N.H. Code Admin. R. Env-Wq 507.02

Current through Register No. 25, June 20, 2024

Section Env-Wq 507.02 - Initial Loan Documents (ILDs) for Non-Governmental Entities

(a) Following acceptance of an application from a non-governmental entity and upon determining that funds are available, the department shall send the applicant's financial information to the SRF financial advisor for review.

(b) If the department determines, based on the assessment provided by the SRF financial advisor, that lending money to the applicant would not pose an unreasonable risk of loss due to non-repayment of funds provided to the applicant, the department shall prepare the initial loan documents (ILD) that contain the following provisions:

(1) The loan amount;

(2) The interest rate for the loan;

(3) The length of the repayment term;

(4) A description of the project;

(5) Authorization for representatives of the department and applicable federal agencies to examine any of the loan recipient's records that pertain to transactions relating to the loan agreement, construction contracts, or engineering contracts for the purpose of inspection, audit, and copying during normal business hours;

(6) A requirement for the recipient to develop and adhere to an asset maintenance and renewal plan for the funded improvements;

(7) Security for the loan; and

(8) Any other provision(s) required by state or federal law in order for the agreement to be valid.

(c) The department shall send the drafted ILD to the SRF attorney and to the applicant for review and comment.

(d) If the applicant agrees to the terms of the ILD and the SRF attorney does not identify issues that could cause the ILD to not be enforceable, the department shall submit the unsigned ILD to the G&C for approval.

(e) If the G&C approves the ILD, the department and the recipient shall schedule a loan closing for a mutually-acceptable date and time.

(f) The recipient shall bring the following documents to the closing:

(1) Proof of authority to enter into contracts in New Hampshire, such as a certificate of good standing from the New Hampshire secretary of state's office that is valid on the date of the loan closing;

(2) If the recipient was formed under the laws of a jurisdiction other than New Hampshire, a certificate of good standing from the state of incorporation or other registration that is valid as of the date of the loan closing; and

(3) Any additional documents identified by the SRF attorney and identified in the loan closing agenda.

(g) After the recipient signs the ILD, the department shall:

(1) Sign the ILD; and

(2) Provide a copy of the signed ILD to the recipient, the SRF financial advisor, and the SRF attorney.

(h) The ILD shall be effective upon signing by the recipient and the department.

N.H. Code Admin. R. Env-Wq 507.02

(See Revision Note #1 at chapter heading for Env-Wq 500) #8883, eff 5-8-07; (See Revision Note #2 at chapter heading for Env-Wq 500) ss by #9394, INTERIM, eff 3-1-09; ss by #9531, eff 8-26-09

Amended by Volume XXXV Number 49, Filed December 10, 2015, Proposed by #10984, Effective 12/1/2015, Expires12/1/2025.

Amended by Number 2, Filed January 12, 2023, Proposed by #13511, Effective 12/20/2022, Expires 12/20/2032.