N.J. Admin. Code § 7:1A-2.8

Current through Register Vol. 56, No. 11, June 3, 2024

Section 7:1A-2.8 - Amount and terms of loan

(a) The amount of the loan, determined by the Department, shall be based upon eligible project costs as set forth in this chapter.

(b) The interest rate for loans made pursuant to the Water Supply Bond Act of 1981, P.L. 1981, c.261, shall be established at a rate deemed appropriate by the Department of the Treasury, or as specified in appropriation acts.

(c) For rehabilitation and interconnection loans, the loan maturity period shall be for a period of no more than 10 years from the date payments to the borrower begin, unless a longer loan maturity period not to exceed 20 years can be justified to the satisfaction of the Department. For Type A funding the loan maturity period shall be for a period of no more than 20 years from the date that payments to the borrower begin. Principal and accrued interest may be prepaid by the borrower prior to the end of the loan maturity period without penalty.

(d) A rate schedule setting forth the amounts charged for sale of water by the borrower shall be established for each rehabilitation, interconnection or water supply replacement loan. For all borrowers, a portion of receipts, as stipulated by the loan award document, shall be dedicated to a specific fund for the purpose of assuring repayment of the loan by the borrower. The Department may require additional collateral to secure the loan when deemed necessary.

1. When applicable, a New Jersey Board of Public Utilities approved rate schedule setting forth the amounts charged for the sale of water by the borrower shall be established.

(e) All other financial loan terms for loans made pursuant to the Water Supply Bond Act of 1981, P.L. 1981 c.261, shall be established by agreement between the Department and the Department of the Treasury. Loan terms shall be made available to all applicants by the Department in all cases prior to execution of any loan award document.

N.J. Admin. Code § 7:1A-2.8

As amended, R.1983 d.534, effective 11/21/1983.
See: 15 New Jersey Register 1307(a), 15 New Jersey Register 1940(a).
(b): interest rate originally set at average rate on latest sale of Water Supply Bonds; (c): all new text; (e) added.
As amended, R.1984 d.232, effective 6/18/1984.
See: 16 New Jersey Register 631(a), 16 New Jersey Register 1479(a).
"Amount and terms of loan" was formerly codified at N.J.A.C. 7:1A-2.9; (a): "Department" was "Division"; (d): Language changed to reflect rehabilitation, interconnection, and water supply contamination loans.
Emergency amendment, R.1988 d.479, effective 9/19/1988 (expires November 18, 1988).
See: 20 New Jersey Register 2470(a).
Substantially amended.
Adopted concurrent proposal, R.1988 d.574, effective 11/18/1988.
See: 20 New Jersey Register 2470(a), 20 New Jersey Register 3129(a).
Provisions of emergency amendment R.1988 d.479 readopted without change.
Amended by R.1992 d.252, effective 6/15/1992.
See: 24 New Jersey Register 707(a), 24 New Jersey Register 2245(a).
Reference to Board of Regulatory Commissioners added.
Amended by R.1997 d.223, effective 5/19/1997.
See: 29 New Jersey Register 7(a), 29 New Jersey Register 2268(a).
In (d)1, substituted "Board of Public Utilities" for "Board of Regulatory Commissioners".