N.J. Admin. Code § 16:56-3.7

Current through Register Vol. 57, No. 1, January 6, 2025

Section 16:56-3.7 - Aviation loans

(a) An airport or an aviation enterprise may apply for a loan to be used for such specific purposes and on such terms and conditions as determined by the Commissioner, consistent with the purposes of N.J.S.A. 6:1-1 et seq.

(b) Loan proceeds may be used for revenue or nonrevenue generating capital construction, capital development, or equipment acquisition purposes.

(c) Loans shall not fund an expansion, the preparation for an expansion or completion of an expansion of the physical capabilities of the airport, including, but not limited to, expansion of the runways, to support a greater number of flights or larger aircraft than that which the airport was able to handle safely at the time of the loan application.

(d) Loans may fund the restoration of the physical capabilities of an airport to a state of full repair and maintenance.

(e) Limitations on loans are as follows:

1. A recipient cannot receive more than one aviation loan in a State fiscal year;

2. A loan shall have a four percent annual interest rate, and not exceed $ 200,000. The maximum loan period is 10 years;

3. A loan shall be repaid in a time proportional to the useful life of the project improvement, as determined by the Commissioner; and

4. A loan must be fully secured by property equity or other assets satisfactory to the Commissioner.

(f) Recipients shall repay loans as provided in the loan agreement.

N.J. Admin. Code § 16:56-3.7

Recodified from N.J.A.C. 16:56-2.7 and amended by R.2014 d.055, effective 4/7/2014.
See: 45 N.J.R. 2191(a), 46 N.J.R. 638(a).
In (e)1 and (e)2, substituted a semicolon for a period at the end; and in (e)3, substituted "Commissioner; and" for "Director.".