Okla. Admin. Code § 730:40-3-6

Current through Vol. 41, No. 19, June 17, 2024

Section 730:40-3-6 - Terms

(a) The Department may choose one or more applications to present before the Transportation Commission for loan approval. The Commission shall have final authority on which, if any, applications will be approved.

(b) The loan interest rate shall be five percent (5%) for loans approved by the Commission during the calendar years of 2002-2003. The Commission shall establish an annual interest rate for the year 2004 and subsequent years no later than November 15, prior to each calendar year in which loan applications will be considered. Loans will not exceed Five Hundred Thousand Dollars ($500,000.00) for a duration not to exceed ten (10) years. The loan portion of the agreement will include a promissory note and lien and/or mortgage. All loan applications are subject to the approval of the Transportation Commission.

(c) No more than fifty percent (50%) of the unobligated cash balance of the Oklahoma Railroad Maintenance Revolving Fund (Fund) for any one (1) year may be encumbered for Railroad Rehabilitation loans and the aggregate amount of all loans from the Fund shall not exceed Five Million Dollars ($5,000,000.00). When these limitations have been reached, the application process will be suspended.

(d) Loan proceeds will be applied by the qualified railroad entity only to the improvements and rehabilitation described in the loan application. The Department may request an audit of records and inspection of the physical location of the rehabilitation project at the expense of the qualified railroad entity.

(e) An agreement between the Department and the qualified railroad entity shall include, but not be limited to, specifying that loan payments will be submitted monthly with a construction report for the duration of the rehabilitation project. All monies submitted for repayment made through the Railroad Loan program will be deposited back into the Fund.

Okla. Admin. Code § 730:40-3-6

Added at 20 Ok Reg 248, eff 10-29-02 (emergency); Added at 20 Ok Reg 1814, eff 6-12-03