be repaid by the loan recipient.(3) The term of the loan will be from the time of transmittal of the final loan repayment agreement to the loan recipient to the date 20 years after project completion. Project completion is defined as the date of the final construction inspection by the Department staff.(4) Repayments are to be made on a monthly basis through state sales tax withholding or submission of monthly payments in accordance with state law and shall commence no sooner than 90 days after and no later than one year after the final construction inspection by the Department staff.(5) The repayment interest rate and frequency of interest compounding will be established in SRF loan agreement and repayment agreement.(6) Should a loan recipient desire to prepay the SRF loan prior to expiration of the repayment period, the remaining principal to be repaid will be calculated assuming all previous repayments included a fixed principal amount equal to the total loan amount divided by the number of repayments in the repayment agreement.Miss. Code Ann, §§ 49-17-61 through 49-17-70, 49-17-81 through 49-17-89, 49- 2-1, et seq., and 49-17-1, et seq.